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  Exhibit 10.19    
    

        COMMERCIAL NET LEASE  

 BETWEEN  

LANDLORD  

FRYE DEVELOPMENT, INC.  

 AND  

TENANT

 CENTER LEAF PARTNERS, LLC  

PREMISES

 PROPERTY LOCATED AT

1310 19TH AVENUE N.W.

CLINTON, IA 52732  

 STANLEY, LANDE & HUNTER
  A PROFESSIONAL CORPORATION

ATTORNEYS AND COUNSELORS  

CORALVILLE 319.2489000    •    DAVENPORT 563.324.1000

MUSCATINE 563.264.5000    •    WILTON 563.732.4000 

SLHLAW.COM

 

   COMMERCIAL NET LEASE  

        This Commercial Net Lease ("Lease') is made as of January 26, 2007, between FRYE DEVELOPMENT, INC. ("Landlord"), an
Illinois corporation, and CENTER LEAF PARTNERS, LLC, an Iowa limited liability company ("Tenant"). 

        1.    PREMISES.    

        1.1    CONSTRUCTION.    Landlord, at its expense , has erected upon Lot 1 of Lyons
Business & Technology Park Phase 1A in the City of Clinton, Iowa (the "Real Estate"), a building containing approximately 18,360 square feet ("Building 1"), with a parking area
containing at least 200 parking spaces (collectively, the "Premises"). 

        a.     Landlord
shall complete Building 1 according to the plans and specifications identified in the attached Exhibit A ("Tenant Improvements"), to be completed and
approved by Tenant by January 26, 2007. 

        b.     Possession
of Building 1, completed in accordance with the plans and specifications, shall be delivered not later than April 1, 2007 (the "Commencement Date"),
unless construction is delayed for causes beyond Landlord's control. In that event, the time fixed to complete and deliver the Premises shall be extended for a grace period equivalent to the time lost
by reason of such delay, not to exceed 30 days. 

        c.     Landlord
shall, at its expense, erect upon the Real Estate a second building containing approximately 18,360 square feet and at least an additional 100 parking spaces
("Building 2") according to the plans and specifications identified in Exhibit B, to be completed and approved by Tenant by February 2, 2007 . Landlord shall complete Building 2
according to the plans and specifications identified in the attached Exhibit C ("Tenant Improvements"), to be completed and approved by Tenant by March 1, 2007. When completed and
approved, Exhibits B and C will be added to this Lease by amendment. 

        d.     Possession
of Building 2, completed in accordance with the plans and specifications, shall be delivered not later than July 1, 2007, unless construction is delayed
for causes beyond Landlord's control. In that event, the time fixed to complete and deliver Building 2 shall be extended for a grace period equivalent to the time lost by reason of such delay, not to
exceed 60 days. 

        e.     Tenant
shall have access to the Premises for both Building 1 and Building 2 during the construction process for purposes of verification that the build-out is
being completed in conformity with the provisions of Exhibits A, B and C and for such other reasonable purposes; including verification of the proper installation of cabling for electronic
communications and other such types of fixtures and improvements; provided, however, that Tenant shall not interrupt, interfere with, or attempt to direct construction work in process by contractors,
subcontractors, or suppliers. Tenant shall communicate any concerns about construction directly to Landlord. 

        1.2    PAYMENT FOR TENANT IMPROVEMENTS.    The estimated cost of Tenant Improvements for
completion of Building 1 is $[***], and the estimated cost of Tenant Improvements for completion of Building 2 will be added to this Lease by amendment. In each case, the cost
of Tenant Improvements will be paid as follows. 

        (a)   The
first $[***] will be financed by a loan to Landlord from Citizens First Bank, Clinton, Iowa (the "Bank"). Landlord shall apply to such loan
any economic development grants Landlord receives from Clinton County, not to exceed $[***]. Tenant shall (1) make all monthly interest payments on such loan directly to
Landlord; (2) promptly pay to Landlord all funding received from Economic Development Set Aside ("EDSA") grants; and (3) pay to Landlord the monthly payments required to amortize any
remaining balance of the loan after receiving and 

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

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applying
the final EDSA funds. Landlord shall provide to Tenant copies of all loan documents with the Bank pursuant to which Tenant is required to make any payments pursuant to this Lease. 

        (b)   The
amount of Tenant Improvement costs for each Building in excess of $[***], if any, shall be added to the Minimum Monthly Rent by dividing such
unpaid balance by the number of months remaining in the Term of the Lease for such Building and adding that quotient to the Minimum Monthly Rent. For example, if the excess cost of Tenant Improvements
for Building 1 is $[***] and there are 87 months remaining in the Term, the Minimum Monthly Rent will be increased by $[***] for a total Minimum
Monthly Rent for Building 1 of $[***]. 

        1.3    LEASE.    Landlord leases to Tenant and Tenant leases from Landlord for the Term, at
the rental, and on all the conditions set forth in this Lease, the Premises located at 1310 19th Avenue N.W., Clinton, IA 52732. 

        2.    TERM.    

        2.1    INITIAL TERM.    The initial term of this Lease begins on April 1, 2007, and
ends on June 30, 2014, both dates inclusive (the "Term"), subject to the renewal options set forth in paragraph 21 of this Lease, unless this Lease is sooner terminated pursuant to any
provision of this Lease. 

        2.2    DELAY IN POSSESSION.    If for any reason Landlord cannot deliver possession of the
Premises to Tenant on the first day of the Term, such failure shall not affect the validity of this Lease or the obligations of Tenant hereunder or extend the Term hereof, but in such case, Tenant
will not be obligated to pay rent until possession of the Premises is tendered to Tenant; provided, however, that, (a) if Landlord has not delivered possession of Building 1 by May 1,
2007, or of Building 2 by August 29, 2007, Landlord will forgive one full day's rent for each day beyond such date until possession of the respective Building is delivered; and (b) if
Landlord has not delivered possession of either Building within 30 days after such dates, Tenant may cancel this Lease for the affected Building by giving Landlord written notice of its
election to cancel. 

        2.3    EARLY POSSESSION.    If Tenant occupies the Premises before the beginning of the Term,
such occupancy will be subject to all provisions of this Lease, Tenant shall pay pro rata Minimum Monthly
Rent for such period, and such occupancy will not advance the commencement or termination dates of the Term. 

        2.4    COMMISSION.    Landlord will pay to Tenant's broker a commission of 3 percent at
the beginning of the Term. 

        2.5    HOLDING OVER.    If Tenant, with Landlord's consent, remains in possession of the
Premises or any part thereof after the termination or expiration of the Term (or any renewal or extension thereof), such occupancy will be deemed a tenancy from month to month, subject to all the
provisions of this Lease pertaining to the obligations of Tenant. 

        3.    RENT.    

        3.1    MINIMUM MONTHLY RENT.    Tenant shall pay to Landlord as Minimum Monthly Rent for the
Premises $[***] per square foot per year, or $[***] per month, payable in advance and without demand, on or before the first day of each month, subject
to adjustment pursuant to paragraph 1.2. All payments to Landlord shall be made by checks or drafts payable to the order of Landlord and mailed or delivered to Landlord at the address stated in
this Lease or at such other address as Landlord may designate from time to time by written notice to Tenant. All rent shall be payable to Landlord in lawful money of the United States. 

        3.2    BUILDING 2.    Upon delivery of possession of Building 2 to Tenant, Building 2 shall
become part of the Premises, the Minimum Monthly Rent shall be increased by $[***] per square 

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

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foot
of Building 2, or $[***] per month, subject to adjustment pursuant to paragraph 1.2, and all the terms and conditions of this Lease shall apply to Building 2. 

        3.3    ADDITIONAL RENT.    Except as otherwise specifically provided in this Lease, all costs,
expenses, and obligations of every kind relating to the Premises which may arise or become due during the Term (or any extension or renewal thereof) of this Lease will be paid by Tenant. All taxes,
charges, costs, and expenses which Tenant is required to pay hereunder, together with all interest and penalties which may accrue thereon in the event of Tenant's failure to pay such amounts timely,
and all damages, costs, and expenses which Landlord may incur by reason of any default of Tenant or Tenant's failure to comply with the terms of this Lease, will be deemed to be Additional Rent, and
Landlord will have all the rights and remedies with respect thereto as Landlord has for nonpayment of the Minimum Monthly Rent. 

        3.4    PRO RATA RENT.    Minimum Monthly Rent and Additional Rent for any partial month will
be a pro rata portion of the amount due. 

        4.    SECURITY DEPOSIT.    Upon execution of this Lease, Tenant will deposit with Landlord a
total of $[***] as security for Tenant's faithful performance of Tenant's obligations hereunder pertaining to both Building 1 and Building 2. If Tenant fails to pay rent or
other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord may use, apply, or retain all or any portion of such deposit for the payment of rent or other
charge in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant's default, or to compensate Landlord for any loss or damage which Landlord may suffer
as a result of such default. If Landlord uses or applies all or any portion of such deposit, Tenant will, within ten days after written demand, deposit cash with Landlord in an amount sufficient to
restore the deposit to the full amount stated above, and Tenant's failure to do so will be a material breach of this Lease. Landlord will not be required to keep such security deposit separate from
its general accounts. If Tenant performs all of its obligations hereunder, the security deposit, or so much thereof as has not been applied by Landlord, will be returned, without payment of interest,
to Tenant within 30 days after termination or expiration of this Lease. No trust relationship is created between Landlord and Tenant with respect to the security deposit. 

        5.    USE; CONDITION.    

        5.1    USE.    The Premises may be used and occupied only for general commercial office use or
any other lawful use which is reasonably related or comparable to such use and for no other purpose without Landlord's prior written consent. 

        5.2    CONDITION OF PREMISES.    

        (a)   Within
30 days after Tenant takes possession of Building 1 and within 30 days after Tenant takes possession of Building 2, Tenant will inspect each such
Building and use its best efforts to verify that the improvements have been constructed pursuant to the specifications contained in the attached Exhibits A, B, and C. Landlord agrees to make
any changes necessary to conform such improvements with such specifications. If Tenant discovers any non-compliance with such specifications after the expiration of the 30-day
inspection period but within six months after taking possession, Landlord will also be responsible for making any changes to bring such improvements into conformity with the specifications. Tenant
agrees to accept the Premises subject to all applicable zoning, municipal, county, and state laws, ordinances, and regulations governing and regulating the use of the Premises and any covenants or
restrictions of record ("Use Restrictions"). Tenant acknowledges that neither Landlord nor Landlord's agents have made any representations or warranties as to the future suitability of the Premises
for the conduct of Tenant's business. 

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

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        (b)   Tenant
shall, at Tenant's sole cost and expense, promptly comply with all Use Restrictions. Tenant shall not use or permit the use of the Premises in any manner that
will create waste or a nuisance or, if there is more than one tenant or occupant in the Building, disturb such other tenant or occupant. 

        6.    MAINTENANCE AND REPAIRS; ALTERATIONS.    

        6.1    LANDLORD'S OBLIGATIONS.    Subject to the provisions of paragraphs 5, 6.2, 8,
and 13, and except for damage caused by any negligent or intentional act or omission of Tenant, Tenant's agents, employees, contractors, or invitees (the "Tenant Responsible Parties"), in which event
Tenant shall repair the damage, Landlord, at Landlord's expense, will keep in good order, condition, and repair the foundations, exterior walls, parking lots, driveways, private roads within the Real
Estate, and the exterior roof of the Building (as the Building existed at the beginning of the Term). Landlord will be responsible when the parties agree it is necessary to replace heating, air
conditioning, and ventilating equipment. Landlord will resurface or restripe the parking areas located on the Premises when-such work becomes reasonably necessary. Landlord will not,
however, be obligated to maintain the interior surface of exterior walls or floors, windows, doors or plate glass. Landlord will have no obligation to make repairs under this Paragraph 6.1
until a reasonable time after receipt of written notice of the need for such repairs. 

        6.2    TENANT'S OBLIGATIONS.    

        (a)   Tenant,
at Tenant's sole cost and expense, shall maintain and keep in good order, condition, and repair, the Premises and every part thereof including, without
limitation, interior surfaces of exterior walls, floors, all plumbing, sprinkler systems (excluding underground water mains), heating, air conditioning, ventilating, electrical and lighting facilities
and equipment within the Premises, fixtures, ceilings, windows, doors, plate glass, and skylights, all landscaping, sidewalks, flood lights, security lights, fences, and signs located on the Premises,
and all alterations, improvements, additions, or Utility Installations installed or constructed by Tenant. Tenant's obligations under this paragraph 6.2 shall include the obligation to remove
snow and ice from the roads, driveways, sidewalks, parking lots, and parkways on the Premises. 

