Document:

Exhibit 10.44

 

SUPPORT SERVICES AGREEMENT

 

This Support Services Agreement (the “Agreement”) is dated as of October 1 , 2014 (the “Effective Date”), by and between Santa Fe University of Art and Design, LLC, a limited liability company (“Institution”), and Laureate Education, Inc., a Maryland corporation (“Laureate”). Each party hereto shall be referred to as a “Party”, and collectively, as the “Parties”.

 

Whereas, Institution and Laureate (and their respective subsidiaries) desire to adopt a support services model that internally centralizes the operational functions of multiple academic institutions that are typically performed in individual universities, colleges, and schools; and

 

Whereas, such support services bring the highest level of functional expertise to institutions regardless of size by converging, aligning, and streamlining institutional functions to ensure the following: sharing of best practices, efficiency and economy of scale, effectiveness of service, synergy creation and disciplined process improvement; and

 

Whereas, the Institution is the responsible owner of policy, practice and. governance while the support service groups are responsible owners of process, execution and scale; and

 

Whereas, in connection with the foregoing, Institution wishes to hire Laureate and its subsidiaries, to the extent applicable, to provide to Institution and its subsidiaries certain general management, legal, tax, finance, accounting, treasury, human resources, network entry and other services described herein according to the terms of this Agreement; and

 

Whereas, Laureate has been providing services of a similar nature to Institution through an agreement dated September 16, 2009, with Institution’s parent company, LEI Holdings - U.S. I, Inc., and the Patties now desire to replace that agreement with this Agreement; and

 

Whereas, in connection with the provision of the services under this Agreement, Laureate desires from time to time to second to Institution and its subsidiaries certain personnel employed by Laureate or one of its subsidiaries.

 

Now Therefore, in consideration of the premises and the mutual covenants herein contained and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Patties agree as follows:

 

Section 1.                                          Effective Date; Term, Termination.

 

(a)                                 Subject to Section 3 below, the term of this Agreement (the “Term”) with respect to the services provided hereunder shall be for five (5) years beginning on the Effective Date unless earlier terminated (1) pursuant to Section 1(b)

 

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below, (2) pursuant to Section l (c) below, or (3) by either Party for any other reason with ninety (90) days’ prior written notice to the other Party.  This Agreement and the Term  shall renew automatically for an additional two (2) years upon the fifth (5(1)h) anniversary of the date hereof and each second (2(11)d) anniversary thereafter, unless either Party provides written notice to the other at least six (6) months prior to the end of the Term that it intends not to renew the Agreement.

 

(b)                                 Either Party shall hav.e the right to terminate this Agreement, effective immediately, at any time during the Term without further notice and pursue any remedies available to it at law or in equity if (1) the other Party is adjudicated bankrupt or insolvent under any applicable federal, state, local or foreign law providing for bankruptcy, insolvency, reorganization, receivership, dissolution, winding up or liquidation of a debtor, (2) any action is taken by the other Party or by others against such Party under any bankruptcy, insolvency, reorganization, receivership, dissolution, winding up or liquidation act under applicable law, which action is not fully dismissed or discharged within thirty (30) days after the institution thereof, (3) the other Party makes a general assignment for the benefit of its creditors or (4) a receiver is appointed for the other Party in accordance with applicable law.

 

(c)                                  This Agreement may be terminated by either Party (such Party, the “Non-Defaulting Party”) upon a material default by the other Party (such other Party, the “Defaulting Party”) of any of the terms and conditions of this Agreement. The Non­ Defaulting Party shall give the Defaulting Party written notice of such failure, stating the nature thereof and a reasonable time (which shall be not less than thirty (30) days in the case of a non-monetary default, any monetary default shall be governed by the provisions of Section 5(c) of this Agreement) to remedy such failure. If the Defaulting Party does not correct the failure within the specified time, the Non-Defaulting Party may terminate this Agreement effective immediately.

 

(d)                                 Upon termination of this Agreement, Laureate shall provide Institution with complete copies of each of the following as each relates to the Supporting Services provided hereunder to the extent created by Laureate or one of its subsidiaries, to the extent applicable, and exists at the termination of this Agreement: PeopleSoft environment and associated interfaces including, but not limited to, all of the PeopleSoft documentation, table structures, tree structures, configuration settings, logical and physical data base designs, Excel interfaces, current and historical data, server configurations, operating system setups and configuration data, marketing and enrollment data, business rules and policy documents.

 

Section 2.                                          Representations of the Parties. Each Party hereby represents, warrants and covenants that it has the requisite corporate power and authority to enter into this Agreement and that the performance of the obligations under this Agreement shall not constitute a material breach of, or otherwise contravene the te1ms of, any other agreement to which the Party is a party or is otherwise bound.

 

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Section 3.                                          Support Services Provided to Institution.

 

(a)           Laureate and its subsidiaries, to the extent applicable, will provide Institution and any of institution’s subsidiaries with the Support Services to be identified and mutually agreed upon by the Parties from time to time on Exhibit B hereto (each a “Support Service,” collectively, the “Support Services”). Institution shall make available to Laureate on a timely basis all data, information and other materials within Institution’s and its subsidiaries’ control which are reasonably necessary for Laureate to perform each of the Support Services. The Parties agree that Laureate and its subsidiaries, to the extent applicable, shall have no liability for any failure to perform, or for the late performance of, any Support Services to the extent such Support Services require data, information or other materials possessed, prepared or generated by Institution to the extent that Institution shall have failed to provide the same or to cause the same to be provided to Laureate in accordance with Laureate’ s reasonable written or oral (if promptly confirmed in writing) requests.

 

(b)           Laureate shall perform its obligations hereunder (1) in a workmanlike fashion and in accordance with industry standards and (2) with at least the same level of performance, completeness, care and attention used by Laureate or one of its subsidiaries, to the extent applicable, to perform such services for itself prior to the Effective Date. The Parties also agree that each Party shall perform its respective obligations hereunder in compliance with all applicable laws.

 

(c)                                  Laureate shall provide sufficient management, administrative, technical, and clerical personnel (the “Support Services Personnel”) to enable Laureate to provide the Suppo1t Services in an efficient and professional manner. Laureate and its subsidiaries, to the extent applicable, will have full and complete authority to engage, dismiss, reprimand, or otherwise manage all Support Services Personnel. Institution expressly understands and agrees that such actions by Laureate and its subsidiaries, to the extent applicable, with respect to the Support Services Personnel shall be in accordance with Laureate’ s human resources policies in effect from time to time. Institution shall have no authority pursuant to this Agreement with respect to any aspect of Laureate’ s business or administrative policies.

 

(d)                                 If Institution shall reasonably determine through appropriate evaluation that the Support Services Personnel providing the Support Services hereunder are ineffective, upon reasonable written request Laureate shall, as promptly as is practical, provide substitute Support Services Personnel or take appropriate steps to ensure that the Support Services Personnel performing Institution Support Services effectively perform said services. Nothing in this Section 3(d) shall require Laureate or any of its subsidiaries to (1) hire additional employees or consultants to serve as Support Services Personnel or (2) terminate the employment of any Supp01t Services Personnel.

 

(e)                                  Prior to the Effective Date and thereafter prior to the end of each calendar year, Institution and Laureate shall agree upon performance metrics for the Support Services which shall be a condition of this Agreement.

 

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(f)            In connection with providing the Support Services hereunder, Institution acknowledges and agrees that Laureate shall and may have complete access to Institution, its subsidiaries, and the Premises (as defined on Exhibit A) during the Term. Institution shall do all that is necessary or required to permit such access to Institution, its subsidiaries, and the Premises.

 

Section 4.                                          Seconded Employees.

 

(a)                                 General. Subject to the terms of this Agreement, Laureate shall, or shall cause one of its subsidiaries to, second to Institution or one of its subsidiaries, and Institution or one of its subsidiaries, as applicable, agrees to accept the secondment of, those certain specifically identified individuals (each, a “Seconded Employee” and collectively, the “Seconded Employees”) listed on Exhibit C (the “Seconded Employee Schedule”) for the purpose of performing job functions related to the services provided hereunder (the “Secondment Services”). The Seconded Employees will remain at all times employees of Laureate or one of its subsidiaries, to the extent applicable, but, in addition, they will also be temporary employees of Institution or one of its subsidiaries, as applicable, during the Period of Secondment (as defined in subsection (b) below) and shall, at all times during the Period of Secondment, work under the direction, supervision and control of Institution or one of its subsidiaries. For each Seconded Employee, the “Period of Secondment” shall be that period of time as set forth in subsection (b) below. The Seconded Employees shall have no authority or apparent authority to act on behalf of Laureate or any of its subsidiaries, to the extent applicable, during the Period of Secondment.

 

The Seconded Employee Schedule sets forth the names of the Seconded Employees seconded by Laureate and any of its subsidiaries, to the extent applicable, the job function(s) of the Seconded Employees and the starting date for the Period of Secondment for each Seconded Employee. Individuals may be added or removed from the Seconded Employee Schedule monthly in the sole discretion of Laureate upon Laureate providing Institution with a completed “Addition/Removal/Change of Responsibility of Seconded Employee” form, the form of which is attached hereto as Exhibit D, no less than thirty (30) days’ prior to such addition or change.

 

Upon the commencement of a Seconded Employee’s Period of Secondment, Laureate shall cause each Seconded Employee to execute an “Employment Status Acknowledgement” letter, the form of which is attached to this Agreement as Exhibit E. Those rights and obligations of the Parties under this Agreement that relate to individuals that were on the Seconded Employee Schedule but then later are removed from the Seconded Employee Schedule, which rights and obligations accrued before the removal of such individual, will survive the removal of such individual from the Seconded Employee Schedule to the extent necessary to enforce such rights and obligations.

 

(b)                                 Period of Secondment.   Laureate shall, or shall cause one of its subsidiaries to, second to Institution or one of its subsidiaries each Seconded Employee on the start date set forth opposite their name on the Seconded Employee Schedule, and

 

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continue to second, during the period (and only during the period) that the Seconded Employee is performing Secondment Services for Institution or one of its subsidiaries from such date, until the earliest of:

 

(1)                                 the end of the Term;

 

(2)                                 the end date, if any, set forth for the Seconded Employee on the Seconded Employee Schedule (or such other end date for such Seconded Employee as determined by Laureate and communicated to Institution no less than thirty (30) days’ prior to such date) (such date, the “End Date”);

 

(3)                                 a termination of employment such Seconded Employee under subsection (c) below; and

 

(4)                                 a termination of Secondment Services for such Seconded Employee under subsection (d) below.

 

The foregoing constitutes the “Period of Secondment” as applicable to each Seconded Employee. At the end of the Period of Secondment for any Seconded Employee, such Seconded Employee will no longer be subject to the direction of Institution or any of its subsidiaries with regard to the Seconded Employee’s day-to-day activities.

