Document:

Exhibit 4.7

 

Exhibit 4.7

THIS MEMORANDUM OF UNDERSTANDING is made on this

16th day of February, 2009,

between

SPROTT-SHAW DEGREE COLLEGE CORP.

(a division of CIBT Education Group)

DBA Sprott-Shaw Community College.

Registered as a accredited private training institution

In the Province of British Columbia, Canada (hereafter referred as “SSDC”)

AND:

MINISTRY OF LABOUR AND SOCIAL SECURITY

(a ministry of the Government of Jamaica)

(hereafter referred to as “the Ministry”)

AND:

BROWN’S TOWN COLLEGE

A member of the Council of Community Colleges of Jamaica (CCCJ),

the Joint Committee for Tertiary Education (JCTE)

and the Association of Caribbean Tertiary Institutions (ACTI).

1. - Preamble

		
	
1.1

	
SSDC is an accredited and registered private training institute in the province of British Columbia, Canada.

	 
	
1.2

	
The Ministry of Labour and Social Security is responsible for Social Security and Welfare, Education Affairs and Services, and Labour Relations Employment Services.

	 
	
1.3

	
Brown’s Town College is a government owned institution that is registered with the University Council of Jamaica (UCJ).

	 
	
1.4

	
SSDC provides tertiary education with programs in health care, business, tourism, trades, and administration. SSDC is permitted to enter into agreements with private and public bodies for the delivery of training services.

	 
	
1.5

	
SSDC has agreed to expand its RCA and/or PN training programs (the “Program” or collectively the “Programs”), and has agreed to providing Funding to Brown’s Town College for the delivery of these programs.

			
	Cal Purcell 	Page 1 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

2. – Appointment & Term

		
	
2.1

	
Engagement. SSDC agrees to engage Brown’s Town College to expand student involvement within its RCA Program(s) and to provide the services and outcomes described in this Agreement, including Schedules A and B (the “Services”).

	 
	
2.2

	
Availability of Funding. Brown’s Town College expressly acknowledges that SSDC receives funding directly from the student, and that this Agreement is subject to the individual prepayment of tuition funding prior to any payments being made to Brown’s Town College.

	 
	
2.3

	
Term. The Agreement will commence on April 6, 2009 and will terminate on April 5, 2011, unless extended by written agreement of the Parties (the “Term”) or earlier terminated in accordance with the provisions of this Agreement.

3. - Services

		
	3.1 	Brown’s Town College will: 

		(a)	provide the Services at the times and in the manner described in this Agreement and schedules hereto; 

			

		(b)   	will take such measures as are necessary to manage the human and physical resources under their control to provide the Services; 

			

		(c) 	comply with all applicable laws, standards, legislation, rules, policies and procedures binding upon the College; 

			

		(d) 	comply with the reporting requirements set out in Schedule B; 

			

		(e) 	be responsible for the quality of the Services, and in this regard, will provide the highest possible quality educational services, and without limiting the foregoing, will provide such Services at the standard of care, skill and diligence exercised by a competent person providing educational services similar to the Services; 

			

		(f) 	participate and collaborate with SSDC to develop, as per Schedule C, and then implement, such changes in the Program as may reasonably be required by SSDC in order to produce skilled and competent RCA’s and/or HSW graduates from the Program(s) with the ability to be employed in Canada; 

			

		(g) 	maintain and support a reporting system to ensure timely reporting to SSDC of registered students, testing dates, and graduates from the Program and such other details of the Program as set out in Schedules A and B and otherwise in such form as the SSDC may request from time to time; 

			

		(h) 	promptly advise SSDC in writing of any circumstance that may materially adversely affect the ability of Brown’s Town College to meet its obligations and to provide the Services on the terms set out in this Agreement; and 

			

		(i) 	take, and cause its faculty, employees, officers, directors, agents and contractors to take, steps to ensure avoidance of conflicts of interest between the interests of Brown’s Town College and SSDC, and promptly advise SSDC of any facts or circumstances giving rise to or potentially giving rise to a conflict of interest. 

		
	3.2 	SSDC will: 

			
		
(a)

	
Provide Brown’s Town College with a series of outcomes for each different course in the curriculum and will provide instructor training and support for Brown’s Town personnel on outcomes, competencies and curriculum to ensure the successful delivery of the program to registered students;

			
	Cal Purcell 	Page 2 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

		(b)	Provide Brown’s Town College with access to a proctor for all exams. Said proctor will be an employee or contractor of SSDC and will report directly to SSDC for curricular audit purposes; 

			

		(c) 	Provide Brown’s Town College access to proprietary curriculum thus ensuring that registered students will have all reasonable opportunities to successfully complete the program; 

			

		(d) 	Provide Brown’s Town College with an onsite liaison who will assist the college with recruitment, acceptance of, evaluation of, and supervision of registered students in the SSDC/Brown’s Town College RCA program; and 

			

		(e) 	Provide successful graduates of the program with a SSDC Diploma. 