        (b)   If
Tenant fails to perform Tenant's obligations under this paragraph 6.2 or under any other paragraph of this Lease, Landlord may, at Landlord's option, enter
upon the Premises after ten days' prior written notice to Tenant (except in the case of emergency, in which case no notice will be required), perform such obligations on Tenant's behalf, and put the
Premises in good order, condition, and repair; the cost of such repairs will be due and payable to Landlord as Additional Rent together with Tenant's next Minimum Monthly Rent. 

        (c)   On
the last day of the Term, any renewal term, or on any sooner termination of this Lease, Tenant shall, subject to the provisions of paragraph 6.3:
(1) surrender the Premises to Landlord in the same condition as received, ordinary wear and tear excepted, broom clean and free of debris; (2) repair any damage to the Premises
occasioned by the installation or removal of its trade fixtures, furnishings, machinery, and equipment; and (3) leave any air lines, power panels, electrical distribution systems, lighting
fixtures, space heaters, air conditioning, plumbing, and fencing on the Premises in good operating condition, ordinary wear and tear excepted. 

        6.3    ALTERATIONS.    

        (a)   Tenant
shall not, without Landlord's prior written consent, make any alterations, improvements, additions, or Utility Installations (as hereinafter defined) in, on, or
about the Premises, except for cosmetic changes, decorating changes, or non-structural alterations not exceeding $[***] in any one year per Building, or
$[***] in cumulative cost per Building during the Term. The foregoing shall not be construed to limit or restrict Tenant's right to relocate, reinstall, and operate its
machinery or equipment, or to comply with its obligations under this 

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

4

 

Lease,
provided that such activities can be performed without causing structural alteration or structural damage to the Premises. As used in this paragraph 6.2, the term "Utility Installation"
means air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, and plumbing. Landlord may require that Tenant remove any or all of said
alterations, improvements, additions, or Utility Installations at the expiration of this Lease and restore the Premises to its prior condition. Should Tenant make any alterations, improvements,
additions, or Utility Installations without the prior consent of Landlord when such consent is required hereunder, Landlord may require that Tenant remove any or all of the same. 

        (b)   Tenant's
ability to make alterations, improvements , additions, or Utility Installations to the Premises is conditioned on (1) Tenant's acquiring from appropriate
governmental agencies any permits which may be necessary to make such alterations, improvements, additions, or Utility Installations, (2) Tenant's furnishing of a copy of such permits to
Landlord before beginning the work, and (3) Tenant's compliance with all conditions of such permits in accordance with the terms thereof and applicable law. 

        (c)   All
alterations, improvements, additions, and Utility Installations (whether or not such Utility Installations constitute trade fixtures of Tenant) which may be made on
the Premises will become the property of Landlord and remain on and be surrendered with the Premises at the expiration or termination of this Lease in accordance with the provisions of
paragraph 6.1(c). Tenants machinery and equipment, other than that which is affixed to the Premises so that it cannot be removed without causing material structural damage to the Premises, will
remain Tenant's property and may be removed by Tenant subject to the provisions of paragraph 6.1(c), provided that Tenant is not then in default under any provision of this Lease. 

        7.    INSURANCE; INDEMNITY.    

        7.1    LIABILITY INSURANCE.    Tenant will, at Tenant's sole cost and expense, obtain and keep
in force during the Term (and any renewal or extension thereof), a commercial general liability policy insuring Tenant (and naming Landlord as an additional insured) against liability arising out of
the use, occupancy , or maintenance of the Premises and all other areas appurtenant thereto. Such insurance shall: (a) be in an amount not less than $1,000,000 combined single limit, bodily
injury, and property damage per occurrence and $3,000,000 in the aggregate, (b) contain a clause providing cross-liability coverage as would be achieved under the standard ISO separation of
insureds clause; (c) contain contractual liability coverage insuring performance by Tenant of the indemnity provisions of this paragraph 7 as to bodily injury, death, or property damage;
and (d) be primary to any insurance carried by Landlord. The limits or coverage of such insurance will not, however, limit the liability of Tenant hereunder. 

        7.2    PROPERTY INSURANCE.    Landlord will obtain and keep in force during the Term (and any
renewal or extension thereof) a policy or policies of insurance covering loss or damage to the Building in the amount of its full insurable replacement value, as the same may exist from time to time,
providing protection against all perils included within the classification of fire and extended coverage; Tenant shall reimburse Landlord for the costs of such insurance within 30 days after
receipt of an invoice for such costs. Tenant will obtain and keep in force during the Term (and any renewals or extensions thereof) a policy or policies of standard fire and extended coverage
insurance covering loss or damage to Tenant's personal property, raw materials, inventory, work-in-process, fixtures, furnishings, machinery, equipment, or tenant improvements
which have not become part of the Building ("Tenant's Insurable Personal Property") to the extent of its full insurable replacement value. 

The
"full insurable replacement value " of the Building or Tenant's Insurable Personal Property shall be determined by the companies issuing the insurance policies at the time the policies are
initially obtained. Not more frequently than once every five years, either party may elect to have 

5

 

the
full insurable replacement value of the property covered by such policy redetermined by the applicable insurance company and shall give the other party written notice of such election. The
redetermination shall be made promptly in accordance with the rules recognized and generally accepted by the insurance company, and each party shall be promptly notified of the results by the company.
The applicable insurance coverage shall be adjusted according to such redetermination. 

        7.3    INSURANCE POLICIES.    Insurance required by this Lease to be carried by Tenant will be
in companies admitted to do business in the State of Iowa which are satisfactory to Landlord. Tenant will deliver to Landlord copies of all policies of insurance required under this paragraph 7
or certificates evidencing the existence and amounts of such insurance. No such policy will be cancelable or subject to reduction of coverage or other modification except after 30 days' prior
written notice to Landlord. Tenant shall not permit to be done anything which will invalidate the insurance policies referred to in this paragraph 7. 

        7.4    WAIVER OF SUBROGATION.    Tenant releases and waives its entire right of recovery
against the Landlord and, its agents, employees, contractors, and invitees, for loss or damage to the Premises, Building, and the fixtures, machinery and equipment, personal property, or improvements
of Tenant in or on the Premises or Building to the extent of the insurance proceeds paid under the policy or policies of insurance required by paragraph 7.2, caused by the negligence of
Landlord or its agents, employees, contractors, or invitees. Tenant will, on obtainer the policies of insurance required hereunder, give notice to the insurance carrier or carriers that a waiver of
subrogation is contained in this Lease. 

        7.5    TENANT'S INDEMNIFICATION OF LANDLORD.    Tenant shall indemnify Landlord against and
hold Landlord harmless from any and all claims, demands, judgments, damages, actions, causes of actions, injuries, administrative orders, consent agreements, and orders, liabilities or losses,
penalties, costs, and
expenses of any kind whatsoever arising out of (a) the possession of occupancy of the Premises by Tenant or any of the Tenant Responsible Parties, (b) the conduct of Tenant's business on
the Premises, (c) the breach or default of any of Tenant's obligations under this Lease, or (d) any activity, work, or things done, permitted, or suffered by Tenant in or about the
Premises; (e) any wrongful or negligent acts or omissions of Tenant; or (f) any violation of applicable federal, state, or local laws or regulations by the Tenant or any of the Tenant
Responsible Parties. 

        7.6    EXEMPTION OF LANDLORD FROM LIABILITY.    Unless caused by Landlord's negligent or
intentional acts or omissions, Tenant agrees that Landlord shall not be liable for injury to Tenant's business or any loss of income therefrom or for damage to the goods, wares, merchandise or other
property of Tenant, any of the Tenant Responsible Parties, or any other person in or about the Premises or for injury to the person of Tenant, any of the Tenant Responsible Parties or any other person
in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the said damage or injury results from conditions arising upon the Premises or from
other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Tenant. Landlord shall not be liable for any damages arising
from any act or neglect of any other tenant, if any, of the Premises. 

        8.    DAMAGE OR DESTRUCTION.    

        8.1    DESTRUCTION DUE TO RISK COVERED BY INSURANCE.    If during the Term, the Premises are
totally or partially destroyed from a risk covered by the insurance described in paragraph 7.2, rendering the Premises totally or partially inaccessible or unusable, Landlord may, at its
option, restore the Premises to substantially the same condition as they were in immediately 

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before
destruction or terminate this Lease by giving Tenant notice of Landlord's election to terminate this Lease; provided, however, if the restoration will take more than 90 days, Tenant can
terminate this Lease immediately by giving notice to Landlord.. 

        8.2    DESTRUCTION DUE TO RISK NOT COVERED BY INSURANCE.    If, during the Term, the Premises
are totally or partially destroyed from a risk not covered by the insurance described in paragraph 7.2, rendering the Premises totally or partially inaccessible or unusable, either party can
terminate this Lease immediately by giving notice to the other party. 

        8.3    ABATEMENT OR REDUCTION OF RENT.    In the event of the partial or total destruction of
the Premises and any part thereof, and notwithstanding whether the casualty is insured or not, the rent paid or payable from the date of such damage until such repairs have been completed shall be
reduced in proportion to the reduction in the number of usable square feet of floor space caused by such
damage. There shall be no abatement of any other obligation of Tenant hereunder by reason of such damage or destruction unless the Lease is terminated under paragraph 8.1 or
paragraph 8.2 of this Lease. 

        8.4    WAIVER.    Landlord and Tenant waive the provisions of any statutes which relate to
termination of leases when leased property is destroyed and agree that such event will be governed by the terms of this Lease. 

        9.    TAXES.    

        9.1    REAL PROPERTY TAXES.    

        (a)   During
the Term (or any renewal or extension thereof), Tenant shall pay to Landlord as Additional Rent all of the Real Property Taxes (as defined in
paragraph 9.2) which are assessed and accrue against the Premises for-the Term. For example for purposes of clarification, Tenant shall pay the Real Property Taxes which accrue
against the Property from April 1, 2007, through June 30, 2007 , and become due and payable during the 2007-2008 fiscal year. 

        (b)   Tenant
shall pay to Landlord any amount due under this paragraph 9.1, within 30 days after receipt of Landlord 's written statement setting forth the
amount of such Real Property Tax and the computation thereof, but in no event earlier than 30 days before its delinquency date. If the Term (or any renewal or extension thereof) does not begin
or expire concurrently with the beginning or expiration of the calendar year, Tenant's liability for Real Property Taxes for any partial Lease year will be prorated on an annual basis. At the
expiration or termination of this Lease, Tenant shall pay to Landlord the estimated. Real Property Taxes which have accrued up to the expiration or termination date but will not become due and payable
until the following fiscal year. When the actual Real Property Taxes are known, the difference between the actual Real Property Taxes and the estimated Real Property Taxes will be paid by Tenant to
Landlord or by Landlord to Tenant, as applicable. 

        9.2    DEFINITION OF "REAL PROPERTY TAX,"    As used in this Lease, the term "real property
tax" includes any form of real estate tax or assessment, general, special, ordinary, or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy, or tax (other than
inheritance, personal income, or estate taxes) imposed on the Premises by any authority having the direct or indirect power to tax, including any city, state, or federal government, or any school,
agricultural, sanitary, fire, street, drainage, or other improvement district thereof, as against any legal or equitable interest of Landlord in the Premises or in the Building, as against Landlord's
right to rent or obtain other income therefrom, and as against Landlord's business of leasing the Premises. 

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        9.3    PERSONAL PROPERTY TAXES.    

        (a)   Tenant
shall pay to Landlord before they become delinquent, all taxes, if any, assessed against and levied on Tenant's trade fixtures, furnishings, machinery, equipment,
and all other personal property of Tenant contained in the Premises or elsewhere, including without limitation, all taxes on industrial machinery and equipment or computers which are assessed and
taxed as real property. When possible, Tenant will cause said trade fixtures, furnishings, machinery, equipment, and all other personal property to be assessed and billed separately from Landlord's
real property. 

        (b)   If
any of Tenant's personal property is assessed with Landlord's real properly, Tenant will pay Landlord the taxes attributable to such personal property within ten days
after receipt of a written statement setting forth the taxes applicable to Tenant's property, but in no event earlier than 30 days before the delinquency date. 

        10.    UTILITIES.    Tenant shall pay for all water, gas, heat, light, power, telephone and
other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Tenant, Tenant shall pay a reasonable proportion to be
determined by Landlord of all charges jointly metered with other premises. 

        11.    ASSIGNMENT AND SUBLETTING.    

        11.1    CONSENT REQUIRED.    Except for assignment or subleasing of Tenant's interest in this
Lease to a wholly owned subsidiary of Tenant or any successor entity which acquires all or substantially all of the capital stock of Tenant, Tenant shall not voluntarily or by operation of law assign,
transfer, mortgage, sublet, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent. Landlord will respond to
Tenant's request for
consent hereunder in a timely manner. Any attempted assignment, transfer, mortgage, or subletting without Landlord's consent will be void and constitute a breach of this Lease. 