 

(c)                                  Termination of Employment. If any Seconded Employee (1) dies, retires, becomes disabled or otherwise tenders his resignation for any reason to Laureate or one of its subsidiaries, to the extent applicable or (2) is terminated by Laureate or one of its subsidiaries, to the extent applicable, for Laureate Cause (as defined on Exhibit A), in any such case, Laureate or the applicable subsidiary, to the extent applicable, will notify Institution of such termination of employment as soon as practicable after receipt of notice by the Seconded Employee, notice of such occurrence or such termination if the termination is for Laureate Cause, to the extent applicable, but in no event, in any such case, later than the last day of the fiscal quarter during which termination of employment occurs. During the Period of Secondment for any Seconded Employee, other than in connection with a termination of employment of a Seconded Employee by Laureate or one of its subsidiaries, to the extent applicable, for Laureate Cause, Laureate or one of its subsidiaries, to the extent applicable, agrees not to voluntarily withdraw or terminate any Seconded Employee except with thirty (30) days’ prior written notice of such withdrawal or termination through a completed Addition/Removal/Change of Responsibility of Seconded Employee form. Upon the termination of employment of a Seconded Employee, the Seconded Employee will cease performing services for Institution.

 

(d)                                 Termination of Secondment.  Except as othe1wise prohibited by applicable law or any agreement as in effect at the time of termination, Institution will have the right to terminate the Secondment Services to it or any of its subsidiaries of any Seconded Employee for any reason at any time on not less than thirty (30) days’  prior written notice to Laureate; provided, however, that any termination of Secondment Services of a Seconded Employee by Institution for Institution Cause (as defined on

 

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Exhibit A) shall be effective immediately. Upon the termination of any Seconded Employee’s Period of Secondment, Laureate or one of its subsidiaries, as applicable, will be solely liable for any costs or expenses associated with the termination of such Secondment Services, except as otherwise specifically set forth in this Agreement.

 

(e)                                  Supervision. During the Period of Secondment, Institution and its subsidiaries, as applicable, shall:

 

(1)                                 be ultimately and fully responsible for the daily work assignments of each Seconded Employee during those times that the Seconded Employees are performing services for Institution or any of its subsidiaries hereunder, including supervision of their day-to-day work activities;

 

(2)                                 set the hours of work and the holidays and vacation schedules for the Seconded Employee;

 

(3)                                 have the right to determine training which will be received by the Seconded Employee; and

 

(4)                                 be solely responsible for the quality, adequacy and safety of all services performed by the Seconded Employees and for any consequences relating to the provision of such services, including damage to property and injury to third parties.

 

In the course and scope of performing any Seconded Employee’s job functions, the Seconded Employee will be integrated into the organization of Institution or one of its subsidiaries, as applicable, will report into Institution’ or one of its subsidiaries’ management structure, and will be under the direct management and supervision of Institution or one of its subsidiaries. Institution or one of its subsidiaries shall designate one of its officers to be responsible for the supervisory function set forth in this subsection (e) on behalf of lnstitution and its subsidiaries.

 

(f)                                   Cancellation or Reduction of Secondment Services.    Institution may terminate or reduce the level of any of the Secondment Services on thirty (30) days’ prior written notice to Laureate thereof.  In the event Institution terminates the Secondment Services, Institution shall pay Laureate any outstanding payments due to Laureate pursuant to the terms of this Agreement, including a pro rata portion of the monthly installment for the last month (or portion thereof) in which it received such services (based on the number of days that have elapsed in such month prior to such termination).    Except as provided for in Section 8 hereof, upon payment thereof, Institution shall have no further payment obligations to Laureate in respect of such terminated Secondment Services. In the event that Institution reduces the level of any of the Secondment Services, the Parties agree to negotiate in good faith to determine an appropriate reduction to the Services Reimbursement (as defined in Section 5 below) for the reduced Secondment Services

 

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Section 5.                                          Fees and Payments.

 

(a)                                 Unless otherwise agreed to by the Paities, (!) the fees and expenses in respect of the Support Services provided under this Agreement (such fees and expenses, the “Supp01t Services Fees”) and (2) the costs and expenses incun-ed by Laureate or one of its subsidiaries, to the extent applicable, in respect of its employment of the Seconded Employees in connection with the Secondment Services (the “Services Reimbursement”), in each case, shall be determined in accordance with the methodologies set fotih in Exhibit F hereto, as the same may be amended by written agreement of the Patties from time to time. The Support Services Fees and Services Reimbursement shall be paid by Institution or one of its subsidiaries, as determined by Institution. Notwithstanding anything herein to the contrary, the Support Services Fees and Services Reimbursement shall be determined in good faith by the Parties and shall be materially as favorable to Laureate and its subsidiaries as they would obtain in a comparable arm’s-length transaction with a person that is not an affiliate.

 

(b)                                 On or before the tenth (1o’h) business day after the last day of February, May, August and November in each year during the Term, Laureate shall send an invoice (along with any and all documentation and calculations used to determine the amount of the Support Services Fees artd the Services Reimbursement) to Institution for the Support Services Fees and the Services Reimbursement.

 

Such payments shall be delivered to the following address: 

 

Laureate Education, Inc.

650 South Exeter Street

Baltimore, MD 21202

Attn: Tal Darmon

Email: [    ]

 

(c)                                  Fees and payments under this Section 5 not paid or not reasonably disputed within thirty (30) days of sending of an invoice therefor shall accrue simple interest at the prime rate as quoted in the Wall Street Journal plus one percent per annum or, if lower, the maximum rate permitted by law. In the event Laureate gives notice to Institution of non-payment of fees and Institution does not cure such non-payment within ten (10) business days of the date of such notice, Laureate shall have no further obligation to Institution to provide the Support Services and may seek any other remedies available to it, whether legal, contractual, equitable or otherwise.

 

(d)                                 This Agreement is based upon existing Financial Reporting platforms ( i.e., PeopleSoft 9.0) and any costs to perform material system upgrades or changes to the current system will require additional charges to be mutually agreed upon by the Parties.

 

(e)                                  Institution hereby acknowledges and agrees that Laureate may subcontract some or part of its obligations under this Agreement to third parties for providing services to the Business (as defined on Exhibit A).  Laureate and Institution

 

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agree that all contact with third parties will be conducted in the name of Institution or its subsidiaries, as applicable. Such requirement shall not restrict representatives of Laureate from fulfilling their operational responsibilities within Institution or its subsidiaries in a manner consistent with their assigned and pre-authorized duties.

 

Section 6.                                          Books and Records

 

(a)                                 General. Laureate shall keep full and adequate books of account and other records (collectively, the “Accounts”) on an accrual basis reflecting the performance of the Support Services as they pertain to the operation of Institution and its subsidiaries, all in accordance with U.S. GAAP or such other accounting standard as agreed upon by the Parties.

 

(b)                                 Location, Examination and Inspection. The Accounts shall be kept at Institution at all times. The Accounts shall be available to Institution and its representatives at all reasonable times for examination, inspection and transcription.

 

(c)                                  Seconded Employee Expenses.   Laureate and its subsidiaries, to the extent applicable, will use commercially reasonable efforts to maintain an allocation schedule reflecting the direct and indirect costs of the Seconded Employee Expenses (as defined on Exhibit A) based on the Secondment Services. Institution and its subsidiaries, to the extent applicable, will use commercially reasonable efforts to keep and maintain books/records reflecting hours worked and costs and expenses incurred in connection with each of the Seconded Employees, and Laureate will have the right from time to time upon its reasonable request to audit such books/records maintained by Institution or any of its subsidiaries. Institution, one of its subsidiaries or one of their respective representatives will have the right to audit the allocation schedule and such other records as Institution may reasonably require in connection with its verification of the Seconded Employee Expenses during regular business hours and on at least two (2) business days’ prior notice.

 

Section 7.                                          Tax

 

(a)                                 Tax Gross-Up.  Institution shall (I) make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law and (2) promptly upon becoming aware that Institution must make a Tax Deduction (or that there is any change in that rate or the basis of a Tax Deduction) notify Laureate accordingly.

 

If a Tax Deduction is required by law to be made by Institution, the amount of the payment due from Institution shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

 

Laureate shall co-operate in completing any procedural formalities necessary for Institution to obtain authorization to make payment without a Tax Deduction.

 

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(b)           Tax Indemnity. Notwithstanding anything herein to the contrary, Institution shall pay to Laureate an amount equal to the loss, liability or cost which that Laureate determines will be or has been (directly or indirectly) suffered for or on account of tax by Laureate in respect of the Agreement.

 

This Section 7(b) shall not apply (1) with respect to any Tax assessed on Laureate under the law of the jurisdiction in which that Laureate is incorporated, if that tax is imposed on or calculated by reference to the net income received or receivable by Laureate, or (2) to the extent a loss, liability or cost is compensated for by an increased payment under Section 7(a).

 

(c)           VAT [IF APPLICABLE]. All amounts set out, or expressed to be payable under the Agreement by Institution to Laureate which in whole or in part constitutes the consideration for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such supply and accordingly if VAT is chargeable on any supply made by Laureate, Institution shall pay to Laureate (in addition to and at the same time as paying the consideration) an amount equal to the amount of the VAT (and Laureate shall promptly provide an appropriate VAT invoice to Institution).

 

 

Section 8.                                          Indemnification

 

(a)                                 Indemnification of Institution.  Laureate hereby agrees to indemnify, defend, and hold harmless Institution and its stockholders, officers, directors, employees, agents, subsidiaries, successors, and assigns (collectively, the “Institution Indemnitees”), from and against all demands, claims, actions, or causes of action, assessments, losses, damages, liabilities, costs and expenses (including, without limitation, interest, penalties, and reasonable attorneys’ fees), of any nature, whether absolute, contingent or otherwise, asserted against or imposed upon or incurred by the Institution Indemnitees relating ( l ) to the Support Services, excepting that Laureate shall not be required to indemnify the Institution Indemnitees for any act of fraud, willful misconduct or gross negligence by any of Institution Indemnitees, (2) violation of any applicable statute, law or regulation by Laureate or one of its subsidiaries, to the extent applicable, and (3) claims or lawsuits filed by Seconded Employees alleging violation of law, if a cause of action giving rise to the claim or lawsuit is a unilateral employment decision made by Laureate or one of its subsidiaries regarding Seconded Employees.