		
	3.3 	The Ministry of Labour and Social Security will: 

		(a)	Pre-screen applicants prior to acceptance into the program, thereby ensuring that suitable clients are enroled in the program and are eligible to work in Canada; 

			

		(b) 	Assist with the preparation of the candidates for visas to work and continue their study in Canada; 

			

		(c) 	Assist with student homestay provisions including assistance regarding accommodation and support once they arrive in Canada. 

4.- Funding

		
	
4.1

	
Subject to Section 2.2 above and Brown’s Town College complying with the obligations under this Agreement, SSDC will provide the College with full payment and reimbursement for the Services, as per funding set out in Schedule B to this Agreement (the “Program Funds”).

5. - Representations and Warranties

		
	
5.1

	
Brown’s Town College represents and warrants to SSDC that at the time of executing this Agreement and at all times during the Term:

		(a) 	it has legal capacity to enter into and carry out its obligations under this Agreement, all necessary proceedings have been taken and done to authorize the execution and delivery of this Agreement and this Agreement is legally binding and enforceable against it; 

			

		(b) 	all information, documents and reports furnished or submitted by Brown’s Town College in connection with this Agreement are true and correct; 

			

		(c) 	Brown’s Town College is not in breach of, and the provision of the Services contemplated in this Agreement, will not constitute a breach by the College of any statute, bylaw or regulation or of its constating documents; and 

			

		(d) 	Brown’s Town College has no knowledge of any fact or circumstance that materially adversely affects its ability to fulfil its obligations under this Agreement. 

		
	
5.2

	
All representations warranties, covenants and agreements made herein are relied upon by SSDC in entering into this Agreement.

			
	Cal Purcell 	Page 3 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

  6. - Legal Relationship

		
	
6.1

	
SSDC acknowledges and agrees that this Agreement does not in any way change the ownership or governance arrangement for Brown’s Town College.

7. - Personnel

		
	
7.1

	
Brown’s Town College agrees that its faculty, staff, independent contractors and other personnel engaged to provide the Services (the “Personnel”) are the employees or contractors of the College, and that throughout the Term, the College will bear responsibility and retain full and final authority respecting all Personnel providing services to or for the College.

	 
	
7.2

	
SSDC will employ or cause to be employed one or more individuals who sole responsibility to the program is to SSDC who will direct the actions of the employee(s) to oversee the administration or proctoring of the exams and other duties as required. The employee(s) will be direct employees of SSDC and may or may not be located in Jamaica.

	 
	
7.3

	
With the exception as defined in Section 7.2 above, all Parties acknowledge that the Personnel, in addition to employment with Brown’s Town College, may also be employed or engaged to perform services for SSDC. Unless the Parties otherwise agree in writing, no member of the Personnel will, in the course of providing the Services:

		(a)	be deemed to be an employee or in any employment relationship of any kind with SSDC; or 

			

		(b) 	be entitled, in any way, to any terms or conditions of employment or any employment benefits of any kind whatsoever from SSDC including remuneration, overtime wages, private programs or coverage and statutory programs or coverage. 

		
	
7.4

	
Without limiting the generality of the foregoing, and except as otherwise expressly set out in this Agreement, SSDC will have no liability or responsibility for the payment of remuneration to Personnel for the delivery of the Services, the withholding, collection or payment of income taxes, business taxes, statutory or other taxes or payments of any other nature on behalf of, or for the benefit of, Brown’s Town College or any other persons in connection with the provision of the Services

	 
	
7.5

	
Brown’s Town College will ensure all Personnel are competent to perform the Services and are properly trained, instructed and supervised, and will at all times comply with statutory and other legal requirements binding upon it in connection with the Personnel.

	 
	
7.6

	
Brown’s Town College may not subcontract any of its obligations under this Agreement, except with the written consent of SSDC.

8. - Operations

		
	8.1 	Brown’s Town College agrees to: 

		(a)	accept all liability related to the operations of its organization, including, without limitation, all liability arising from the instruction and provision of the Program(s) to registered students; 

			

		(b) 	maintain appropriate risk management practices. 

9. - Indemnity & Liability

		
	
9.1

	
The College will indemnify and save harmless SSDC, including without limitation, its members, directors, officers, employees and agents from and against any and all losses, claims, damages, actions, causes of actions, costs and expenses that SSDC may sustain, incur, suffer or be put to anytime, either before or after the expiration or termination of this Agreement, where the same or any of them are based upon, arise out of or occur, directly or indirectly because of any act or omission of Brown’s Town College or of any agent, employee, officer, director or sub-contractor of the College except liability arising out of any independent grossly negligent act by SSDC under this Agreement.