        11.2    NO RELEASE OF TENANT.    No subletting of the Premises or assignment of this Lease
(whether with or without Landlord's consent) will release Tenant of Tenant's obligations or alter the primary liability of Tenant to pay the rent and to perform all other obligations to be performed
by Tenant hereunder. The acceptance of rent by Landlord from any other person or entity will not be deemed to be a waiver by Landlord of any provision of this Lease. Consent to one assignment or
subletting will not be deemed consent to any subsequent assignment or subletting. In the event of default by any assignee or successor of Tenant in the performance of any of the terms hereof, Landlord
may proceed directly against Tenant without the necessity of exhausting remedies against such assignee or successor. Landlord may consent to subsequent assignments of this Lease, subletting of the
Premises, or amendments or modifications to this Lease with assignees or successors of Tenant without notifying Tenant or any guarantor of this Lease and without obtaining consent from Tenant,
Tenant's successor, or any guarantor of this Lease; such actions will not relieve Tenant or any guarantor of liability under this Lease. 

        12.    DEFAULTS; REMEDIES.    

        12.1    DEFAULTS.    The occurrence of any one or more of the following events will constitute
a material default and breach of this Lease by Tenant: 

        (a)   Tenant's
vacating or abandoning of the Premises. 

        (b)   Tenant's
failure to make any payment of rent, as and when due, when such failure continues for a period of three days after written notice from Landlord to Tenant. If
Landlord serves Tenant with a Notice to Pay Rent or Quit pursuant to applicable law, such Notice to Pay Rent or Quit will also constitute the notice required by this paragraph. 

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        (c)   Tenant's
failure to observe or perform any of the covenants , conditions, or provisions of this Lease to be observed or performed by Tenant, other than those described
in paragraph 12.l(b) above, when such failure continues for a period of 30 days after written notice from Landlord to Tenant. 

        (d)   (1)
Tenant's malting of any general arrangement or assignment for the benefit of creditors; (2) Tenant's becoming a "debtor" as defined in 11 U.S.C.
Section 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within 60 days); (3) the appointment of a trustee or
receiver to take possession of substantially all Tenant's assets located at the Premises or of Tenant's interest in this Lease, if possession is not restored to Tenant within 30 days; or
(4) the attachment, execution, or other judicial seizure of substantially all Tenant's assets located at the Premises or of Tenant's interest in this Lease, if such seizure is not discharged
within 30 days. If any provision of this paragraph is contrary to any applicable law, such provision will be of no force or effect. 

        12.2    REMEDIES.    If any such default or breach by Tenant continues beyond applicable cure
periods , Landlord may at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default
or breach: 

        (a)   Terminate
Tenant's right to possession of the Premises by any lawful means, in which case this Lease will terminate, and Tenant will immediately surrender possession of
the Premises to Landlord. In such event, Landlord will be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including, but not limited to, the cost of
recovering possession of the Premises; expenses of reletting , including necessary renovation and alteration of the Premises, attorney's fees, and any real estate commission actually paid to relet the
Premises; and the amount by which the unpaid rent for the balance of the Term exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided, as determined
at the time of award by a court of competent jurisdiction. 

        (b)   Maintain
Tenant's right to possession in which case this Lease will continue in effect whether or not Tenant has abandoned the Premises. In such event , Landlord will be
entitled to enforce all Landlord's rights and remedies under this Lease, including the right to recover the rent as it becomes due under this Lease. 

        (c)   Cure
such default or breach at Tenant's expense and the amount of all expenses, including attorneys' fees, incurred by Landlord in curing such default shall be deemed
additional rent payable on demand. 

        (d)   Pursue
any other remedy now or hereafter available to Landlord under applicable laws. 

        12.3    DEFAULT BY LANDLORD.    Landlord will not be in default unless Landlord fails to
perform obligations required of Landlord within a reasonable time after written notice by Tenant to Landlord specifying the nature of Landlord's failure to perform; provided that, if the nature of
Landlord's obligation is such that more than 30 days are required for performance, Landlord will not be in default if Landlord begins performance within such 30-day period and
diligently prosecutes the same to completion. 

        13.    CONDEMNATION.    

        13.1    LEASE TERMINATED.    If the Premises or any portion thereof is taken under the power
of eminent domain or sold under the threat of the exercise of said power ("Condemnation"), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than 10 percent of the floor area of the portion of the Building located on the Premises or more than 25 percent of 

9

 

the
land area of the Premises which is not occupied by the Building is taken by Condemnation, Tenant may, at Tenant s option, to be exercised in writing only within ten days after Landlord has given
Tenant written notice of such taking (or in the absence of such notice, within ten days after the condemning authority takes possession), terminate this Lease as of the date the condemning authority
takes such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease will remain in full force and effect as to the portion of the Premises remaining, except
that the rent will be reduced in the proportion that the floor area of the portion of the Building located on the Premises taken bears to the floor area of the Premises before Condemnation. No
reduction of rent shall occur if the only area taken is that which does not have the Building located thereon, unless the taking materially reduces the parking space available, in which case Landlord
and Tenant shall agree on an equitable reduction of rent. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise
of such power will be the property of Landlord, whether such award will be made as compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages;
provided, however, that Tenant will be entitled to: 

        (a)   Any
sum awarded to Tenant which is attributable to Tenant's machinery and equipment which Tenant has the right to remove from the Premises pursuant to the provisions of
this Lease but elects not to remove; 

        (b)   Any
sum awarded to Tenant which is attributable to any excess of the market value of the Premises, exclusive of Tenant's improvements or alterations for which Tenant is
compensated, over the present value at the date of taking of the monthly rent for the remainder of the Term (or any renewal or extension thereof), calculated as of the date of such taking, with
allowances for the estimated increases in the cost of living increase for the remainder of the Term (or any renewal or extension thereof) projected over the remainder of the Term (or any renewal or
extension thereof); and 

        (c)   Severance
damages specifically awarded to Tenant for restoration of the Premises. 

        13.2    LEASE NOT TERMINATED.    If this Lease is not terminated by reason of such
Condemnation, Landlord will, to the extent of severance damages received by Landlord in connection with such
Condemnation, repair any damage to the Premises caused by such Condemnation except to the extent that Tenant has been reimbursed therefor by the condemning authority. Tenant will pay any amount in
excess of such severance damages required to complete such repair. If the repairs contemplated by this paragraph can not be made in accordance with existing laws, Landlord shall determine the nature
of the repairs to be made hereunder. 

        14.    ESTOPPEL CERTIFICATE.    

        14.1    Tenant
will at any time on not less than ten days' prior written notice from Landlord execute, acknowledge, and deliver to Landlord a statement in writing
(1) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full
force and effect) and the date to which the rent and other charges are paid in advance, if any; and (2) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part
of Landlord hereunder or describing in detail any claimed defaults. Any such statement may be conclusively relied on by any prospective purchaser or encumbrancer of the Premises. 

        14.2    At
Landlord's option, Tenant's failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive on Tenant that
(1) this Lease is in full force and effect without modification except as may be represented by Landlord; (2) there are no uncured defaults in Landlord's performance of its obligations
hereunder; and (3) not more than one installment of the monthly rent has been paid in advance. 

10

 

        14.3    If
Landlord desires to finance, refinance, or sell the Premises, or any part thereof, Tenant agrees to deliver to any lender or purchaser designated by Landlord such
financial statements of Tenant in such detail as may be reasonably required by such lender or purchaser, provided that such lender or purchaser agrees to maintain the confidentiality of such
information. Such statement will include the past three years' financial statements of Tenant. 

        15.    MONETARY OBLIGATIONS DEEMED RENT.    All monetary obligations of Tenant to Landlord
under the terms of this Lease shall be deemed to be Additional Rent and shall be payable to Landlord by Tenant without deduction or offset of any kind. 

        16.    SUBORDINATION.    

        16.1    At
Landlord's option, this Lease will be subordinate to any mortgage, deed of trust, or any other hypothecation or security now or hereafter placed on the Premises, and
to any and all advances, renewals, modifications, consolidations, replacements, and extensions thereof. Notwithstanding such subordination, Tenant's right to quiet possession of the Premises shall not
be disturbed if Tenant is not in default and so long as Tenant pays the rent and observes and performs all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its
terms. If any mortgagee or holder of a deed of trust elects to have this Lease prior to the lien of its mortgage or deed of trust and gives written notice of such election to Tenant, this Lease will
be deemed prior to such mortgage or deed of trust. 

        16.2    Tenant
will execute any documents reasonably required to effectuate an attornment or a subordination or to make this Lease prior to the lien of any mortgage or deed of
trust, provided that such documents provide that no foreclosure of or deed given in lieu of foreclosure of such encumbrance shall affect Tenant's rights under this Lease as long as Tenant duly and
timely performs all its obligations hereunder. If Tenant fails to execute such documents within ten days after written demand, such failure shall constitute an event of default under this Lease by
Tenant. 

        17.    ACCESS.    Landlord and Landlord's agents will have the right to: (a) gain
immediate access to the Premises at any time for the purpose of determining Landlord and Tenant's compliance with the fire, safety, liability, or other requirements of any applicable insurance
carrier; and (b) enter the Premises at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders, or Tenants, and making such alterations,
improvements, or additions to the Premises or to the Building as Landlord deems necessary or desirable. Landlord shall give Tenant such notice of its need for access to the Premises as is reasonable
under the circumstances. Landlord may, within six months prior to the expiration of the Term (or any renewal or extension thereof), place upon or about the Premises 'Tor Lease" signs, all without
rebate of rent or liability to Tenant. 

        18.    AUCTIONS.    Tenant will not conduct or permit to be conducted, either voluntarily or
involuntarily, any auction upon the Premises without first having obtained Landlord's prior written consent. 

        19.    SIGNS.    Tenant may place its business signs on or about the Premises. Tenant shall
ensure that all of Tenant's signs comply with applicable laws and be responsible for maintaining Tenant's such signs. 

        20.    QUIET POSSESSION.    On Tenant's paying the rent for the Premises and observing and
performing all the covenants, conditions, and provisions of the Lease in accordance with its terms, Tenant will have quiet possession of the Premises for the entire Term (or any renewal or extension
thereof), subject to all the provisions of this Lease 

        21.    RENEWALS.    Upon expiration of the Term of this Lease , if Tenant is not in default
under this Lease, Tenant has the option to renew the Lease for a three-year period ("First Renewal Period") on the same terms and conditions except the Minimum Monthly Rent The Minimum
Monthly Rent at 

11

 

the
end of the Initial Term (excluding that portion attributable to excess costs of Tenant Improvements) shall increase by the percentage increase in the Consumer Price Index-All Terms-
Midwest Urban, from August immediately prior to the beginning of the Term to August immediately prior to the beg inner of the First Renewal Period. At the expiration of the First Renewal Period,
Tenant has the option to renew the Lease for an additional three-year period ("Second Renewal Period") on the same terms and conditions, except the Minimum Monthly Rent. The Minimum
Monthly Rent during the First Renewal Period shall increase by the percentage increase in the Consumer Price Index All Terms- Midwest Urban, from August immediately prior to the First Renewal Period
to August immediately prior the Second Renewal Period. Tenant may exercise such options to renew by giving Landlord, at least 180 days before the first day of any such renewal term, written
notice of its intention to exercise such option. 

        22.    SECURITY MEASURES.    The Rent payable to Landlord does not include the cost of guard
service or other security measures, and Landlord has no obligation whatsoever to provide such services. Tenant assumes all responsibility for the protection of Tenant, its employees, agents, and
invitees from acts of third parties. 

        23.    EASEMENTS.    Landlord reserves to itself the right, from time to time, to grant such
easements, rights, and dedications with respect to the Premises that Landlord deems reasonably necessary or desirable, so long as such easements, rights, or dedications do not unreasonably interfere
with Tenant's use of the Premises. Tenant will join in the execution of documents granting such rights or interests on Landlord's request and Tenant's failure to do so within 30 days of written
request by Landlord will constitute a material breach of this Lease. Landlord will cooperate with Tenant in the granting or relocating of easements on the Premises reasonably required by Tenant, so
long as such easements do not unreasonably interfere with Landlord's use of or access to Landlord's Adjacent Property. 

        24.    AUTHORITY.    Each individual executing this Lease on behalf of Landlord, Tenant, and
Guarantor represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of such entity and , on request will deliver to the other evidence of such authority
reasonably satisfactory of such authority to the requesting party. 

        25.    GUARANTY.    Bridgepoint Education, Inc. ("Bridgepoint") guarantees Tenant's
payment and performance pursuant to the terms of this Lease. At Landlord's request, Bridgepoint will provide to Landlord's financial institutions Bridgepoint's full financial statements on behalf of
Tenant, provided that such financial institutions agree to maintain the confidentiality of such information. Bridgepoint's guaranty shall in no way lessen, alter, affect, or derogate from Tenant ' s
responsibilities under the Terms of this Lease. 