 

(b)                                 Indemnification of Laureate.      Institution hereby agrees to indemnify, defend, and hold harmless Laureate and its stockholders, officers, directors, employees, agents, subsidiaries, successors, and assigns, (collectively, the “Laureate Indemnitees”) from and against all demands, claims, actions, or causes of action, assessments, losses, damages, liabilities, costs and expenses (including, without limitation, interest, penalties, and reasonable attorneys’ fees), of any nature, whether absolute, contingent or otherwise, asserted against or imposed upon or incurred by the Laureate Indemnitees relating to (1) any acts of fraud, willful misconduct or gross negligence committed by any of the Institution Indemnitees, (2) violations of any applicable statute, law or regulation by Institution or one of its subsidiaries or a Seconded Employee while performing services in the furtherance of the Business, and (3) claims or

 

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lawsuits filed by Seconded Employees alleging violation of law, if a cause of the action giving rise to the claim or lawsuit is a unilateral employment decision made by Institution or one of its subsidiaries regarding Seconded Employees.

 

Section 9.                                          Confidentiality/Non-Solicitation

 

(a)                                 Confidential Information. The Parties each acknowledge that Confidential Info1mation (as defined below) may be disclosed to the other Party in connection with this Agreement. Except as otherwise specifically provided by the Parties, “Confidential Information” shall mean any non-public, proprietary information, Intellectual Property (as defined in subsection (b) below) and other confidential information, including, but not limited to, descriptions, specifications and the like of a Disclosing Party (as defined in subsection (b) below) that is provided or communicated by the Disclosing Party to the Receiving Party in connection with this Agreement (as defined in subsection (b) below) after the Effective Date, including pursuant to Section 22.

 

Obligations. Each Party (in such capacity, the “Receiving Party”) acknowledges and agrees to (1) use with respect to the Confidential Information of the other Party (in such capacity, the “Disclosing Party”) the same care and discretion to prevent such Confidential Information from being disclosed, published or disseminated as it employs to avoid disclosure, publication or dissemination of its own similar Confidential Information (but in no event less than reasonable care), (2) use the Disclosing Party’s Confidential Information only for the purpose for which it was disclosed, and (3) not disclose, disseminate or provide access to the Disclosing Party’s Confidential Information to any person other than to those employees and agents who have a need to know it in order to assist the Receiving Party in performing its obligations hereunder, or to permit the Receiving Party to exercise its rights under this Agreement.

 

Notwithstanding the foregoing, the Receiving Party may disclose the Confidential Information (1) to a third party who is involved in providing services under this Agreement or is contemplating entering into a transaction with Laureate pertaining to a sale of all or any po1iion of its business, provided that: (A) such disclosure is reasonably necessary for the third party to perform its duties or evaluate the potential transaction; (B) the Receiving Party causes the third party to be bound to the same obligations regarding Confidential Information as the Parties are subjected to in this Section 9; and (C) the Receiving Party assumes full responsibility for the acts or omissions of such third parties, no less than if the acts or omissions were those of the Receiving Party or (2) to the extent required under the terms of any credit agreement, indenture or related agreement entered into by Laureate or one of its subsidiaries.

 

Without limiting the generality of the foregoing, neither Party will publicly disclose the terms of this Agreement, unless required by applicable law or regulation, without the prior written consent of the other. Furthermore, neither Laureate nor Institution will: (!) acquire any right in or assert any lien against the Confidential Information of the other Party, other than as provided in this Agreement; or (2) sell, assign, lease or otherwise dispose of Confidential Information of the other to third parties

 

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or commercially exploit such Confidential Information, other than as permitted in this Agreement.

 

In addition, the Parties shall take reasonable steps by agreement or otherwise so that their employees, subcontractors and consultants comply with these confidentiality provisions.

 

(b)                                 Exclusions. Notwithstanding anything to the contrary in the foregoing, Confidential Information does not include, and this Section 9 will not apply to, any information that Laureate and Institution, as Receiving Party, can demonstrate was:

 

(1)                                 at the time of disclosure to it, in the public domain;

 

(2)                                 after disclosure of it, published or otherwise became part of the public domain through no fault of the Receiving Party; disclosure to it;

 

(3)                                 in the possession of the Receiving Party at the time of

 

(4)                                 received after disclosure to it from a third party who had a lawful right to disclose such information to it;

 

(5)                                 independently developed by the Receiving Pa1iy without reference to Confidential Information of the Disclosing Party; or

 

(6)                                 required to be disclosed pursuant to an applicable law, rule, regulation, government requirement or court order, or the rules of any stock exchange (provided, however, that the Receiving Party shall advise the Disclosing Party of such required disclosure promptly upon learning thereof in order to afford the Disclosing Party a reasonable opportunity to contest, limit and/or assist the’ Receiving Party in crafting such disclosure).

 

(c)                                  Loss of Confidential Information. In the event of any disclosure or loss of, or inability to account for, Confidential Information, the Receiving Paiiy will notify the Disclosing Party immediately in writing.

 

(d)                                 Period of Confidentiality.   Confidential Information disclosed pursuant to this Agreement will be subject to the terms of this Agreement for two (2) years following the expiration or termination of this Agreement for any reason.

 

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(f)            Non-Solicitation. During the Term and for a period of one (I) year following termination of the Agreement for any reason, each Party shall not, and shall cause its subsidiaries, to the extent applicable, not to, without the prior written consent of the other Party, directly or indirectly, hire or solicit any key employees or officers of the other who performed (or received) the services hereunder; provided, however, that this Section 9(f) will not prohibit either Party or its subsidiaries, to the extent applicable, from soliciting or employing any such individual in response to any general solicitation or advertising not specifically directed at any such individual or group of individuals.

 

Section 10.                          Intellectual Property Rights

 

(a)                                 Definition. As used herein, the term “Intellectual Property” shall mean any and all technology, inventions, processes, know-how, designs, works of authorship, non-public materials and any other technical subject matter related thereto. Intellectual Property also includes all intellectual property rights or similar proprietary rights related to the foregoing, including, without limitation, (1) patent rights and utility models, (2) copyrights and database rights, (3) trademarks and trade dress and the goodwill associated therewith, (4) trade secrets, (5) mask works, and (6) industrial design rights; in each case, including any registrations of, applications to register, and renewals and extensions of, any of the foregoing with or by any governmental authority in any jurisdiction in the world.

 

(b)                                 Ownership of Intellectual Property.  Each Party (and their respective subsidiaries) owns and shall retain all right, title and interest in and to any and all pre-existing or independently developed Intellectual Property of such Party, as well as any and all enhancements or modifications thereto and derivatives thereof.

 

(c)                                  No Additional Rights.  Neither Party shall receive, by virtue of this Agreement, any rights of ownership or use of any Intellectual Property owned by the other Party unless specifically provided under separate agreement.

 

Section 11.                          Notice of Possible Liability. Each Party hereto shall promptly furnish to the other Party the details of any event(s) which may give rise to a claim arising out of any of the Support Services or Secondment Services, and shall cooperate fully with and furnish additional details, if any, to the other Party concerning any claim filed against a Party, promptly upon receiving notice thereof.

 

Section 12.                          Assignment; Binding Effect. Subject to Section S(g), this Agreement, and the rights and obligations hereunder of the Parties, shall not be assigned or delegated (by operation of law or otherwise) in whole or in part by either Party without the prior written consent of the other Party, provided that no consent shall be required in connection with the assignment of the Agreement to (i) a subsidiary of such Party or (ii) a third party as a result of the acquisition of either Party or substantially all of its business by such third party by merger, consolidation, sale of assets or otherwise. Any attempted assignment in violation of this Section 12 shall be void. Subject to the foregoing restrictions, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and pe1mitted assigns.

 

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Section 13.         Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall neve1iheless 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 14.         Dispute Resolution. In the event any disagreement should arise between the Parties, whether as to the interpretation or operation of this Agreement, or any rights or obligations hereunder, such disagreement shall be finally settled in Maryland under the commercial arbitration rules of the American Arbitration Association. This Section shall not limit the right of either Party to seek a temporary restraining order or other injunctive relief from a court of law in connection with a breach or threatened breach of Section 9 or Section 10. Each Party shall perform its respective obligations hereunder during any period of dispute resolution that occurs within the Term. In connection with any dispute under this Agreement settled in accordance with this Section 14, the Parties hereby agree that each Party’s liability under this Agreement or in tort (including, without limitation, negligence), or strict liability regarding any claim by the other related in any way to the performance or non-performance of this Agreement is limited to the amount of the purchase price of the goods or services involved, and each hereby releases and waives any claim against the other in excess of such amount. The Parties hereby agree that neither Party will be liable for and each Party hereby waives and releases any claims against the other Party for, any special, incidental, or consequential damages, including, without limitation, lost revenues, lost profit, or loss of prospective advantage, resulting from performance or failure to perform under this Agreement.

 

Section 15.         Force Majeure. Laureate shall not be liable for any interruption of the provision of Supporting Services or Secondment Services, delay or failure to perform under this Agreement when such interruption, delay or failure results from causes beyond its reasonable control or from any act or failure to act of Laureate, or as a result of strikes, lock-outs or other labor difficulties; acts of government, riot, insurrection or other hostilities; embargo, fuel or energy shortage, fire, flood, acts of God, wrecks or transpo1iation delays; or inability to obtain necessary labor, materials or utilities from usual sources. In such event, Laureate’s obligations hereunder shall be postponed for such time as its performance is suspended or delayed on account thereof. Upon the cessation of the force majeure event, Laureate will use reasonable effmis to resume its performance with the least possible delay.

 

Section 16.         Available Remedies. Notwithstanding anything herein to the contrary, the Parties agree that the failure of either of them to perform any obligation which arises under Section 9 or Section l0 of this Agreement may not be fully or adequately compensated by the award and/or payment of moneta1y damages. Therefore, they agree that each of them shall be subject to any decree of specific performance, injunction, or any other applicable equitable or legal decree, order, writ, or remedy, the

 

13

 

effect of which shall be to require performance by either or both of the Parties in accordance with the provisions of this Agreement. Notwithstanding anything herein to the contrary, in the event of a breach or threatened breach by either Party of any of the covenants set forth in Section 9 or Section 10 of this Agreement, the other Party shall be entitled to an injunction restraining the Party breaching or threatening to breach such covenants, and any person acting in concert with such Party, from breaching or attempting in any manner to violate any of the provisions of Section 9 or Section 10 of this Agreement. Nothing herein shall be construed as prohibiting either Party from pursuing any other remedies available for such breach or threatened breach, including, without limitation, the recovery of damages, costs, and reasonable attorneys’ fees from the other.

 

Section 17.         Notices. All notices, demands or communications which are required or may be given pursuant to the terms of this Agreement shall be in writing unless othe1wise provided for herein and delivered personally, by reputable courier or by telecopier and shall be deemed to have been duly given as of the date and time reflected on the delivery receipt if delivered personally or sent by reputable courier service or on the automatic telecopier receipt if sent by telecopier if such notice is addressed as follows:

 

	
If to Institution:
    	
If   to Laureate:
    
	
 
    	
 
    
	
Santa Fe University of Art and Design
    	
Laureate   Education, Inc.
    
