Document:

Document

Exhibit 10.2

			
	FORM OF
ADMINISTRATIVE SERVICES AGREEMENT
dated as of [   ]
between
SAP SE, 
SAP AMERICA, INC.
and
QUALTRICS INTERNATIONAL INC.

TABLE OF CONTENTS
												
				PAGE
	ARTICLE I
	DEFINITIONS
				
	Section 1.01		Definitions	1
	Section 1.02		Internal References	6
				
	ARTICLE II
	PROVISION OF SERVICES
				
	Section 2.01		Provision of SAP Services	7
	Section 2.02		Provision of Qualtrics Services	7
	Section 2.03		Additional Services	8
	Section 2.04		Transition	8
	Section 2.05		Cooperation	8
	Section 2.06		Modifications	9
	Section 2.07		Exceptions	9
	Section 2.08		Annual Review	9
	Section 2.09		Transaction Agreements	9
	Section 2.10		Proprietary Rights in relation to Development Services.	9
				
	ARTICLE III
	SERVICE COSTS; OTHER CHARGES
				
	Section 3.01		Service Costs	11
	Section 3.02		Payment	14
	Section 3.03		Financial Responsibility for Parties’ Personnel	15
				
	ARTICLE IV
	STANDARD OF PERFORMANCE AND INDEMNIFICATION
				
	Section 4.01		General Standard of Service	15
	Section 4.02		Services Management	15
	Section 4.03		Limitation of Liability	16
	Section 4.04		Indemnification	17
				

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	ARTICLE V
	TERM AND TERMINATION
				
	Section 5.01		Term	17
	Section 5.02		Termination	17
	Section 5.03		Effect of Termination	18
				
	ARTICLE VI
	MISCELLANEOUS
				
	Section 6.01		Ownership	19
	Section 6.02		No Agency	19
	Section 6.03		Subcontractors	19
	Section 6.04		Force Majeure	19
	Section 6.05		Entire Agreement	19
	Section 6.06		Information	20
	Section 6.07		Notices	20
	Section 6.08		Governing Law and Jurisdiction	21
	Section 6.09		Consent to Jurisdiction	21
	Section 6.10		Waiver of Jury Trial	21
	Section 6.11		Amendment	22
	Section 6.12		Counterparts	22
	Section 6.13		Binding Effect; Assignment	22
	Section 6.14		Severability	22
	Section 6.15		Failure or Indulgence not Waiver; Remedies Cumulative	22
	Section 6.16		Authority	22
	Section 6.17		Interpretation	22
	Section 6.18		Conflicting Agreements	23
	Section 6.19		Third Party Beneficiaries	23
	Section 6.20		Limitation of Liability	23

SCHEDULES
SCHEDULE I.Certain Services To Be Provided By SAP to Qualtrics
SCHEDULE II.Certain Services To Be Provided By Qualtrics to SAP
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ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement is dated as of the [  ] day of [  ], 202[  ], between Qualtrics International Inc., a Delaware corporation (“Qualtrics”), SAP SE, a Societas Europaea registered in accordance with the corporate laws of Germany and the European Union (“SAP SE”), and SAP America, Inc., a Delaware corporation (“SAP America” and, together with SAP SE, “SAP”).  Qualtrics and SAP are sometimes referred to herein separately as a “Party” and together as the “Parties”.  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in Article I hereof.
RECITALS
WHEREAS, SAP SE is the indirect beneficial owner of all the issued and outstanding Class B common stock of Qualtrics, and SAP America is the direct beneficial owner of all the issued and outstanding Class B common stock of Qualtrics;
WHEREAS, SAP, through Qualtrics, is engaged in the business (the “Qualtrics Business”) of experience management software and services, including providing a technology platform for organizations to collect, manage, analyze and take action on experience data, as more completely described in a Registration Statement on Form S-1 (File No. [  ]) filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “IPO Registration Statement”);
WHEREAS, SAP and Qualtrics currently contemplate that Qualtrics will make an initial public offering (the “IPO”) of its Class A common stock pursuant to the IPO Registration Statement; 
WHEREAS, SAP directly or indirectly provides certain services to the Qualtrics Entities (as defined below) and Qualtrics directly or indirectly provides certain services to the SAP Entities (as defined below);
WHEREAS, following consummation of the IPO, Qualtrics desires SAP to continue to provide certain services to the Qualtrics Entities, and SAP desires Qualtrics to continue to provide certain services to the SAP Entities, as more fully set forth in this Agreement; and
WHEREAS, each Party desires to set forth in this Agreement the principal terms and conditions pursuant to which SAP will provide certain services to the Qualtrics Entities and Qualtrics will provide certain services to the SAP Entities.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, for themselves and their respective successors and assigns, hereby covenant and agree as follows:
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ARTICLE I
DEFINITIONS
Section 1.01Definitions.  As used in this Agreement, the following terms shall have the following meanings, applicable both to the singular and the plural forms of the terms described:
“Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority or any arbitration or mediation tribunal. 
“Agreement” means this Administrative Services Agreement, together with the Schedules, as the same may be amended and supplemented from time to time in accordance with the provisions hereof.
“Change of Control” means the occurrence of any one or more of the following events:
(a)the sale or disposition, in one or a series of related transactions, of all or substantially all of the consolidated assets of the Qualtrics Entities, taken as a whole, to any “person” or “group” (as such terms are used for purposes of Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) other than SAP SE or any of its direct or indirect wholly-owned Subsidiaries;
(b)any “person” or “group,” other than SAP SE or any of its direct or indirect wholly-owned Subsidiaries, is or becomes the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the total voting power of the outstanding voting stock of Qualtrics, excluding as a result of any merger or consolidation that does not constitute a Change of Control pursuant to clause (c);
(c)any merger or consolidation of Qualtrics with or into any other person, unless immediately thereafter SAP SE or any of its direct or indirect wholly-owned Subsidiaries beneficially owns a majority of the outstanding shares of the common stock (or equivalent voting securities) of the surviving or successor entity (or the parent entity thereof); or
(d)SAP SE or any of its direct or indirect wholly-owned Subsidiaries ceases to have the right to cause the election of that number of members of the board of directors of Qualtrics who collectively have the right to vote a majority of the aggregate number of votes represented by all of the members of the board of directors of Qualtrics.
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“Contract” means any contract, agreement, lease, license, sales order, purchase order, instrument or other commitment that is binding on any Person or any part of such Person’s property under applicable law.
“Distribution Agreement” means the Distribution Agreement between the Parties of even date herewith.
“Employee” means any Qualtrics Employee or SAP Employee.
“Employee Matters Agreement” means the Employee Matters Agreement between the Parties of even date herewith.
“Insurance Matters Agreement” means the Insurance Matters Agreement between the Parties of even date herewith.
“Intellectual Property Matters Agreement” means the Intellectual Property Matters Agreement between the Parties of even date herewith.
“Liabilities” means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation, whether arising out of any Contract or tort based on negligence or strict liability) and whether or not the same would be required by generally accepted principles and accounting policies to be reflected in financial statements or disclosed in the notes thereto.
“Losses” means any and all damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including the costs and expenses of any and all Actions and demands, assessments, judgments and settlements and compromises relating thereto and all attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder), including direct and consequential damages, but excluding punitive damages (other than punitive damages awarded to any third party against an indemnified party).
“Master Transaction Agreement” means the Master Transaction Agreement between the Parties of even date herewith.
“Offering Date” means the date on which the IPO is consummated.
“Person” means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated organization, government (including any department or agency thereof) or other entity.
“Qualtrics-Aligned Employee” has the meaning set forth in the Employee Matters Agreement.
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“Qualtrics Employee” means (i) an employee or individual contractor of a Qualtrics Entity who will be engaged in providing Qualtrics Services, or (ii) a Qualtrics-Aligned Employee who will be engaged in providing Qualtrics Services. 
“Qualtrics Entities” means Qualtrics and its Subsidiaries and any entity which becomes a Subsidiary of Qualtrics after the date hereof, and “Qualtrics Entity” means any one of the Qualtrics Entities.
“Qualtrics Services” means the various services to be provided by a Qualtrics Entity to or on behalf of the SAP Entities as described on Schedule II and any Additional Services provided by a Qualtrics Entity pursuant to this Agreement.
 “Real Estate Matters Agreement” means the Real Estate Matters Agreement between the Parties of even date herewith. 
“SAP Employee” means an employee or individual contractor of an SAP Entity who will be engaged in providing SAP Services.  For the avoidance of doubt, no Qualtrics-Aligned Employee shall be considered to be an SAP Employee for purposes of this Agreement.
“SAP Entities” means SAP SE and its Subsidiaries (other than the Qualtrics Entities) and any entity which becomes a Subsidiary of SAP SE after the date hereof, and “SAP Entity” means any one of the SAP Entities. 
“SAP Services” means the various services to be provided by an SAP Entity to or on behalf of the Qualtrics Entities as described on Schedule I and any Additional Services provided by an SAP Entity pursuant to this Agreement. 
“Schedule I” means the first Schedule attached hereto, as amended from time to time, which lists certain agreed upon SAP Services to be provided by SAP to or on behalf of the Qualtrics Entities and sets forth the related pricing for such Services.
“Schedule II” means the second Schedule attached hereto which sets forth the pricing for Qualtrics Services to be provided by Qualtrics to or on behalf of the SAP Entities and sets forth the related pricing for such Services.
“Schedules” means any one or more of the schedules referred to in and attached to this Agreement.
“Services” means the Qualtrics Services and the SAP Services.
“Subsidiary” means, as to any Person, a corporation, limited liability company, joint venture, partnership, trust, association or other entity in which such Person:  (1) beneficially owns, either directly or indirectly, more than fifty percent (50%) of (A) the total combined voting power of all classes of voting securities of such entity, (B) the total combined equity interests, or (C) the capital or profits interest, in the case of a partnership; or (2) otherwise has the power to vote, either directly or indirectly, sufficient securities to elect a majority of the board of directors 
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or similar governing body.  For purposes of this Agreement, no Qualtrics Entity shall be deemed to be Subsidiaries of any SAP Entity.
“Tax” and “Taxes” shall have the meanings set forth in the Tax Sharing Agreement.
“Tax Sharing Agreement” means the Tax Sharing Agreement between the Parties of even date herewith.
“Transaction Agreements” means this Agreement, the Distribution Agreement, the Employee Matters Agreement, the Insurance Matters Agreement, the Intellectual Property Matters Agreement, the Real Estate Matters Agreement, the Master Transaction Agreement and the Tax Sharing Agreement.
(b)Each of the following terms is defined in the Section set forth opposite such term:
									
	TERM		SECTION
	Additional Services		2.03
	ARMR		3.01(a)(i)
	Billable Employees		3.01(a)(i)
	Billable Offerings		3.01(a)(i)
	Consulting Services		3.01(a)(i)
	Cost		3.01(a)(ii)
	Development Services Intellectual Property Rights		2.10(a)
	Development Services Provider		2.10(a)
	Development Services Recipient		2.10(a)
	Force Majeure		6.04(a)
	Initial Term		5.01(a)
	IPO		Recitals
	IPO Registration Statement		Recitals
	Other Services		3.01(a)(ii)
	Out-of-Pocket Costs		3.01(d)
	Parties		Preamble
	Party		Preamble
	Qualtrics		Preamble
	Qualtrics Indemnified Person		4.03(b)
	Qualtrics Business		Recitals
	Renewal Term		5.01(a)
	SAP		Preamble
	SAP America		Preamble
	SAP Indemnified Person		4.03(a)
	SAP SE		Preamble

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	Service Center		3.01(b)
	Services Managers		4.02
	Services Taxes		3.01(e)(i)
	SLA		3.01(b)
	Termination Date		5.03(a)