        26.    GENERAL PROVISIONS.    

        26.1    EFFECT.    This Lease supersedes all prior agreements and understandings between the
parties relating to the subject matter of this Lease and constitutes the entire agreement of the parties with respect to said subject matter. Subject to any provisions restricting assignment or
subletting by Tenant, this Lease binds and benefits the parties, their personal representatives, successors, and assigns. 

        26.2    AMENDMENT.    No amendment or modification of this Lease is effective unless made in
writing and signed by each party. 

        26.3    NON-WAIVER    A party's failure to enforce at any time or for any period
of time any provision of this Lease or to exercise any right or remedy shall not constitute a waiver of such provision, right, or remedy, or prevent such party thereafter from enforcing any or all
provisions and exercising any or all rights and remedies. The exercise of any single right or remedy does not constitute an election or prevent the exercise of any or all other rights or remedies. 

12

 

        26.4    NOTICE.    Unless otherwise expressly provided, any notice, demand, request, consent,
approval, or communication that a party desires or is required to give to another party (or any other person) in connection with this Agreement (the "Notice") shall be in writing and may be delivered
by hand, by overnight courier, by electronic transmission, or by facsimile, or served in the manner provided for in the original notice, or mailed by United States registered or certified mail, return
receipt requested, postage prepaid, and addressed to the party or person at the address provided in this Agreement or otherwise designated by written notice, with copies forwarded to such persons as
such party or person may have directed in writing. The Notice shall be deemed given or delivered, as the case may be, on the date of receipt if delivered by hand or by overnight courier or served as
an original notice; on the date of sending if sent by electronic transmission or by facsimile; or on the second calendar day after the Notice is deposited in the United States mail. 

        26.5    INTEREST ON PAST-DUE OBLIGATIONS.    Any amount due and owing to Landlord
not paid when due will bear interest at the lower of 12 percent per annum or the highest rate permitted by applicable law. Payment of such interest will not excuse or cure any default by Tenant
under this Lease. Interest will not be payable on late charges incurred by Tenant. 

        26.6    RECORDING.    Landlord and Tenant may execute, acknowledge, and deliver a "short form"
memorandum of this Lease for recording purposes. 

        26.7    ATTORNEY'S FEES; JURY TRIAL.    If either party brings an action to enforce the terms
of or declare rights under this Lease, the prevailing party in any such action, on trial or appeal, will be entitled to reasonable attorney's fees to be paid by the losing party as fixed by the court.
The parties and any guarantor of this Lease shall waive trial by jury in any such action. 

        26.8    COUNTERPARTS.    This Lease may be sighed in several counterparts, each of which will
be an original and all of which will constitute one agreement. of this Lease 

        26.9    TIME OF THE ESSENCE.    Time is of the essence of each provision 

        26.10    GOVERNING LAW.    This Lease is governed by and construed in accordance with the laws
of the State of Iowa. 

        26.11    SEVERABILITY.    The unenforceability, invalidity, or illegality of any provision of
this Lease does not affect or impair any other provision or render the remainder of the Lease unenforceable, invalid, or illegal. 

        26.12    INTERPRETATION.    Wherever used in this Lease, unless the context clearly indicates
otherwise , the use of the singular includes the plural , and vice versa; and the use of any gender is applicable to any other gender. The captions and the table of contents, if any, are for
convenience only and do not affect the interpretation of this Lease. 

        26.13    CONSENT OF PARTIES.    Whenever a parry's consent or approval is required, that party
will not unreasonably withhold or delay such consent or approval. 

        26.14    EXHIBITS.    All exhibits specified in this Lease are attached and incorporated by
reference. 

13

 

        The
parties have executed this Lease as of the date specified in the introductory paragraph. 

					
	 	 	 LANDLORD:

FRYE DEVELOPMENT, INC
	

 	
 	
By	
 	
/s/ Michael D. Frye

  Michael D. Frye, President
	

 	
 	
Date:	
 	
2/9/07

 
	

 	
 	
Address for Notices:

Frye Development, Inc.

PO Box 133

Aledo, Illinois 61231

563.264.5053

Facsimile
	

 	
 	
 TENANT:

Center Leaf Partners, LLC
	

 	
 	
By	
 	
/s/ Andrew Clark

  Andrew Clark, Chief Executive Officer
	

 	
 	
Date:	
 	
1/25/07

 
	

 	
 	
Address for Notices:

Center Leaf Partners, LLC

1310 19" Avenue N.W.

Clinton, IA 52732

Facsimile:
	

 	
 	
 GUARANTOR:

BRIDGEPOINT EDUCATION, INC.
	

 	
 	
By	
 	
/s/ Andrew Clark

  Andrew Clark, Chief Executive Officer
	

 	
 	
Date:	
 	
1/25/07

 
	

 	
 	
Address for Notices:

Bridgepoint Education, Inc.

13500 Evening Creek Drive North

Suite 600 San Diego, CA 92128

Facsimile

14

 EXHIBIT A  

BUILDING 1 TENANT IMPROVEMENTS  

        The following architectural plans prepared by [***] and
dated                                    ,
                        ; 

A0.1—COVER

A1.1—FLOOR PLAN/WALL TYPES.

A1.2—REFLECTED CLG. PLAN

A2.1—PARTIAL INTERIOR ELEVATIONS/EXTERIOR ELEVATIONS

A3.1—DETAILS/SPECIFICATIONS/SCHEDULES/

M1.1—HVAC LAYOUT AND ROOF TOP UNITS PLAN

P1.1—PLUMBING—ABOVE FLOOR

P1.2—PLUMBING—UNDER FLOOR

E1.1—LIGHTING

E1.2—POWER E1.3—SCHEDULES

F1.1—FIRE SPRINKLER PLAN 

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

EXHIBIT B  

BUILDING 2 PLAN AND SPECS  

EXHIBIT C

 BUILDING 2 TENANT IMPROVEMENTS  

QuickLinks

Exhibit 10.19QuickLinks
 -- Click here to rapidly navigate through this document
 

 

 
 

  Exhibit 10.20    
    

        VOID
IF EXECUTED AFTER December 23, 2003 

        Charter
Learning 

 
 

  Charter Learning Pricing Summary    
    

 SCHEDULE OF FEES  

										
	 
	 	Level of

License and Support 	 	Initial Term Fees

(USD)

[***] 	 	Renewal term Fees

(if applicable) 	 
	 Blackboard Learning SystemTM License
	 	Basic Edition	 	$	[***]	 	 	 	 
	 
	 	[***]	 	$	[***]	 	 	 	 
	 Blackboard Learning Solutions
	 	[***]	 	$	[***]	 	 	 	 
	 ASP annual fees
	 	 	 	$	[***]	 	 	 	 
	 
	 	[***]	 	$	[***]	 	 	 	 
	 Managed Contact Center
	 	 	 	$	[***]	 	 	 	 
	 Total Fees Due:
	 	 	 	$	[***]	 	 	 	 

[***]

 
 

  BLACKBOARD MASTER TERMS    
    

        Blackboard offers software and services that are useful for a range of educational purposes, from development of course websites to
development of an entire online campus, and Blackboard also offers technology that allows institutions to establish and manage accounts for a stored value card system and security access system.
Customer wishes to use such Blackboard software, services and other technology to enhances its own educational program, and Blackboard is willing to grant to Customer a license for this purpose in
accordance with the terms and conditions contained in this Agreement. 

AGREEMENT

        In
consideration of the following mutual promises and agreements, the Parties agree as follows: 

1.     SCOPE OF AGREEMENT.  

        1.1    Exhibits and Schedules.    These Master
Terms describe the general terms by which Customer may license Software and purchase services and/or Equipment (each as defined below) from Blackboard as set forth in any Schedule (as defined below).
The specific terms related to the license of Software or purchase of Services and/or Equipment are described in the appropriate Software Schedules or Service Schedules which have been separately
executed by the Parties, and Exhibits to such Schedules (collectively referred to as "Schedules"). Schedules may be added or deleted from time to time by the agreement of the parties, but Customer
acknowledges that it only has rights to use Software or receive Services/Equipment to the extent provided pursuant to one or more applicable Schedules which has been executed and remains in force. 

        1.2    Order or Precedence.    In the event a
conflict arises between these Master Terms and the provisions of any Schedule, these Master Terms will govern unless the relevant Schedule expressly provides otherwise. No term or provision set forth
or cross-references in any purchase order or payment documentation will be construed to amend, add to, or supersede any provision of this Agreement. This means that the terms and conditions of any
purchase order or payment documentation will not be binding upon either Party. 

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

1

 

2.     DEFINITIONS.  

        2.1   "Agreement" means the cover page to which these Master Terms are
attached, these Master Terms and all Schedules (and exhibits to Schedules) attached to these Master Terms, as amended from time to time. 

        2.2   "Available Date" means, with respect to any particular Software or
Equipment, the date upon which deliver of the relevant Software or Equipment is deemed complete pursuant to the terms of the relevant Schedule. 

        2.3   "Blackboard" means Blackboard Inc., a Delaware corporation with
its principal office and place of business at 1899 L Street, NW, Fifth Floor, Washington, D.C. 20036, U.S.A. 

        2.4   "Confidential Information" means any non-public information
disclosed by either Party to the other, related to the operations of either Party or a third party that has been identified as confidential or that by the nature of the information or the
circumstances surrounding disclosure ought reasonably to be treated as confidential. Without limiting the generality of the foregoing, Confidential Information will be deemed to include, without
limitation, information about a Party's business, vendors, customers, products, services, employees, finances, costs, expenses, financial or competitive condition, policies, and practices, computer
software programs and programming tools and their respective design, architecture, modules, interfaces, databases and database structure, nonlinear elements, capabilities and functionality, source
code and object code, as well as research and development efforts, marketing and distribution efforts, licensing, cost-licensing, marketing and distribution practices, computer software
programs and other information licensed or otherwise disclosed to a Party in confidence by a third party, and any other non-public information that does or may have economic value by
reason of not being generally known. 

        2.5   "Customer" means the customer identified on the cover page to which these
Master Terms are attached. 

        2.6   "Customer Content" means any data, information, graphics or other media
files or other content, including, but not limited to, course materials, provided by or for Customer or any end user of the Software through use of the Software, excluding any portion of the Software
or Documentation. 

        2.7   "Documentation" means, with respect to any particular Software or
Equipment, any applicable standard end user specifications and/operating instructions] provided by Blackboard for such Software and/or Equipment, which may be amended from time to time.
Documentation does not include any sales or marketing materials. 

        2.8   "Effective Date" means the date upon which both Parties have executed the
cover page to which these Master Terms are attached. 

        2.9   "Equipment" means any hardware and/or firmware provided by Blackboard to
Customer pursuant to any Schedule, including, without limitation, hardware and/or firmware related to the stored value card system and security access system. 

        2.10 "Master Terms" means these Blackboard Master Terms. 

        2.11 "Party" means either Blackboard or Customer. 

        2.12 "Services" means any services provided by Blackboard to Customer
pursuant to any Schedule, including, without limitation, consulting, educational, ASP installation, system administration, training or maintenance and support services. 

        2.13 "Software" means the object code version of the Blackboard software as
described on the applicable Software Schedule(s). 

2

 

        2.14 "Test Copy" shall mean one copy of the Software for use of Customer's
site solely for the purposes of testing the Software. Under no circumstances shall a test copy be used for production purposes. Unless otherwise indicated in an attached Schedule, test copies are
unsupported. 

        2.15 "Virtual Installation" or  "Virtual Installations" mean separate environments within the Software installation, using the same
Software application files and maintained on the same hardware. 

3.     APPLICATION OF SCHEDULES.  

        3.1    Provision by Blackboard.    Blackboard agrees to make available
and/or provide, as applicable, the Software, Equipment or Services required by any Schedule duly executed, attached and incorporated into this Agreement. 

        3.2    No Further Obligations.    Except as required by any applicable
Schedule or as otherwise agreed between the Parties, Customer acknowledges that Blackboard has no obligations under this Agreement to provide Software, Equipment or Services of any nature to Customer. 

4.     CONFIDENTIALITY.  

        4.1    Nondisclosure and Nonuse.    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) whose duties justify their need to know such information and (ii) who have been clearly informed of their obligation to maintain the confidential,
proprietary and/or trade secret status of such 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 strictly confidential, and shall use the same care to prevent disclosure of such
information as such Party uses with respect to its own confidential and propietary information, provided that in any case it shall not use less than the care a reasonable person would use under
similar circumstances. 

        4.2    Notice.    The receiving Party will 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. 

        4.3    Terms of Agreement.    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 of assets, sale of stock or otherwise), provided that such third party is bound by a written
agreement or legal duty on terms at least as onerous as those set out in this Section 4 to keep such terms confidential. 