			
	Cal Purcell 	Page 3 – SSDC/Brown’s Town Agreement 	2/18/2009 

Education Funding Agreement

		
	
9.2

	
At all times, Brown’s Town College will be solely liable and responsible for the delivery of the Program(s). SSDC is responsible to deliver the Program Funds to the College in accordance with the terms of this Agreement, but bears no responsibility to third parties in connection with the delivery of the Program(s). Accordingly, Brown’s Town College agrees that it will not make any claim, complaint or commence any legal proceedings against SSDC or seek any contribution or indemnity from SSDC in respect of any losses, claims, damages, actions, causes of action, liability, costs and expenses that the College may incur in the course of or related to the delivery the Program(s).

10. - Default

		
	
10.1

	
Any of the following events will constitute an event of default (“Event of Default”), whether such event is voluntary, involuntary or results from the operation of law or any judgment or order of any court or governmental authority:

		(a)   	Brown’s Town College fails to comply with any provision of this Agreement, including a failure to provide the Services; 

			

		(b) 	any representation or warranty made by Brown’s Town College, under Section 5, to SSDC in connection with this Agreement is untrue or incorrect; 

			

		(c) 	a change occurs which, in the opinion of SSDC, materially adversely affects the ability of Brown’s Town College to fulfil its obligations under this Agreement; or 

			

		(d) 	any failure to rectify any Event of Default to the satisfaction of SSDC in accordance with a notice delivered under paragraph 11.1(b). 

11. - Termination

		
	
11.1

	
Upon the occurrence of any Event of Default and at any time thereafter, SSDC may, notwithstanding any other provision of this Agreement, at its sole option, elect to do any one or more of the following:

		(a)	immediately terminate this Agreement upon the delivery of written notice to Brown’s Town College; 

			

		(b) 	require that the Event of Default be remedied within a time period specified in writing by SSDC to Brown’s Town College; 

			

		(c) 	suspend any payment of the Program Funds or any amount that is due to Brown’s Town College while the Event of Default continues; 

			

		(d) 	waive the Event of Default; and 

			

		(e) 	pursue any other remedy available at law or in equity. 

		
	
11.2

	
Notwithstanding any other provision in this Agreement, SSDC may terminate this Agreement immediately upon written notice in the event that the individual student funding is reduced or withdrawn or upon the occurrence of any change or circumstance outside SSDC’s control that would, in the opinion of SSDC, interfere with its ability to continue the administration of the funding under this Agreement. To the extent possible, SSDC will provide Brown’s Town College with advance notice of a termination under this Section.

			
	Cal Purcell 	Page 5 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

		
	
11.3

	
Either Party may terminate this Agreement without cause upon giving 30 days written notice to the other Party.

	 
	
11.4

	
In the event of a termination under this Section:

		(a)	payment by SSDC of the Program Funds required to be paid under Schedule B will discharge SSDC of all liability to Brown’s Town College under this Agreement; and 

			

		(b) 	at the request of SSDC, Brown’s Town College will cooperate in reasonable transition plans, including by completing the Program(s) for classes of students that have already enrolled or commenced instruction. 

12. - Marketing and Communications

		
	
12.1

	
Brown’s Town College will participate with SSDC in regular communication between their respective representatives.

	 
	
12.2

	
Brown’s Town College will acknowledge the support of SSDC in any public statements, advertisements, promotional or marketing activities or publications relating to the new seats to be established under this Agreement.

	 
	
12.3

	
Brown’s Town College may use the name or trademarks of SSDC in any public communications, including under Section 12.2 above, after obtaining SSDC’s prior written approval.

	 
	
12.4

	
Brown’s Town College consents to the use of its name by SSDC in public statements, advertisements, promotional or marketing activities or publications concerning the Programs or Services to be provided under this Agreement.

13.– General

		
	
13.1

13.2

	
The Schedules attached to this Agreement will form an integral part of this Agreement.

Failure by either party any time to require strict performance by the other of any term or provision hereof will not constitute a waiver or breach of such or any other term or provision of this Agreement, nor will it constitute a waiver of any succeeding breach of any other term or provision.

	 
	
13.3

	
This Agreement may not be assigned by Brown’s Town College, either directly or indirectly, without the express written consent of SSDC. This Agreement enures to the benefit of and binds the Parties hereto and their respective successors and permitted assigns.

	 
	
13.4

	
Except as otherwise set out in this Agreement, this Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written.

	 
	
13.5

	
This Agreement and each of the other documents contemplated by or delivered under or in connection with this Agreement are governed exclusively by and are to be enforced, construed and interpreted exclusively in accordance with the laws of British Columbia and the laws of Canada and the laws of Jamaica applicable therein.

	 
	
13.6

	
The following provisions will survive the termination or expiry of this Agreement 7, 8, 9, 11, 13 and Schedule B .