Section 1.02Internal References.  Unless the context indicates otherwise, references to Articles, Sections and paragraphs shall refer to the corresponding articles, sections and paragraphs in this Agreement and references to the parties shall mean the parties to this Agreement.
ARTICLE II
PROVISION OF SERVICES
Section 2.01Provision of SAP Services
(a)Subject to the terms and conditions of this Agreement and in consideration of the costs for SAP Services described below, SAP agrees to provide or cause to be provided to the Qualtrics Entities, and Qualtrics agrees to purchase or to cause the Qualtrics Entities to purchase from SAP, the SAP Services, until such SAP Services are terminated in accordance with the provisions hereof.
(b)The Parties acknowledge and agree that SAP may directly satisfy its obligation to provide or to procure the SAP Services hereunder or may indirectly do so by causing one or more of its Subsidiaries to provide or to procure the SAP Services.  The SAP Services shall, at Qualtrics’ request, be provided directly to Qualtrics or Subsidiaries of Qualtrics. With respect to the SAP Services provided to, or procured on behalf of, any Subsidiary of Qualtrics, Qualtrics agrees to pay on behalf of such Subsidiary all amounts payable by or in respect of such SAP Services pursuant to this Agreement, if any amounts payable are not otherwise paid by such Subsidiary.  Qualtrics (or the other relevant Qualtrics Entity receiving SAP Services) shall pay all amounts payable in respect of SAP Services to the SAP Entity indicated on the applicable invoice for such SAP Services (which may be SAP or the Subsidiary of SAP that provided or procured such SAP Services).  
(c)Except as otherwise provided on a Schedule, SAP may elect not to provide any Services requested by Qualtrics, and Qualtrics  may elect not to purchase any Services offered by SAP.
Section 2.02Provision of Qualtrics Services
(a)Subject to the terms and conditions of this Agreement and in consideration of the costs for Qualtrics Services described below, Qualtrics agrees to provide or cause to be provided to the SAP Entities, and SAP agrees to purchase or to cause the SAP Entities to purchase from Qualtrics, the Qualtrics Services, until such Qualtrics Services are terminated in accordance with the provisions hereof.
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(b)The Parties acknowledge and agree that Qualtrics may directly satisfy its obligation to provide or to procure the Qualtrics Services hereunder or may indirectly do so by causing one or more of its Subsidiaries to provide or to procure the Qualtrics Services. The Qualtrics Services shall, at SAP’s request, be provided directly to SAP or Subsidiaries of SAP.   With respect to the Qualtrics Services provided to, or procured on behalf of, any Subsidiary of SAP, SAP agrees to pay on behalf of such Subsidiary all amounts payable by or in respect of such Qualtrics Services pursuant to this Agreement, if any amounts payable are not otherwise paid by such Subsidiary.  SAP SE or SAP America (or the other relevant SAP Entity receiving Qualtrics Services) shall pay all amounts payable in respect of Qualtrics Services to the Qualtrics Entity indicated on the applicable invoice for such Qualtrics Services (which may be Qualtrics or the Subsidiary of Qualtrics that provided or procured such Qualtrics Services).
(c)Except as otherwise provided on a Schedule, Qualtrics may elect not to provide any Services requested by SAP, and SAP may elect not to purchase any Services offered by Qualtrics.
Section 2.03Additional Services.  In addition to the Services to be provided or procured pursuant to, and in accordance with, Section 2.01 or Section 2.02, and subject to Section 2.09, if requested by the Party receiving such Services, and to the extent that the Party providing such Services may agree in writing (including by amending the Schedules, entering into an SLA pursuant to Section 3.01(b), providing a statement of work, or any other written (including by email) evidence of a request for additional services and an acceptance of such request), the Party providing such Services shall provide additional services to such other Party (“Additional Services”). The costs and other terms and conditions applicable to such Additional Services shall be as provided in Section 3.01, unless otherwise mutually agreed by the Parties prior to the provision of such Additional Services.
Section 2.04Transition.  Each Party receiving a Service (including any SAP Service provided pursuant to an SLA) agrees to use commercially reasonable efforts to cooperate with the Party providing such Service in providing for an orderly transition of such Service to the Party receiving such Service or to a successor service provider as designated by the Party receiving such Service.
Section 2.05Cooperation.  To the extent reasonably necessary to perform the Services, a Party receiving Services shall provide personnel of the Party providing Services, its Subsidiaries and its subcontractors with reasonable access during normal business hours to the receiving Party’s office space, telecommunications and computer equipment and systems, and other areas and equipment.  The Party providing Services will comply, and shall instruct its Subsidiaries and subcontractors to comply, with any reasonable security and access restrictions and other procedures that are communicated to such Party in writing and applicable to such access.  The Party receiving Services shall (a) comply with any reasonable instructions of the Party providing Services that are reasonably necessary for it to adequately provide the Services; (b) comply with all standards and procedures applicable to such Services (if any) which are generally applied by such Party in the provision of services similar to such Services to itself and its Subsidiaries and which are communicated to the receiving Party in writing; and (c) promptly 
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notify the Party providing Services of any operational or system problem which may affect the provision of any Services. To the extent the receiving Party fails to adhere to this Section 2.05, the Party providing Services shall (i) be entitled to additional compensation and/or time to perform the Services, as applicable, as mutually agreed between the Parties in writing to the extent such failure materially increases its cost or burden to provide such Services, or (ii) be excused from its performance of the Services hereunder where such failure prevents its provision of the Service in conformance with this Agreement; provided that the Party providing Services shall first notify the receiving Party of such failure in writing and, where applicable, allow the receiving Party a reasonable opportunity (not to exceed thirty (30) days) to cure such failure.
Section 2.06Modifications.
(a)Each Party may make changes from time to time in its standards and procedures for performing Services; provided that any such change shall also apply to such Party’s own business.  
(b)Each Party shall provide the other Party with a minimum of sixty (60) days’ prior written notice of any planned changes to such Party’s business or information technology infrastructure or systems that may affect the provision or receipt of the Services hereunder.
Section 2.07Exceptions.  In connection with providing the Services, neither Party shall be required to perform, or to refrain from taking, any actions that, in such Party’s reasonable judgment, could result in or cause any conflict with, or breach or violation of, any existing license, lease or other agreement to which such Party or any of its Subsidiaries is a party, or any law, rule or regulation; provided that each Party agrees to, as promptly as practicable after becoming aware of such conflict, breach, or violation, consult with the other Party to identify any reasonable alternative services or solutions and, with such other Party’s permission, implement such alternative services or solutions.
Section 2.08Annual Review.  No later than 30 days prior to the end of each year during the Initial Term or the end of any Renewal Term (unless notice of non-renewal shall have been given), the Parties may commence discussions to determine the appropriate scope and level of service for each Service (including any SAP Service provided pursuant to an SLA) to be provided in the next year of the Initial Term or in the subsequent Renewal Term, as applicable, based on a good faith review of the Services and levels of service provided in the then-current year or term and a good faith estimate of each Party’s future service requirements, and may execute and deliver amended Schedules for the subsequent year or Renewal Term as mutually agreed.
Section 2.09Transaction Agreements.  Certain of the other Transaction Agreements require the Parties to perform services to each other under the terms of the applicable other Transaction Agreements.  Unless specifically designated as a Service or Additional Service under or in accordance with this Agreement, the provision of services pursuant to any such other Transaction Agreement shall be subject to the terms and conditions of the applicable other Transaction Agreement and shall not constitute Services or Additional 
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Services under this Agreement and shall not be subject to the terms and conditions of this Agreement.
Section 2.10Proprietary Rights in relation to Development Services.
(a)Each Party providing Development Services, including Custom Development Services (each as described in the Schedules) (the “Development Services Provider”) agrees to assign, and hereby assigns, to the other Party (the “Development Services Recipient”), to the extent legally permissible, all intellectual property rights, title and interest in any and all products, works, inventions, designs and other materials (and any modifications and enhancements thereto) created or produced by or in connection with the Development Services Provider’s provision of Development Services under this Agreement (“Development Services Intellectual Property Rights”).  The Development Services Provider agrees to provide any declarations and sign any documents reasonably necessary to effect such assignment to the Development Services Recipient.  To the extent the foregoing assignment is ineffective for any reason, the Development Services Provider hereby grants to the Development Services Recipient an exclusive, perpetual, irrevocable, world-wide, royalty-free, fully paid up, transferable and unrestricted (in terms of time and substance) right to use, sell, duplicate, modify, process, translate and distribute such Development Services Intellectual Property Rights, including in the form of leasing or renting out, and to transfer these rights to use the work results to any third party.  The assignment and/or granting of rights hereunder shall become effective immediately upon the respective Development Services Intellectual Property Rights coming into existence.  The Development Services Recipient herewith accepts this assignment and this granting of rights in the Development Services Intellectual Property Rights.
(b)The Development Services Provider expressly waives the right to be identified as the author of the Development Services Intellectual Property Rights.  The Development Services Provider will secure by respective agreements with its employees that the assignment and granting of Development Services Intellectual Property Rights pursuant to Section 2.10(a) and the waiver pursuant to Section 2.10(b) will not be hindered or prevented by, nor be in conflict with, proprietary rights of the Development Services Provider’s Employees.  
(c)The Development Services Provider shall make available to the Development Services Recipient, promptly upon the completion of any Development Services (including Custom Development Services set forth in Schedule I) under this Agreement, information whether in tangible or intangible form, electronically stored or any form of media or otherwise, which is necessary for the Development Services Recipient to fully exercise the rights granted under paragraph (a) hereof.
(d)Notwithstanding the foregoing, the terms of this Section 2.10 shall not apply to any Development Services Intellectual Property Rights that constitute improvements, modifications or derivative works of the Development Services Provider’s products or services and, as between the Parties, each Party shall exclusively own and retain all right, title or interest in and to their respective products or services, including all improvements, modifications or derivative works.  Without limiting the foregoing, the Parties acknowledge and agree that neither Party intends to create any such Development Services Intellectual Property Rights that 
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constitute improvements, modifications or derivative works of the Development Services Provider’s products or services.
(e)Development Services Provider Indemnification.
(i)The Development Services Provider agrees to defend or at its option settle, at its own cost and expense, the Development Services Recipient against any and all claims of third parties against the Development Services Recipient to the extent alleging that the Development Services Recipient’s use of the Development Services Intellectual Property Rights as provided by the Development Services Provider and as authorized by this Agreement infringes such third parties’ intellectual property rights. The Development Services Provider shall indemnify and hold harmless against any final judgment entered on such claim or in settlement thereof.
(ii)The Parties shall promptly inform each other in case either of them becomes aware of a third party asserting an infringement of proprietary rights by the use of Development Services Intellectual Property Rights as authorized by this Agreement.
(iii)The Development Services Provider may, at is sole option and without limiting its indemnification obligations hereunder, either exchange or modify the Development Services Intellectual Property Rights in a manner that it no longer infringes third-party intellectual property rights, without materially degrading its functionality, or procure for the Development Services Recipient the right to continue the use of the Development Services Intellectual Property Rights.
(f)The terms of this Section 2.10 shall survive any termination or expiration of this Agreement.
ARTICLE III
SERVICE COSTS; OTHER CHARGES
Section 3.01Service Costs.
(a)Services Performed by Employees of the Providing Party.  Except (x) for SAP Services that the Parties mutually agree shall be provided and charged pursuant to an SLA entered into pursuant to Section 3.01(b), or (y) as otherwise provided in the applicable Schedule for the applicable Service, each Service (including Additional Services, unless otherwise mutually agreed by the Parties prior to the provision of such Additional Services) shall be provided at a fee or price calculated as follows:
(i)For Services (“Consulting Services”) performed by consultants, instructors and other Employees who have an internal or external billing rate (“Billable Employees”), or for other Services that consist of a billable offering with a defined selling price on an external price list, such as training services (“Billable Offerings”), such Consulting Services shall be charged at the Average Realized Market Rate (“ARMR”) determined and adjusted by the providing Party pursuant to Section 
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3.01(a)(iii) for each Billable Employee who renders Consulting Services or for each Billable Offering.  To the extent any Billable Employee does not have an ARMR, the lowest consulting fee rate determined by such Party for such Billable Employee shall be used.
(ii)For all other Services (“Other Services”), unless a different cost methodology or markup rate is specified on the applicable Schedule for a particular Other Service, such Other Services shall be charged at the providing Party’s cost (including assessments for administration, information technology and facilities) (“Cost”) as determined by the providing Party, plus a markup rate of 6%.  If any Other Services are performed by Billable Employees, the price for the portion of such Other Services performed by Billable Employees shall be determined as if such services were Consulting Services as provided above.  The providing Party shall not charge for any Other Services that are provided primarily for the benefit of the providing Party.  
(iii)ARMR and Cost shall be calculated by the providing Party in a manner consistent with how ARMR and Cost are calculated by SAP for the applicable job types or other measurement criteria in the applicable locations across SAP’s business units.  SAP shall provide Qualtrics with sufficient information regarding how ARMR and Cost are calculated by SAP in order to enable Qualtrics to calculate ARMR and Cost pursuant to this Agreement.  ARMR shall be subject to an annual adjustment process whereby at the end of each year and no later than the end of SAP’s year-end closing process, the providing Party shall recalculate the amounts charged to the receiving Party for such year based on the ARMR as calculated by the providing Party for such year, and shall either invoice the receiving Party for any shortfall in the event such recalculation results in the receiving Party having paid less than the amount owed for such year or credit the receiving Party for any excess in the event such recalculation results in the receiving Party having paid more than the amount owed for such year.
(b)SAP Services Performed Pursuant to an SLA.  The parties may mutually agree that certain SAP Services shall be provided and charged by an SAP Entity pursuant to a separate Shared Services Agreement and Service Level Agreement (each, together with all schedules, exhibits and appendices thereto, an “SLA”) to be entered into between an SAP Entity (any SAP Entity entering into an SLA, a “Service Center”) and a Qualtrics Entity.  To the extent that any SAP Services are provided by or on behalf of a Service Center pursuant to an SLA, such SLA shall constitute a Schedule to this Agreement and such SAP Services shall be provided pursuant to, and shall be subject to the terms and conditions of, any such SLA with the same effect as if such SLA were a Schedule to this Agreement.
(c)Third Party Service Providers.  Services performed by third party service providers or subcontractors directly to or for the benefit of the receiving party that are billed to the providing Party rather than being billed directly to the receiving Party shall be charged at the price charged by such third party service provider or subcontractor without any markup, unless otherwise specified on the applicable Schedule for such Other Services.
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(d)Out-of-Pocket Costs.  In addition to the amounts payable pursuant to Section 3.01(a), (b) or (c), in the event that a Party providing Services incurs reasonable and documented out-of-pocket expenses in connection with the provision of any Service, including license fees and payments, reasonable travel costs and expenses, shipping and transportation costs and other fees or expenses, but excluding payments made to Employees of such Party, payments to third party service providers or subcontractors, or other payments included in the calculation of Costs (such included expenses, collectively, “Out-of-Pocket Costs”), the Party receiving such Service shall reimburse the Party providing such Service for all such Out-of-Pocket Costs in accordance with the invoicing procedures set forth in Section 3.02, without any markup.  Neither Party shall incur any individual or series of related Out-of-Pocket Costs (excluding license fees and payments and duties and non-recoverable taxes) for any individual Service in excess of $5,000 in any billing period without the prior written approval of the Party receiving Services unless such Out-of-Pocket Costs are approved on the applicable Schedule for such Services.
(e)Taxes.
(i)All applicable sales, use, value added, GST, transfer, receipts, customs duties, consumption or other similar Taxes (and any other Taxes other than income Taxes and corporation Taxes), together with any interest, penalties or amounts imposed with respect thereto (collectively, “Services Taxes”), shall be borne by the Party (or its Subsidiary) receiving Services hereunder. If any Services Tax is required to be withheld or deducted from any payment under this Agreement, the Party (or its Subsidiary) receiving Services will increase the amount payable under this Agreement as shall ensure that after such withholding or deduction, the Party (or its Subsidiary) providing Services receives an amount equal to the amount required to be paid hereunder. 
(ii)Income Taxes will be borne by the Party (or its Subsidiary) providing Services. If the Party (or its Subsidiary) receiving Services is required to withhold any Taxes (other than Services Taxes) from any payment to the Party (or its Subsidiary) providing Services under this Agreement, the Party (or its Subsidiary) receiving Services hereunder shall be entitled to withhold or deduct such Taxes from the gross amount to be paid. However, the Party (or its Subsidiary) receiving Services shall cooperate with the Party (or its Subsidiary) providing Services to reduce any such withholding Tax payable pursuant to applicable law or an income tax treaty. The Party (or its Subsidiary) receiving Services hereunder will in the case of any withholding Tax (including withholding Taxes described under Section 3.01(e)(ii)) provide to the Party (or its Subsidiary) providing Services a receipt from the relevant tax authority to which such withholding Tax has been paid.
(iii)Each Party shall cooperate with each other Party and take any reasonably requested action which does not cause such first Party to incur any cost or inconvenience (other than de minimis costs or inconveniences) in order to minimize any Services Taxes imposed on the sale of the Services (or other goods and services sold pursuant to this Agreement), including providing sales and use (or value added) tax 
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exemption certificates or other documentation necessary to support tax exemptions. Each Party agrees to provide each other Party such information and data as reasonably requested from time to time, and to fully cooperate with each other Party, in connection with (i) the reporting of any Services Taxes payable pursuant to this Agreement, (ii) any audit relating to any Services Taxes payable pursuant to this Agreement or (iii) any assessment, refund, claim or proceeding relating to any such Services Taxes.
(iv)Except as otherwise provided in any SLA, this Section 3.01(e) shall be applicable to any SAP Service provided pursuant to an SLA.
Section 3.02Payment.
(a)Unless otherwise set forth on a Schedule (or otherwise mutually agreed to by the Parties in writing), charges for Services shall be invoiced quarterly in arrears by each Party (or its Subsidiary) providing or procuring such Services following the end of a quarter; provided that provided that  charges for Consulting Services shall be invoiced monthly in arrears by each Party (or its Subsidiary) providing or procuring such Consulting Services following the end of a month. The invoice shall set forth in reasonable detail (which shall be sufficient to allow the receiving Party’s internal controlling or financial oversight personnel or its certified public accountants to verify independently the correctness of the invoice) for the period covered by such invoice (i) the Services rendered, (ii) the aggregate amount charged for each type of Service provided, (iii) the calculations for such amount charged, including billing rates, hours worked, ARMR, and Cost, as applicable, and (iv) such additional information as the Party receiving the invoice may reasonably request.  Each invoice shall be directed to the appropriate Services Manager of the Party to receive the invoice or such other individual designated in writing from time to time by such Services Manager.  Unless otherwise agreed in writing between the Parties, all payments made pursuant to an invoice shall, in the case of payments to a Qualtrics Entity, unless otherwise agreed in writing, be made in U.S. dollars and, in the case of payments to a SAP Entity, be made in the local or functional currency of such SAP Entity. The Parties shall provide documentation supporting any amounts invoiced pursuant to this Section 3.02 as the Party receiving the invoice may from time to time reasonably request.
(b)Each invoice shall be payable within sixty (60) days after receipt; provided that if such Party, in good faith, disputes any invoiced charge, payment of such charge may be made only after mutual resolution of such dispute.  Each Party agrees to notify the Party sending the invoice promptly, and in no event later than thirty (30) days following receipt of an invoice, of any disputed charge, listing all disputed items and providing a reasonably detailed description of each disputed item. Amounts not so disputed shall be deemed accepted and shall be paid, notwithstanding disputes on other items, within the period set forth in Section 3.02(a). The applicable Parties shall seek to resolve all such disputes expeditiously and in good faith.  Interest shall be charged on amounts overdue. The interest rate is based on the official interbank offered rate (1m-LIBOR) or a similar official reference rate of the relevant currency prevailing the first day of the month in which the interest will be calculated plus a margin of 100 basis points (1.00%) per annum. The interest will be calculated and charged on a monthly basis.
(c)During the term of this Agreement, each Party shall keep such books, records and accounts as are reasonably necessary to verify the calculation of the fees and related expense for Services provided hereunder.  Each Party shall provide documentation supporting 
13