	
1600 St. Michael’s Drive 
    	
650   South Exeter Street
    
	
Santa Fe, NM 87505
    	
Baltimore,   MD 21202
    
	
Attention: Larry Hinz, President 
    	
Attention:   Robert Zentz
    
	
Facsimile:  [         ]
    	
Facsimile:   [      ]
    

 

Section 18.         Amendments, Supplements, Etc. At any time during the Term, this Agreement or the Exhibits hereto may be amended or supplemented by such additional agreements, articles, exhibits or schedules as may be mutually determined by the Parties to be necessary, desirable or expedient to further the purposes of this Agreement, or to clarify the intention of the Parties, or to add to or modify the covenants, terms or conditions hereof or to effect or facilitate any governmental approval or acceptance of this Agreement or the consummation of any of the transactions contemplated hereby. Any such instrument must be in writing and signed by both of the Parties.

 

Section 19.         Waiver. Any waiver of any term of this Agreement must be in writing and signed by the Party against whom enforcement of the waiver is sought. No waiver of any condition or of the breach of any provision hereof, in any one or more instances, shall be deemed to be a further or continuing waiver of such condition or breach. Delay or failure to exercise any right or remedy shall not be deemed the waiver thereof.

 

Section 20.         Relationship of the Parties. Nothing in this Agreement shall constitute or be construed to be or create a partnership or joint venture between

 

14

 

Institution or any of its subsidiaries and Laureate or any of its subsidiaries, and the relationship of Laureate and its subsidiaries to Institution and its subsidiaries shall be that of an independent contractor acting on Institution’ or one of its subsidiaries’ behalf.

 

Section 21.         Agent. Seconded Employee Expenses remain the primary legal responsibility of Institution and its subsidiaries, to the extent applicable, as the employer of the Seconded Employees during the applicable Periods of Secondment. Laureate or one of its subsidiaries, to the extent applicable, agrees to act as agent for Institution and its subsidiaries, to the extent applicable, in paying the Seconded Employee Expenses of the employees temporarily assigned under this Agreement.

 

Section 22.         Duty to Cooperate. If a Seconded Employee, governmental agency or third party files any type of claim, lawsuit or charge, or commences an investigation or audit against Laureate or one of its subsidiaries or Institution or one of its subsidiaries involving a Seconded Employee and alleging a violation of applicable law or failure to comply with applicable law, each Party (and its respective subsidiaries, to the extent applicable) shall use commercially reasonable efforts to cooperate with the other’s defense. Each Party (and its subsidiaries, to the extent applicable) fiuther agrees in principle to execute such joint defense agreements, on customary terms, as may be necessary or appropriate for the protection of any privilege or confidentiality in the course of cooperating with the other’s defense. Laureate and Institution (and their respective subsidiaries, to the extent applicable) agree to use commercially reasonable efforts to make available to the other upon reasonable request in writing any and all non­ privileged or non-proprietary documents that either Party (or either of their respective subsidiaries, to the extent applicable) has in its or their possession, which relate to any such claim, lawsuit, charge, investigation or audit. However, neither Party (nor any of their respective subsidiaries) shall have the duty to cooperate with the other Party if the dispute is between the Patties themselves, nor shall this provision preclude the raising of cross-claims or third party claims between Laureate and Institution (or one of their respective subsidiaries) if the circumstances justify such proceedings. The Patties agree that this provision shall survive the termination of this Agreement.

 

Section 23.         Exhibits. The terms and conditions of the Exhibits to this Agreement are incorporated herein by reference and shall constitute part of this Agreement as if fully set forth herein.

 

Section 24.         Entire Agreement. This Agreement and any Exhibits attached hereto constitute the entire agreement between the Patties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral and written, between the Parties with respect to the subject matter hereof. No representation, warranty, promise, inducement or statement of intention has been made by either Party which is not embodied in this Agreement and neither Party shall be bound by, or be liable for, any alleged representation, warranty, promise, inducement or statement of intention not embodied herein or therein.

 

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Section 25.                           Governing Law. This Agreement shall be governed by and cotls1ruedinaccordance with the laws of the State of Maryland regardless of the laws that might otherwise govern under principles of conflicts of laws applicable hereto.

 

Section 26.                           Headings. The headings appearing at the beginning of several sections contained herein have been inserted for identification and reference purposes and shall not be used to determine the construction or interpretation of this Agreement

 

Section 27.                           No Thin!. Party Beneficiaries.  This Agreement is for the sole benefit of the Parties and their permitted assigns and nothing herein expressed or implied shall give or be construed to give to any person, other than the Parties and such assigns, any legal or equitable rights hereunder. This Agreement contains representations and warranties that the Partieshave made to and solely for the benefit of each other.

 

Section 28.                           Further Assurances. The Parties hereto agree to execute such additional instruments, agreements and documents and to take such other actions as may be necessary to affect the purposes of this Agreement.

 

Section 29. Survival of Obligations. Each Party’s obligations under Sections 8, 9 and 10 shall survive the termination of this Agreement.

 

Section 30.                           Counterparts, This Agreement may be executed in counterpart·copies, all of which when taken together shall be deemed to constitute one and the same original instruments.

 

In Witness Whereof, the Parties have executed and delivered this Support Services Agreement as of the day and year first above written,

 

	
 
    	
LAUREATE EDUCATION,INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W.Zentz
    
	
 
    	
Name: Robert W.Zentz
    
	
 
    	
Title: Senior Vice President and   General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SANTA   FE UNIVERSITY OF ART AND DESIGN, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Larry Hinz
    
	
 
    	
Name:   Larry Hinz
    
	
 
    	
Title:   Presiden
    

 

16Exhibit 10.45

 

MASTER SERVICE 
 AND

CONFIDENTIALITY AGREEMENT

 

by and between

 

LAUREATE EDUCATION, INC. AND ACCENTURE LLP

 

This MASTER SERVICE AND CONFIDENTIALITY AGREEMENT (the “Agreement’), is made and entered into this April 28, 2014 (“Effective Date”) by and between Accenture LLP (hereinafter referred to as “Consultant”), an Illinois limited liability partnership with offices at 161 North Clark Street, Chicago, Illinois 60601, and Laureate Education, Inc. (hereinafter referred to as “Client”), a Maryland corporation with offices at 650 South Exeter St., Baltimore, MD 21202, and it defines the agreement between Client and Consultant for the Services that will be rendered by Consultant for Client pursuant hereto. Consultant and Client may be referred to each individually as “Party’’ or together as “Parties” in this Agreement.

 

WHEREAS, Client desires the Services of Consultant, which Services may include, without limitation, Services related to management consulting and technology consulting services.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties agree as follows:

 

1                                                                                DEFINITIONS

 

	
“Confidential Information”
    
	
 
    
	
 
    	
Any information received by either Party in the course of conducting   business under this Agreement that is identified by the discloser as   confidential or should reasonably be understood to be the confidential or   proprietary information of or concerning the other Party, including but not   limited to, trade secrets, commercial, financial, and technical information,   customer or client lists, programs, procedures, data, documents, computer   information and databases, business plans, budget forecasts, business   arrangements, information regarding specific transactions, financial   information and estimates, and long-term plans and goals. Notwithstanding the   foregoing, the term “Confidential Information” will not include any   information that identifies or directly relates to natural persons (“Personal   Data”), and the terms of this Section and other provisions of this   Agreement generally applicable to Confidential Information will not be deemed   to apply to Personal Data unless specifically stated otherwise.
    

 

 

Laureate Education, Inc. - Master Services Agreement

4/26/12

 

	
“Consultant Knowledge Capital”
    
	
 
    	
 
    
	
 
    	
Materials existing prior to commencement of Accenture’s performance of   the relevant Services, or developed outside the scope of such Services, that   are proprietary to Accenture or to third parties, and all associated   intellectual property rights and any enhancements and modifications to such   Materials, whether or not such enhancements and modifications are developed   as part of the Services.
    
	
 
    	
 
    
	
“Custom Components”
    
	
 
    	
 
    
	
 
    	
Materials that are originally developed by Accenture during the course   of its performance of the Services and supplied as, or as part of, a   Deliverable. Custom Components do not include Accenture Knowledge Capital.
    
	
 
    	
 
    
	
“Deliverables”
    	
Elements of the Work Product to be delivered to Client as defined and   identified in a particular Statement of Work. Deliverables will be comprised   of Custom Components and/or Accenture Knowledge Capital.
    
	
 
    	
 
    
	
“Employees”
    	
All employees, agents (including, without limitation, employees of   such agents) and contractors (including, without limitation, employees of   such contractors) of Consultant.
    
	
 
    	
 
    
	
“Milestones” 
    	
Specific dates of completion for elements of the Work Product, as   defined and identified in a particular Statement of Work.
    
	
 
    	
 
    
	
“Personal Data”
    	
Any information that identifies or directly relates to natural persons.
    
	
 
    	
 
    
	
“Statement of Work” or “SOW”
    
	
 
    	
 
    
	
 
    	
A document executed pursuant to this Agreement, attached as a   Exhibit “A” hereto, that describes Services to be performed and   compensation to be paid to Consultant therefor.
    
	
 
    	
 
    
	
“Services”
    	
The work, as described   in any Exhibit “A” executed pursuant to this Agreement, which will be performed by   Consultant to the benefit of Client.
    
	
 
    	
 
    
	
“Third Party Intellectual Property”
    
	
 
    	
 
    
	
 
    	
Intellectual property the rights to which belong to an individual or   entity not a party to this Agreement.
    
	
 
    	
 
    
	
“Work Product” 
    	
Deliverables, data, information, designs, know-how, software,   inventions, works of authorship and other material and intellectual property developed   or prepared for Client by Consultant (either
    

 

2

 

	
 
    	
independently or in concert with Client or third parties) and   delivered to Client in the course of, or resulting from, Consultant’s   performance of the Services under this Agreement, all as may be specified in   a Statement of Work.
    
	
 
    	
 
    

2                                                                                         TERM. TERMINATION AND DELAY

 

2.1                              This Agreement shall commence on the Effective Date and shall remain in effect unless terminated in accordance with this Agreement. After termination of this Agreement, no further SOWs or purchase orders may be placed under this Agreement. However, any mutually executed SOWs shall continue until such SOWs are terminated or expired in accordance with the particular SOW and such SOWs shall, through completion, remain subject to the terms of this Agreement.