	 
	
13.7

	
Any written notice to SSDC may be delivered to or sent by courier to:

			
	Cal Purcell 	Page 6 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

Sprott-Shaw Degree College

Attn: Cal Purcell

#200, 1405 Broadway Street

Port Coquitlam, British Columbia

Canada V3R 0Z7

Written notice may be given to Brown’s Town College by letter personally delivered to the College or by courier addressed to:

Brown’s Town Community College

Attn: Mr. James Walsh

#1 Huntley Road

Brown’s Town, St. Ann

Jamaica

Written notice may be given to the Ministry of Labour and Social Security by letter personally delivered to the Ministry or by courier addressed to:

Ministry of Labour and Social Security

Attn: Ms. Donna Adams Jamaican Liaison Services

#609 – 1708 Dolphin Avenue

Kelowna, BC Canada V1Y 9L9

This Agreement will be for the benefit of the parties and the successors and assignees of SSDC.

This Agreement has been executed by the parties as of the Effective Date.

					
	 		 
	Signed on Behalf of the SSDC		Signed on Behalf of Brown’s Town College
	Print Name: 	 		Print Name: 	 
	Print Title: 	 		Print Title: 	 
	Date: 	 		Date: 	 

			
	 	
	Signed on Behalf of the Ministry of Labour and Social Security	
	Print Name: 	 	
	Print Title: 	 	
	Date: 	 	

			
	Cal Purcell 	Page 7 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

SCHEDULE “A” - Program Funding

		
	1. 	Services 
		
	1.1 	Recruitment & Operations: The College will: 

		(a)	register a total of 50 new students every three months; 

			

		(b)   	maintain a quality improvement system, including through self-evaluation, to ensure that the SSDC educational standards within the program, as per Schedule C, are continuously maintained at a standard consistent with Subsection 3.1(e) of the Agreement; 

		
	
1.2

	
Reporting: Brown’s Town College agrees to maintain and submit information and reports to the Health Authority at the times and in the format requested by it from time to time. Without limiting the generality of the foregoing, the College:

		(a)	will provide all financial, enrolment and student reports required under Schedule B, and; 

			

		(b) 	will maintain and support a tracking system to enable the College to track and report the progress and employment placement of students to a minimum of twelve months from Program completion. 

		
	1.3 	Financial Commitment: 

		(a)	Each registered student will be required to pay $8,000 CAD for the program as per the following payment schedule: (all amounts are in Canadian Dollars) 

			

		 	
	

	$2,500 prepaid registration fee prior to commencement of instruction in Jamaica 

			
	

		 	
	

	$5,500 paid, in 30 equal monthly instalments of $183.33, once the student begins work in the Health Care Sector outside of Jamaica or once the student begins work in a different industry in Canada or the USA. 

				
		(b)   	If the student is unable to work in the Health Care Sector, or in a different industry in Canada or the USA, SSDC will waive the additional $5,500 CAD fee for the training. 

			

		(c)   	Once the student commences their repayment phase, they will qualify for all of SSDC’s regular graduate services including the lifetime refresher training, the lifetime job placement assistance, and all alumni events. These benefits are outlined in our Calendar and will be available for the students prior to enrolment in the program. 

			

		(d) 	Students will qualify for both a Brown’s Town College Diploma and a Sprott-Shaw Community College Diploma upon successful completion of the program. 

		
	
1.4

	
SSDC will pay to Brown’s Town College a sum of $1,000 CAD from each registered student’s prepayment fee as full payment for the training received at Brown’s Town College, less any student refunds as per SSDC refund policy.

	 
	
1.5

	
SSDC refund policy states:

				
		(a) 	0 – 10% program completion 	30% tuition fee retained 
		(b) 	10 – 30% program completion 	50% tuition fee retained 
		(c) 	Over 30% program completion 	100% tuition fee retained 

			
	Cal Purcell 	Page 8 – SSDC/Brown’s Town Agreement 	2/18/2009 

  Education Funding Agreement

SCHEDULE "B" –REPORTING REQUIREMENTS

		
	
1.

1.1

	
Reporting

Interpretation: Capitalized terms in this Schedule that are not defined below will have the meaning set out in the Agreement, including the Schedules thereto:

		(a)	“Early Student Withdrawal” means, in respect of a Class, the number of students who withdraw from the Class: 

			

		 	
	

	in the first two weeks of the Program, for full time students, and 

			
	

		 	
	

	in the first four weeks of the Program for part-time students; 

			
	

		(b) 	“Early Withdrawal Amount” means, in respect of a Class, the product of the Early Student Withdrawals and the Student Rate; 

			

		(c) 	“Total Attrition” means, in respect of a Class, the total number of students enrolled as at the Commencement Date who withdraw from the Program(s) or otherwise fail for any reason to successfully graduate from the Program(s). 