any amounts invoiced pursuant to this Section 3.02 as the other Party may from time to time reasonably request.  Each Party shall have the right to review such books, records and accounts of the other Party at any time upon reasonable notice, and the Party requesting such review agrees to conduct any such review in a manner so as not to unreasonably interfere with the other Party’s normal business operations.
(d)Each Party hereby acknowledges and agrees that it shall have no right under this Agreement to offset any amounts owed (or to become due and owing) to another Party, whether under this Agreement or otherwise, against any other amount owed (or to become due and owing) to it by the other Party.
Section 3.03Financial Responsibility for Parties’ Personnel.  Each Party shall pay for all personnel and other related expenses, including salary or wages, of its employees performing the applicable Services (including any SAP Service provided pursuant to an SLA).  No individual providing SAP Services (including any SAP Service provided pursuant to an SLA) to a Qualtrics Entity pursuant to the terms of this Agreement shall be deemed to be, or shall have any rights as, an employee of any Qualtrics Entity, and no individual providing Qualtrics Services to an SAP Entity pursuant to the terms of this Agreement shall be deemed to be, or shall have any rights as, an employee of such SAP Entity.  Notwithstanding the foregoing, the financial responsibility for, and the rights of, all Qualtrics-Aligned Employees shall be as provided in the Employee Matters Agreement.
ARTICLE IV
STANDARD OF PERFORMANCE AND INDEMNIFICATION
Section 4.01General Standard of Service.  Except as otherwise agreed to in writing by the Parties or as described in this Agreement:
(a)The nature, quality, degree of skill and standard of care applicable to the delivery of the SAP Services hereunder, and the skill levels of the SAP Employees providing such SAP Services, shall be substantially the same as or consistent with those which similar SAP Entities exercise or employ in providing similar services within or to any SAP Entity.
(b)The nature, quality, degree of skill and standard of care applicable to the delivery of the Qualtrics Services hereunder, and the skill levels of the Qualtrics Employees providing such Qualtrics Services, shall be substantially the same as or consistent with those which any Qualtrics Entity exercises or employs in providing similar services within or to any Qualtrics Entity.
Section 4.02Services Management.  SAP and Qualtrics each agree to appoint one or more of their respective employees for each specific Service (including any SAP Service provided pursuant to an SLA) it provides who will have overall responsibility for managing and coordinating the delivery of such Service, including making available the services of appropriately qualified employees and resources to enable the provision of the Services (each, a “Services Manager”).  The Services Managers will consult and coordinate with each other regarding the provision of Services. A Party may change its Service Managers for any Service 
14

from time to time by providing notice of such change in writing to the other Party and to the other Party’s Service Manager for such Service. 
Section 4.03Limitation of Liability.
(a)Except as provided in Section 4.04, Qualtrics agrees that none of the SAP Entities and their respective directors, officers, agents, and employees (each, of the SAP Entities and their respective directors, officers, agents, and employees, an “SAP Indemnified Person”) shall have any liability, whether direct or indirect, in contract or tort or otherwise, to any Qualtrics Entity or any other Person under the control of such Qualtrics Entity for or in connection with the SAP Services rendered or to be rendered by any SAP Indemnified Person pursuant to this Agreement, the transactions contemplated hereby or any SAP Indemnified Person’s actions or inactions in connection with any SAP Services or such transactions, except for damages which have resulted (i) from such SAP Indemnified Person’s breach, gross negligence, bad faith or willful misconduct in connection with the foregoing, or (ii) from such SAP Indemnified Person’s breach of its confidentiality or data protection or privacy obligations hereunder or under the Master Transaction Agreement.

(b)Except as provided in Section 4.04, SAP agrees that none of the Qualtrics Entities and their respective directors, officers, agents, and employees (each, of the Qualtrics Entities and their respective directors, officers, agents, and employees, a “Qualtrics Indemnified Person”) shall have any liability, whether direct or indirect, in contract or tort or otherwise, to any SAP Entity or any other Person under the control of such SAP Entity for or in connection with the Qualtrics Services rendered or to be rendered by any Qualtrics Indemnified Person pursuant to this Agreement, the transactions contemplated hereby or any Qualtrics Indemnified Person’s actions or inactions in connection with any Qualtrics Services or such transactions, except for damages which have resulted (i) from such Qualtrics Indemnified Person’s breach, gross negligence, bad faith or willful misconduct in connection with the foregoing, or (ii) from such Qualtrics Indemnified Person’s breach of its confidentiality or data protection or privacy obligations hereunder or under the Master Transaction Agreement.

(c)None of the SAP Entities shall have any liability to any Qualtrics Entity or any other Person for failure to perform SAP’s obligations under this Agreement or otherwise, where such failure to perform similarly affects the SAP Entities receiving the same or similar services and does not have a disproportionately adverse effect on the Qualtrics Entities, taken as a whole.  None of the Qualtrics Entities shall have any liability to any SAP Entity or any other Person for failure to perform Qualtrics’ obligations under this Agreement or otherwise, where such failure to perform similarly affects the Qualtrics Entities receiving the same or similar services and does not have a disproportionately adverse effect on the SAP Entities, taken as a whole.
(d)In addition to the foregoing, each Party agrees that, in all circumstances, it shall mitigate and otherwise minimize damages to such Party and its Subsidiaries, individually and collectively, whether direct or indirect, due to, resulting from or arising in connection with any failure by the other Party to comply fully with such Party’s obligations under this Agreement, to the extent required by applicable law.
15

Section 4.04Indemnification.
(a)Qualtrics agrees to indemnify and hold harmless each SAP Indemnified Person from and against any Losses arising out of or related to any Action by a third party to the extent arising out of or in connection with (i) Qualtrics Services rendered or to be rendered by any Qualtrics Indemnified Person pursuant to this Agreement  or the transactions contemplated hereby or (ii) any Qualtrics Indemnified Person’s actions or inactions in connection with this Agreement or any such Qualtrics Services or transactions; provided that Qualtrics shall not be responsible for any damages incurred by any SAP Indemnified Person that have resulted from any SAP Entity’s, or any such SAP Indemnified Person’s, gross negligence or willful misconduct in connection with the SAP Services rendered or to be rendered pursuant to this Agreement.
(b)SAP agrees to indemnify and hold harmless each Qualtrics Indemnified Person from and against any Losses arising out of or related to any Action by a third party to the extent arising out of or in connection with (i) SAP Services rendered or to be rendered by any SAP Indemnified Person pursuant to this Agreement or the transactions contemplated hereby or (ii) any SAP Indemnified Person’s actions or inactions in connection with this Agreement or any such SAP Services or transactions; provided that SAP shall not be responsible for any damages incurred by any Qualtrics Indemnified Person that have resulted from any Qualtrics Entity’s, or any such Qualtrics Indemnified Person’s, gross negligence or willful misconduct in connection with the Qualtrics Services rendered or to be rendered pursuant to this Agreement.
ARTICLE V
TERM AND TERMINATION
Section 5.01Term.  Except as otherwise provided in this Article V or as otherwise agreed in writing by the Parties (including as provided on any Schedule), (a) this Agreement shall have an initial term from the Offering Date through the third anniversary of the Offering Date (the “Initial Term”), and will be renewed automatically thereafter for successive one year terms (each, a “Renewal Term”) unless either Party elects not to renew this Agreement by notice in writing to the other Party not less than 150 days prior to the end of the Initial Term or any Renewal Term (unless otherwise set forth in a Schedule with respect to any particular Service), and (b) with respect to any Service, the obligation of a Party to provide or to procure, and the obligation of the other Party to purchase, such Service shall cease as of the applicable date set forth in Schedule I or Schedule II or the applicable date set forth in any agreement between the Parties pursuant to which Additional Services are provided (in each case as such dates may be extended with the consent of the Party providing or procuring a Service and the Party receiving a Service) or such earlier date determined in accordance with Section 5.02.     
Section 5.02Termination.
(a)The Parties may by mutual agreement from time to time, at any time, terminate this Agreement with respect to one or more of the Services, in whole or in part.
(b)Except as provided in clause (iii) of Section 5.03(a) or as otherwise provided on any Schedule, (i) Qualtrics may terminate any SAP Service at any time upon at least 
16

sixty (60) days prior written notice of such termination to SAP, effective as of such 60th day, and (ii) SAP may terminate any Qualtrics Service at any time upon at least sixty (60) days prior written notice of such termination to Qualtrics, effective as of such 60th day.  
(c)Except as provided in any agreement between the Parties pursuant to which Additional Services are provided, either Party may terminate any Additional Service that is not reflected on an amendment to the Schedules at any time.  
(d)Except as provided in clause (iii) of Section 5.03(a), a Party may terminate a Service provided by such Party upon written notice in the event of the receiving Party’s material breach of this Agreement, which breach remains uncured thirty (30) days after the breaching Party’s receipt of written notice thereof.
(e)Except as provided in clause (iii) of Section 5.03(a), this Agreement (including all Services) shall terminate automatically 90 days following a Change of Control.
Section 5.03Effect of Termination.
(a)Other than as required by law, upon the effective date of the expiration or termination of any Service pursuant to Section 5.01 or Section 5.02, or upon termination of this Agreement in accordance with its terms (any such date, the “Termination Date”), the Parties shall have no further obligation to provide the terminated Service (or any Service, in the case of termination of this Agreement) and shall have no obligation to pay any fees relating to such terminated Services or to make any other payments hereunder; provided that notwithstanding such termination, (i) each Party shall remain liable for fees owed and payable in respect of Services provided to it prior to the effective date of the termination; (ii) the Parties shall continue to charge for administrative, employee and program costs relating to amounts paid after but incurred or committed prior to the termination of any Service and for year-end recalculations pursuant to Section 3.01(a)(iii), and the Party so charged shall be obligated to pay such expenses in accordance with the terms of this Agreement, provided that (A) the Party that provided the Service makes reasonable efforts to obtain available refunds of such costs and (B) if such Party obtains a refund of any such costs already paid by the Party that received the Service, the Party that provided the Service shall return such portion of the costs to the Party that received the Service; (iii) notwithstanding any termination of any Service or of this Agreement, any Consulting Services or support and maintenance services provided under this Agreement and necessary to enable a Party to perform under any customer contract whereby products or services are sold or otherwise distributed by such Party prior to the IPO or pursuant to the Distribution Agreement or any other reseller agreement or inbound OEM agreement after the IPO shall continue in accordance with this Agreement for the duration of the support term under the applicable customer contract (including renewals); and (iv) the provisions of Section 2.10 and Articles IV, V and VI shall survive any such termination indefinitely.
(b)Following termination of this Agreement with respect to any Service, the Parties agree to cooperate with each other in providing for an orderly transition of such Service to the receiving Party or to a successor service provider as designated by the receiving Party.
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ARTICLE VI
MISCELLANEOUS
Section 6.01Ownership.  Except as expressly provided in Section 2.10, (i) this Agreement and the performance of the Services hereunder will not affect the ownership of any assets or responsibility for any liabilities, and (ii) no Party will gain, by virtue of this Agreement or the Services provided hereunder, by implication or otherwise, any rights of ownership of any property or intellectual property rights owned by any other Party or their respective Subsidiaries.
Section 6.02No Agency.  Nothing in this Agreement shall constitute or be deemed to constitute a partnership or joint venture by and among the Parties hereto or constitute or be deemed to constitute any Party the agent or employee of any other Party for any purpose whatsoever, and no Party shall have authority or power to bind any other Party or to contract in the name of, or create a liability against, any other Party in any way or for any purpose.
Section 6.03Subcontractors.  Each Party may hire or engage one or more third party subcontractors to perform all or any of the Services to be provided (or caused to be provided) by it under this Agreement; provided that (i) subject to Section 3.01, such Party shall pay for all fees due each such subcontractor, and (ii) subject to Section 4.03, such Party shall in all cases remain primarily responsible for all obligations undertaken by each such subcontractor on such Party’s behalf pursuant to the terms of this Agreement with respect to the scope, quality, degree of skill and nature of the Services provided by such Party hereunder. 
Section 6.04Force Majeure.
(a)For purposes of this Section 6.04, “Force Majeure” means an event beyond the control of any Party which prevents a Party from performing its obligation under this Agreement, and includes without limitation, acts of God, storms, floods, riots, fires, natural disasters, labor disputes or stoppages, government acts or orders, epidemics, pandemics, outbreaks of communicable disease, quarantines, acts of terrorism, sabotage, civil commotion or civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) and failure of energy sources.
(b)Continued performance of a Service may be suspended immediately to the extent caused by Force Majeure.  The Party claiming suspension of a Service due to Force Majeure will give prompt notice to the other of the occurrence of the event giving rise to the suspension and of its nature and anticipated duration.  The Parties shall cooperate with each other to find alternative means and methods for the provision of the suspended Service.
(c)No Party shall be under any liability for failure to fulfill any obligation under this Agreement, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a consequence of circumstances of Force Majeure and does not have a disproportionately adverse effect on the other Party.
Section 6.05Entire Agreement.  Except as otherwise expressly set forth in this Agreement, this Agreement (including the Schedules constituting a part of this Agreement) and 
18

any other writing signed by the Parties that specifically references or is specifically related to this Agreement constitute the entire agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements, understandings and negotiations, both written and oral, between the Parties with respect to the subject matter hereof.  
Section 6.06Information.  Subject to applicable law and privileges, each Party covenants with and agrees to provide to the other Party all information regarding itself and transactions under this Agreement that is reasonably required by the other Party to comply with all applicable federal, state, county and local laws, ordinances, regulations and codes, including, but not limited to, securities laws and regulations.
Section 6.07Notices.  Notices, offers, requests or other communications required or permitted to be given by any Party pursuant to the terms of this Agreement shall be given in writing to the respective Parties to the following addresses:
(a)If to SAP SE, to:
SAP SE
Dietmar-Hopp-Allee 16
Germany – 69190
Attention:  Jochen Scholten
E-mail:  
(b)If to SAP America, to:
SAP America, Inc.
3999 West Chester Pike
Newtown Square, PA 19073 
Attention:  Mary Beth Hanss
E-mail:  
(c)If to Qualtrics, to:
Qualtrics International Inc.
333 W River Park Dr
Provo, UT 84604
Attention:  Legal Department
E-mail:  
or to such other address as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice shall be sent by hand delivery, internationally recognized overnight courier or, within the United States, may also be sent via certified mail, return receipt requested and, in any event, shall be concurrently sent by e-mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted electronically; one working day after it is sent, if sent by internationally recognized overnight 
19

courier; and three days after it is postmarked, if mailed first class mail or certified mail, return receipt requested, with postage prepaid.
Section 6.08Governing Law and Jurisdiction.  This Agreement, including the validity hereof and the rights and obligations of the Parties hereunder, shall be construed in accordance with and all disputes, controversies or claims arising out of or relating to this Agreement shall be governed by the laws of the State of Delaware applicable to contracts made and to be performed entirely in such State (without giving effect to the conflicts of laws provisions thereof).
Section 6.09Consent to Jurisdiction.  THE PARTIES AGREE THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY ANY PARTY IN CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER SHALL PROPERLY AND EXCLUSIVELY LIE IN ANY FEDERAL OR STATE COURT LOCATED IN THE STATE OF DELAWARE.  EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION IN CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER IN ANY OTHER COURT.  BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT TO ANY SUCH ACTION.  THE PARTIES IRREVOCABLY AGREE THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVE ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  THE PARTIES FURTHER AGREE THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT.  
Section 6.10Waiver of Jury Trial.  EACH OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH OF THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.  EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER COMPANY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH OF THE PARTIES UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (D) EACH OF THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.10.
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Section 6.11Amendment.  This Agreement may be amended only by an instrument in writing signed on behalf of each of the Parties.
Section 6.12Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.
Section 6.13Binding Effect; Assignment.  This Agreement shall inure to the benefit of and be binding upon the Parties and their respective legal representatives and successors.  Neither Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided that either Party may assign this Agreement to a successor entity in conjunction with such Party’s reincorporation in another jurisdiction or into another business form.
Section 6.14Severability.  If any term or other provision of this Agreement or the Schedules is determined by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.
Section 6.15Failure or Indulgence not Waiver; Remedies Cumulative.  No failure or delay on the part of either Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right.  All rights and remedies existing under this Agreement or the Schedules are cumulative to, and not exclusive of, any rights or remedies otherwise available.
Section 6.16Authority.  Each of the Parties represent to the other Party that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.
Section 6.17Interpretation.  The headings contained in this Agreement, in any Schedule hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Any capitalized term used in any Schedule but not otherwise defined therein shall have the meaning assigned to 
21

such term in this Agreement.  When a reference is made in this Agreement to an Article or a Section or Schedule, such reference shall be to an Article or Section of, or a Schedule to, this Agreement unless otherwise indicated.  Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires.  The terms “hereof,” “herein” “and “herewith” and words of similar import, unless otherwise stated, shall be construed to refer to this Agreement as a whole (including all of the Schedules) and not to any particular provision of this Agreement.  Any reference herein to this Agreement, unless otherwise stated, shall be construed to refer to this Agreement as amended, supplemented or otherwise modified from time to time.  The word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified.  The word “or” shall not be exclusive.
Section 6.18Conflicting Agreements.  In the event of conflict between this Agreement and the Master Transaction Agreement or other agreement executed in connection herewith, the provisions of this Agreement shall prevail. Only those provisions of the Master Transaction Agreement that are specifically incorporated by reference shall apply to this Agreement.
Section 6.19Third Party Beneficiaries.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any third party, including any employee or any creditor of any Person.  No such third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any claim in respect of any Liability (or otherwise) against either Party.
Section 6.20Limitation of Liability.  IN NO EVENT SHALL ANY SAP ENTITY OR QUALTRICS ENTITY BE LIABLE TO ANY OTHER SAP ENTITY OR QUALTRICS ENTITY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT (A) EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES AS SET FORTH IN EITHER THIS AGREEMENT OR ANY TRANSACTION AGREEMENT OR (B) EITHER PARTY’S BREACH OF ITS CONFIDENTIALITY OR DATA PROTECTION OR PRIVACY OBLIGATIONS HEREUNDER OR UNDER THE MASTER TRANSACTION AGREEMENT.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representatives.
						