 

2.2                              This Agreement, or any SOW formed under this Agreement, may be terminated without cause by either party with not less than thirty (30) days prior written notice to the other party. Termination of this Agreement shall automatically operate to terminate all existing SOWs in accordance with the terms specified herein. Termination of an individual SOW does not operate to terminate other SOWs or this Agreement. Termination shall not relieve either party of any obligation accrued prior to the termination date. Any termination under this section must be made in writing and sent to the appropriate party listed in Section 19.4 of this Agreement.

 

2.3                               Either Party may terminate this Agreement and any associated SOWs if the other Party is in material breach of the Agreement or specific SOW(s) by giving thirty (30) days written notice specifically identifying the breach, unless the breach is cured within the thirty (30) day period.

 

2.4                               Upon termination under this Section 2, Client will pay Consultant for all Services rendered, including a pro-rated portion for Deliverables in progress, and expenses incurrent by Consultant prior to the date of termination. Upon termination by Consultant under Section 2.3, or by Client under Section 2.2, Client will also pay Consultant for any out-of-pocket demobilization or other direct costs resulting from such early termination.

 

2.5                               All provisions of this Agreement which are by their nature intended to survive the expiration or termination of this Agreement will survive such expiration or termination.

 

2.6                               In the event that an Employee of Consultant’s is designated as “Key Personnel” in the applicable SOW, for the period of time specified in the applicable SOW (if any), Consultant shall not, without prior written consent of Client, reassign, remove or replace any Key Personnel (prior to the completion of Services under the applicable SOW); unless such Key Personnel resigns from employment with Consultant. Consultant shall provide a suitable replacement for such Key

 

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Personnel. At Client’s request, Consultant shall make the proposed Key Personnel replacement available for interview by Client.

 

3                                                                                         MODIFICATIONS

 

3.1                               Any changes to this Agreement, or any SOW formed hereunder, must be memorialized in writing, reviewed, agreed upon and signed by both Parties (a “Change Order”). If Consultant performs work at the request of Client that is not specified in an SOW, (i) the work will be considered Services provided under this Agreement, and Client will pay Consultant for such Services in accordance with Section 6 at Consultant’s then current time and materials rates, and (ii) the Parties will promptly negotiate and enter into an SOW or Change Order to an existing SOW to reflect the new or changed Services.

 

3.2                               The terms presented in this Agreement are the sole terms that define this Agreement. Any terms present on a purchase order or invoice issued pursuant to this Agreement are null and void.

 

4                                                                                         SERVICES

 

4.1                               Consultant shall render the Services hereunder to Client as mutually agreed and on a per project basis. Upon identification of a project to be performed by Consultant during the Term of this Agreement, Client or Consultant shall prepare a Statement of Work to be attached hereto as Exhibit A, which shall detail the scope and duration of the Services provided by Consultant for the project in question. The first Statement of Work shall be marked as Exhibit A-1 (with each subsequent Statement of Work exhibit marked as Exhibit A-2, Exhibit A-3, etc.). Upon obtaining Consultant’s consent to work on a project, a mutually agreed upon Statement of Work shall be signed by the parties and attached hereto. Consultant’s engagement with respect to such projects shall thereafter be governed by this Agreement and the SOW. Unless expressly stated otherwise in this Agreement, a Statement of Work issued and signed hereunder by both parties shall create contractual rights and obligations solely between Client and Consultant. Consultant shall perform the Services specified in a Statement of Work.

 

4.2                               Client will perform those tasks and fulfill those responsibilities specified in this Agreement and the applicable SOW (“Client Responsibilities”) in connection with Consultant’s performance of the Services and provision of Deliverables. Client understands that Consultant’s performance is dependent on Client’s timely and complete performance of Client Responsibilities, including decisions and approvals. Consultant will be entitled to compensation under Section 3.1 for any additional fees or expenses incurred as a result of delay or failure by Client to timely perform the Client Responsibilities.

 

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4.3                               Client acknowledges that it has knowledge and skill particular to the business practices and information involved in the Services and Deliverables. Client will provide Consultant with access to Client’s subject matter resources as part of Consultant’s performance of Services. Client will be responsible for: (a) Client’s operation and use of the Deliverables, (b) ensuring that the scope of Services and Deliverables meet Client’s requirements, (c) Client’s compliance will all applicable federal, state and local laws and regulations, and (d) obtaining all necessary consents from third parties, including any necessary third party rights to use software, that are required for Consultant to perform its obligations under this Agreement or any SOW.

 

4.4                               All Employees provided by the Consultant to perform Services for Client under this Agreement shall have been subjected to a criminal background check and check of, education, training, and experience in accordance with Consultant’s standard procedures.

 

4.5                               A Statement of Work shall set forth, in specific detail, the following, as applicable:

 

(i)                                     type of Services to be performed including Milestone descriptions and completion dates, as applicable;

(iQ                                the anticipated duration of the Services;

(iii)                               a description of the Work Product including general description, Deliverables, due date and other critical criteria, as applicable:

(iv)                              professional billing rates for the employees of Consultant to perform the Services;

(v)                                 fixed project fees for the Services, and budgeted funds for media production and selected other financial elements, if applicable;

(vi)                              Client Responsibilities;

(vii)                           a payment schedule and payment Milestones, if applicable;

(viii)                        a location where the Services shall be performed, if applicable;

(ix)                              a location where invoices shall be rendered for payment; and

(x)                                 the identity of a Client representative(s) and a Consultant representative(s) designated for the Services.

 

4.6                               Client agrees to provide to Consultant the information and assistance described in a Statement of Work. Client agrees that if Consultant’s Employees are required to perform the Services at Client’s facility, Client shall provide adequate working space, facilities and equipment for such employees.

 

4.7                               Client shall have the right to request changes and modifications to a Statement of Work; however, no changes shall be made to a Statement of Work unless such changes are agreed to in writing by the parties. Such changes may result in an equitable adjustment in schedule or SOW price. If there is a conflict between the terms and conditions of this Agreement and the terms and conditions of a Statement of Work, the terms and conditions of this Agreement shall control unless specific reference is made in the SOW to the replacement of the specific Agreement’s term with the specific SOW’s term.

 

5

 

4.8                               Client is not obligated to issue, nor is Consultant obligated to accept, any Statement of Work under this Agreement. This Agreement between Client and Consultant is not exclusive and the Parties are free to engage in other relationships of a similar nature with other parties.

 

5                                                                                         QUALITY ASSURANCE

 

5.1                               The Client and Consultant enter into this Agreement in good faith.  Consultant shall perform its obligations hereunder (1) in a workmanlike fashion and in accordance with industry standards and (2) with at least the same level of performance, completeness, care and attention used by Client or one of its subsidiaries, to the extent applicable, to perform such services for itself prior to the Effective Date. The Parties also agree that each Party shall perform its respective obligations hereunder in compliance with all applicable laws. 

 

Consultant shall provide Client with personnel that (1) are sufficiently suited for the rigors of the positions generally; (2) possess sufficient skills, abilities and experience to enable Client to use such staff within the project requirements specified within the SOW (3) meet all legal and governmental requirements necessary for the job description; (4) have the necessary certifications specified in the SOW.

 

5.2                               Removal of Consultant Personnel:  Upon five (5) business days written notice from Client specifying, for reasons of performance and/or professional behavior, that a member of Consultant’s staff should be removed from the performance of Services under an SOW, Consultant shall remove such Consultant personnel and once such Consultant personnel is removed Client shall have no further obligation to Consultant for payment of fees related to such member’s performance of the Services. Consultant shall replace such Consultant personnel within five (5) business days or other such time as agreed upon in the SOW or the primary Client and Consultant liaisons specified in Section 10.1.

 

5.3                               The foregoing shall not apply in the event any Consultant personnel terminates his or her employment with Consultant or if a replacement becomes necessary for reasons beyond Consultant’s control. ln the event of termination of employment of a Consultant person, Consultant will replace such individual promptly.

 

5.4                               Consultant shall have no authority pursuant to this Agreement with respect to any aspect of Client’s business or administrative policies.

 

6                                                                                         PAYMENT AND PRICING

 

6.1                               All fees to be charged to the Client will be outlined in SOW documents agreed to in writing between the Client and Consultant.

 

6

 

6.2                               Projects and project budgets will be outlined in the SOW documents that will be approved in advance by the Client and Consultant before the Services are initiated. Budgets and operating activities will be approved in advance by Client before Consultant commits time or resources.

 

6.3                               Charges for Services of Consultant personnel will be made at the agreed-upon financial structure, e.g., hourly rates, project fee, monthly retainer, as required to provide the Services, Deliverables and activities documented in the SOW.

 

6.4                               Unless provided otherwise in an SOW, Consultant shall invoice Client monthly in arrears for the actual fees and expenses Consultant incurs during the immediately preceding month. If the Parties agree upon Milestone payments in a particular SOW, Consultant shall invoice Client in accordance with the Milestone schedule agreed upon in the applicable SOW. Payment terms under this Agreement shall be “Net 30” from receipt of invoice. Invoices shall be sent to:

 

	
Client Name:
    	
Laureate Education
    
	
Email:
    	
[      ]
    

 

Consultant must present an invoice to Client for Services rendered within six (6) months of performance or charges may not be honored.

 

Client will pay Consultant via electronic funds transfer using ACH CCD + or CTX format to the following account:

 

Bank = [      ]

Routing # = [      ]

Account # = [      ]

Account Type = [      ]

Invoice Qualifier = [      ]

 

Any invoice remaining unpaid for more than forty-five (45) days from receipt will accrue interest at a rate of the lesser of one and one-half percent (1.5%) per month or the highest rate allowed by law.

 

6.5                               Unless provided otherwise in an SOW, Client will pay all reasonable expenses Consultant incurs in the performance of the Services, including travel and lodging expenses, communication charges and supplies, up to a maximum amount equal to twelve (12%) per cent of the value of each SOW.

 

6.6                               Accenture’s fees do not include applicable taxes. Client agrees to pay amounts equal to any value added tax, provincial, municipal, or local sales, use, excise, privilege or other taxes or assessments, however designated or levied, relating to any amounts payable by Client to Consultant hereunder, this Agreement or any Services provided by Consultant to Client pursuant hereto and any taxes or

 

7

 

amounts in lieu thereof paid or payable by Consultant, exclusive of taxes based on Consultant net income or net worth. Consultant will invoice Client for any taxes payable by Client that are required to be collected by Consultant pursuant to any applicable law, rule, regulation or other requirements of law.