		
	
1.2

	
On or within 30 days of the Commencement Date, Brown’s Town College will provide to SSDC written confirmation of the number of students enrolled in each Class complete with all supporting documentation. This report will form the basis of our calculation for SSDC’s financial commitment.

	 
	
1.3

	
On or promptly following the Completion Date, Brown’s Town College will provide to SSDC a further written report, together with supporting documentation if requested, confirming:

		(a)	the number of students to complete and graduate from the Brown’s Town College Program; 

			

		(b) 	the number of students to complete and graduate from the SSDC program; 

			

		(c) 	the number of Early Student Withdrawals; 

			

		(d) 	the total Attrition Rate for the Class, accounting for both Early Student Withdrawals and any other student withdrawals occurring prior to the Completion Date. 

		
	1.4 	Program Evaluations will be completed by Brown’s Town College at the following points: 

		(a)	After the first month of the program; 

			

		(b) 	At the half way mark of the program; and, 

			

		(c) 	On program completion. 

SSDC will prepare, interpret, correlate, and share the evaluations with Ministry staff and Brown’s Town College management. Program enhancements will then be identified and implemented and form part of the documented outcomes of this contract.

			
	Cal Purcell 	Page 9 – SSDC/Brown’s Town Agreement 	2/18/2009Exhibit 4.8

Exhibit 4.8

Education Program Cooperation Agreement made this              day of                    , 2008

 

BETWEEN:

 

CIBT EDUCATION GROUP INC.

 

("CIBT")

 

AND

 

FAR EASTERN UNIVERSITY ("FEU")

 

RECITALS:

 

A.            This Agreement is signed by CIBT and FEU under the principles of honesty, trust and mutual respect.

 

B.            Both Parties have shown a level of attainment and recognition for their programs, students and accomplishments. FEU and CIBT have shown a desire in education and history of teaching students with a combined learning era of almost 200 years,

 

C.            This level of professionalism, dedication, academics and business integrity have allowed the Parties the opportunity to form an educational alliance to be operated at the FEU Campus and/or in other locations to be agreed upon.

 

D.            Sprott Shaw Degree College Corp. ("SSDC") is a wholly owned subsidiary of CIBT which operates in a variety of locations in British Columbia, Canada and offers programs which are similar to the Programs which the Center (as defined below) will offer in the Philippines.

 

E.            The purpose of this Agreement is to outline the steps to move forward to a prompt and amiable educational alliance and to identify a list of details to be agreed upon between the Parties in relation to this educational alliance.

 

1.             Parties:

 

1.1.         CIBT: CIBT Education Group Inc

 

International Head Office

Address: 1200 - 777 West Broadway, Vancouver BC, Canada V5Z 4J7 

Tel: (604) 871-9909

Fax: (604) 871-9919

Legal Representative: Toby Yam-Chung Chu, President & CEO

 

1.2.         FEU: Far Eastern University

 

Address: Nicanor Reyes Street, Sampaloc, Manila 1015 Philippines 

Telephone: 735-5621

Legal Representative: Dr. Lydia Echauz, President

Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

2.           Cooperative Organization:

 

2.1.         CIBT will create a separate legal entity for the purpose of operating the CIBT International Education Center (the "Center").

 

2.2.         The Center's operations will be located at the site (the "Site") mutually agreed upon by the Parties, either at the existing FEU campus located on Nicanor Reyes Street, Sampaloc, Manila 1015 Philippines or the proposed new FEU Campus.

 

2.3.         The Center's vision and strategy shall be complementary to and operated in accordance with the mutually agreed operating principles and procedures of FEU, Sprott Shaw Degree College Corp. (a subsidiary of CIBT) and CIBT.

 

3.            Cooperation Principles and Objectives

 

3.1.         The Parties agree upon the following cooperation principles for the operation of the Center:

 

3.1.1       GMT and FEU shall introduce to the Center innovative education ideas and management models to widen the scope of course offerings from the FEU Campus and ensure proper education quality.

 

3.1.2       The Center shall train students in applied technology of high market demands and international students according to agreed requirements and development goals.

 

3,1.3       Initially, the Center's proposed programs will be applied vocational skill training and career training programs (the "Programs") such as, by way of example, Practical Nursing and Resident Care Attendant programs. Programs will be subject to change according to market demand.

 

3.2.         The Parties agree upon the following objectives for the operation of the Center:

 

3.2.1       To develop the Center as an international education centre and provide students with a western-style studying environment by introducing CIBT's investment, programs and facilities in complement with the contributions of FEU as set out in this Agreement;

 

3.2.2       To introduce educational resources through CIBT, including international core programs and international instructors from well-established foreign institutions;

 

3.2.3       To provide Center students with interactive teaching methods by foreign teachers using video conference and distance learning teaching systems provided by CIBT;

 

3.2.4       CIBT shall introduce qualified foreign instructors from popular educational fields to teach in the Center through a combination of in-class instruction and video, giving the Center students teaching programs using a combination of foreign instructors and domestic instructors provided by FEU.