        4.4    Exceptions to Confidential Treatment.    Notwithstanding the
foregoing, the preceding provisions of this Section 4 will not apply to Confidential Information that (i) is publicly available or in the public domain at 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 therein; (iv) is 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 restrictions. Each Party may disclose Confidential
Information to the limited extent necessary (x) to comply with the order of a court or 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 

3

 

other
Party and made a reasonable effort to obtain a protective order, (y) to comply with applicable law or regulation requiring such disclosure; or (z) to make such court filing as may
be required to establish a Party's rights under this Agreement. 

5.     TERM; TERMINATION.  

        5.1    Term.    This Agreement shall commence as of the Effective Date
and shall continue in effect until either (i) the expiration of the minimum term, as specified on the Cover Sheet, or (ii) the expiration or termination of all Schedules, whichever
occurs later. 

        5.2    Termination for Breach.    In the event that either Party
materially breaches any obligation, representation or warranty under this Agreement, the non-breaching Party may terminate this Agreement in its entirety, or, at the
non-breaching Party's option, it may terminate solely the relevant Schedule pursuant to which such breach has occurred, provided in either case that such has not been corrected within
thirty (30) days after receipt of a written notice of such breach. Without limiting the foregoing, either Party may terminate this Agreement immediately upon written notice to the other Party
in the event the other Party materially breaches the provisions of Section 4. 

        5.3    Termination for Insolvency.    Without prejudice to any other
available remedies, either Party may terminate this Agreement immediately upon written notice if (i) the other Party becomes insolvent, files for relief under any bankruptcy law, or makes an
arrangement with its creditors generally or has a liquidator or a receiver appointed over a substantial party of its business or assets or commences to be wound up (other than for the purposes of a
solvent amalgamation or reconstruction) or (ii) any other circumstances arise in any jurisdiction which entitle a Court or a creditor to appoint a liquidator, receiver, administrative receiver
or administrator or equivalent officer to make a winding up order in relation to such Party. 

        5.4    Effect of Termination.    Upon termination of this Agreement,
all Schedules shall automatically and immediately terminate, and all licenses granted under this Agreement shall immediately cease. Upon termination, Customer will immediately discontinue all use
materials licensed under this Agreement, and will pay to Blackboard all amounts due and payable hereunder. Each Party (i) will immediately cease any use of the other Party's Confidential
Information; (ii) will delete any of the other Party's Confidential Information from its computer storage or any other media, including, but not limited to, online and off-line
libraries; and (iii) will return to the other Party or, at the other Party's option, destroy, all copies of the other Party's Confidential Information then in its possession. Without limiting
the foregoing, upon termination of any Schedule (including upon termination of this Agreement in its entirety), the provisions of such Schedule regarding the effect of such Schedule's termination
shall also apply. 

        5.5    Survival.    The termination or expiration of the Agreement
shall not relieve either Party of any obligation or liability accrued hereunder prior to or subsequent to such termination, nor affect or impair the rights of either Party arising under the Agreement
prior to or subsequent to such termination or expiration, except as expressly provided in this Agreement. Without limiting the foregoing, the provisions of Sections 4, 5.4, 5.5, 6, 7, 8 and 9
shall survive the termination of this Agreement for any reason. 

6.     FEES; EXPENSES.  

        6.1    Fees; Payments.    In consideration for Blackboard's
performance under this Agreement, Customer agrees to pay Blackboard all fees required by the Schedules, as applicable, which fees will be due in accordance with the provisions of the relevant
Schedules, but in no event later than thirty (30) days after the date of an invoice from Blackboard. Blackboard expressly reserves the right to change the fees payable under any Schedule with
respect to any renewal of such Schedule upon 

4

 

expiration
of its then-current term. Customer will pay all fees in U.S. dollars. Payments shall be sent to the address indicated on the invoice. 

        6.2    Late Fees.    Blackboard may charge interest on any overdue
amounts at the lower of (i) the highest permissible rate or (i) 18% per annum, charged at 1.5% per month from the date on which such amount fell due until the date of payment, whether
before or after judgment. 

        6.3    Audits.    For the sole purpose of ensuring compliance with
this Agreement, Blackboard shall have the right, at its expense, to audit Customer's use of the Software upon not less than seven (7) days' advance notice. Any such audit shall be during
Customer's normal business hours and shall not be made more frequently than once every twelve months, provided that if any such audit reveals a material breach of this Agreement. Blackboard may
conduct such audits on a quarterly basis until such audits confirm that the relevant breach has been cured. 

        6.4    Taxes.    The fees hereunder do not include any sales, use,
excise, import or export, value-added or similar tax or internal, or any costs associated with the collection or withholding thereof, or any government permit fees, license fees or customs or similar
fees levied on the delivery of any Software or Equipment or the performance of Services by Blackboard to Customer. All payments due under this Agreement shall be made without any deduction or
withholding, unless such deduction or withholding is required by any applicable law or any relevant governmental revenue authority then in effect. If Customer is required to deduct or withhold,
Customer will promptly notify Blackboard of the requirement, pay the required amount to the relevant governmental authority, provide Blackboard with an official receipt or certified copy or other
documentation acceptable to Blackboard evidencing payment, and pay to Blackboard, in addition to the payment in which Blackboard is otherwise entitled under this Agreement, such additional amount as
is necessary to ensure that the net amount actually received by Blackboard equals the full amount Blackboard would have received had no such deduction or withholding been required. 

        6.5    Expenses.    Except as provided in these Master Terms or any
Schedule, each party will be responsible for its own expenses incurred in rendering performance under this Agreement, including, without limitation, the cost of facilities, work space, computers and
computer time, development tools and platforms, utilities management, personnel and supplies. 

        6.6    Purchase Orders.    Customer agrees that if its internal
procedures require that a purchase order be issued as a prerequisite to payment of any amounts due to Blackboard, it will timely issue such purchase order and inform Blackboard of the number and
amount thereof. Customer agrees that the absence of a purchase order, other ordering document or administrative procedure may not be raised as a defense to avoid or impair the performance of any of
Customer's obligations hereunder, including payment of amounts owed to Blackboard. 

7.     DISCLAIMERS AND REMEDIES.    THE FOLLOWING PARAGRAPHS OF THIS SECTION 7 ARE IMPORTANT LEGAL LANGUAGE. PLEASE READ THESE
PARAGRAPHS CAREFULLY, AS THEY LIMIT BLACKBOARD'S LIABILITY TO CUSTOMER. 

        7.1    Disclaimer of Warrants.    EXCEPT AS EXPRESSLY AND SPECIFICALLY
PROVIDED IN ANY ATTACHED SCHEDULE(S): (A) THE SOFTWARE, EQUIPMENT AND ALL PORTIONS THEREOF, AND ANY SERVICES ARE PROVIDED "AS IS." TO THE MAXIMUM EXTENT PERMITTED BY LAW, BLACKBOARD AND ITS
LICENSORS AND SUPPLIERS DISCLAIM ALL OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF SATISFACTORY QUALITY, FITNESS FOR A
PARTICULAR PURPOSE, SYSTEM INTEGRATION, DATA ACCURACY, MERCHANTABILITY, TITLE, NON-INFRINGEMENT AND/OR QUIET ENJOYMENT; (B) NEITHER BLACKBOARD NOR ITS LICENSORS WARRANT THAT THE
FUNCTIONS OR INFORMATION CONTAINED IN THE SOFTWARE WILL MEET ANY 

5

 

REQUIREMENTS
OR NEEDS CUSTOMER MAY HAVE, OR THAT THE SOFTWARE WILL OPERATE ERROR FREE OR WITHOUT INTERRUPTION, OR THAT ANY DEFECTS OR ERRORS IN THE SOFTWARE WILL BE CORRECTED, OR THAT THE SOFTWARE IS
COMPATIBLE WITH ANY PARTICULAR COMPUTER SYSTEM OR SOFTWARE; AND (C) BLACKBOARD AND ITS LICENSORS MAKE NO GUARANTEE OF ACCESS TO OR ACCURACY OF THE CONTENT CONTAINED IN OR ACCESSED THROUGH THE
SOFTWARE.    

        7.2    Limitations of Liability.    TO THE MAXIMUM EXTENT PERMITTED BY
LAW, IN NO EVENT WILL BLACKBOARD OR IT LICENSORS BE LIABLE TO CUSTOMER FOR ANY OF THE FOLLOWING TYPES OF LOSS OR DAMAGE ARISING IN ANY WAY OUT OF OR IN CONNECTION WITH THIS AGREEMENT. THE SOFTWARE,
EQUIPMENT OR SERVICES, WHETHER OR NOT BLACKBOARD WAS ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE: (A) ANY LOSS OF BUSINESS, CONTRACTS, PROFITS, ANTICIPATED SAVINGS, GOODWILL OR
REVENUE; (B) ANY LOSS OR CORRUPTION OF DATA OR (C) ANY INCIDENTAL INDIRECT OR CONSEQUENTIAL, LOSSES OR DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, SPECIAL, PUNITIVE, OR EXEMPLARY
DAMAGES) IN NO EVENT SHALL BLACKBOARD'S CUMULATIVE LIABILITY
FOR ALL CLAIMS ARISING FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF THE NATURE OF THE CLAIM EXCEED THE AMOUNT OF FEES PAID BY CUSTOMER UNDER THIS AGREEMENT FOR THE PARTICULAR SOFTWARE, EQUIPMENT
AND/OR SERVICE WITH RESPECT TO WHICH THE RELEVANT CLAIM AROSE DURING THE TWELVE (12)-MONTH PERIOD IMMEDIATELY PRIOR TO THE EVENT, ACT OR OMISSION GIVING RISE TO SUCH LIABILITY. THIS LIMITATION OF
LIABILITY IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN BREACHED OR HAVE PROVEN EFFECTIVE. 

        7.3    Liability Not Excluded.    Nothing in this Section 7
excludes or limits the liability of Blackboard or its licensors or suppliers to the Customer for death or personal injury caused by the negligence of Blackboard, its licensors or its suppliers or any
other liability which cannot be excluded by law. 

        7.4    Essential Basis.    The Parties acknowledge and agree that the
disclaimers, exclusions and limitations of liability set forth in this Section 7 form an essential basis of this Agreement, and that, absent any such disclaimers, exclusions or limitations of
liability, the terms of this Agreement, including, without limitation, the economic terms, would be substantially different. 

8.     INFRINGEMENT  

        8.1    Blackboard Infringement Obligations.    If any third party
brings a claim against Customer alleging that the use of the Software or Equipment authorized under this Agreement infringes a U.S. or European patent issued prior to the Effective Date or copyright
under applicable law or any jurisdiction Customer must promptly notify Blackboard in writing and make no admission in relation to such alleged infringement. Blackboard shall, at its own expense and
option: (i) defend and settle such claim; (ii) procure Customer the right to use the Software or Equipment; (iii) modify or replace the Software or Equipment to avoid
infringement; or (iv) refund the applicable fee paid for the current term. In the event Blackboard exercises option (i) above, it shall have the sole and exclusive authority to defend
and/or settle any such claim or action, provided that Blackboard will keep Customer informed of, and will consult with any independent legal advisors appointed by Customer at Customer's own expense
regarding the progress of such defense. 

        8.2    Exceptions.    Blackboard shall have no liability to Customer
under Section 8.1 or otherwise for any claim or action alleging infringement or violation of applicable privacy or publicity laws based upon (i) any use of the Software or Equipment in a
manner other than as specified by Blackboard; (ii) any 

6

 

combination
of the Software or Equipment with other products, equipment, devices, software, systems or data not supplied by Blackboard (including, without limitation, any software produced by Customer
for use with the Software) to the extent such claim is directed against such combination; (iii) the Customer Content, or the use of the Customer Content, or (iv) any modifications or
customization of the Software or Equipment by any person other than Blackboard (any of the foregoing, separately and collectively "Customer Matters"). 

        8.3    Customer Infringement Obligations.    Customer shall, at its
own expense, indemnify and, at Blackboard's option, defend Blackboard against any losses, damages or expenses (including, without limitation, reasonable attorneys' fees) arising from any claim, suit
or proceeding brought by a third party against Blackboard arising out of a Customer Matter and shall pay any damages finally awarded or settlement amounts agreed upon to the extent based upon a
Customer Matter (any or the foregoing indemnifiable matters, each a "Blackboard Claim"). Blackboard agrees (i) to provide Customer with prompt written notice of any Blackboard Claim;
(ii) to permit Customer to control the defense and/or settlement of such Blackboard Claim, provided that Customer will not settle any Blackboard Claim unless such settlement completely and
forever releases Blackboard with respect thereto or unless Blackboard provides its prior written consent to such settlement; and (iii) to provide such assistance as Customer may reasonably
request, at Customer's expense, in order to settle or defend any such Blackboard Claim. 