 

6.7                               If work for Client requires that personnel perform Services outside the city, state, province, or country in which such personnel are based which could result in increased tax and administrative costs, Consultant will so inform Client and provide client the opportunity to choose to replace Consultant personnel with other Consultant personnel who will not incur such a cost. If Client chooses to proceed with the personnel already in place Client will reimburse Accenture for increased tax and administrative costs incurred by Accenture and/or its personnel. Client will reimburse Accenture for any deficiency relating to taxes that are Client’s responsibility under this Agreement. Each party will be responsible for its own income taxes, employment taxes, and property taxes. The parties will cooperate in good faith to minimize taxes to the extent legally permissible. Each party will provide to the other party any resale exemption, multiple points of use certificates, treaty certification and other exemption information reasonably requested by the other party.

 

7                                                                                         ACCEPTANCE OF DELIVERABLES

 

7.1                               All Deliverables identified in a Statement of Work (for example, A-1) shall be subject to acceptance by Client to verify that the Deliverables materially comply with the acceptance criteria set forth in the applicable Statement of Work.

 

7.2                               Except as otherwise set forth in an SOW, all Services and Deliverables will be deemed accepted if Client does not reject the Services and Deliverables by providing Consultant written notice within ten (10) days after delivery specifically identifying the matter in which the Services or Deliverables fail to materially comply with their applicable specifications. Consultant shall, at no cost to Client, promptly correct any material noncompliance with applicable specifications.

 

8                                                                                         MUTUAL NONDISCLOSURE

 

8.1                               In connection with the business relationship between Consultant and the Client, representatives of Consultant and Client may disclose or reveal to the other, either orally, in writing or by inspection, Confidential Information (in hardcopy and/or electronic form) as to their respective businesses.

 

8.2                               Each Party will keep the other Party’s Confidential Information confidential. Specifically, each Party receiving Confidential Information agrees not to disclose such Confidential Information except to those directors, officers, employees and agents of such Party (i) who reasonably need to know such information and (ii) who have been informed of their obligation to maintain the confidential, proprietary and/or trade secret status of such Confidential Information. Each

 

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Party acknowledges that it has all requisite authority under applicable laws to provide the other Party with access to Confidential Information. Each Party receiving Confidential Information further agrees that it will not use such Confidential Information except for the purposes set forth in this Agreement. Each Party receiving Confidential Information shall treat such information as confidential, and shall use the same care to prevent disclosure of such information as such Party uses with respect to its own confidential and proprietary information, provided that in any case it shall not use less than the care a reasonable person would use under similar circumstances.

 

8.3                               Notwithstanding anything to the contrary contained here, Client’s student data is Personal Data under this Agreement. Except as required by law, neither Party shall disclose any of Client’s student data in violation of the Family Educational Rights and Privacy Act (FERPA), as may be amended from time to time. Each Party will exercise commercially reasonable efforts not to disclose any Personal Data to the other party and to restrict the other party’s access to its Personal Data. If Consultant requires access to Client’s Personal Data in connection with the Services for a particular project, the parties will agree in the applicable SOW on the procedures and obligations of each party with respect to the access, use and protection of such Personal Data (the “Data Protection Procedures”).

 

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

 

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

 

8.6                               Each party will return or destroy the other party’s Confidential Information in its possession upon request by the other party, unless otherwise allowed to retain such Confidential Information. Each party may retain copies of the other party’s Confidential Information required for compliance with its recordkeeping or quality assurance requirements (subject to the terms of this Agreement).

 

8.7                               Notwithstanding the foregoing, the preceding provisions of Section 8 will not apply to information that: (i) is publicly available or in the public domain a the time disclosed; (ii) is or becomes publicly available or enters the public domain through no fault of the recipient; (iii) is rightfully communicated to the recipient by persons not bound by confidentiality obligations with respect thereto; (iv) is

 

9

 

rightfully already in the recipient’s possession free of any confidentiality obligations with respect thereto at the time of disclosure; (v) is independently developed by the recipient; or (vi) is approved for release or disclosure by the disclosing Party without restriction.   Each Party may disclose Confidential Information to the limited extent necessary: (a) to comply with the order of a court of competent jurisdiction or other governmental body having authority over such Party, provided that the Party making the disclosure pursuant to the order will first have given notice to the other Party cooperate with the disclosing Party’s request to obtain a protective order; (b) to comply with applicable law or regulation requiring such disclosure; or (c) to make such court filings as may be required to establish a Party’s rights under this Agreement.”

 

9                                                                                         RIGHTS IN WORK PRODUCT

 

9.1                               Consultant acknowledges that Client shall retain all title to and rights in intellectual property provided by Client to Consultant under this Agreement.

 

9.2                               After acceptance of a Deliverable by Client and upon final payment for that Deliverable, Consultant shall, subject to Sections 9.4 and 9.5 below and any restrictions applicable to any Consultant Knowledge Capital and/or Third-Party Intellectual Property embodied in the Deliverables, assign and convey to Client all right, title and interest in and to the Deliverables. To the extent any Deliverable contains Client’s or Consultant’s Confidential Information, it shall be subject to Section 8 of this Agreement.

 

9.3                               Consultant acknowledges and agrees that all rights, title and interest in and to all Work Product shall vest with Client or such party as Client may designate. Work Product shall be the sole and exclusive royalty-free property of Client or any party that Client designates and shall be deemed to be a “work made for hire” in the course of Consultant’s performance hereunder. To the extent that title to any such Work Product may not, by operation of law, vest in Client or such Work Product may not be considered a “work made for hire”, all rights, title and interest therein are hereby irrevocably assigned by Consultant to Client upon payment for such Work Product. Consultant shall make full and prompt disclosure to Client of all Work Product and deliver all Work Product to Client.

 

9.4                                Notwithstanding Sections 9.1 and 9.2 of this Agreement, this transfer of rights, title and interest shall exclude any Third Party Intellectual Property that may be incorporated into the Deliverables. Before incorporating any Third Party Intellectual Property, Consultant shall obtain permission for such from Client in writing. Consultant hereby grants to Client a royalty-free, worldwide, non­ exclusive right and license only to that Third-Party Intellectual Property that is incorporated into any Deliverable for use only in conjunction with the Consultant Deliverables for purposes of Client’s business only. Consultant warrants that it will not incorporate any Third Party Intellectual Property in any Deliverable

 

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without obtaining for Client a royalty-free, worldwide, non-exclusive right and license therefor and without obtaining prior written consent from Client therefor.

 

9.5                               Notwithstanding Sections 9.1 and 9.2; of this Agreement, Client will have no rights in an Consultant Knowledge Capital other than: (a) to use it as authorized by Consultant in writing from time to time solely for purposes of performing Client Responsibilities, or (b) to the extent to Consultant Knowledge Capital is incorporated into a Deliverable, to use it as part of the Deliverable for purposes of Client’s business only, or (c) pursuant to Consultant’s standard license for such Consultant Knowledge Capital or, in the case of Consultant Knowledge Capital owned by third parties, pursuant to terms acceptable to the applicable third party. If any Consultant Knowledge Capital is made available to Client under (a) above, it will be made available in an “AS IS” condition and without express or implied warranties of any kind; and any Consultant Knowledge Capital made available under (c) above will be subject only to applicable terms of the applicable license. Consultant Knowledge Capital is Confidential Information of Consultant for purposes of Section 8.

 

9.6                               Notwithstanding sections 9.1 and 9.2 of this Agreement, Client agrees that Consultant, its employees and agents shall be free to use and employ their general skills, know-how and expertise, and to use, disclose, and employ any generalized ideas, concepts, know-how, methods, techniques or skills gained or learned during the course of any Statement of Work performed hereunder, subject to its obligations respecting Client’s Confidential Information pursuant to Section 8 of this Agreement. Client understands and agrees that Consultant may perform similar Services for third parties using the same personnel that Consultant may utilize for rendering Services for Client hereunder, subject to Consultant obligations respecting Client’s Confidential Information pursuant to Section 8 of this Agreement.

 

9.7                                Consultant agrees to execute and deliver any documents and take all such other actions as may be reasonably requested by Client to carry into effect the provisions of this Section 9 of this Agreement, including, without limitation, the execution of assignments, copyright registrations and patent applications.

 

9.8                               Client grants to Consultant, and its third party designees, a perpetual, transferable, worldwide, irrevocable, royalty-free, fully paid-up license to use, copy, modify and prepare derivative works of the Custom Components and any applicable intellectual property rights granted to Client under the foregoing paragraph or that Client may file for, register or otherwise obtain in relation to, or resulting from, any Deliverable (and/ or any component thereof), including without limitation, any patent and any counterparts thereof, or any divisions, substitutes, continuations, reissues or reexaminations thereof (such rights including, without limitation, the right to make, have made, use, import, offer for sale and sell or otherwise provide or dispose of products and services using or incorporating the same) or to practice any process in connection therewith, with the right to sublicense the same.

 

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10                                                                                LIAISON

 

10.1                        The  primary liaison(s)  between Client and Consultant are Consultant’s Client Account Lead and Jennifer Winborne for Client.

 

10.2                        Other persons authorized to give direction and/or approve budgets and programs in behalf of Client to Consultant are to be determined and will be communicated to Consultant’s account manager in a timely manner, and likewise any changes to these authorized person(s) shall be communicated to Consultant in a timely manner.

 

10.3                        Internal Escalation:  Subject to each Party’s right to seek injunctive or equitable relief in a court of competent jurisdiction, the Parties agree to attempt to resolve all disputes under this Agreement in accordance with the dispute resolution procedures (“Dispute Procedures”) set forth herein.   In the event of a dispute between the Parties relating to the Services provided under an SOW (except disputes involving confidentiality and infringement), the Parties shall first attempt to resolve the matter internally within a period of ten (10) days through discussions with the Parties respective Project Managers named in the applicable SOW and other appropriate representatives prior to resorting to litigation. If the Parties are unable to resolve the dispute within the initial 10 day period, the Parties shall refer the matter to Client’s and Consultant’s respective primary liaisons specified in Section 10.1 for an additional period of ten (10) business days. If the Parties are unable to resolve the dispute following completion of the Dispute Procedures set forth in this Section, then either Party may pursue the remedies available under this Agreement and applicable law.

 

11                                                                                  WARRANTY

 

11.1                        Consultant warrants that: (a) each of its personnel assigned to perform Services under a Statement of Work shall have the proper skill, training, and background to perform in a competent and professional manner; (b) all Consultant’s Services will be performed in a professional and workmanlike manner and in accordance with the applicable Statement of Work. Consultant will reperform any Services not in compliance with this warranty brought to its attention in writing within thirty (30) days after those Services are performed.  Additionally, Accenture warrants that (c) its Deliverables shall materially conform to the specifications for such Deliverable as set forth on the applicable Statement of Work for a period of thirty (30) days from delivery to Client.  Consultant will correct any such Deliverable not in compliance with this warranty  within thirty (30) days after delivery of such Deliverable to Client.  THIS SECTION 11 IS CONSULTANT’S ONLY EXPRESS WARRANTY CONCERNING THE SERVICES, ANY DELIVERABLES OR WORK PRODUCT, AND THIS AGREEMENT, AND IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, CONDITIONS AND REPRESENTATIONS, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE,

 

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MERCHANTABILITY, INFORMATIONAL CONTENT, SYSTEMS INTEGRATION, NON-INFRINGEMENT, INTERFERENCE WITH ENJOYMENT OR OTHERWISE.