 

- 2 -

Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

4.           Cooperation Procedures and Investments

 

4.1.         Following the execution of this Agreement, the Parties agree as follows:

 

4.1.1       The primary program shall be the Resident Care Attendant Program to be offered by the Center. Recruitment process to begin for students as set out in this Agreement.

 

4.1.2       FEU shall provide classrooms and other basic facilities.

 

4.1.3       CIBT shall complete Center construction required with FEU's assistance.

 

4.1.4       Following completion of steps set out above, the Center will commence operations and students will start classes.

 

4.2.         The Parties will provide the following investment for development and operation of the Center.

 

4.2.1     CIBT will provide investment in the Center for video conferencing and equipment, recruiting foreign teachers, establishing career counselling and sourcing services, providing management personnel and providing software, etc. for commencing the day-to-day operations of the Center when necessary, CIBT shall consider increasing the amount of its investment for the Center's regular operations.

 

4.2.2     FEU will provide a fixed teaching area at the site of approximately 160 square meters including 2 classrooms with a capacity for 40 students and 80 square meters each, basic teaching facilities, plus an office of which is 41.5 square meters with a capacity for at least 4 people, both free of rent or other costs during the term of this Agreement. Location of the classrooms and office will be on the 6th floor in the nursing building.

 

4.2.3     FEU shall also provide and maintain during the term of this Agreement cables and other electronic connections to the Site and Internet connection (including initial set-up) with band width no less than 9 MB. FEU will increase the classroom and office area as the Center's additional programs expand.

 

4.3.         CIBT/Center and FEU shall each retain ownership of their separate capital assets. During the term of this Agreement, the Center shall have the right to use all such capital assets for the Programs.

 

5.            Rights and Responsibilities

 

5.1          CIBT will have the following rights and responsibilities in addition to those set out in other parts of this Agreement:

 

5.1.1       CIBT is responsible for any construction, management and operation of the multi-media classrooms at the Site;

 

5.1.2       The Center will permit FEU to use the classrooms when the classrooms are not being used by the Center for its classes and other activities. An exact timetable shall be determined by CIBT and FEU's staff members from the Center.

 

- 3 -

Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

 

5.1.3       CIBT will cause the Center to establish a financial management system for the Center for the collection of relevant fees.

 

5,1 .4      The Center shall pay 10% percent of the Center's collected revenue ("Collected Revenue") to FEU within 30 days of each SSDC "Period. There are 13 periods and "starts" in every fiscal year. The SSDC fiscal year operates from September to August. The Center and FEU shall pay to each other the amount of final adjustment (of Collected Revenue) within 20 days upon receipt of the annual internal statements prepared by the SSDC Controller and delivered to FEU. This payment shall serve as full compensation to FEU for all services and obligations under this Agreement, except for actual salaries for instructors provided by FEU to teach courses offered by the Center as set out in Appendix I.

 

5.1.5       Collected Revenue is defined as Gross Revenue less agent's commission and scholarship contribution.

 

5.1.6       CIBT shall appoint management staff to manage the daily operations of the Center, including marketing, consulting, student management, teaching quality control and inspection.

 

5.1.7       CIBT shall provide to the Center curriculum, testing standards and other teaching materials for the foreign programs.

 

5.1.8       CIBT shall assist FEU in marketing and recruitment.

 

5.1.9       The Center shall deliver certain courses through the video conference system and CIBT will provide to the Center instructors who will teach in the Center and/or from China and/or Canada using video conferencing and other distance learning technology.

 

5,1.10     With FEU's assistance, CIBT will manage the Center's operating campus management system, student registration and performance management such as evaluating students' eligibility, registration and enrolment, and credit management.

 

5.1.11     CIBT will provide access to supportive measures and information to introduce students to the Canadian culture and work place.

 

5.1.12     CIBT shall provide training to the Center's program assigned personnel.

 

5.1.13     CIBT will set up a sales office within the Center for direct recruitment of students to Sprott Shaw Degree College in Canada.

 

5.1.14     CIBT will assist FEU in the marketing of programs from CIBT's education institutions in China to FEU.

 

5.2.         FEU will have the following rights and responsibilities in addition to those set out in other parts of this Agreement:

 

5.2.1       FEU shall provide dormitory accommodations for foreign instructors who are teaching the Programs at double occupancy (up to four total occupants) at no cost to such instructors.

 

- 4 -

Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

5.2.2       FEU shall provide resources, facilities and personnel as the programs grow.

 

5.2.3       FEU shall coordinate and liaise with appropriate government departments and organizations to obtain necessary permits and licenses and required consents to establish the Center and operate the Programs.