        8.4    Exclusive Remedy.    THE FOREGOING PROVISIONS OF THIS
SECTION 8 STATE THE ENTIRE LIABILITY AND OBLIGATIONS OF EACH PARTY, AND THE EXCLUSIVE REMEDY OF EACH PARTY WITH RESPECT TO CLAIMS BY ANY THIRD PARTY ALLEGING INFRINGEMENT OF ANY INTELLECTUAL
PROPERTY RIGHT. 

9.     MISCELLANEOUS MATTERS.  

        9.1    Severability.    Should any term or provision of this Agreement
be finally determined by a court of competent jurisdiction to be void, invalid, unenforceable or contrary to law or equity, the offending term or provision shall be construed (i) to have been
modified and limited (or if strictly necessary, delete) only to the extent required to conform to the requirements of law and (ii) to give effect to the intent of the Parties (including,
without limitation, with respect to the economic effect of the Agreement), and the remainder of this Agreement (or, as the case may be, the application of such
provisions to other circumstances) shall not be affected thereby but rather shall be enforced to the greatest extent permitted by law. 

        9.2    Conflict Resolution.    Except with respect to controversies or
claims regarding either Party's Confidential Information or proprietary rights under this Agreement, in the event any controversy or claim arises in connection with any provisions of this Agreement,
the Parties shall try to settle their differences amicably between themselves by referring the disputed matter to their respective designated representatives for discussion and resolution. Either
Party may initiate such informal dispute resolution by sending written notice of the dispute to the other Party, and if such representatives are unable to resolve such dispute within thirty
(30) days of initiating such negotiations, either Party may seek the remedies available to such Party under law. Notwithstanding the foregoing, nothing in this Section 9.2 will be
construed to limit either Party's rights under Section 5 and 9.6. 

        9.3    Governing Law.    This Agreement shall for all purposes be
governed by and interpreted in accordance with the laws of the Commonwealth of Virginia without reference to its conflicts of law provisions, and each Party irrevocably submits to the
non-exclusive jurisdiction of the courts in or for the Commonwealth of Virginia. The U.N. Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 

        9.4    Modification and Waiver.    No modification, amendment,
supplement, or other change to this Agreement, including, without limitation, changes to any Schedule will be effective unless set forth in 

7

 

writing
and signed by duly authorized representatives of Blackboard and Customer. No waivers under this Agreement will be effective unless expressly set forth in writing and signed by a duly
authorized representative of the Party against whom enforcement thereof is sought. The failure of either Party to insist upon strict performance of any provision of this Agreement, or to exercise any
right provided for herein, shall not be deemed to be a waiver of such provision or right with respect to subsequent claims (unless expressly so stated in a valid amendment or waiver), and no waiver of
any provision or right shall affect the right of the waiving Party to enforce any other provision or right herein. 

        9.5    Assignment.    No right or obligation of Customer under this
Agreement may be assigned, delegated or otherwise transferred, whether by agreement, operation of law or otherwise, without the express prior written consent of Blackboard, and any attempt to assign,
delegate or otherwise transfer any of Customer's rights or obligations hereunder, without such consent, shall be void. Blackboard can assign, delegate or transfer its rights and obligations to an
affiliate company with appropriate means for fulfilling such rights or obligations without prior written notice or consent. Subject to the preceding sentence, this Agreement shall bind each Party and
its permitted successors and assigns. 

        9.6    Remedies.    The Parties agree that any breach of this
Agreement would cause irreparable injury for which no adequate remedy at law exists; therefore, the Parties agree that equitable remedies, including without limitation, injunctive relief and specific
performance, are appropriate remedies to redress any breach or threatened breach of this Agreement, in addition to other remedies available to the Parties. All rights and remedies hereunder shall be
cumulative, may be exercised singularly or concurrently and shall not be deemed exclusive except as provided in Sections 5, 7 and 8. If any legal action is brought to enforce any obligations
hereunder, the prevailing Party shall be entitled to receive its legal fees, court costs and other collection expenses, in addition to any other relief it may receive. 

        9.7    Notices.    Any notice or communication permitted or required
hereunder shall be in writing and shall be delivered in person or by courier, sent by facsimile, or mailed by certified or registered mail, postage prepaid, return receipt requested, and addressed as
set forth above or to such other address as shall be given in accordance with this Section 9.7, and shall be effective upon receipt. 

        9.8    Force Majeure.    Except with regard to payment obligations,
neither Party will be responsible for any failure to fulfill its obligations due to causes beyond its reasonable control, including without limitation, acts or omissions of government or military
authority, acts of God, materials shortages, transportation delays, fires, floods, labor disturbances, riots, wars, terrorist acts or inability to obtain any export or import license or other approval
or authorization of any governmental authority. 

        9.9    U.S. Government Sales.    If Customer is a U.S. Government
entity, the Software is provided with RESTRICTED RIGHTS. Each of the components that comprise the Software is a "commercial item" as that term is defined at 48 C.F.R. 2.101, consisting of "commercial
computer software" and/or "commercial computer software documentation" as such terms are used in 48 C.F.R. 12.212. Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1 through
227.7202-4, all U.S. Government end users acquire the Software with only those rights set forth herein. Contractor/Manufacturer is Blackboard Inc., 1899, L Street, N.W.,
Suite 500, Washington, D.C. 20036. All rights not specifically granted in this statement are reserved by Blackboard. 

        9.10    Expert Control.    Customer shall not export or allow the
export or re-export the Software, any components thereof or any Confidential Information of Blackboard without the express, prior written consent of Blackboard and except in compliance
with all export laws and regulations of the U.S. Department of Commerce and all other U.S. agencies and authorities, including without limitation, the Export Administration Regulations of the U.S.
Department of Commerce Bureau of Export Administration (as contained in 15 C.F.R. Parts 730-772), and if applicable, relevant foreign laws and regulations. 

8

 

        9.11    Relationship    Blackboard and Customer are independent
contracting parties. This Agreement shall not constitute the Parties as principal and agent, partners, joint venturers, or employer and employee. 

        9.12    Entire Agreement.    This Agreement, which includes those
Master Terms and the applicable Schedule(s) and Exhibit(s), constitutes the entire, full and Complete Agreement between the Parties concerning the subject matter of this Agreement and supersedes all
prior or contemporaneous oral or written communications, proposals, conditions, representations and warranties, and this Agreement prevails over any conflicting or additional terms of any quote,
order, acknowledgement, or other communication between the Parties relating to its subject matter. This means that Customer may not and should not rely on any sales or marketing materials provided to
it by Blackboard. Blackboard's only obligations to Customer related to the subject matter of this Agreement are set forth in this Agreement. Notwithstanding the foregoing, nothing to this Agreement
shall exclude or restrict the liability of either party arising out of fraud or fraudulent misrepresentation. 

 END OF MASTER TERMS  

9

 

 
 

  SOFTWARE SCHEDULE LS-1
  BLACKBOARD LEARNING SYSTEMTM BASIC EDITION OPTION    
    

        This Blackboard Learning System Basic Edition Software Schedule ("Schedule") in an addendum to the Blackboard License And Services
Agreement between Blackboard and Customer, including the Master Terms and other Schedules incorporated therein (collectively, the "Agreement"). Capitalized terms used in this Schedule that are not
otherwise defined in this Schedule shall have the meaning set forth in the Master Terms. 

 SCHEDULE OF FEES  

							
	 
	 	Level of

License and Support 	 	Initial Term Fees

(USD) [***] 	 
	 Blackboard Learning SystemTM License
	 	Basic Edition	 	$	[***]	 
	 
	 	 	 	$	[***]	 
	 Total Fees Due:
	 	 	 	$	[***]	 

 

							
	 Designated Server Site

(Physical Location of the Software):

4350 East Camelback Road,

Suite B-240

Phoenix, AZ 85018
	 	Database Version:	 	Operating System:	 	Hardware Model:

[***]

1.     ADDITIONAL DEFINITIONS  

        1.1   "Authorized End User" means any individual who is a student resident in a degree, or
certificate-granting program of Customer, prospective student, alumni, consortia student registered to take one of Customer's regularly offered courses of instruction, employee, trustee or
collaborating researcher of Customer or a Customer employee (solely to the extent any such employee use the Software for Customer's informal training purposes) up to a maximum of 1,000 Authorized End
Users. 

        1.2   "Corrections" means a change (e.g., fixes, workarounds and other modifications) made by or
for Blackboard which corrects Software Errors in the Software, provided in temporary form such as a patch, and later issued in the permanent form of an Update. 

        1.3   "Designated Server Site" means the physical location where the Software will be installed, as
identified in the table above. 

        1.4   "Software" means, for purposes of this Schedule only, the version(s) of the Blackboard
proprietary identified in the table above. 

        1.5   "Software Error" means a failure of any Software materially and substantially to conform to
applicable Documentation, provided that such failure can be reproduced and verified by Blackboard using the most recent version of such Software made available to Customer, and further provided that
Software Errors do not include any nonconformity to applicable Documentation caused by (i) Customer's or its end users' negligence, (ii) any modification or alteration to the Software
not made by Blackboard, (iii) data that does not conform to Blackboard's specified data format, (iv) operator error, (v) use on any system other than the operating system
specified in the Documentation, (v) accident, misuse or any other cause which, in Blackboard's reasonable determination, is not 

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

10

 

inherent
in the Software; or (vi) any use of the Software other than expressly authorized in this Schedule. 

        1.6   "Third Party Software" means the software manufactured by third parties that has been
incorporated by Blackboard into the Software. 

        1.7   "Updates" means the object code versions of the Software that have been developed by Blackboard
to correct any Software Error and/or provide additional functionality and that have been commercially released with a version number that differs from that of the prior version in the number in the
right of the decimal point (e.g., 2.0 vs. 2.1) and that are not marketed as a separate product or module. 

        1.8   "Upgrades" means the object code version of the Software that have been customized, enhanced, or
otherwise modified by or on behalf of Blackboard, acting in its sole discretion, to include additional functionality and that have been released with a version number that differs from that of the
prior version in the number to the left of the decimal point (e.g. 3.0 vs. 2.0) and that are not marketed as a separate product or module. 

2.     LICENSE  

        2.1    Grant of License.    Subject to the terms and conditions of
this Schedule and the Master Terms, Blackboard grants Customer a limited, non-exclusive, non-transferable non-sublicensable license to install and use one
(1) production copy and one unsupported Test copy of the Software on a single computer server at Customer's Designated Server Site, solely in the form of machine-readable, executable, object
code or bytecode, as applicable, and solely in
connection with providing access to Customer Content to Customer's Authorized End Users. Customer acknowledges and understands that, in the event it wishes to use the Software for any purposes other
than expressly permitted by the foregoing, including, without limitation, to provide course materials or other content to any end users who are not Customer's Authorized End Users, Customer will be
required to obtain additional license rights from Blackboard pursuant to a separately executed Schedule and payment of additional license fees. 

        2.2    General Usage Restrictions.    Customer agrees not to use the
Software for any purposes beyond the scope of the license granted in Section 2.1. Without limiting the foregoing, except as expressly contemplated in this Agreement or as otherwise agreed in
writing between the Parties, Customer shall not (i) copy or duplicate the Software, provided that, notwithstanding the foregoing, Customer shall be permitted to create one (i) copy of
the Software for archival, non-productive purposes provided that Customer reproduces on the copy all copyright notices and any other confidential or proprietary legends that are on or
encoded in the Software; (ii) decompile, disassemble, reverse engineer or otherwise attempt to obtain or perceive the source code from which the Software is compiled or interpreted, and
Customer hereby acknowledges that nothing in this Agreement shall be construed to grant Customer any right to obtain or use such source code; (iii) install or use the Software on any computer,
network, system or equipment other than the Designated Server Site, except with prior written consent of Blackboard; (iv) modify the Software or create any derivative product of the Software,
except with the prior written consent of Blackboard, provided that the foregoing shall not be construed to prohibit Customer from configuring the Software to the extent permitted by the Software's
standard user interface; (v) sublicense, assign, sell, lease or otherwise transfer or convey, or pledge as security or otherwise encumber, Customer's rights under the license granted in
Section 2.1; or (vi) use the Software to provide services to third parties other than Authorized End Users in the nature of a service bureau, time sharing arrangement or its application
service provider as such terms are ordinarily understood within the software industry. Customer will not obscure, remove or alter any of the trademarks, trade names, logos, patent or copyright notices
or markings to the Software, nor will Customer add any other notices or markings to the Software or any portion thereof. Customer shall not 

11

 

use
the Software except in compliance with Blackboard's obligations to any third party incurred prior to the Effective Date, provided that Blackboard has notified Customer of such obligation. Customer
shall ensure that its use of the Software complies with all applicable laws, statutes, regulations or rules promulgated by governing authorities having jurisdiction over the Parties or the Software.
Customer warrants that its Authorized End Users will comply with the provisions of this Schedule in all respects, including, without limitation, the restrictions set forth in this Section 2.2. 