	SAP SE
		
		
	By:	
	Name:
	Title:
		
		
	By:	
	Name:
	Title:
		
		
	SAP AMERICA, INC.
		
		
	By:	
	Name:
	Title:
		
		
	QUALTRICS INTERNATIONAL INC.
		
		
	By:	
	Name:
	Title:

[Signature Page to Administrative Services Agreement]

SCHEDULE I
Certain Services To Be Provided By SAP to Qualtrics [Omitted pursuant to Item 601(a)(5) of Regulation S-K]
Sch. I-1

SCHEDULE II
Certain Services To Be Provided By Qualtrics to SAP [Omitted pursuant to Item 601(a)(5) of Regulation S-K]
Sch. II-1Document

Exhibit 10.3

			
	FORM OF
TAX SHARING AGREEMENT
dated as of [  ]
among
SAP SE,
SAP AMERICA, INC.

AND THEIR AFFILIATES
and
QUALTRICS INTERNATIONAL INC.
AND ITS AFFILIATES

TABLE OF CONTENTS
									
			Page
			
	Article 	I Definitions	1
	Section 1.1 Definitions
	1
			
	Article 	II Preparation and Filing of Tax Returns	9
	Section 2.1 SAP’s Responsibility
	9
	Section 2.2 Qualtrics’ Responsibility
	10
	Section 2.3 Agent
	10
	Section 2.4 Preparation of Certain Tax Return Materials
	10
	Section 2.5 Manner of Tax Return Preparation
	11
			
	Article 	III Liability for Taxes	12
	Section 3.1 Qualtrics’ Liability for Taxes
	12
	Section 3.2 SAP’s Liability for Taxes
	13
	Section 3.3 Payment of Tax Liability
	14
	Section 3.4 Computation of Separate Tax Liability
	13
	Section 3.5 Covenant
	14
	Section 3.6 Certain Tax Credits
	14
			
	Article 	IV Deconsolidation Events	14
	Section 4.1 Tax Allocations
	14
	Section 4.2 Carrybacks
	15
	Section 4.3 Post-Deconsolidation Payments
	15
			
	Article 	V Distribution Taxes	15
	Section 5.1 Liability for Distribution Taxes
	15
	Section 5.2 Continuing Covenants
	18
			
	Article 	VI German Tax Matters	21
	Section 6.1 Liability for Relevant German CFC/PFIC Taxes
	21
	Section 6.2 Policy
	21
			
	Article 	VII Indemnification	21
	Section 7.1 In General
	21
	Section 7.2 Inaccurate or Incomplete Information
	21
	Section 7.3 No Indemnification for Tax Items
	22
			
	Article 	VIII Payments	22

									
			
	Section 8.1 Estimated Tax Payments
	22
	Section 8.2 True-Up Payments
	22
	Section 8.3 Redetermination Amounts
	22
	Section 8.4 Payments of Refunds, Credits and Reimbursements
	23
	Section 8.5 Payments Under This Agreement
	23
			
	Article 	IX Tax Proceedings	24
	Section 9.1 In General
	24
	Section 9.2 Audits with Respect to Combined Returns
	25
	Section 9.3 SAP as Non-Controlling Party
	25
	Section 9.4 Control of Distribution Tax Proceedings
	25
	Section 9.5 Notice
	25
			
	Article 	X Cooperation and Exchange of Information	26
	Section 10.1 Cooperation
	26
	Section 10.2 Other Information
	26
			
	Article 	XI Miscellaneous Provisions	26
	Section 11.1 Effectiveness
	26
	Section 11.2 Dispute Resolution
	26
	Section 11.3 Notices
	27
	Section 11.4 Changes in Law
	28
	Section 11.5 Confidentiality
	28
	Section 11.6 Binding Effect; Assignment
	28
	Section 11.7 Affiliates
	28
	Section 11.8 Authority
	29
	Section 11.9 Entire Agreement
	29
	Section 11.10 Consent to Jurisdiction
	29
	Section 11.11 Counterparts
	30
	Section 11.12 Severability
	30
	Section 11.13 Third Party Beneficiaries
	30
	Section 11.14 Failure or Indulgence not Waiver
	30
	Section 11.15 Setoff
	30
	Section 11.16 Other Remedies
	30
	Section 11.17 Amendment and Modification
	31
	Section 11.18 Waiver of Jury Trial
	31
	Section 11.19 Interpretation
	31

TAX SHARING AGREEMENT
This Tax Sharing Agreement (this “Agreement”) is dated as of the [  ] day of [  ], 202[  ], among Qualtrics International Inc., a Delaware corporation (“Qualtrics”), each Qualtrics Affiliate (as defined below), SAP SE, a Societas Europaea registered in accordance with the corporate laws of Germany and the European Union (“SAP”), SAP America, Inc., a Delaware corporation ("SAP America"), and each other SAP Affiliate (as defined below). Qualtrics, each Qualtrics Affiliate, SAP, SAP America and each other SAP Affiliate are sometimes referred to herein separately as a “Party” and together as the “Parties”. 
RECITALS
WHEREAS, SAP America, a direct subsidiary of SAP, intends to cause Qualtrics to complete the Qualtrics Recapitalization (as defined below);
WHEREAS, SAP America intends, sometime after the Qualtrics Recapitalization, to effect the initial public offering by Qualtrics of its Class A common stock and the contemporaneous private placement of Class A common stock (the “IPO”);
WHEREAS, certain members of the SAP Group (as defined below), on the one hand, and certain members of the Qualtrics Group (as defined below), on the other hand, file (or may file in the future) certain Tax Returns (as defined below) on a consolidated, combined or unitary basis for certain U.S. federal, state, local and non-U.S. income tax purposes; and
WHEREAS, in contemplation of the IPO, the Parties hereto have determined to enter into this Agreement, setting forth their agreement with respect to certain tax matters.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions.
(a)    As used in this Agreement, the following terms shall have the following meanings, applicable both to the singular and the plural forms of the terms described:
“Affiliate” means an SAP Affiliate or a Qualtrics Affiliate, as the context requires.
“After Tax Amount” means any additional amount necessary to reflect the hypothetical Tax consequences of the receipt or accrual of any payment required to be made under this Agreement (including payment of any additional amount or amounts hereunder and the effect of the deductions available for interest paid or accrued and for Taxes such as state and local Income Taxes), determined by using the highest applicable statutory corporate Income Tax rate (or rates, in the case of an item that affects more than one Tax) for the relevant taxable period (or portion thereof).