 

11.2                        Client warrants and represents that it has the right to disclose all information transmitted to Consultant pursuant to this Agreement and that such information shall not infringe any Third Party Intellectual Property Rights including, but not limited to, any patent, trademark, copyright, trade secret, or other intellectual property right, and that it shall hold Consultant harmless from any demand and/or claim to be arisen by a third party in connection with the infringement thereof.

 

11.3                        The parties may agree in any Statement of Work upon additional warranties which will apply to the Deliverables under such Statement of Work in addition to those set forth above.

 

12                                                                          INDEMNIFICATION

 

12.1                        Consultant shall defend, indemnify and hold Client and its affiliates and respective officers, directors, employees, agents, successors and assigns, harmless from and against any and all third party claims, suits or proceedings, demands, losses, damages, liabilities and costs and expenses (including, without limitation, reasonable attorneys’ fees) arising out of or resulting from (i) Consultant’s negligence or willful misconduct of Consultant during the performance of the Services; or (ii) the actual or alleged infringement of any patent issued by a country on Schedule A hereto existing at the time Consultant delivers a Deliverable to Client, trademark, copyright, trade secret or other intellectual property right in connection with any Work Product, including any Deliverable, furnished to Client by Consultant pursuant to the terms of any Statement of Work, or the use thereof by Client.

 

12.2                        Client shall defend, indemnify and hold Consultant and its affiliates and respective officers, directors, employees, agents, successors and assigns, harmless from and against any and all third party claims, suits or proceedings, demands, losses, damages, liabilities and costs and expenses (including, without limitation, reasonable attorneys’ fees) arising out of or resulting from (i) Client’s negligence, willful misconduct or breach of this Agreement or any undertaking, covenant, representation or warranty contained herein or (iQ the actual or alleged infringement of any patent issued by a country on Schedule A hereto, trademark, copyright, trade secret or other intellectual property right in connection with any Work Product, including any Deliverable, furnished to Consultant by Client pursuant to the terms of any Statement of Work, or the use thereof by Consultant. Client agrees to defend any indemnified party, at Consultant’s request, against any such claim, demand or suit.

 

12.3                        If Client promptly notifies Consultant in writing of a third party claim against Client that any Deliverable infringes a copyright or trade secret of any third party,

 

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 Consultant will defend such claim at its expense and will pay any costs or damages that may be finally awarded against Client. Consultant will not indemnify Client, however, if the claim of infringement is cause by: (a) Client’s modification of the Deliverable or use of the Deliverable other than as contemplated by this Agreement; (b) Client’s failure to use corrections or enhancements made available by Accenture; (c) Client’s use of the Deliverable in combination with any product or information not owned or developed by Consultant; (d) Client’s distribution, marketing or use for the benefit of third parties of the Deliverable; or (e) information, direction, specification or materials provided - by Client or any third party. If any Deliverable is, or in Consultant’s opinion is likely to be, held to be infringing, Consultant will at its expense and option either: (i) procure the right for Client to continue using it, (ii) replace it with a non-infringing equivalent, {iii) modify it to make it non-infringing, or (iv) direct the return of the Deliverable and refund to Client the fees paid for such Deliverable less a reasonable amount for Client’s use of the Deliverable up to the time of return. The foregoing remedies constitute Client’s sole and exclusive remedies and Consultant’s entire liability with respect to infringement. 

 

12.4                        Client will indemnify and hold Consultant harmless from third party claims arising out of Client’s use of the Services or Deliverables in a manner not consistent with this Agreement or any SOW formed hereunder and reimburse Consultant for all expenses (including counsel fees and court costs) incurred by Consultant in connection with such claim.

 

12.5                        Where indemnification is sought by a Party (the “Claiming Party”), (a) it shall notify the other Party {the “Indemnifying Party) promptly in writing of any claim or litigation or threatened claim to which the indemnification relates; and (b) upon the Indemnifying Party’s written acknowledgement of its obligation to indemnify in such instance, in form and substance satisfactory to the Claiming Party, the Claiming Party shall afford the Indemnifying Party an opportunity to participate in and, at the option and expense of the Indemnifying Party, control, compromise, settle, defend or otherwise resolve the claim or litigation (and the Claiming Party shall not affect any such compromise or settlement without prior consent of the Indemnifying Party, which shall not be unreasonably withheld); and {c) the Claiming Party shall reasonably cooperate with the Indemnifying Party at no cost to itself in any such compromise, settlement, defense or resolution of such claim or litigation. If the Indemnifying Party does not so acknowledge its indemnification responsibility, the Claiming Party may proceed directly to enforce its indemnification rights.

 

13                                                                                  LIMITATION OF LIABILITY

 

13.1                        The sole liability of either Party and any of its Affiliates (whether in contract, tort, negligence, strict liability in tort, by statute or otherwise) for any and all claims in any manner related to this Agreement, including the Deliverables or Services, will be the payment of direct damages, not to exceed (in the aggregate) the fees received by Consultant with respect to the Services or Deliverables involved

 

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under the applicable SOW. Except for the specific remedies expressly identified as such in this Agreement, Client’s exclusive remedy for any claim arising out of this Agreement or any applicable SOW will be for Consultant, upon receipt of written notice, to use commercially reasonable efforts to cure the breach at its expense, or failing that, to return the fees paid to Accenture for the Services or Deliverables related to the breach. The foregoing limitations do not apply to a breach of a Party’s obligations with regard to Confidential Information under Section 8 and/or indemnification obligations under Section 12. Consultant’s liability for breach of the Data Protection Procedures related to Personal Data shall be addressed in accordance with Section 13.4.

 

13.2                        In no event will either party be liable for any consequential, incidental, indirect, special or punitive damage, low or expenses (including, but not limited to, business interruption, lost business, lost profits or lost savings) even if it has been advised of their possible existence. Any action by either party must be brought within two (2) years after the cause of action arose.

 

13.3                        The allocations of liability in this Section 13 are the agreed and bargained for understanding of the parties, and Accenture’s compensation for the Services reflects these allocations.

 

13.4                         Consultant’s liability with regard to a breach of the Data Protection Procedures in place for the protection of Personal Data pursuant to Section 8.3 hereof shall be limited to the amount set forth in Section 13.1 hereof if Consultant fails to adhere to the applicable Data Protection Procedures; provided, however, that for the purposes of this Section 13, the parties agree that the following shall constitute direct damages and shall not be limited with respect to the amount of liability to the extent that they relate to Consultant’s failure to adhere to the Data Protection Procedures: (i) costs and expenses of recreating or reloading any lost, stolen, corrupted or damaged personal data; (ii) costs and expenses of providing notice to affected individuals; (iii) costs and expenses of providing notice to government agencies, credit bureaus, or other required entities; (iv) costs and expenses of credit monitoring for the affected individuals for the greater of 12 months or the period of time required by applicable law or regulation; (v) call center support for affected individuals for no less than 30 days; and (vi) governmental fines, assessments or penalties. In connection with each event involving a breach of Personal Data, Consultant shall promptly deliver a written report to Client’s Liaison set forth in Section 10.1 of this Agreement indicating Consultant’s position relative to whether the breach occurred despite Consultant’s compliance with the Data Protection Procedures or whether the breach of Personal Data occurred due to Consultant’s failure to adhere to such Data Protection Procedures specific to Consultant’s Services pursuant to the SOW under which the Personal Data breach arose, and such report shall contain thorough information documenting the manner in which the breach occurred and providing the basis for Consultant’s determination. Consultant shall be responsible for each of its Affiliates’ and subcontractors’ compliance with the requirements of this

 

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Section 13.4 and Consultant shall be liable for any breach by its Affiliates and subcontractors of the Data Protection Procedures as if such breach were committed by Consultant itself.

 

14                                                                                  INDEPENDENT CONTRACTOR

 

14.1                        Consultant and each of its Employees shall perform the Services as an independent contractor, and nothing contained in this Agreement or in any Statement of Work shall be construed to create or imply a joint venture, partnership, principal-agent or employment relationship between the parties or between Client’s employees and Consultant’s Employees. Consultant and each of its Employees shall not take any action or permit any action to be taken on its behalf, which purports to be done in the name of or on behalf of Client. Neither Consultant nor any of its Employees shall, in any sense, be considered employees or agents of Client. Consultant or its Employees shall not be eligible or entitled to any benefits, perquisites or privileges given or extended to Client employees.

 

15                                                                                  NON-SOLICITATION

 

15.1                        During the Term of this Agreement and for one (1) year thereafter, neither Party shall hire or solicit the employment of any employee of the other Party. Notwithstanding the foregoing, nothing herein shall prevent a party from hiring an employee of the other Party, if that employee has independently responded to the advertisement of a vacant position posted in the ordinary course of business where such advertisement is not directly aimed at the other Party’s employees and the employee was not solicited for said vacant position.

 

16                                                                                  NONCOMPETITlON

 

Unless otherwise stated in an SOW, Consultant agrees that no Consultant Employee who (i) works onsite at a Client location in the United States, (ii) accesses Client’s VPN and (iii) is named in the SOW as being subject to Section 16 of the Agreement shall be assigned for a period of six (6) months after conclusion of the applicable SOW to perform materially similar services as provided under the applicable SOW to any of the following businesses which are directly competitive to Company:

 

University of Phoenix 

Kaplan University 

Capella University

Grand Canyon University 

Argosy University

University of Maryland University College 

Strayer University

DeVry University

Western Governors University

 

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Ashford University

ITT Technical University

Southern New Hampshire University

 

For the avoidance of doubt, this Section shall not apply to Consultant personnel from any of Consultant’s delivery center (“Delivery Center”) locations.

 

17                                                                                 AUDIT

 

17.1                        Client, at its own expense, shall have the right, upon reasonable prior written notice of the audit (i.e., not less than 2 weeks’ notice), and provided Client causes no undue interference with Consultant’s business operations, to audit, to examine, and make copies of or extracts from the books of account, documents, records, and other materials, in whatever form they may be kept, produced and/or maintained by and/or for Consultant by its employees, agents, assigns, successors and subcontractors for the purpose of assessing Consultant’s compliance with the requirements of this Agreement and the applicable SOW pursuant to which the Services were rendered. The Consultant shall maintain such books and records, together with such supporting or underlying documents and materials applicable to Consultant’s Services under each SOW, for the duration of the applicable SOW and for two (2) years following the completion of Services under the SOW to which those records and underlying documents and materials are applicable. .