        2.3    Interoperability.    To the extent permitted by the
specifications, if the Customer wishes to achieve interoperability of the Software with another software program and requires interface specifications or other information in order to do so, the
Customer should request that information from Blackboard. Nothing in this Section 2.3 authorizes Customer to use any interfaces except in the Supported Interfaces for the Software level. 

        2.4    Third Party
Software/Content.    Customer acknowledges that the Software may utilize software made available in Blackboard by third parties, which shall
constitute "Third Party Software" for purposes of this Schedule, including without limitation, small-scale Oracle database software (for Blackboard Learning System-Basic). Pursuant to its agreements
with these third parties, Blackboard hereby grants to Customer a non-exclusive, non-transferable license to lend and/or operate and use the Third Party Software solely in
connection with Customer's own instructional activities and their use of the Software. 

        2.5    Further Restrictions.    Customer acknowledges that certain
Blackboard Software contains an "Auto Report" feature, which feature provides to Blackboard aggregate usage statistics regarding the Software, and Blackboard represents and warrants that the Auto
Report feature does not report individually identifiable use information to Blackboard or any third party. Customer will not disable the Auto Report feature of the Software, or undertake any action
which has the effect of preventing such feature from operating correctly or the effect of modifying the information reported thereby. 

        2.6    Other Rights.    Customer hereby grants to Blackboard the
limited right to use Customer's name, logo and/or other marks for the sole purpose of listing Customer as a user of the Software in Blackboard's promotional materials. Blackboard agrees to discontinue
such use within fourteen (14) days of Customer's written request. 

        2.7    Ownership of Software.    Blackboard and its licensors shall be
deemed to own and hold all right, title and interest in and to the Software, and Customer acknowledges that it neither owns or acquires any additional rights in and to the Software not expressly
granted by this Agreement, and Customer further acknowledges that Blackboard hereby reserves and retains all rights not expressly granted in this Agreement, including, without limitations, the right
to use the Software for any purpose in Blackboard's sole discretion. 

        2.8    Terms of Use.    The use of the software by Customer's
Authorized End Users is governed by additional terms and conditions ("Terms of Use") made available within the Software. Customer shall not obscure, remove, or alter the Terms of Use. Customer may, at
its sole discretion, replace the Terms of Use with its own terms and conditions applicable to its end users, provided however, that such terms and
conditions are no less protective of Blackboard than the Terms of Use. 

3.     DELIVERY  

        Unless
otherwise agreed by the Parties, as soon as commercially practicable after the Schedule Effective Date, Blackboard will make available a copy of the Software for downloading from
the Internet by Customer for purposes of installation by Customer, and delivery of the Software shall be deemed complete when Blackboard notifies Customer that the Software is available for download.
Customer acknowledges that the download site will be made available to Customer for a period not longer than thirty (30) days from the date of such notice, and Customer will have no right to
download 

12

 

the
Software after this thirty (30) day period. Upon Customer's request, Blackboard will deliver to Customer a CD containing a backup copy of the Software. 

4.     FEES  

        In
consideration for the services provided and license(s) granted in this Schedule with respect to the initial Term (as defined below), Customer shall pay to Blackboard all fees
specified above or otherwise required in this Schedule, which fees shall be non-cancelable and non-refundable. With respect to each Renewal Term (as defined below), if any.
Customer shall pay to Blackboard the then-current fees for such services and licenses, which amounts shall be due and payable within thirty (30) days following the beginning of such
Renewal Term. Customer further agrees to reimburse Blackboard for (i) reasonable travel and living expenses incurred by Blackboard's employees and subcontractors in connection with the
performance of maintenance and support services under this Schedule and (ii) any other expenses described in this Schedule, provided that Blackboard will receive Customer's prior approval for
single expenses greater than $250, and further provided that, upon Customer's request, Blackboard will provide reasonable documentation indicating that Blackboard incurred such expenses. Except as
otherwise required by this paragraph, all amounts payable under this Schedule shall be subject to applicable provisions of the Master Terms. 

5.     TERM  

        This
Schedule shall become effective (i) when executed by authorized representatives of both Parties (the date upon which Blackboard executes this Schedule, the "Schedule
Effective Date"); or (ii) the Effective Date of the Agreement, whichever later occurs, and shall continue in effect for a period of [***] (the "Initial Term"), unless
earlier terminated. Thereafter, the
Schedule will renew automatically for successive one (1)-year periods (each, a "Renewal Term"), unless either Party provides notice of its desire not to renew not less than thirty
(30) days prior to the end of the initial Term or then-current Renewal Term, as applicable. Upon termination of this Schedule, all licenses granted under this Schedule shall
immediately cease, and Customer will (i) immediately discontinue all use of Software licensed under this Schedule; (ii) pay to Blackboard all amounts due and payable hereunder;
(iii) remove the Software from its server and provide to Blackboard proof of the destruction of the original copy and any other copies of the Software; and (iv) return all Documentation
and related training materials to Blackboard within a reasonable time at Customer's cost. 

6.     LIMITED SOFTWARE WARRANTY  

        Blackboard
warrants, solely for the benefit of Customer, that any software licensed under this Schedule which is manufactured by Blackboard will substantially conform to applicable
Documentation for a period of ninety (90) days after the relevant Available Date, provided that (i) Blackboard has received all amounts owed under this Agreement; (ii) Customer is
not in material breach of this Agreement; (iii) Customer has installed any Corrections, Upgrades and Updates made available to Customer: and (iv) Customer has notified Blackboard in
writing of any failure of the Software to conform to the foregoing warranty within the warranty period. CUSTOMER ACKNOWLEDGES AND AGREES THAT THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES
BY BLACKBOARD, AND THAT BLACKBOARD'S SOLE OBLIGATION, AND CUSTOMER'S SOLE REMEDY, WITH RESPECT TO ANY BREACH OF THE FOREGOING WARRANTY, IS REPAIR OR REPLACEMENT (AT BLACKBOARD'S OPTION) OF THE
RELEVANT SOFTWARE IN A TIMELY MANNER. 

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

13

 

7.     SUPPORT AND MAINTENANCE  

        7.1    Telephone Product Support.    Customer is eligible to receive
Product Support (as defined below) in English from Blackboard. Customer may designate up to two of its personnel for purposes of receiving Product Support under this Schedule ("Technical Contacts"),
and Customer may designate substitute personnel to be Technical Contacts by providing written notice to Blackboard (provided that not more that two (2) persons may be designated as Technical
Contacts at any particular time). Provided that Customer remains in compliance with Blackboard's minimum configuration requirements. Customer's Technical Contacts may contact Blackboard, via the web
or telephonic at the telephonic number provided by Blackboard from time to time, for purposes of receiving Product Support. For purposes of this Schedule, the term "Product Support" means the
provision of advice and responses by Blackboard's personnel to inquiries from Customer's then-current Technical Contacts related to installation, configuration and use of the Software.
Product Support will be made available in English (i) Monday through Friday, 8AM to 8 PM ET, excluding US Federal public holidays. Unless otherwise specified by Blackboard, Product Support is
available by calling 1-888-788-5264. In addition to the foregoing support services, Blackboard may make representatives available for onsite support, at its sole
discretion, at Blackboard's then prevailing rates. 

        7.2    Installation Assistance.    Notwithstanding Section 7.1
of this Schedule, Customer is responsible for all installation of the software and any Upgrades provided pursuant to this Agreement. Solely in the course of providing Product Support, as contemplated
above, Blackboard may assist Customer's Technical Contacts related to the installation of the Software and/or Upgrades, provided that Customer has contacted Blackboard to schedule a time for
such installation assistance to occur within thirty (30) days after Blackboard makes the Software or Upgrade available and further provided that such installation assistance may not exceed
three (3) hours. 

        7.3    Initial Technical Contacts.    Customer's initial Technical
Contacts are as follows: 

			
	Name:	 	[***]
	Title:	 	 
	E-mail:	 	[***]
	Telephone number:	 	[***]
	
 Name:	
 	

 
	Title:	 	 
	E-mail:	 	 
	Telephone number:	 	 

        7.4    Support Limitations.    Blackboard shall provide Product
Support only with respect to the then-current generally available version of the Software and the two (2) most recent previously issued Updates of the Software. Customer
acknowledges that Blackboard has no obligation under this Schedule to provide Product Support or other support services with respect to (i) any Third-Party Software, including, without
limitation, any Third-Party Software provided under this Agreement; (ii) any Software Error or problems relating to the Software arising from (x) use of the Software other than strictly
according to the terms of this Agreement, including, without limitation, human error; (y) modification of the Software by Customer or any third party; or (z) any combination or
integration of the Software with hardware, software and/or technology not provided by Blackboard, or
problems arising from Customer's host or application software, Customer's hardware and cabling power or environmental conditions. Support is not available from Blackboard in languages other than
English. 

        7.5    Error Resolution.    In the event that Blackboard determines,
in its good faith discretion, that any request for Product Support by Customer's then-current Technical Contacts arises from a verifiable Software Error, Blackboard will classify such
Software Error according to the appropriate Severity Code, as determined by reference to the categories listed in the table below, and will exercise 

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

14

 

commercially
reasonable efforts to correct the relevant Software Error according to the relevant Error Resolution Protocol set forth for each such category. Notwithstanding the foregoing, Customer
acknowledges that no warranty is made regarding any such Error Response Protocol with respect to all or any Software Errors. Customer further acknowledges that Severity Code 1, 2, and 3 Software
Errors will take priority over requests for Product Support not arising from Software Errors. 

						
	Severity

 
	 	Description/Examples 	 	Response Protocol 
	 	1	 	Software is not functioning. Some examples of Severity Code 1 Software Errors are as follows: (1) Software is down and will not restart; (ii) Software is not able to communicate with external systems; and
(iii) Software is generating a data corruption condition.	 	Blackboard will use its commercially reasonable efforts to resolve Severity Code 1 Software Error reports on a twenty-four (24) hour basis.* When a Severity Code 1 Software Error is reported, Blackboard will assign
resources necessary to work to correct the Software Error. If access to the Software is required, Customer will provide a contact available to Blackboard and access to Customer's system and other software for the duration of the error correction
procedures.
	
 	
2	
 	
Software is running but that Customer is unable to use major portions of the Software. Some examples of Severity Code 2 Software Errors are as follows: (i) intermittent Software Error and (ii) major
functional component is unavailable.	
 	
Severity Code 1 Software Errors will take priority over Severity Code 2 Software Errors. Blackboard will assign appropriate technical resources to Severity Code 2 Software Errors as long as there are no Severity Code
3 Software Errors awaiting resolutions.
	
 	
3	
 	
Software is operating close to normal but there is a non-critical Software Error.	
 	
Severity Code 3 Software Errors may be fixed in the next scheduled Upgrade or Update or made available on Blackboard's Web site. Blackboard will research Severity Code 3 Software Errors after Severity Code 1 and
Severity Code 2 Software Errors. Blackboard may correct Severity Code 3 Software Errors in the next scheduled Upgrade or Update or make corrections available to Customer on Blackboard's Web site.

	*
	Response
time goals are to be measured after verification and replication by Blackboard of the relevant Software Error. 

        7.6    Maintenance.    From time to time Blackboard may, in its
discretion, develop Corrections, Updates or Upgrades to the Software. Provided that Customer has paid to Blackboard all fees and other amounts due and payable under this Agreement, Blackboard will,
during the period while this Schedule remains in effect, make available to Customer such Corrections, Updates and/or Upgrades, if and when developed, at no additional cost. Any such Corrections,
Updates and/or Upgrades shall, if and when provided or made available, be deemed to constitute part of the Software and shall be subject to all terms and provisions set forth in this Agreement,
otherwise applicable to the Software, including, without limitation, terms and provisions related to licenses, use restrictions and ownership of the Software. 

        7.7    Additional Services.    Any time or expenses incurred by
Blackboard in diagnosing or fixing problems that are not caused by the Software or are not covered by the support services are billable to Customer at Blackboard's then-existing service
rates, with a one-hour minimum charge per call. If 

15

 

Customer
desires such additional services, it must execute a copy of Blackboard's Professional Services Agreement for the services. 

        The
Parties agree as to the above terms and have executed this Schedule as of the date(s) set forth below. 