“Aggregate Distribution Tax Liabilities” means, in the event of a Distribution, the sum of the Distribution Tax Liabilities with respect to each Taxing Jurisdiction.
“Agreement” has the meaning set forth in the preamble hereto.
“Audit” means any audit, assessment of Taxes, other examination by any Taxing Authority, proceeding, or appeal of such a proceeding relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations.
“Code” means the Internal Revenue Code of 1986, as amended.
“Combined Group” means any consolidated, combined, unitary or similar group under applicable Tax law of which both one or more members of the SAP Group and one or more members of the Qualtrics Group are members.
“Combined Return” means any Consolidated Return, Combined State Return or other Income Tax Return with respect to a Combined Group.
“Combined State Return” means any Income Tax Return with respect to a Combined Group that relates to U.S. state or local Taxes.
“Consolidated Return” means any Tax Return with respect to U.S. federal income taxes filed on a consolidated basis wherein Qualtrics or one or more Qualtrics Affiliates join in the filing of such Tax Return (for any taxable period or portion thereof) with SAP America or one or more subsidiaries of SAP America.
“Controlling Party” has the meaning set forth in Section 9.1 of this Agreement.
“Deconsolidation Event” means, with respect to any Combined Group, any event or transaction that causes Qualtrics and/or one or more Qualtrics Affiliates to no longer be eligible to join with SAP or one or more SAP Affiliates in the filing of the applicable Combined Return.
“Distribution” means an Internal Distribution or an External Distribution.
“Distribution Tax Liabilities” means, in the event of a Distribution, with respect to any Taxing Jurisdiction, the sum of (a) any Taxes actually paid to such Taxing Jurisdiction as a result of any corporate-level gain or income recognized that would not have been paid but for the failure of such Distribution to qualify for its Intended Tax Treatment in such Taxing Jurisdiction (assuming that there are no applicable Tax Attributes available in any relevant taxable year), (b) interest on such amounts calculated pursuant to such Taxing Jurisdiction’s laws regarding interest on Tax liabilities from the date such additional gain or income was recognized until full payment with respect thereto is made pursuant to Section 8.5 hereof (or in the case of a reduction in a Tax refund, the amount of interest that would have been received on the foregone portion of the Tax refund but for the failure of the Distribution to qualify for its Intended Tax Treatment), and (c) any penalties actually paid to such Taxing Jurisdiction that would not have been paid but for the failure of such Distribution to qualify for its Intended Tax Treatment in such Taxing Jurisdiction.
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“Estimated Tax Installment Date” means, (i) with respect to U.S. federal income taxes, the estimated Tax installment due dates prescribed in Section 6655(c) of the Code and, (ii) with respect to any other state, local or non-U.S. Tax any other date on which an installment payment of an estimated amount of such Tax is required to be made under applicable law.
“External Distribution” means, following an Internal Distribution, any distribution by SAP of Qualtrics stock (and securities, if any) to SAP shareholders and/or securityholders in a transaction intended to qualify for an Intended Tax Treatment.
“Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.
“Final Determination” means the final resolution of liability for any Tax for any taxable period, by or as a result of: (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Section 7121 or Section 7122 of the Code, or a comparable agreement under the laws of other jurisdictions, which resolves the entire Tax liability for any taxable period, (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered by the jurisdiction imposing the Tax; or (iv) any other final disposition, including by reason of the expiration of the applicable statute of limitations.
“first Party” has the meaning set forth in Section 10.2 of this Agreement.
“Hypothetical Qualtrics Tax Attribute” means any current-year loss, deduction, tax credit or other similar amount or Tax Attribute (other than any Pre-IPO Equity Award Tax Attribute), in each case, (i) that is properly attributable to Qualtrics or any Qualtrics Affiliate, (ii) that is generated in a taxable year beginning after December 31, 2020, (iii) the utilization of which resulted in a Tax Benefit to SAP or any SAP Affiliate, and (iv) that Qualtrics or any of its Affiliates would have been entitled under applicable law to carry forward to the applicable taxable year (taking into account applicable carryforward periods) if such item had not been utilized by SAP or any SAP affiliate in a prior period.
“Income Tax” means any U.S. federal, state, local or non-U.S. Tax determined (in whole or in part) by reference to net income, net worth, gross receipts or capital, or any Taxes imposed in lieu of such a tax. For the avoidance of doubt, the term Income Tax includes any franchise tax or any Taxes imposed in lieu of such a tax.
“Income Tax Return” means any Tax Return relating to any Income Tax.
“Independent Firm” has the meaning set forth in Section 11.2 of this Agreement.
“Intended Tax Treatment” means the intended tax treatment of a Distribution as set forth in any applicable Opinion or Ruling, including, but not limited to, the U.S. Tax-Free Status and the treatment of such Distribution for German tax purposes.
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“Internal Distribution” means any distribution by SAP America of Qualtrics stock (and securities, if any) to SAP America shareholders and/or securityholders in a transaction intended to qualify for an Intended Tax Treatment.
“IPO” has the meaning set forth in the recitals hereto.
“IPO Date” means the close of business on the date in which all steps of the IPO are completed and all shares of Qualtrics Class A common stock intended to be issued in connection therewith are issued and outstanding.
“IRS” means the U.S. Internal Revenue Service.
“Master Transaction Agreement” means the Master Transaction Agreement between SAP and Qualtrics of even date herewith.
“Non-Income Tax Return” means any Tax Return relating to any Tax other than an Income Tax.
“Notified Action” shall have the meaning set forth in Section 5.2(d)(i).
“Officer’s Certificate” means a letter executed by an officer of SAP, SAP America or Qualtrics and provided to Tax Counsel as a condition for the completion of a Tax Opinion.
“Owed Party” has the meaning set forth in Section 8.5 of this Agreement.
“Owing Party” has the meaning set forth in Section 8.5 of this Agreement.
“Party” has the meaning set forth in the preamble hereof.
“Payment Period” has the meaning set forth in Section 8.5(e) of this Agreement.
“Person” means any individual, partnership, joint venture, limited liability company, corporation, association, joint stock company, trust, estate, unincorporated organization or similar entity or a governmental authority or any department or agency or other unit thereof.
“Post-Deconsolidation Period” means any taxable period (as applicable) beginning after the date of a Deconsolidation Event with respect to the applicable U.S. federal, state, local or non-U.S. Tax.
“Pre-Deconsolidation Period” means any taxable period beginning on or before the date of a Deconsolidation Event with respect to the applicable U.S. federal, state, local or non-U.S. Tax.
“Pre-IPO Equity Award Tax Attributes” means any current-year losses, deductions, credits or other similar amount or Tax Attributes arising from or relating to the issuance, transfer, vesting, exercise or settlement of any Pre-IPO Equity Awards.
“Pre-IPO Equity Awards” means any shares (restricted or otherwise), equity interests, options, share appreciation rights, restricted share units, performance share units or 
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other similar rights with respect to the stock of Qualtrics or a Qualtrics Affiliate that were granted on or prior to the IPO Date in connection with compensation paid to an employee, independent contractor or director.
 “Proposed Acquisition Transaction” means, in the event of any Distribution, a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulations Section 1.355-7, or any other Treasury Regulations, to enter into a transaction or series of transactions), whether such transaction is supported by Qualtrics management or shareholders, is a hostile acquisition, or otherwise, as a result of which Qualtrics would merge or consolidate with any other Person or as a result of which any Person or Persons would (directly or indirectly) acquire, or have the right to acquire, from Qualtrics and/or one or more holders of outstanding shares of Qualtrics stock, a number of shares of Qualtrics stock that would, when combined with any other changes in ownership of Qualtrics stock pertinent for purposes of Section 355(e) of the Code, comprise 20% or more of (a) the value of all outstanding shares of Qualtrics stock as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series, or (b) the total combined voting power of all outstanding shares of voting Qualtrics stock as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series.  Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (a) the adoption by Qualtrics of a shareholder rights plan or (b) issuances by Qualtrics that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d).  For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders.  This definition and the application thereof are intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly.  Any clarification of, or change in, the statute or Treasury Regulations promulgated under Section 355(e) of the Code shall be incorporated into this definition and its interpretation.
“Qualtrics” has the meaning set forth in the preamble hereto.
“Qualtrics Active Business” means, in the event of a Distribution, each trade or business actively conducted (within the meaning of Section 355(b) of the Code and Treasury Regulations Section 1.355-3) by Qualtrics and its “separate affiliated group” (within the meaning of Section 355(b)(3)(B)) immediately after such Distribution, as described in the Tax Opinion Documents and any Ruling Documents.
“Qualtrics Affiliate” means any corporation or other entity directly or indirectly “controlled” by Qualtrics at the time in question, where “control” means the ownership of 50% or more of the ownership interests of such corporation or other entity (by vote or value) or the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such corporation or other entity.
“Qualtrics Combined State Return Materials” has the meaning set forth in Section 2.4(b).
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“Qualtrics Consolidated Return Materials” has the meaning set forth in Section 2.4(a).
 “Qualtrics Group” means Qualtrics and each Qualtrics Affiliate.
“Qualtrics Recapitalization” means the recapitalization of Qualtrics’ stock structure (A) intended to be completed by the (i) cancellation of all of Qualtrics’ then authorized, issued and outstanding stock, (ii) authorization of two new classes of Qualtrics stock, Qualtrics Class A common stock and Qualtrics Class B common stock, and (iii) issuance of Qualtrics Class B common stock to SAP with respect to SAP’s ownership of Qualtrics shares, and (B) that is intended qualify as a reorganization under Section 368(a)(1)(E) of the Code (and any corresponding or similar provision of state, local or non-U.S. Tax law).
“Qualtrics Separate State Tax Liability” means, with respect to any Combined State Return for any taxable year, an amount computed by SAP equal to the product of (A) a fraction, (i) the numerator of which is the aggregate taxable income (as determined for U.S. federal income tax purposes) of the members of the Qualtrics Group, if any, and (ii) the denominator of which is the combined aggregate taxable income (as determined for U.S. federal income tax purposes) of both the members of the Qualtrics Group and the members of the SAP America Group, if any; provided, that no Pre-IPO Equity Award Tax Attributes shall be taken into account in either the numerator or the denominator of such fraction, and (B) the total amount of Tax that would have been show as due and payable on such Combined State Return if no Pre-IPO Equity Award Tax Attributes (if any) had been taken into account on such Combined State Return. For the avoidance of doubt, the Qualtrics Separate State Tax Liability shall not be less than zero dollars ($0).
“Qualtrics Separate Tax Liability” means (A) with respect to any Consolidated Return for any taxable year, an amount equal to the Qualtrics Separate U.S. Federal Tax Liability, (B) with respect to any Combined State Return for any taxable year, an amount equal to the Qualtrics Separate State Tax Liability, and (C) with respect to any other Combined Return for any taxable year, an amount calculated by SAP under applicable Tax law in a manner consistent with the principles for calculating the Qualtrics Separate U.S. Federal Tax Liability.
“Qualtrics Separate U.S. Federal Tax Liability” means, with respect to any Consolidated Return for any taxable year, an amount equal to the Tax liability that Qualtrics and each Qualtrics Affiliate that is included in such Consolidated Return would have incurred if they had filed a U.S. federal consolidated income tax return separate from the members of the SAP Group for the relevant taxable year as adjusted by the Tax Attribute Conventions set forth in Section 3.4(a) of this Agreement. For the avoidance of doubt, the Qualtrics Separate U.S. Federal Tax Liability shall not be less than zero dollars ($0).
“Relevant German CFC/PFIC Taxes” means, any Taxes imposed on any member of the SAP Group as a result of the income of any member of the Qualtrics Group being subject to German controlled foreign company taxation (within the meaning of the German Foreign Tax Act (Außensteuergesetz)).
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“Ruling” means (i) any private letter ruling issued by the IRS in connection with an Internal Distribution, External Distribution or both, and (ii) any similar ruling issued by any other Taxing Authority addressing the application of a provision of the laws of another jurisdiction (including Germany) to an Internal Distribution, External Distribution or both.
“Ruling Documents” means (i) the request for a Ruling filed with the IRS, together with any supplemental filings or other materials subsequently submitted to the IRS, the appendices and exhibits thereto, and any Ruling issued by the IRS to SAP (or any SAP Affiliate) in connection with an Internal Distribution, External Distribution or both and (ii) any similar filings submitted to, or rulings issued by, any other Taxing Authority in connection with an Internal Distribution, External Distribution or both.
“SAP” has the meaning set forth in the preamble hereto.
“SAP Affiliate” means any corporation or other entity directly or indirectly “controlled” by SAP where “control” means the ownership of 50% or more of the ownership interests of such corporation or other entity (by vote or value) or the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such corporation or other entity, but at all times excluding Qualtrics or any Qualtrics Affiliate.
“SAP America” has the meaning set forth in the preamble hereto.
“SAP America Consolidated Group” means the affiliated group of corporations within the meaning of Section 1504(a) of the Code of which SAP America is the common parent.
“SAP America Group” means SAP America and any SAP Affiliate that is a subsidiary of SAP America.
“SAP Group” means SAP and each SAP Affiliate.
“Section 336(e) Tax Basis” has the meaning set forth in Section 5.1(e)(ii).
“Tax Attribute” shall mean any net operating losses, net capital losses, excess tax credits and any other similar Tax attributes as determined for U.S. federal, state, local or non-U.S. tax purposes (including carryovers or carrybacks thereof). For the avoidance of doubt, the existence or amount of basis and computations of previously taxed income and earnings and profits are not Tax Attributes.
“Tax Attribute Conventions” has the meaning set forth in Section 3.4(a).
“Tax Benefit” means a reduction in the cash Tax liability of a Taxpayer for any taxable period. Except as otherwise provided in this Agreement, a Tax Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent that the Tax liability of the Taxpayer for such period, after taking into account the effect of the Tax Item on the Tax liability of such Taxpayer in the current period and all prior periods, is less than it would have been had such Tax liability been determined without regard to such Tax Item. For the avoidance of doubt, the amount of any Tax Benefit attributable to the use of any Tax Item shall be determined after giving effect to any provision of applicable Tax law that would limit or otherwise impact the actual reduction in the cash Tax liability attributable to such Tax 
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Item including any limitation under Section 382 or Section 383 of the Code (or a corresponding or similar provision of state, local or non-U.S. tax law) or the impact of Section 59A of the Code (or a corresponding or similar provision of state, local or non-U.S. tax law) on the reduction to the cash Tax liability of the applicable Taxpayer.
“Tax Counsel” means a nationally recognized law firm or accounting firm selected by SAP to provide a Tax Opinion.
“Tax Detriment” means an increase in the Tax liability (or reduction in refund or credit or any item of deduction or expense) of a Taxpayer for any taxable period. Except as otherwise provided in this Agreement, a Tax Detriment shall be deemed to have been realized or incurred from a Tax Item in a taxable period only if and to the extent that the Tax liability of the Taxpayer for such period, after taking into account the effect of the Tax Item on the Tax liability of such Taxpayer in the current period and all prior periods, is more than it would have been had such Tax liability been determined without regard to such Tax Item.
“Tax Item” means any item of income, gain, loss, deduction, expense or credit, or other attribute that may have the effect of increasing or decreasing any Tax.
“Tax Opinion” means, in the event of any Distribution, the opinion issued to SAP by Tax Counsel regarding the Intended Tax Treatment of such Distribution.
“Tax Opinion Documents” means, in the event of a Distribution, the Tax Opinion and the information and representations (including as set forth in any Officer’s Certificates) provided by, or on behalf of, SAP or SAP America and Qualtrics, as the case may be, to Tax Counsel in connection therewith.
“Tax-Related Losses” means, in the event of a Distribution, (i) the Aggregate Distribution Tax Liabilities; (ii) all reasonable accounting, legal and other professional fees, and court costs incurred in connection with any settlement, Final Determination, judgment or other determination with respect to such Aggregate Distribution Tax Liabilities; (iii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount required to be paid by SAP or Qualtrics or their respective Affiliates in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Taxing Authority payable by SAP or Qualtrics or their respective Affiliates, in each case, resulting from the failure of a Distribution to qualify for its Intended Tax Treatment.
“Tax Return” means any return, report, certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated Tax) required to be supplied to, or filed with, a Taxing Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax.
“Taxes” means all U.S. federal, state, local or non-U.S. taxes, charges, fees, duties, levies, imposts, rates or other assessments, including income, gross receipts, net worth, excise, property, sales, use, license, capital stock, transfer, franchise, payroll, withholding, social 
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security, value added or other taxes, (including any interest, penalties or additions attributable thereto) and a Tax means any one of such Taxes.
“Taxing Jurisdiction” means the United States and every other government or governmental unit having jurisdiction to tax SAP, Qualtrics or any of their Affiliates.
“Taxing Authority” means any governmental authority or any subdivision, agency, commission or authority thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS).
“Taxpayer” means any taxpayer and its Combined Group.
“Treasury Regulations” means the Treasury regulations (including temporary regulations) promulgated by the United States Department of Treasury with respect to the Code.
“Unqualified Tax Opinion” means, in the event of a Distribution, an unqualified opinion of Tax Counsel on which SAP may rely to the effect that a transaction (a) will not disqualify such Distribution from its Intended Tax Treatment, assuming that such Distribution would have qualified for its Intended Tax Treatment if such transaction did not occur, and (b) will not adversely affect any of the conclusions set forth in the Tax Opinion.
“U.S. Federal Deconsolidation Event” means a Deconsolidation Event with respect to the SAP America Consolidated Group.
“U.S. Tax-Free Status” means, (i) in the case of an Internal Distribution, the qualification of the Internal Distribution as a transaction (a) described in Section 355(a) of the Code, (b) in which the stock (and, if applicable, securities) distributed thereby is “qualified property” for purposes of Section 355(c)(2) of the Code, and (c) in which SAP America, Qualtrics and the stockholders (and, if applicable, securityholders) of SAP America, recognize no income, gain or loss for U.S. federal, state and local income tax purposes, and (ii) in the case of an External Distribution, the qualification of the External Distribution as a transaction (a) described in Section 355(a) of the Code, (b) in which the stock (and, if applicable, securities) distributed thereby is “qualified property” for purposes of Section 355(c)(2) of the Code, and (c) in which SAP America, Qualtrics and the stockholders (and, if applicable, securityholders) of SAP America and SAP, recognize no income, gain or loss for U.S. federal, state and local income tax purposes.
ARTICLE II
PREPARATION AND FILING OF TAX RETURNS
Section 2.1SAP’s Responsibility. Subject to the other applicable provisions of this Agreement (including Section 2.4), SAP shall have sole and exclusive responsibility for the filing of (or for causing the filing of):
(a)all Combined Returns for any taxable period;
(b)all Income Tax Returns (other than Combined Returns) with respect to SAP and/or any SAP Affiliate for any taxable period; and
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(c)all Non-Income Tax Returns with respect to SAP or any SAP Affiliate for any taxable period.
Section 2.2Qualtrics’ Responsibility. Subject to the other applicable provisions of this Agreement (including Section 2.5(c)), Qualtrics shall have sole and exclusive responsibility for the preparation and filing of (or for causing the preparation and filing of):
(a)all Income Tax Returns (other than Combined Returns) with respect to Qualtrics and/or any Qualtrics Affiliate for any taxable period; and
(b)all Non-Income Tax Returns with respect to Qualtrics or any Qualtrics Affiliate for any taxable period.
Section 2.3Agent. Subject to the other applicable provisions of this Agreement, Qualtrics hereby irrevocably designates, and agrees to cause each Qualtrics Affiliate to so designate, SAP and/or SAP America as its sole and exclusive agents and attorneys-in-fact to take such action (including execution of documents) as SAP and/or SAP America, in their sole discretion, may deem appropriate in any and all matters (including Audits) relating to any Tax Return described in Section 2.1 of this Agreement.
Section 2.4Preparation of Certain Tax Return Materials.
(a)For any taxable year that any member of the Qualtrics Group is included in a Consolidated Return, Qualtrics will deliver to SAP not later than 80 calendar days prior to the due date (including any applicable extensions) of the Consolidated Return for such taxable year, substantially completed drafts of (i) a pro forma IRS Form 1120 (including any applicable attachments and/or statements) of each applicable member of the Qualtrics Group to be filed with such Consolidated Return, (ii) so long as Qualtrics, LLC is treated as a partnership for U.S. federal income tax purposes, a copy of each Schedule K-1 (Form 1065) issued by Qualtrics, LLC, and (iii) any Tax Return workpapers in respect of the foregoing (clauses (i)-(iii), the “Qualtrics Consolidated Return Materials”). Not later than 60 calendar days prior to the due date (including any applicable extensions) of such Consolidated Return, Qualtrics will deliver to SAP the final Qualtrics Consolidated Return Materials. The Qualtrics Consolidated Return Materials will be prepared in a manner consistent with past practice using the accounting methods and elections used on the Consolidated Return.
(b)For any taxable year that any member of the Qualtrics Group is included in any Combined State Return, Qualtrics will deliver to SAP, not later than 80 calendar days prior to the due date (including any applicable extensions) of such Combined State Return for such taxable year, substantially completed drafts of (i) a pro forma Tax Return (including any applicable attachments and/or statements) of each applicable member of the Qualtrics Group to be filed with such Combined State Return, (ii) so long as Qualtrics, LLC is treated as a partnership for U.S. federal income tax purposes, a copy of each Schedule K-1 (Form 1065) issued by Qualtrics, LLC, and (iii) any applicable U.S. state apportionment workpapers or other Tax Return workpapers (clauses (i)-(iii), the “Qualtrics Combined State Return Materials”). Not later than 60 calendar days prior to the due date (including any applicable extensions) of such Combined State Return, Qualtrics will deliver to SAP the final Qualtrics Combined State Return 
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Materials. The Qualtrics Combined State Return Materials will be prepared in a manner consistent with past practice using the accounting methods and elections used on the relevant Combined State Return.
(c)Upon SAP’s request, Qualtrics will deliver to SAP in a reasonably prompt manner any information regarding members of the Qualtrics Group (or that is otherwise within the possession of the Qualtrics Group) that is reasonably required by SAP in connection with the filing of any German or other non-U.S. Tax Return.
(d)No later than 30 calendar days prior to the due date for any estimated Taxes (including the due date for filing a request for extension) with respect to a Combined Return, Qualtrics will deliver to SAP information sufficient for SAP to calculate the estimated Qualtrics Separate Tax Liability pursuant to Section 3.4(b) of this Agreement, including information to determine relevant U.S. state apportionment factors.
Section 2.5Manner of Tax Return Preparation.
(a)Unless otherwise required by a Taxing Authority, the Parties hereby agree to prepare and file all Tax Returns, and to take all other actions, in a manner consistent with (i) this Agreement, (ii) any Tax Opinion and (iii) any Ruling. All Tax Returns shall be filed on a timely basis (taking into account applicable extensions) by the Party responsible for filing such returns under this Agreement.
(b)SAP shall have the exclusive right, in its sole discretion, with respect to any Tax Return described in Section 2.1 of this Agreement (including, for the avoidance of doubt, any and all Combined Returns), to determine (i) the manner in which such Tax Return shall be prepared and filed, including the elections, method of accounting, positions, conventions and principles of taxation to be used and the manner in which any Tax Item shall be reported, (ii) whether any extensions shall be requested, (iii) the elections that will be made by SAP, any SAP Affiliate, Qualtrics, and/or any Qualtrics Affiliate on such Tax Return (including an election to claim foreign tax credits under Section 901(a) of the Code or any similar provision of any state, local or non-U.S. Tax law), (iv) whether any amended Tax Returns shall be filed, (v) whether any claims for refund shall be made, (vi) whether any refunds shall be paid by way of refund or credited against any liability for the related Tax, and (vii) whether to retain outside firms to prepare and/or review such Tax Returns; provided, however, that SAP or SAP America shall consult with Qualtrics prior to changing any method of accounting if such action would solely impact the Qualtrics Group.
(c)For so long as SAP and its Affiliates own, in the aggregate, directly or indirectly, more than 50% of the outstanding stock of Qualtrics (by vote or value), with respect to any Tax Return prepared by Qualtrics pursuant to Section 2.2 hereof, the Qualtrics Group shall, upon SAP’s request, (i) use commercially reasonable efforts provide a copy of such Tax Return (together with any worksheets and other materials used in preparation thereof) available for SAP’s review and comment at least forty-five 45 calendar days prior to the due date (including any applicable extensions) for filing such Tax Return and (ii) incorporate any reasonable comments provided by SAP with respect to any such Tax Return that are provided by 
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SAP at least 10 business days prior to the due date (including any applicable extensions) for the filing of such Tax Return.
(d)Notwithstanding anything to the contrary herein, SAP shall make any decision as to whether any Tax Return that would include at least one member of the SAP Group will be filed on a consolidated, combined or unitary basis for any taxable year and the Qualtrics Group shall take all actions necessary to cause all applicable members of the Qualtrics Group to join in the filing of any such Tax Return that SAP decides to file on a consolidated, combined or unitary basis pursuant to this Section 2.5(d). With respect to any taxable year (or portion thereof) that SAP and its Affiliates own, in the aggregate, directly or indirectly, 50% or more of the outstanding stock of Qualtrics (by vote or value), no member of the Qualtrics Group shall be entitled to file any Tax Return on a consolidated, combined or unitary basis (including such a Tax Return consisting solely of members of the Qualtrics Group) for such taxable year without the prior consent of SAP (such consent not to be unreasonably withheld, conditioned or delayed). For the avoidance of doubt, such consent will not be considered to be unreasonably withheld, conditioned or delayed if the filing of such Tax Return on a consolidated, combined or unitary basis will result in a Tax Detriment to SAP or any its Affiliates for any taxable year.
ARTICLE III
LIABILITY FOR TAXES
Section 3.1Qualtrics’ Liability for Taxes. Each member of the Qualtrics Group shall be jointly and severally liable for the following Taxes, and shall be entitled to receive and retain all refunds of Taxes previously incurred by Qualtrics (except to the extent that any such refunds are attributable Pre-IPO Equity Award Tax Attributes) or any Qualtrics Affiliate with respect to such Taxes:
(a)all Taxes with respect to Tax Returns described in Section 2.1(a) of this Agreement to the extent of the Qualtrics Separate Tax Liability, for any taxable period beginning after December 31, 2020;
(b)all Taxes with respect to Tax Returns described in Section 2.2(a) of this Agreement for any taxable period beginning after December 31, 2020;
(c)all Taxes with respect to Tax Returns described in Section 2.2(b) of this Agreement; and
(d)all Taxes imposed by any Taxing Authority with respect to Qualtrics or any Qualtrics Affiliate (other than in connection with the required filing of a Tax Return described in Sections 2.1(a) or 2.2 of this Agreement) for any taxable period.
Section 3.2SAP’s Liability for Taxes. SAP shall be liable for the following Taxes, and (subject to Section 3.6) shall be entitled to receive and retain all refunds of Taxes previously incurred by SAP or any SAP Affiliate with respect to such Taxes:
(a)except for Taxes that are the responsibility of Qualtrics and the Qualtrics Affiliates pursuant to Section 3.1(a) of this Agreement, all Taxes with respect to Tax Returns described in Section 2.1(a) of this Agreement;
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(b)all Taxes with respect to Tax Returns described in Sections 2.1(b) or 2.1(c) of this Agreement;
(c)all Taxes with respect to Tax Returns described in Section 2.2(a) for taxable periods beginning before January 1, 2021; and
(d)all Taxes imposed by any Taxing Authority with respect to SAP or any SAP Affiliate (other than in connection with the required filing of a Tax Return described in Section 2.1 or Section 2.2(a) of this Agreement) for any taxable period.
Section 3.3Payment of Tax Liability. If one Party is liable or responsible for Taxes under Sections 3.1 or 3.2 of this Agreement, with respect to Tax Returns for which another Party is responsible for filing, or with respect to Taxes that are paid by another Party, then the liable or responsible Party shall pay the Taxes (or a reimbursement of such Taxes) to the other Party pursuant to Section 8.5 of this Agreement.
Section 3.4Computation of Separate Tax Liability.
(a)Any Qualtrics Separate U.S. Federal Tax Liability shall be computed using the following conventions (the “Tax Attribute Conventions”):
(i)By not taking into account any Pre-IPO Equity Award Tax Attributes;
(ii)By taking into account any carryforwards of any Tax Attribute (other than any Pre-IPO Equity Award Tax Attribute) generated in any taxable period beginning after December 31, 2020 that are properly attributable to Qualtrics or its Affiliates and are actually available to be used by the SAP America Consolidated Group in the taxable year in which the Qualtrics Separate U.S. Federal Tax Liability is being computed;