 

5.2.4       FEU shall be responsible for filling recruitment quotas.

 

5.2.5       FEU shall assist in recruiting and student admissions and shall use its best efforts to accomplish recruiting plan set and agreed by both parties as set out in Appendix III and revised from time to time.

 

5.2.6       FEU shall assist in supporting student registration, classroom management, logistic support and security of the students and facilities.

 

5.2.7       FEU shall assist in providing graduates with career services.

 

5.2.8       FEU shall be responsible for providing instructors and delivering its part of each Program as determined by CIBT, acting reasonably and in the best interests of the Center.

 

5.2.9       FEU shall arrange practical training and clinical placements for students of the Center with the assistance of the Center staff.

 

5.3.          Both parties agree on:

 

5.3.1       Neither of the parties may rent out nor sublet the classroom to a third party without permission from the other party; in principle, the multi-media classroom shall only be used for the Programs.

 

5.3.2       CIBT and FEU will work together to ensure the standards and facilitation of the Programs maintain the levels that both Parties pride themselves upon.

 

5.3.3       For the Programs which are offered at the Center, teachers assigned by CIBT and FEU will teach a selection of SSDC curriculum, as determined by CIBT, acting reasonably and in the best interests of the Center.

 

5.3.4       Students will have the option to apply for overseas positions in Canada within their educational field. This will be facilitated by an outside source agency, working solely in a job placement capacity. Both parties will market these resources to students.

 

5.3.5       Students upon entry in Canada will have access to supportive measures and information for the transformation into the Canadian Culture and work place.

 

6.             Management Organization

 

6.1.          CIBT shall appoint a Director for the Center who will take principal responsibility of the daily operations and strategic management issues.

 

7.             Instructor Training and Costs

 

7.1.          SSDC will provide an orientation for instructors going to the Philippines to be familiarized prior to the commencement of the Programs offered in the center at FEU

 

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7.2.         The instructors' orientation will consist of observation, methodology of instruction, along with the policies and procedures of Sprott Shaw Degree College provided by a SSDC instructor.

 

7.3.         All instructors, unless already a part of the SSDC and/or CIBT organization, will be recruited and trained in accordance with SSDC standards prior to teaching at the Center.

 

7.4.         All instructors' credentials will be inspected and audited by SSDC as part the Center's internal support for hiring and training of instructors.

 

7.5.         CIBT will provide to the trainee-instructors, upon completion of their training, a letter of completion indicating the competency of the instructor in the classroom setting.

 

7.6.         CIBT, with the assistance of SSDC, will recruit and train foreign instructors going to the Philippines who shall be assigned to teach selected programs at the Center.

 

7.7.         All advertising costs will be the responsibility of SSDC and CIBT for the recruitment of foreign instructors.

 

8.            TERMS AND CONDITIONS

 

8.1.         All teaching materials and curriculum are and will remain the sole property of the Center and may not be sold or loaned to any other institution, school or entity whatsoever and will only be used for the purpose of teaching at the Center.

 

8.2.         FEU agrees to sign a confidentiality and copyright agreement for Center curriculum.

 

8.3.         CIBT will provide curriculum support for all offerings utilized by the Center through semi-annual updates or when any changes occur.

 

8.4.         Upon commencement of the instruction of the diploma programs by FEU at the Center, support will be provided for any changes and updates to the curriculum by means of the CIBT-FTP curriculum database or Sprott Shaw Community College Distributed File system, fax or mail which will be made accessible to Far Eastern University through the Director of the Center.

 

8.5.         Upon commencement of operation of the Center, SSDC will provide to FEU electronic access to pertinent curricula in preparation for the delivery of Resident Care Attendant (Primary Launch) program and Practical Nurse program (Secondary Launch).

 

8.6.         CST will attend the initial opening / ribbon cutting ceremony in 2008,

 

9.            Financial Management and Plan:

 

9.1.         Independent financial management system will be established for the cooperation program. CIBT is responsible to construct the financial management system for the Center and collect relevant fees.

 

9.2.         Method of payment for any teaching or training expenses to institutions or companies in foreign countries shall be subject to the laws of Canada.

 

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Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

9.3          CIBT and FEU shall bear and pay their own individual taxes incurred in respect of this Agreement and the operations of the Center.

 

9.3.         The tuition fee standard of the cooperation programs will be determined according to the costs of running the Programs, as well as government pricing guidelines, marketing factors and consumer price index and initially will be as set out in Appendix II.

 

9.4          Center financial statements will be prepared in accordance to the internationally standard of Generally Accepted Accounting Principles (GAAP).

 

10.          Breach of Contract / Cancellation Policy

 

10.1.       Should FEU violate this Agreement, CIBT will issue a letter outlining the violation and a list of recommendations to be implemented and adhered to for the purpose of rectifying any such violations and errors that may have occurred. The recommendations are expected to be implemented within a 30 day period and proof thereof will be submitted by FEU within the said 30 days.