 

17.2                        All audits shall be subject to the following limitations:

 

17.2.1                                                      Client may not conduct an audit more than once in any twelve (12) month period;

17.2.2                                                     Use of a Consultant competitor as an auditor under this Agreement shall be subject to Consultant’s prior written approval;

17.2.3                                                    All audit results and records disclosed solely as a result of the audit shall be held as Consultant’s Confidential Information and may only be used for purposes permitted by this Agreement.

 

18                                                                                  SECURITY BREACH NOTIFICATION

 

Consultant agrees to notify Client as soon as it becomes aware of any actual unintended access of any Consultant system that may access, process, or store data, files, Work Product, Confidential Information or Personal Data produced under, provided under or related to this Agreement or any SOW subject to this Agreement. Unintended access includes, but is not limited to, compromise by a computer worm, search engine web crawler, password compromise or access by an unauthorized individual or automated program. Consultant agrees to notify Client within twenty-four (24) hours of the discovery of the actual or suspected unintended access.

 

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19                                                                                  EXPORT CONTROL LAWS and ECONOMIC SANCTIONS PROVISIONS

 

19.1                        Compliance. Each party will retain responsibility for its compliance with all applicable export control laws and economic sanctions programs relating to its respective business, facilities, and the provision of services or products to third parties.  Consultant will not be required by the terms of this Agreement to be directly or indirectly involved in the provision of goods, software, services and/or technical data that may be prohibited by applicable export control or economic sanctions programs if performed by Consultant.

 

19.2                        Applicable Laws. Applicable export control or economic sanctions programs may include U.S. export control laws such as the Export Administration Regulations and the International Traffic in Arms Regulations, and U.S. economic sanctions programs that are or may be maintained by the U.S. Government, including sanctions currently imposed against Cuba, Iran, North Korea, Sudan and Syria, as well as Specially Designated Nationals and Blocked Persons programs.  The parties will comply with U.S. export control and U.S. economic sanctions laws with respect to the export or re-export of U.S. origin goods, software, services and/or technical data, or the direct product thereof.

 

19.3                        Notice of Controls.  Prior to providing a party any goods, software, services and/or technical data subject to export controls controlled at a level other than EAR99/AT, the providing party will provide written notice to the receiving party specifying the nature of the controls and any relevant export control classification numbers.

 

19.4                        Prior Steps.  Prior to Client contracting with any entity with respect to which Accenture will provide any goods, software, services and/or technical data under this Agreement, Client will take steps to ensure that any such provision of goods, software, services and/or technical data to such entity is not subject to restrictions or prohibitions under applicable export control or economic sanctions programs.

 

 

20                                                                                  INSURANCE 

 

Consultant agrees to maintain in full force and effect, at Consultant’s sole expense, insurance of the following types and amounts, written by insurance companies authorized to do business in the state where the work is being performed, and having an A.M. Best’s Rating of not less than “A-VII”:

 

Workers’ Compensation and Employers’ Liability

 

Consultant shall carry statutory Workers’ Compensation Insurance covering. Consultant’s employees in compliance with all requirements of the Workers’ Compensation laws of all states in which Consultant performs work hereunder. In addition, Consultant shall carry Employer’s Liability Insurance in an amount not less than the following:

 

·                 Each Accident: $1,000,000

·                Each Disease Each Employee: $1,000,000

 

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·                 Disease Policy Limit: $1,000,000

 

General Liability Insurance

 

Contractor shall carry general liability insurance on a form no less broad than the coverage provided by a “Commercial General Liability Insurance” form (dated 1985 or thereafter) promulgated by the Insurance Services Office or carrier’s filed form, and containing language affording coverage for contractual liability, the products and completed operations hazards, broad form property damage liability, as respects operations and work hereunder, for liability arising out of injury to or death of one or more persons, and destruction of tangible property, in any one occurrence, in amounts not less than:

 

·                 General Aggregate: $2,000,000

·                 Products - Comp/Ops Aggregate: $1,000,000

·                 Personal and Advertising Injury: $1,000,000

·                 Each Occurrence: $1,000,000

 

21                                                                                 MISCELLANEOUS

 

21.1                        Force Majeure: To the extent that either Party’s performance under this agreement is prevented or delayed, either totally or in part, for reasons beyond that Party’s reasonable control such as an act of God, war, terrorism, riot, civil commotion or sabotage, expropriation, condemnation of facilities, changes in law, national or state emergencies, or government authority, a labor strike or labor dispute, work stoppages, a fire, flood, or other natural disaster or accidents causing damage to or destruction, in whole or in part, of the equipment or property necessary to perform the Services then that Party will not be liable, so long as it resumes performance as soon as practicable after the reason preventing or delaying performance no longer exists.

 

21.2                       Assignment, Amendment: This Agreement will be binding upon and inure to the benefit of each of the Parties, their successors and assigns. Neither Party may assign this Agreement or assign its rights or delegate its duties hereunder, without the prior written consent of the other Party (except in connection with a merger, sale of all or substantially all of a Party’s assets or other form of corporate reorganization of that Party) and any purported assignment in violation of this Section will be without force or effect.

 

21.3                       Waiver: The failure of a Party to enforce any provision of this Agreement shall not constitute a waiver of such provision or the right of such Party to enforce such provision and every other provision.

 

21.4                        Notice: Any notices, consents or other communications provided pursuant to this Agreement shall be in writing and shall be sent to the parties at the following address or at such other address as shall be specified by the parties in any Statement of Work or by like notice:

 

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If to Consultant:                                                     Daniel Rice

Accenture LLP

[      ]

 

With a copy to:

 

Accenture LLP

General Counsel - 

Legal Department

[      ]

 

If to Client:                                                                                 Laureate Education, Inc.

650 South Exeter St. 
 Baltimore, MD 21202 
 Attention: John Wilson

 

Such notices, consents or other communications shall be deemed to have been duly given and received (i) on the day of sending if sent by personal delivery, (ii) on the next business day after the day of sending if sent by express delivery service (with confirmation of delivery), or (iii) five (5) days following deposit of such notice or communication into the United States Mail, if sent by registered or certified mail (return receipt requested).

 

21.5                        Advertising: Except to the extent permitted by applicable law in the absence of any express license or other grant of rights, neither party will use any trade name, trademark, service mark, logo or commercial symbol, or any other proprietary rights of the other party in any manner (including without limitation, reference to the other party as a client, customer or supplier in any press release, advertisement or other promotional material).

 

21.6                        Governing Law: This Agreement will be governed by the laws of the State of Maryland without regard to its conflicts of law provisions. This Agreement shall be deemed to have been made in the State of Maryland and shall be construed and enforced in accordance with, and the validity and performance hereof shall be governed by, the laws of the State of Maryland, without regard to conflict of laws principles. To the extent it may be applicable, the Parties expressly agree to exclude the application of the U.N. Convention on Contracts for the International Sale of Goods (1980) to this Agreement. Judicial proceedings regarding any matter arising under the terms of this Agreement shall be brought solely in the federal or local courts of the State of Maryland.

 

21.7                        Survival: All payment obligations accrued prior to the date of termination and Sections 8 (Mutual Nondisclosure), 9 (Rights in Work Product), 11 (Warranty), 12

 

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(Indemnification), 13 (Limitation of Liability), 14 (Independent Contractor), 15 (Nonsolicitation), and 20 (Miscellaneous) shall survive the expiration or earlier termination, for any reason, of this Agreement or any applicable Statement of Work.

 

21.8                        Entirety: This Agreement and the exhibits attached hereto, including any signed SOWs, constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior communications, written or oral, with respect thereto. Except as an SOW may otherwise expressly provide, each SOW will be a complete statement of its subject matter and will supplement and modify the terms and conditions of this Agreement for purposes of that SOW only. This Agreement may only be amended or modified by a writing duly executed by both Parties that expressly references and amends this Agreement.

 

21.9                        Severability: If any part of this Agreement or any part of a Statement of Work shall be held by a court of competent jurisdiction to be invalid, illegal or unenforceable as to particular provisions, this Agreement or such Statement of Work shall remain in full force and effect as to the remaining provisions.

 

21.10                   Code of Conduct and Ethics: Consultant and each of its agents, employees, and subcontractors working directly on a this Agreement or any Statement of Work hereunder for Client will comply with Laureate Education lnc.’s then-current Code of Conduct and Ethics (the “Code”), the most current copy of which can be found at www.laureate.net.

 

21.11                 Anti-Corruption: Consultant and each of its agents, employees, and subcontractors working directly on this Agreement or any Statement of Work hereunder for Client will comply with all applicable anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, as well as the laws of all countries in which goods are produced and delivered or services are to be performed by Consultant. Consultant warrants that it will not, in connection with transactions contemplated in this Agreement, or in connection with any other business transactions involving Client, transfer anything of value, directly or indirectly, to any person (including those in the private sector, as well as government officials and employees, and employees of government-controlled companies) in order to obtain or retain business or any improper benefit or advantage.

 

Consultant warrants that no money paid to Consultant as compensation or otherwise has been or will be used to pay any bribe or kickback in violation of applicable law.

 

Consultant further warrants that no payments will be made by Consultant, its agents, employees, or subcontractors on behalf of Client without obtaining prior approval from Client. Consultant will maintain a current and accurate written accounting of all payments made by Consultant, its agents, employees, or subcontractors on behalf of Client, or out of funds provided by Client. A copy of this accounting must be provided to Client upon request.

 

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Consultant warrants that its owners, employees, agents and subcontractors are not agents or employees of, or otherwise affiliated with, any government or instrumentality of any government, and that Consultant will inform Client of any change in such status.

 

Consultant agrees to answer promptly, fully, and truthfully any questions from Client related to Consultant’s anti-corruption program and other controls related to corruption, and to cooperate fully in any Client investigation of a breach of this anti-corruption provision.

 

21.12                 Authority: Each individual executing this Agreement on behalf of a Party represents and warrants that he/she is duly authorized to execute and deliver this Agreement on behalf of said Party and that this Agreement is binding upon said Party in accordance with this Agreement’s terms. .

 

21.13                 Counterparts: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Execution and delivery of this Agreement may be evidenced by facsimile transmission or email via a portable document format “pdf’, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by its duly authorized representative as of the Effective Date.

 

 

	
LAUREATE EDUCATION, INC.
    	
ACCENTURE LLP
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Jorge Elguera
    	
 
    	
By: 
    	
/s/ Daniel Rice
    
	
Name: 
    	
Jorge Elguera
    	
 
    	
Name:
    	
Daniel Rice
    
	
Title: CIO
    	
Title: Managing Director
    
	
Date: 5/12/14
    	
Date: 5/13/14
    

 

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