(iii)By taking into account, any Hypothetical Qualtrics Tax Attribute (determined as if all other available loss, deductions, credits and other Tax Attributes were utilized before the Hypothetical Qualtrics Tax Attribute) that has not been previously utilized by Qualtrics to reduce the Qualtrics Separate U.S. Federal Tax Liability in a prior taxable period; provided, that the Qualtrics Separate U.S. Federal Tax Liability shall only be reduced on account of a Hypothetical Qualtrics Tax Attribute to the extent of the Tax Benefit recognized by the SAP Group as a result of the utilization of the underlying Tax Attribute to which such Hypothetical Qualtrics Tax Attribute relates.
(b)At least 10 business days prior to the due date for any payment of Taxes (including estimated taxes for purposes of Section 8.1 of this Agreement) in respect of any Combined Return, SAP (or one of its Affiliates) shall provide Qualtrics with a written calculation in reasonable detail (including, upon reasonable request, copies of all work sheets and other materials used in preparation thereof) setting forth the amount of any Qualtrics Separate Tax Liability or estimated Qualtrics Separate Tax Liability, as applicable. The calculation of any Qualtrics Separate Tax Liability shall be based on the Qualtrics Consolidated Return Materials, the Qualtrics Combined State Return Materials, and/or any other information provided by 
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Qualtrics to SAP pursuant to this Agreement and shall be computed in a manner consistent (i) with general Tax accounting principles, (ii) the Tax law of the applicable Taxing Jurisdiction, (iii) the Tax Attribute Conventions, and (iv) past practice, if any, to the extent not inconsistent with this Agreement. SAP may determine any estimated Qualtrics Separate Tax Liability based on the materials that Qualtrics is required to deliver to SAP pursuant to Section 2.4(d) of this Agreement or by using any reasonable method, including, without limitation, by basing such estimated Qualtrics Separate Tax Liability on the Qualtrics Separate Tax Liability for prior taxable years. In no event shall any payment attributable to the amount of any Qualtrics Separate Tax Liability or estimated Qualtrics Separate Tax Liability be paid later than the date provided in Article VIII of this Agreement.
Section 3.5Covenant. Without the prior consent of SAP, no member of the Qualtrics Group will take any action that would reasonably be expected to cause any Combined Group to lose the benefit of any Tax Attribute that could otherwise be utilized with respect to a Combined Return, including, without limitation, any action that would cause Qualtrics, LLC (or its successor) to be classified as other than a partnership or disregarded entity for U.S. federal income tax purposes.
Section 3.6Certain Tax Credits. Any Utah State Economic Development Tax Increment Financing (EDTIF) tax credit shall be for the account of Qualtrics, and if any member of the SAP Group receives such a tax credit then SAP shall cause the recipient member of the SAP Group to pay to Qualtrics an amount equal to such tax credit no later than 10 business days after receipt thereof.
ARTICLE IV
DECONSOLIDATION EVENTS
Section 4.1Tax Allocations. The Parties have set forth how certain Tax matters with respect to a Deconsolidation Event would be handled in the event that a transaction that constitutes a Deconsolidation Event is pursued at some future time.
(a)Allocation of Tax Items. In the case of a Deconsolidation Event, all Tax computations with respect to applicable Combined Returns for (i) any Pre-Deconsolidation Periods ending on the date of the Deconsolidation Event and (ii) the immediately following taxable period of Qualtrics or any Qualtrics Affiliate, shall be made pursuant to the principles of Section 1.1502-76(b) of the Treasury Regulations or of a corresponding provision under the laws of other jurisdictions, as reasonably determined by SAP.
(b)Allocation of Tax Attributes. In the case of a Deconsolidation Event, SAP shall determine the allocation of any Tax Attributes among SAP, each SAP Affiliate, Qualtrics, and each Qualtrics Affiliate with respect to applicable Combined Returns. The Parties hereby agree that in the absence of controlling legal authority or unless otherwise provided under this Agreement, Tax Attributes shall be allocated to the legal entity that is required under Article III of this Agreement to bear the liability for the Tax associated with such Tax Attribute, or in the case where no Party is required hereunder to bear such liability, the Party that incurred the cost or burden associated with the creation of such Tax Attribute. SAP shall provide Qualtrics with an 
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opportunity to review and comment on a draft of any such allocation, and SAP shall accept any reasonable comments. 
Section 4.2Carrybacks. Qualtrics shall (and shall cause each of its Affiliates to) waive, to the extent permitted under applicable U.S. federal, state, local or non-U.S. law, carrybacks of Tax Attributes from any Post-Deconsolidation Period to any Pre-Deconsolidation Period. If any member of the Qualtrics Group carries back a Tax Attribute from a Post-Deconsolidation Period to Pre-Deconsolidation Period, no payment shall be due from SAP (or any its Affiliates) with respect to that carryback, regardless of whether such carryback is required by applicable law. Without limiting the foregoing, Qualtrics hereby expressly agrees to elect (under Section 172(b)(3) of the Code (and any similar provision of any state, local or non-U.S. Tax law) and Treasury Regulations Section 1.1502-21(b)(3) to relinquish any right to carry back net operating losses to any Pre-Deconsolidation Periods of SAP (or and of its Affiliates).
Section 4.3Post-Deconsolidation Payments.
(a)Pre-IPO Equity Awards. For each taxable year ending after a Deconsolidation Event, Qualtrics shall pay to SAP America the amount of any Tax Benefit recognized by the Qualtrics Group during such taxable year to the extent arising from any Pre-IPO Equity Award Tax Attributes. Any amount payable under this Section 4.3(a) shall be payable within 10 calendar days after the date of filing of the Tax Return upon which such Tax Benefit is utilized.
(b)Tax Attributes. For each taxable year ending after a Deconsolidation Event in which a member of the Qualtrics Group would have been entitled to utilize a Hypothetical Qualtrics Tax Attribute under applicable Tax law (determined as if all other available loss, deductions, credits and other Tax Attributes were utilized before the Hypothetical Qualtrics Tax Attribute) that was not previously taken into account under this Section 4.3(b) or to reduce the Qualtrics Separate Tax Liability, then SAP America shall pay to Qualtrics an amount equal to the lesser of (i) the amount of the Tax Benefit that would have been available to the Qualtrics Group as a result of the utilization of such Hypothetical Qualtrics Tax Attribute and (ii) the Tax Benefit realized by the SAP Group as a result of the utilization of the Tax Attribute to which the Hypothetical Qualtrics Tax Attribute relates. Any amount payable under this Section 4.3(a)shall be payable within 10 calendar days after the date of filing of the Tax Return upon which such Hypothetical Qualtrics Tax Attribute could otherwise have been utilized. For the avoidance of doubt, a Hypothetical Qualtrics Tax Attribute does not include any amount attributable to a Pre-IPO Equity Award.
(c)Cooperation. Qualtrics agrees to share any calculations, workpapers or relevant Tax Returns reasonably requested by SAP in connection with matters related to this Section 4.3. The parties shall attempt in good faith to resolve any issues or disputes related to this Section 4.3.
ARTICLE V
DISTRIBUTION TAXES
Section 5.1Liability for Distribution Taxes.
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(a)Notwithstanding anything in this Agreement to the contrary, subject to Section 5.1(c), in the event of a Distribution, Qualtrics shall be responsible for, and shall indemnify and hold harmless SAP and its Affiliates and each of their respective officers, directors and employees from and against, 100% of any Tax-Related Losses that are attributable to or result from any one or more of the following: (i) the acquisition after a Distribution of all or a portion of Qualtrics’ stock and/or its or its subsidiaries’ assets by any means whatsoever by any Person, (ii) any “agreement, understanding, arrangement, substantial negotiations or discussions” (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the Qualtrics Group or by any other Person or Persons with the implicit or explicit permission of one or more of such officers or directors (other than officers or directors of SAP or SAP America) that cause a Distribution to be treated as part of a plan pursuant to which one or more Persons acquire, directly or indirectly, Qualtrics stock representing a Fifty-Percent or Greater Interest therein, (iii) any action or failure to act by Qualtrics after a Distribution (including, without limitation, any amendment to Qualtrics’ certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Qualtrics stock (including, without limitation, through the conversion of one class of Qualtrics stock into another class of Qualtrics stock), or (iv) any breach by Qualtrics or any Qualtrics Affiliate of any covenant contained in Section 5.2(a) or (c) (regardless whether such act or failure to act is covered by a Ruling, Unqualified Tax Opinion or SAP waiver described in Section 5.2(c)).
(b)Notwithstanding anything in this Agreement to the contrary, subject to Section 5.1(c), in the event of a Distribution, SAP (or the applicable member of the SAP Group) shall be responsible for, and shall indemnify and hold harmless Qualtrics and its Affiliates and each of their respective officers, directors and employees from and against, 100% of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (i) the acquisition after an Internal Distribution of all or a portion of SAP America’s stock and/or its Subsidiaries’ assets or after an External Distribution of all or a portion of SAP’s stock and/or its Subsidiaries’ assets, in each case by any means whatsoever by any Person, (ii) any “agreement, understanding, arrangement, substantial negotiations or discussions” (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the SAP Group or by any other Person or Persons with the implicit or explicit permission of one or more of such officers or directors that cause a Distribution to be treated as part of a plan pursuant to which one or more Persons acquire, directly or indirectly, stock of SAP representing a Fifty-Percent or Greater Interest therein, or (iii) any breach by SAP or a member of the SAP Group of any covenant contained in Section 5.2(b).
(c)To the extent any Tax-Related Loss is subject to indemnification under both Sections 5.1(a) and (b), responsibility for such Tax-Related Loss shall be shared by SAP (or the applicable member of the SAP Group) and Qualtrics according to relative fault.
(i)Notwithstanding anything in Section 5.1(b) or (c) or any other provision of this Agreement to the contrary:
(A)with respect to (1) any Tax-Related Loss resulting from the application of Section 355(e) of the Code and (2) any other Tax-Related Loss 
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resulting, in each case, in whole or in part, from an acquisition after the Distribution of any stock or assets of Qualtrics (or any member of the Qualtrics Group) by any means whatsoever by any Person or any action or failure to act by Qualtrics after a Distribution affecting the voting rights of Qualtrics, Qualtrics shall be responsible for, and shall indemnify and hold harmless SAP and its Affiliates and each of their respective officers, directors and employees from and against, 100% of such Tax-Related Loss; and
(B)for purposes of calculating the amount and timing of any Tax-Related Loss for which Qualtrics is responsible under this Section 5.1(c)(i), Tax-Related Losses shall be calculated by assuming that SAP, the SAP America Consolidated Group and each member of the SAP Group have no Tax Attributes in any relevant taxable year.
(ii)Notwithstanding anything in Section 5.1(a) or (c) or any other provision of this Agreement to the contrary, with respect to (A) any Tax-Related Loss resulting from the application of Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Qualtrics) and (B) any other Tax-Related Loss resulting, in each case, in whole or in part, from an acquisition after an Internal Distribution of any stock or assets of SAP America (or any of its Subsidiaries) or after an External Distribution of any stock or assets of SAP (or any of its Subsidiaries), in each case, by any means whatsoever by any Person, SAP shall be responsible for, and shall indemnify and hold harmless Qualtrics and its Affiliates and each of their respective officers, directors and employees from and against, 100% of such Tax-Related Loss.
(d)SAP (or the applicable SAP Affiliate) shall be liable for 100% of any Tax-Related Losses not otherwise allocable to a Party under this Section 5.1.
(e)Section 336(e) Election. SAP shall determine, in its sole and absolute discretion, whether to make a protective election under Section 336(e) of the Code and the Treasury Regulations thereunder (and any corresponding or analogous provisions of state, local and non-U.S. law) in connection with a Distribution (a “Section 336(e) Election”). If SAP determines that a Section 336(e) Election should be made:
(i)SAP, Qualtrics and their respective Affiliates shall cooperate in making the Section 336(e) Election, including by filing any statements, amending any Tax Returns or taking such other actions reasonably necessary to carry out the Section 336(e) Election;
(ii)if a Distribution fails to qualify (in whole or in part) for the U.S. Tax-Free Status and Qualtrics or any Qualtrics Affiliate realizes an increase in Tax basis as a result of the Section 336(e) Election (the “Section 336(e) Tax Basis”) or otherwise, then the Tax Benefit realized by the Qualtrics Group as a result of the Section 336(e) Tax Basis (or other tax basis increase) shall be shared between SAP and Qualtrics in the same proportion as the Distribution Taxes giving rise to the Section 336(e) Tax Basis were borne by SAP and Qualtrics (after giving effect to the indemnification obligations in this Agreement);
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(iii)the amount required to be paid under this Section 5.1(e) shall be payable within 10 business days of filing the tax return upon which the Tax Benefit was realized; and
(iv)to the extent the Section 336(e) Election becomes effective, each of SAP, Qualtrics and their Affiliates agrees not to take any position that is inconsistent with the Section 336(e) Election.
Section 5.2Continuing Covenants.
(a)Qualtrics Restrictions. Qualtrics agrees that, so long as a Distribution that qualifies for the U.S. Tax-Free Status could, in the reasonable discretion of SAP, be effectuated, Qualtrics will not knowingly take or fail to take, or permit any Qualtrics Affiliate to knowingly take or fail to take, any action that could reasonably be expected to preclude SAP’s ability to effectuate such a Distribution. In the event of an Internal Distribution, External Distribution or both, Qualtrics agrees that (i) it will take, or cause any Qualtrics Affiliate to take, any action reasonably requested by SAP (including the delivery of an Officer’s Certificate) in order to enable SAP to effectuate such Distribution or Distributions and (ii) it will not take or fail to take any action (and it shall cause the members of the Qualtrics Group not to take or fail to take any action) which action or failure to act could reasonably be expected to prevent SAP from consummating either Distribution. In the event of an Internal Distribution, External Distribution or both, Qualtrics agrees that it will not take or fail to take, or permit any Qualtrics Affiliate to take or fail to take, any action where such action or failure to act would be inconsistent with any information, covenant, representation, or material that relates to facts or matters related to Qualtrics (or any Qualtrics Affiliate) or within the control of Qualtrics and is contained in the Tax Opinion Documents or any Ruling Documents other than as permitted by Section 5.2(c) of this Agreement. In the event of any Distribution, Qualtrics agrees that it will not take (and it will cause the Qualtrics Affiliates to refrain from taking) any position on a Tax Return that is inconsistent with such Distribution qualifying for its Intended Tax Treatment.
(b)SAP Restrictions. In the event of a Distribution, SAP agrees that it will not take or fail to take, or permit any SAP Affiliate to take or fail to take, any action where such action or failure to act would be inconsistent with any material, information, covenant or representation that relates to facts or matters related to SAP (or any SAP Affiliate) or within the control of SAP and is contained in the Tax Opinion Documents or any Ruling Documents. In the event of any Distribution, SAP agrees that it will not take (and it will cause the SAP Affiliates to refrain from taking) any position on a Tax Return that is inconsistent with such Distribution qualifying for its Intended Tax Treatment.
(c)Certain Qualtrics Actions Following a Distribution. In the event of any Distribution, Qualtrics agrees that, during the two year period following any Distribution, Qualtrics shall not (i) enter into any Proposed Acquisition Transaction or, to the extent Qualtrics has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (A) redeeming rights under a shareholder rights plan, (B) finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction or (C) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of 
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the DGCL or any similar corporate statute, any “fair price” or other provision of Qualtrics’ charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single transaction or series of transactions (A) sell or transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets held by Qualtrics at the time of a Distribution (B) sell or transfer 50% or more of the gross assets of the Qualtrics Active Business or (C) sell or transfer 30% or more of the consolidated gross assets of Qualtrics and its Subsidiaries (in each case, such percentages to be measured based on fair market value as of the date of the relevant distribution), (iv) redeem or otherwise repurchase (directly or through a Subsidiary) any Qualtrics stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment by Revenue Procedure 2003-48), (v) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the voting rights of Qualtrics stock (including, without limitation, through the conversion of one class of Qualtrics stock into another class of Qualtrics stock) or (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation or covenant made in the Tax Opinion Documents or any Ruling Documents) which in the aggregate (and taking into account any other transactions described in this subparagraph (c)) would be reasonably likely to have the effect of causing or permitting one or more Persons to acquire, directly or indirectly, stock representing a Fifty-Percent or Greater Interest in Qualtrics or otherwise jeopardize the U.S. Tax-Free Status of a Distribution, unless, in each case, prior to taking any such action set forth in the foregoing clauses (i) through (vi), Qualtrics shall have requested that SAP obtain a Ruling (or, if applicable, a supplemental Ruling) from the IRS and/or any other applicable Taxing Authority in accordance with Section 5.2(d) of this Agreement to the effect that such transaction will not affect the U.S. Tax-Free Status of the Distribution and SAP shall have received such Ruling in form and substance satisfactory to SAP in its reasonable discretion (and in determining whether a Ruling is satisfactory, SAP may consider, among other factors, the appropriateness of any underlying assumptions and representations made in connection with such Ruling), or Qualtrics shall provide SAP with an Unqualified Tax Opinion in form and substance satisfactory to SAP in its reasonable discretion (and in determining whether an opinion is satisfactory, SAP may consider, among other factors, the appropriateness of any underlying assumptions and representations if used as a basis for the opinion), or SAP shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion.
(d)Procedures Regarding Opinions and Rulings.
(i)If Qualtrics notifies SAP that it desires to take one of the actions described in clauses (i) through (vi) of Section 5.2(c) (a “Notified Action”), SAP and Qualtrics shall reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion referred to in Section 5.2(c), unless SAP shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion.
(ii)At the reasonable request of Qualtrics pursuant to Section 5.2(c), SAP shall cooperate with Qualtrics and use commercially reasonable efforts to seek to obtain, as expeditiously as possible, a Ruling from the IRS (and/or any other applicable Taxing Authority, or if applicable, a supplemental Ruling) or an 
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Unqualified Tax Opinion for the purpose of permitting Qualtrics to take the Notified Action.  Further, in no event shall SAP be required to file any request for a Ruling under this Section 5.2(d) unless Qualtrics represents that (A) it has reviewed the request for such Ruling, and (B) all information and representations, if any, relating to any member of the Qualtrics Group, contained in the related Ruling documents are (subject to any qualifications therein) true, correct and complete.  Qualtrics shall reimburse SAP for all reasonable costs and expenses incurred by the SAP Group in obtaining a Ruling or Unqualified Tax Opinion requested by Qualtrics within 10 business days after receiving an invoice from SAP therefor.
(iii)SAP shall have the right to request a Ruling from the IRS (and/or any other applicable Taxing Authority, or if applicable, a supplemental Ruling) or an Unqualified Tax Opinion at any time in its sole and absolute discretion.  If SAP determines to obtain a Ruling or an Unqualified Tax Opinion, Qualtrics shall (and shall cause each Affiliate of Qualtrics to) cooperate with SAP and take any and all actions reasonably requested by SAP in connection with obtaining the Ruling or Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS or Tax Counsel; provided, that Qualtrics shall not be required to make (or cause any Affiliate of Qualtrics to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control).  SAP and Qualtrics shall each bear its own costs and expenses in obtaining a Ruling or an Unqualified Tax Opinion requested by SAP.
(iv)Qualtrics hereby agrees that SAP shall have sole and exclusive control over the process of obtaining any Ruling, and that only SAP shall apply for a Ruling.  In connection with obtaining a Ruling pursuant to Section 5.2(c) hereof, (A) SAP shall keep Qualtrics informed in a timely manner of all material actions taken or proposed to be taken by SAP in connection therewith; (B) SAP shall (1) reasonably in advance of the submission of any related Ruling Documents provide Qualtrics with a draft copy thereof, (2) reasonably consider Qualtrics’ comments on such draft copy, and (3) provide Qualtrics with a final copy; and (C) SAP shall provide Qualtrics with notice reasonably in advance of, and Qualtrics shall have the right to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that relate to such Ruling.  Neither Qualtrics nor any member of the Qualtrics Group shall request any guidance from the IRS or any other Taxing Authority (whether written, verbal or otherwise) at any time concerning a Distribution (including the impact of any transaction on a Distribution).
(e)Qualtrics Cooperation. Qualtrics agrees that, at the request of SAP, Qualtrics shall cooperate fully with SAP to take any action necessary or reasonably helpful to effectuate any Distribution, including seeking to obtain, as expeditiously as possible, a Tax Opinion or Ruling. Such cooperation shall include the execution of any documents that may be necessary or reasonably helpful in connection with obtaining any Tax Opinion or Ruling 
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(including any (i) power of attorney, (ii) Officer’s Certificate, (iii) Ruling Documents and/or (iv) reasonably requested written representations confirming that (A) Qualtrics has read the Officer’s Certificate and/or Ruling Documents and (B) all information and representations, if any, relating to Qualtrics, any Qualtrics Affiliate or the Qualtrics Business contained therein are true, correct and complete in all material respects).
ARTICLE VI
GERMAN TAX MATTERS
Section 6.1Liability for Relevant German CFC/PFIC Taxes. Notwithstanding anything in this Agreement to the contrary, Qualtrics shall be responsible for, and shall indemnify and hold harmless SAP and its Affiliates against, 100% of any Relevant German CFC/PFIC Taxes payable by SAP or any of its Affiliates for taxable periods beginning after December 31, 2020. Any such indemnity payments shall be made in accordance with Section 8.5 hereof.
Section 6.2Policy. The Parties will cooperate to adopt a policy to provide that Qualtrics will consult with SAP (and provide certain information to SAP) prior to any member of the Qualtrics Group taking certain actions that create a risk that Relevant German CFC/PFIC Taxes could be imposed on SAP. The Parties will cooperate to review and modify such policy as appropriate, including on account of any changes in applicable law.
ARTICLE VII
INDEMNIFICATION
Section 7.1In General.
(a)Each member of the SAP Group shall jointly and severally indemnify Qualtrics, each Qualtrics Affiliate, and their respective directors, officers and employees, and hold them harmless from and against any and all Taxes for which SAP or any SAP Affiliate is liable under this Agreement and any loss, cost, damage or expense, including reasonable attorneys’ fees and costs, that is attributable to, or results from, the failure of SAP, any SAP Affiliate or any director, officer or employee to make any payment required to be made under this Agreement.
(b)Each member of the Qualtrics Group shall jointly and severally indemnify SAP, each SAP Affiliate, and their respective directors, officers and employees, and hold them harmless from and against any and all Taxes for which Qualtrics or any Qualtrics Affiliate is liable under this Agreement and any loss, cost, damage or expense, including reasonable attorneys’ fees and costs, that is attributable to, or results from, the failure of Qualtrics, any Qualtrics Affiliate or any director, officer or employee to make any payment required to be made under this Agreement.
Section 7.2Inaccurate or Incomplete Information.
(a)Each member of the SAP Group shall jointly and severally indemnify Qualtrics, each Qualtrics Affiliate, and their respective directors, officers and employees, and hold them harmless from and against any cost, fine, penalty, or other expense of any kind attributable to the failure of SAP or any SAP Affiliate in supplying Qualtrics or any Qualtrics 
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Affiliate with inaccurate or incomplete information, in connection with the preparation of any Tax Return.
(b)Each member of the Qualtrics Group shall jointly and severally indemnify SAP, each SAP Affiliate, and their respective directors, officers and employees, and hold them harmless from and against any cost, fine, penalty, or other expenses of any kind attributable to the failure of Qualtrics or any Qualtrics Affiliate in supplying SAP or any SAP Affiliate with inaccurate or incomplete information, in connection with the preparation of any Tax Return.
Section 7.3No Indemnification for Tax Items. Nothing in this Agreement shall be construed as a guarantee of the existence or amount of any loss, credit, carryforward, basis or other Tax Item, whether past, present or future, of SAP, any SAP Affiliate, Qualtrics or any Qualtrics Affiliate. In addition, for the avoidance of doubt, for purposes of determining any amount owed between the Parties hereto, all such determinations shall be made without regard to any financial accounting tax asset or liability or other financial accounting items.
ARTICLE VIII
PAYMENTS
Section 8.1Estimated Tax Payments. Not later than five business days prior to each Estimated Tax Installment Date with respect to a taxable period for which a Combined Return will be filed, Qualtrics shall pay to SAP (or the applicable SAP Affiliate) on behalf of the Qualtrics Group an amount equal to the amount of any estimated Qualtrics Separate Tax Liability (as calculated pursuant to Section 3.4(b)).
Section 8.2True-Up Payments. Not later than 10 business days after receipt of any Qualtrics Separate Tax Liability computation pursuant to Section 3.4(b) of this Agreement, the Qualtrics Group shall pay to the applicable member of the SAP Group, or the SAP Group shall pay to the applicable member of the Qualtrics Group, as appropriate, an amount equal to the difference, if any, between the Qualtrics Separate Tax Liability and the aggregate amount paid by Qualtrics with respect to such period under Section 8.1 of this Agreement.
Section 8.3Redetermination Amounts. In the event of a redetermination of any Tax Item reflected on any Combined Return (other than Tax Items relating to Distribution Taxes), as a result of a refund of Taxes paid, a Final Determination or any settlement or compromise with any Taxing Authority which in any such case would affect the Qualtrics Separate Tax Liability, then within 10 calendar days of such redetermination Qualtrics shall deliver to SAP any information that would be required for SAP to recompute the Qualtrics Separate Tax Liability pursuant to Section 3.4(b) of this Agreement or amounts due pursuant to Section 4.3 of this Agreement. Within 30 calendar days of such redetermination, SAP shall prepare (or cause to be prepared) and deliver to Qualtrics a revised calculation of the Qualtrics Separate Tax Liability for the relevant taxable period reflecting such redetermination or amounts due pursuant to Section 4.3 of this Agreement. The Qualtrics Group shall pay to the applicable member of the SAP Group, or the SAP Group shall pay to the applicable member of the Qualtrics Group, as appropriate, an amount equal to the difference, if any, between the revised Qualtrics Separate Tax Liability and the Qualtrics Separate Tax Liability for such period as originally computed pursuant to this Agreement or to reflect the revisions of the amount due 
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pursuant to Section 4.3 of this Agreement. Any amount payable under this Section 8.3 shall be payable within 15 calendar days of receipt by Qualtrics of the revised calculation of the Qualtrics Separate Tax Liability or amounts due reflecting the redetermination of the relevant Tax Item.
Section 8.4Payments of Refunds, Credits and Reimbursements. If one Party receives a refund or credit of any Tax to which the other party is entitled pursuant to Section 3.1 or 3.2 of this Agreement, the Party receiving such refund or credit shall pay to the other Party the amount of such refund or credit (less any out-of-pocket fees or expenses incurred in obtaining such refund or credit) pursuant to Section 8.5 of this Agreement. If one Party pays a Tax with respect to which the other party is liable or responsible pursuant to Sections 3.1 or 3.2 of this Agreement, then the liable or responsible Party shall pay to the other party the amount of such Tax pursuant to Section 8.5 of this Agreement.
Section 8.5Payments Under This Agreement. In the event that one Party (the “Owing Party”) is required to make a payment to another Party (the “Owed Party”) pursuant to this Agreement, then such payments shall be made according to this Section 8.5.
(a)In General. All payments shall be made to the Owed Party or to the appropriate Taxing Authority as specified by the Owed Party within the time prescribed for payment in this Agreement, or if no period is prescribed, within 10 business days after delivery of written notice of payment owing together with a computation of the amounts due.
(b)Treatment of Payments.
(i)To the extent permitted by applicable law, the Parties agree for all applicable Tax purposes to treat any payments made by one Party to another Party pursuant to this Agreement as non-taxable payments (i.e., dividends, capital contributions or reimbursements of expenses), except for any indemnification payments made by Qualtrics to SAP with respect to Relevant German CFC/PFIC Taxes as required by Section 6.1 of this Agreement.
(ii)Unless otherwise required by any Final Determination, the Parties agree that any payments treated as dividends or capital contributions pursuant to Section 8.5(b)(i) made after the date of any Deconsolidation Event that relate to taxable periods (or portions thereof) ending on or before the date of such Deconsolidation Event shall be treated for all Tax purposes as dividends or capital contributions, as the case may be, made immediately prior to the Deconsolidation Event.
(iii)Unless otherwise required by any Final Determination, the Parties agree that any payments made by Qualtrics to SAP America pursuant to Section 4.3(a) of this Agreement (relating to Post-Deconsolidation payments in respect of Pre-IPO Equity Award Tax Attributes) shall be treated as having been distributed by Qualtrics to SAP America prior to the U.S. Federal Deconsolidation Event.
(c)Prompt Performance. All actions required to be taken (including payments) by any Party under this Agreement shall be performed within the time prescribed for 
23