 

10.2.       Should it be deemed necessary, CIBT may, at its option, issue a second letter outlining recommendations and any improvements that will be expected to be made by FEU. The grace period for implementation of the second letter will be an additional 35 days from the date of issue.

 

10.3.       Should FEU not remedy all violations and/or implement required changes within the specified time period then CIBT may, at its option and in addition to all other remedies, send a notice of cancellation effective on the date set out therein.

 

10.4.       In case of breach of this agreement by any Party during the term of this agreement, the Party that has caused the breach of agreement shall be responsible for compensating the Party that has suffered losses as a result from the breach according to relevant laws and regulations.

 

10.5.       FEU guarantees that the Center will achieve the enrolment targets agreed by both Parties for the Programs. CIBT has the right to terminate this Agreement if the Center fails to reach the mutually agreed enrolment targets for a consecutive of two years following the launch of the Programs, in which case FEU shall reimburse 50% of the construction expenses of the Center to CIBT.

 

10.6.       Both parties agree that in case of any lawsuits, the Party that has caused the breach of Agreement shall bear all legal expenses for both Parties.

 

11.          Miscellaneous

 

11.1.       The establishment, effectiveness, interpretation, and compliance of this agreement shall be governed under the relevant laws of Canada.

 

11.2        "All unsettled disputes arising out of or in connection with the present contract shall be finally settled under international Arbitration by one or more mutually agreed upon arbitrators appointed in accordance with the said rules.

 

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11.3        This agreement is written in English as the language for this contract and will be used between the organizations for same effectiveness.

 

11.4        When the Center is established, it will become a party to this Agreement and have all of the benefits accorded to it hereunder.

 

12.          Terms of agreement, Amendment, Change, Renewal and Termination:

 

12.1.       This Agreement shall be effective from the date hereof until December 31, 2018 (the “term of this Agreement”) unless terminated before that date in accordance with the provisions of this Agreement.

 

12.2.       CIBT and FEU may make amendments of this Agreement on issues not covered within this document. These amendments shall not be effective and or take place until both parties reach a written agreement.

 

12.3.       CIBT and FEU may hold discussions 6 months prior to the expiry date of this Agreement to determine whether to terminate or extend the same.

 

12.4.       CIBT and FEU shall follow the plans below upon termination.

 

12.4.1     CIBT has the right to retain and remove all facilities and assets as invested by CIBT and/or the Center, including furniture, computers equipment and instruments, etc.

 

12.4.2     FEU has the right to retain the classroom, office, and the access right to the same.

 

12.4.3     Both Parties shall make appropriate arrangements for enrolled students and deal with related issues.

 

12.4.4     CIBT and/or FEU may terminate this Agreement if it is impossible or would be commercially unreasonable to perform due to uncontrollable factors such as earthquakes, floods, fires, wars, social convulsions and riots. Discussions would take place between CIBT and FEU to decide if the Agreement between both parties will be terminated.

 

12.4.5     CIBT and FEU shall not take any responsibility for the economic damages or losses as a result of the uncontrollable factors as listed in Item 12.1. Discussions regarding the termination of the contract and post-termination issues are to be held fairly and effectively.

 

There are 4 original copies of this Agreement that have the same binding power, 2 for each party. 

 

 

	
CIBT: CIBT Education Group Inc.

	
FEU: Far Eastern University

	
 

	
 

	/s/ Toby Chu	
/s/ Lybia B. Echauz

	
Representative: Vice Chairman & CEO

	
Representative: Toby Chu

	
 

	
 

	
Date:

	
Date:

 

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Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

Appendix I: Courses Taught by FEU and Course Teaching Fee Standard 

 

	
 

	
Cooperation Programs

	
FEU Teaching Remuneration per Hour approx.

	
 

	
 

	
 

	
1

	
Resident Care Attendant

	
168.00 pesos — T.B.A

	
 

	
 

	
 

	
 

	
Practical Nursing

	
T.B.A.

 

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Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

Appendix II: Program Tuition Fee Standard and FEU's Income 

 

	
 

	
Cooperation Programs

	
Tuition Fee (per student)

	
 

	
 

	
 

	
1.

	
Resident Care Attendant

	
51,000 — 55,000 EST,

	
 

	
 

	
 

	
2.

	
Practical Nursing

	
T.B.A.

 

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Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

 

Appendix III: Student Recruitment Plan/Enrolment Target

 

	
1

	
Resident Care Attendant

	
Sept.1, 2008 — August 31, 2009 — (290 students)

	
 

	
 

	
 

	
2

	
Practical Nursing

	
T.B.A.

	
 

	
 

	
 

	
 

	
Total

	
290

 

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Cibt - FEU Cooperation Agreement - July 14 2008- Master (2)

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