performance in this Agreement, or if no period is prescribed, such actions shall be performed promptly.
(d)After Tax Amounts. If notwithstanding the manner in which payments described in Section 8.5(b) were reported, there is a Tax liability or an adjustment to a Tax liability of a Party as a result of the receipt a payment made under this Agreement then the Owing Party shall be liable for (i) the After Tax Amount with respect to such payment and (ii) interest at the rate described in Section 8.5(e) of this Agreement on the amount of such Tax from the date such Tax accrues through the date of payment of such After Tax Amount. An Owed Party making a demand for a payment pursuant to this Agreement and for a payment of an After Tax Amount with respect to such payment shall separately specify and compute such After Tax Amount.
(e)Interest. Payments pursuant to this Agreement that are not made within the period prescribed in this Agreement (the “Payment Period”) shall bear interest for the period from and including the date immediately following the last date of the Payment Period through and including the date of payment at a per annum rate equal to the prime rate as published in The Wall Street Journal on the last day of such Payment Period. Such interest will be payable at the same time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due.
(f)Post-Internal Distribution Payments. Following the date of an Internal Distribution, if SAP America would otherwise be an Owed Party with respect to any payment that the Parties agree would be treated as a dividend for applicable Tax purposes that relates to a period after the Internal Distribution, then notwithstanding anything in this Article VIII to the contrary, the applicable member of the Qualtrics Group should make such payment directly to SAP, which payment shall be treated for all applicable Tax purposes as a dividend from Qualtrics to SAP relating to a period after the Internal Distribution.
ARTICLE IX
TAX PROCEEDINGS
Section 9.1In General. Except as otherwise provided in this Agreement (including, without limitation, Section 9.3 and Section 9.4), (i) with respect to Tax Returns described in Section 2.1 of this Agreement, SAP (or such SAP Affiliate as SAP shall designate) and (ii) with respect to Tax Returns described in Section 2.2 of this Agreement (including any Tax Returns with respect to Qualtrics, LLC), Qualtrics (or such Qualtrics Affiliate as Qualtrics shall designate) (in either case, the “Controlling Party”), shall have the exclusive right, in its sole discretion, to control, contest, and represent the interests of SAP, any SAP Affiliate, Qualtrics, and/or any Qualtrics Affiliate in any Audit relating to such Tax Return and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Audit. The Controlling Party’s rights shall extend to any matter pertaining to the management and control of an Audit, including execution of waivers, choice of forum, selection of counsel, scheduling of conferences and the resolution of any Tax Item. Any costs incurred in handling, settling, or contesting an Audit shall be borne by the Controlling Party.
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Section 9.2Audits with Respect to Combined Returns. Except as otherwise provided in Section 9.4 of this Agreement (relating to Audits regarding Distribution Taxes), in the event of any Audit relating to a Combined Return for which Qualtrics could reasonably be expected to become liable for any Tax in excess of $1 million, (a) SAP shall consult with Qualtrics reasonably in advance of taking any significant action in connection with such Audit, (b) SAP shall consult with Qualtrics and offer Qualtrics a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Audit that relate solely to members of the Qualtrics Group, and (c) SAP shall provide Qualtrics copies of any written materials relating to such Audit received from the relevant Tax Authority (but only the portion of such written materials that relate solely to members of the Qualtrics Group).
Section 9.3SAP as Non-Controlling Party. For so long as SAP and its Affiliates own directly or indirectly, in the aggregate, more than 50% of the outstanding stock of Qualtrics (by vote or value), then with respect to any Audit for which SAP is the non-Controlling Party: (a) the Qualtrics Group shall provide SAP with a timely and reasonably detailed account of each phase of such Audit, (b) the Qualtrics Group shall consult with SAP before taking any significant action in connection with such Audit, (c) the Qualtrics Group shall consult with SAP and offer the members of the SAP Group an opportunity to comment before submitting to a Taxing Authority any written materials prepared or furnished in connection with such Audit, (d) the SAP Group shall be entitled to participate (at its own expense) in such Audit, and (e) the Qualtrics Group shall not settle such Audit without SAP’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned).
Section 9.4Control of Distribution Tax Proceedings. In the event of a Distribution, SAP shall have the exclusive right, in its sole discretion, to control, contest, and represent the interests of SAP, any SAP Affiliate, Qualtrics, and/or any Qualtrics Affiliate in any Audits relating to Distribution Taxes and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Audit; provided, however, that SAP shall not settle any such audit with respect to Distribution Taxes with a Taxing Authority that would reasonably be expected to result in a material Tax cost to Qualtrics or any Qualtrics Affiliate, without the prior consent of Qualtrics, which consent shall not be unreasonably withheld, conditioned or delayed. SAP’s rights shall extend to any matter pertaining to the management and control of such Audit, including execution of waivers, choice of forum, scheduling of conferences and the resolution of any Tax Item.
Section 9.5Notice. Within 10 business days after a Party becomes aware of the existence of a Tax issue that may give rise to an indemnification obligation under this Agreement, such Party shall give notice to the other Party of such issue (such notice shall contain factual information, to the extent known, describing any asserted tax liability in reasonable detail), and shall promptly forward to the other Party copies of all notices and material communications with any Taxing Authority relating to such issue. The failure to provide the other Party notice as required by this Section 9.5 shall not affect the indemnification provided hereunder except, and only to the extent that, the indemnifying Party shall have been actually prejudiced as a result of such failure.
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ARTICLE X
COOPERATION AND EXCHANGE OF INFORMATION
Section 10.1Cooperation. Qualtrics and SAP shall each consult and cooperate fully (and each shall cause its respective Affiliates to cooperate fully) with all reasonable requests from the other Party for information and materials not otherwise available to the requesting Party in connection with the preparation and filing of any Tax Return or claims for refund, or Audits with respect to any Tax Return. Such cooperation shall include, without limitation:
(a)the retention until one year after the expiration of the applicable statute of limitations (giving effect to any extension or waiver thereof), and the provision upon request, of copies of all Tax Returns, books, records (including information regarding ownership and Tax basis of property), documentation and other information relating to any Tax Return, including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Taxing Authorities;
(b)the execution of any document that may be necessary or reasonably helpful in connection with any Audit, or the filing of a Tax Return or refund claim by a member of the SAP Group or the Qualtrics Group, including certification, to the best of a Party’s knowledge, of the accuracy and completeness of the information it has supplied; and
(c)the use of a Party’s commercially reasonable efforts to obtain any documentation that may be necessary or reasonably helpful in connection with any of the foregoing.
Section 10.2Other Information. Without limiting the provisions of Section 10.1, upon a Party’s (the “first Party”) reasonable request, the other Party will deliver to the first Party any information within its possession that is required by the first Party in connection with the filing of any Tax Return that it is required to file.
ARTICLE XI
MISCELLANEOUS PROVISIONS
Section 11.1Effectiveness. This Agreement shall become effective upon execution by the Parties hereto.
Section 11.2Dispute Resolution. In the event that SAP and Qualtrics disagree as to the amount or calculation of any payment to be made under this Agreement, or the interpretation or application of any provision under this Agreement, the Parties shall attempt in good faith to resolve such dispute. If such dispute is not resolved within 60 business days following the commencement of the dispute, SAP and Qualtrics shall jointly agree upon and retain an internationally recognized law or accounting firm, which firm is independent of both Parties (the “Independent Firm”), to resolve the dispute. The Independent Firm shall act as an arbitrator to resolve all points of disagreement and its decision shall be final and binding upon all Parties involved. Following the decision of the Independent Firm, SAP and Qualtrics shall each take or cause to be taken any action necessary to implement the decision of the Independent Firm. The fees and expenses relating to the Independent Firm shall be borne equally by SAP and 
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Qualtrics, except that if the Independent Firm determines that the position advanced by either Party is frivolous, has not been asserted in good faith or for which there is not substantial authority, 100% of the fees and expenses of the Independent Firm shall be borne by such Party.
Section 11.3Notices. Notices, offers, requests or other communications required or permitted to be given by either Party pursuant to the terms of this Agreement shall be given in writing to the respective Parties at the following addresses:
			
	If to SAP or any SAP Affiliate, to:
	
	SAP SE
	Dietmar-Hopp-Allee 16
	Germany – 69190 
	Attention: Jochen Scholten

	E-mail: 
	
	with a copy to:
	
	SAP America, Inc.
	3999 West Chester Pike 
	Newtown Square, PA 19073
	Attention: Mary Beth Hanss
	Email: 

			
	Shearman & Sterling LLP
	1460 El Camino Real, 2nd Floor
	Menlo Park, CA, 95025
	Attention: Daniel Mitz and Larry Crouch
	Email: Daniel.Mitz@shearman.com and    LCrouch@shearman.com

	
	If to Qualtrics or any Qualtrics Affiliate, to:
	
	Qualtrics International Inc.
	333 W River Park Dr
	Provo, UT 84604
	Attention: Legal Department
	E-mail: 

or at such other address or e-mail as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice shall be sent by hand delivery, internationally recognized overnight courier or, within the United States, may also be sent via certified mail, return receipt requested and, in any event, shall be concurrently sent by e-mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted electronically; one working day after it is sent, if sent by internationally recognized 
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overnight courier; and three days after it is postmarked, if mailed first class mail or certified mail, return receipt requested, with postage prepaid.
Section 11.4Changes in Law.
(a)Any reference to a provision of the Code or a law of another jurisdiction shall include a reference to any applicable successor provision or law.
(b)If, due to any change in applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction contemplated thereby shall become impracticable or impossible, the Parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision.
Section 11.5Confidentiality. Each Party shall hold and cause its directors, officers, employees, advisors and consultants to hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by other requirements of law, all information (other than any such information relating solely to the business or affairs of such Party) concerning the other Parties hereto furnished it by such other Party or its representatives pursuant to this Agreement (except (a) as may otherwise be necessary in connection with the filing of Tax Returns or any Audit, or (b) to the extent that such information can be shown to have been (i) in the public domain through no fault of such Party or (ii) later lawfully acquired from other sources not under a duty of confidentiality by the Party to which it was furnished), and each Party shall not release or disclose such information to any other person, except its directors, officers, employees, auditors, attorneys, financial advisors, bankers and other consultants who shall be advised of and agree to be bound by the provisions of this Section 11.5. Each Party shall be deemed to have satisfied its obligation to hold confidential information concerning or supplied by the other Party if it exercises the same care as it takes to preserve confidentiality for its own similar information.
Section 11.6Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective legal representatives and successors. Neither Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided, however, either Party may assign this Agreement to a successor entity in conjunction with such Party’s reincorporation in another jurisdiction or into another business form.
Section 11.7Affiliates. SAP shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any SAP Affiliate, and Qualtrics shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Qualtrics Affiliate; provided, however, that, if it is contemplated that a SAP Affiliate may cease to be a SAP Affiliate as a result of a transfer of its stock or other ownership interests to a third party in exchange for consideration in an amount approximately equal to the fair market value of the stock or other ownership interests transferred and such consideration is not distributed outside of the SAP Group to the shareholders of SAP, then (a) Qualtrics shall execute a release 
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of such SAP Affiliate from its obligations under this Agreement effective as of such transfer; provided, that SAP shall have confirmed in writing its obligations and the obligations of its remaining SAP Affiliates with respect to their own obligations and the obligations of the departing SAP Affiliate and that such departing SAP Affiliate shall have executed a release of any rights it may have against Qualtrics or any Qualtrics Affiliate by reason of this Agreement, or (b) SAP shall acknowledge in writing no later than 30 days prior to such cessation that it shall bear 100% of the liability for the obligations of SAP and each SAP Affiliate (including the departing SAP Affiliate) under this Agreement. If at any time Qualtrics shall, directly or indirectly, obtain beneficial ownership of more than 50% of the total combined voting power of any other entity, Qualtrics shall cause such entity to become a Party to this Agreement by executing together with SAP an agreement in substantially the same form as set forth in Schedule 11.7 and such entity shall have all rights and obligations of an Qualtrics Affiliate under this Agreement.
Section 11.8Authority. Each of the Parties represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.
Section 11.9Entire Agreement. This Agreement contains the entire agreement among the Parties hereto with respect to the subject matter hereof and supersedes any prior tax sharing agreements between SAP (or any SAP Affiliate) and Qualtrics (or any Qualtrics Affiliate) and such prior tax sharing agreements shall have no further force and effect. If, and to the extent, the provisions of this Agreement conflict with any agreement entered into in connection with a Distribution or another Deconsolidation Event, the provisions of this Agreement shall control. For the avoidance of doubt, in the event there is any inconsistency between the provisions of this Agreement and the provisions of the Master Transaction Agreement, the provisions of this Agreement shall govern.
Section 11.10Consent to Jurisdiction. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY AGREE THAT THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND ALL DISPUTES, CONTROVERSIES OR CLAIMS ARISING OUT OF OR RELATING TO THE AGREEMENT OR THE BREACH, TERMINATION OR VALIDITY THEREOF SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICTS OF LAW RULES. THE PARTIES AGREE THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY ANY PARTY IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTIONS, OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED HEREUNDER SHALL PROPERLY AND EXCLUSIVELY LIE IN ANY FEDERAL OR STATE COURT LOCATED IN THE STATE OF DELAWARE. EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION (OTHER THAN APPEALS) IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTIONS, OR THE PERFORMANCE OF THE OBLIGATIONS IMPOSED 
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HEREUNDER IN ANY OTHER COURT. BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT TO ANY SUCH ACTION. THE PARTIES IRREVOCABLY AGREE THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVE ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION. THE PARTIES FURTHER AGREE THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT. 
Section 11.11Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
Section 11.12Severability. If any term, provision, covenant, or restriction of this Agreement is held by a court of competent jurisdiction (or an arbitrator or arbitration panel) to be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions set forth herein shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated. In the event that any such term, provision, covenant or restriction is held to be invalid, void or unenforceable, the Parties hereto shall use their best efforts to find and employ an alternate means to achieve the same or substantially the same result as that contemplated by such terms, provisions, covenant, or restriction.
Section 11.13Third Party Beneficiaries. This Agreement is solely for the benefit of the Parties. This Agreement should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, cause of action or other rights in excess of those existing without this Agreement.
Section 11.14Failure or Indulgence not Waiver. No failure or delay on the part of a Party in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No modification or waiver of any provision of this Agreement nor consent to any departure by the Parties therefrom shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.
Section 11.15Setoff. All payments to be made by any Party under this Agreement may be netted against payments due to such Party under this Agreement, but otherwise shall be made without setoff, counterclaim or withholding, all of which are hereby expressly waived.
Section 11.16Other Remedies. Qualtrics recognizes that any failure by it or any Qualtrics Affiliate to comply with its obligations under Article V of this Agreement could, in the event of a Distribution, result in Distribution Taxes that would cause irreparable harm to SAP, 
30

SAP Affiliates, and their stockholders. Accordingly, SAP shall be entitled to seek an injunction or injunctions to prevent breaches of Article V of this Agreement and to enforce specifically the terms and provisions of Article V of this Agreement, this being in addition to any other remedy to which SAP is entitled at law or in equity.
Section 11.17Amendment and Modification. This Agreement may be amended, modified or supplemented only by a written agreement signed by all of the Parties hereto.
Section 11.18Waiver of Jury Trial. EACH OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH OF THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER COMPANY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH OF THE PARTIES UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (D) EACH OF THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.18.
Section 11.19Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and article, section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise specified. The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term, and words denoting any gender shall include all genders. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this Agreement.
[Signature Page Follows]
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IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be executed by a duly authorized officer as of the date first written above.
						
	SAP SE
	On behalf of itself and each SAP Affiliate that is not a member of the SAP America Group
		
		
		
	By:	
	Name:
	Title:
		
		
	By:	
	Name:
	Title:

						
	SAP AMERICA, INC.

	On behalf of itself and each other SAP Affiliate that is a member of the SAP America Group

		
		
		
	By:	
	Name:
	Title:

						
	QUALTRICS INTERNATIONAL INC.
	on behalf of itself and each Qualtrics Affiliate
		
		
		
	By:	
	Name:
	Title:

[Signature Page to Tax Sharing Agreement]

Schedule 11.7 [Omitted pursuant to Item 601(a)(5) of Regulation S-K]

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