			
	BLACKBOARD	 	CUSTOMER: Charter Learning
	    	 	 
	/s/Tess Frazier

  Signature	 	/s/Andrew Clark

  Signature
	    	 	 
	Tess Franzier, Sr. Dir. Contracts

  Print Name and Title	 	Andrew Clark, CEO

  Print Name and Title
	    	 	 
	Date: 12-23-03	 	Date: 12-23-03

16

 

 
 

  ASP SCHEDULE LS-2
  BLACKBOARD LEARNING SYSTEMTM ASP SCHEDULE    
    

        This Blackboard ASP Schedule ("ASP Schedule") is an addendum to the Blackboard License and Services Agreement between Blackboard and
Customer, including the Master Terms and other Schedules incorporated therein (collectively, the "Agreement"). Capitalized terms used in this ASP Schedule that are not otherwise defined in this ASP
Schedule shall have the meaning set forth in the Master Terms. 

 ASP—SCHEDULE OF FEES  

													
	 
	 	Initial Active

User Capacity 	 	Initial

Bandwidth 	 	Initial

RAID storage 	 	Initial Term

Annual Fees (USD) 	 
	 Blackboard ASP—Annual Use Fee
	 	 	[***]	 	256 kbps	 	 	[***]	 	$	[***]	 
	 
	 	 	 	 	 	 	 	[***]

[***]	 	 	[***]	 
	 Total Fees Due:
	 	 	 	 	 	 	 	 	 	$	[***]	 

[***]

1.     ADDITIONAL DEFINITIONS  

        1.1   "Active User Capacity" means the number of Authorized End Users, at any particular time, permitted to be registered to
access one (1) or more educational courses provided through the Hosted Software. As of the Schedule Effective Date (as defined below), the initial Active User Capacity will be equal to the
number indicated in the table above. 

        1.2   "ASP Services" means the services provided by Blackboard pursuant to this ASP Schedule. The initial ASP Services are
indicated in the table above. 

        1.3   "Authorized End User" will have the meaning set forth in the Software Schedule, as defined below. 

        1.4   "Available Date" means, for purposes of this ASP Schedule, the date upon which Customer receives notice from Blackboard
that the features and functions of the Hosted Software are available for access by Customer's Authorized End Users. 

        1.5   "Hosted Software" means the Software licensed to Customer pursuant to the Software Schedule in respect of which
Blackboard is to provide the ASP Services. 

        1.6   "Schedule Effective Date" means "the later of (i) the date on which this ASP Schedule has been executed by the
authorized representative of both Parties and (ii) the Effective Date of the Agreement. 

        1.7   "Software Schedule" means the Software Schedule which has been executed by Blackboard and Customer and is effective as of
the date listed in the table above. 

2.     BLACKBOARD RESPONSIBILITIES  

        2.1    Provision of Access to Hosted Software.    As soon as
commercially practicable after the Schedule Effective Date, Blackboard will make access to the features and functions of the Hosted Software available to Customer's Authorized End Users. Blackboard
will specify to Customer procedures according to which Customer and/or its Authorized End Users may establish and obtain such access. The procedures will include, without limitation, provision of any
access codes, passwords, 

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

17

 

technical
specifications, connectivity standards or protocols, or any other relevant procedures, to the limited extent any of the foregoing may be necessary to enable Customer to permit its Authorized
End Users to access and use the Hosted Software as contemplated in this ASP Schedule. 

        2.2    Responsibility for Hosting.    Blackboard shall, at its own
expense, install and operate the Hosted Software on computer servers and systems under its direct or indirect control. Blackboard will also install and store the Customer Content for purposes of
access by the Hosted Software, provided that nothing in this ASP Schedule shall be construed to require Blackboard to provide for, or bear any responsibility with respect to, the design, development,
operation or maintenance of any Web site owned or operated by Customer, or with respect to any telecommunications or computer network hardware required by Customer to provide access from the internet
to any such Customer Web site, and further provided that nothing in this ASP Schedule may be construed to grant to Customer a license to access and/or use Blackboard's systems except for purposes of
accessing and using the Hosted Software and except pursuant to the procedures and protocols specified by Blackboard pursuant to Section 2.1. To the extent necessary to perform Blackboard's
obligations pursuant to this ASP Schedule, Customer grants to Blackboard a royalty-free, non-exclusive, worldwide license to use, reproduce, transmit, distribute, perform,
display, and, to the extent required by the Hosted Software, modify and create derivative works from the Customer Content, including, but not limited to any images, photographs, illustrations,
graphics, audio clips, video clips or text, in whole or in part, in any form, media or technology. As between Customer and Blackboard, Customer retains ownership of the Customer Content. 

        2.3    Availability and Operational Specifications.    Blackboard will
undertake commercially reasonable measures to ensure that, from and after the Available Date and for so long as this ASP Schedule remains in effect the ASP Services provided pursuant to this ASP
Schedule will (i) be available and accessible as contemplated in this ASP Schedule twenty-four (24) hours per day, seven (7) days per week in accordance with the
parameters set forth in Exhibit B, and (ii) conform in all material respects to the technical specifications and performance parameters set forth in Exhibit B, provided that,
notwithstanding the foregoing, Blackboard will have no liability under this Section 2.3 to the extent any nonconformity with the standards set forth in Exhibit B arises, in whole or in
part, from (i) any use of the Hosted Software by Customer or any Authorized End User other than in accordance with the terms and conditions set forth in this Agreement; (ii) any failure
by Customer or any Authorized End User to comply with any procedures, technical standards and/or protocols specified by Blackboard pursuant to Section 2.1 of this ASP Schedule or
(iii) any causes beyond the control of Blackboard or which are not reasonably foreseeable to Blackboard, including but not limited to, interruption or failure of telecommunication or digital
transmission links and internet slow downs or failures. It is agreed and acknowledged that the service credits referred to in Exhibit B shall be Customer's sole remedy, and Blackboard's sole
obligation, with respect to failure of the ASP Services to meet the technical specifications and performance parameters set forth in Exhibit B. Blackboard does not warrant or guarantee the ASP
Services except as expressly stated in this ASP Schedule. 

        2.4    Data Restoration Policy.    Blackboard will back-up
and archive Customer Content at a secure location for the retention period(s) specified in Exhibit B. In the event that Customer requests recovery of any lost or damaged Customer Content,
Blackboard will exercise reasonable efforts to restore the relevant data from the most recently archived copies (or such earlier copies as requested by Customer), provided that such data is, at the
relevant time, still available pursuant to the applicable retention policy, and provided that Customer has provided to Blackboard all information necessary to enable Blackboard to perform such
services. Except with respect to restoration of data that are lost or damaged as a result of Blackboard's error or a failure of the ASP Services, Customer agrees to pay Blackboard its
then-standard applicable rates for such restoration services, provided that Blackboard will provide such restoration services up to four (4) times during each of the Initial Term or
any particular Renewal Term (each as defined below) without additional cost to Customer. 

18

 

        2.5    Additional ASP Services.    In the event that Customer desires
to receive ASP Services in addition to the particular services specified in the table above, including, by way of example, incremental storage capacity and/or higher Active user Capacity, Customer may
submit a written and executed purchase order requesting such additional ASP Services. Subject to Customer's payment of all applicable fees required by Section 4, and further subject to all
applicable provisions of this Agreement, including, without limitation, the Master Terms and this ASP Schedule, Blackboard agrees to make such additional ASP Services available to Customer for so long
as this ASP Schedule remains in effect after acceptance of such purchase order. For the avoidance of doubt, no such purchase order shall be binding upon Blackboard unless and until Blackboard accepts
such purchase order in writing and further provided that Blackboard will have no liability to Customer with respect to any purchase orders that are not accepted or for any terms contained in the
purchase order other than the type of service and the payment amount. 

3.     CUSTOMER RESPONSIBILITIES.  

        3.1    General Usage Limitations.    Customer acknowledges that use
and operation of the Hosted Software by Customer and/or any Authorized End User is subject to the terms of the Software Schedule. However, notwithstanding the Software Schedule, for so long as this
ASP Schedule remains in effect, Customer may not install, host or operate the Hosted Software, nor may Customer or its Authorized End Users otherwise use the Hosted Software, except as hosted and made
available by Blackboard under this Agreement. In the event that Customer has installed the Hosted Software upon any computer server(s) prior to the Schedule Effective Date (as defined below), Customer
agrees promptly to remove the Hosted Software from such computer service(s). Customer agrees that it may not cause or permit any third parties to access the Hosted Software other than Authorized End
Users nor may Authorized End Users in excess of the ten-current Active User capacity access and use the Hosted Software at any time, provided that the Active User Capacity may be modified
in accordance with Section 2.5. Customer shall refrain from, and shall ensure that Authorized End Users refrain from using the ASP services in a manner that is libelous, defamatory, obscene,
infringing or illegal, or otherwise abusing the ASP Services or the resources available through the ASP Services. Customer warrants that its Authorized End Users will comply with the provisions of
this ASP Schedule in all respects. 

        3.2    Customer Content.    Customer represents and warrants that
(i) Customer owns or has sufficient rights in and to the Customer Content in order to use, and permit use of the Customer Content as contemplated in this ASP Schedule and to grant the license
granted in Section 2.2; and (ii) the Customer Content does not and shall not contain any consent, materials or advertising or services that infringe on or violate any applicable law,
regulation or rights of a third party. 

4.     FEES  

        In
consideration for provision of the ASP Services, Customer shall, during the Initial Term (as defined below) pay to Blackboard (i) an annual fee in an amount determined by
reference to applicable prices set forth in Exhibit A with respect to the particular ASP Services provided under this ASP Schedule, which fees shall be due and payable upon Agreement execution;
as well as (ii) any other fees otherwise required by this ASP Schedule. In the event that Customer requests additional ASP Services as contemplated in Section 2.5, applicable fees shall
be due and payable from and after the month during which such additional services are first made available. All fees payable under the ASP Schedule shall be non-transferable and
non-refundable. If Customer elects to pay ASP fees monthly, then Blackboard shall charge Customer an additional 5% on the total ASP fees. With respect to each Renewal Term (as defined
below), if any, Customer shall pay to Blackboard the then-current fees for such ASP Services according to the same payment schedule. Except as provided above, each party will be
responsible for its own expenses incurred in rendering performance under this ASP Schedule, 

19

 

including,
without limitation, the cost of facilities, work space, computers and computer time, development tools and platforms, utilities management, personnel and supplies. Except as otherwise
required by this paragraph, all amounts payable under this ASP Schedule shall be subject to applicable provisions of the Master Terms. 

5.     TERM  

        This
ASP Schedule shall become effective on the Schedule Effective Date, and shall continue in effect for a period of [***] (the "Initial Term"), unless earlier
terminated. Thereafter, the ASP Schedule will renew automatically for successive one (1)-year period (each, a "Renewal Term") unless either Party provides notice of its desire not to renew
not less than thirty (30) days prior to the end of the Initial Term or then-current Renewal Term, as applicable. Upon termination of this ASP Schedule, all licenses granted under
this ASP Schedule shall immediately cease and Customer will (i) immediately discontinue access to and/or use of the Hosted Software under this ASP Schedule; (ii) pay to Blackboard all
amounts due and payable under this ASP Schedule; and (iii) return all Documentation and related training materials to Blackboard within a reasonable time at Customer's cost. 

        The
Parties agree to the above terms and have executed this ASP Schedule as of the date(s) set forth below. 

			
	BLACKBOARD	 	CUSTOMER: Charter Learning
	    	 	 
	/s/ Teresa Frazier

     Signature	 	/s/Andrew Clark

     Signature
	    	 	 
	Teresa Frazier, Senior Director, Contracts

     Print Name and Title	 	Andrew Clark

     Print Name and Title
	    	 	 
	Date: 12-23-03	 	Date: 12-23-03

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

20

 
 

  EXHIBIT A
  ASP FEES    
    

 Blackboard Learning SystemTM:  

	•
	[***] for [***] of service for up to [***] and 20
cb of RAID protected storage and 512 kbps of bandwidth measured using the 95th percentile calculation delivered via 100 mpbs
Internet uplink.   

	•
	Each additional [***] at [***].   

	•
	Each additional [***] of connectivity at [***].  

	•
	Managed Firewall Services 

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

 

 
 

  EXHIBIT B
  ASP SERVICES SPECIFICATIONS As of this Available Date    
    

NOTE:
CUSTOMER ACKNOWLEDGES THAT NOTHING IN THIS EXHIBIT B CREATES ANY ADDITIONAL WARRANTIES OR GUARANTEES, OTHER THAN AS SET FORTH IN THE ASP SCHEDULE, THE SOFTWARE SCHEDULE AND/OR THE MASTER TERMS,
AS APPLICABLE. 

 SERVICE LEVEL  

 Security:  

	•
	Single point of entry to co-location is guarded 24 hours a day with access controlled by an access
database and video surveillance.   

	•
	Monitoring of the co-location area and only those persons authorized by Blackboard's access list are allowed
past a central point.   

	•
	Surveillance cameras located throughout the facility capture activity to help ensure no unauthorized entry to protected
areas. 

 Power:  

	•
	 State-of-the-art generators clean and condition commercial electrical power to remove
irregularities in the signal. Power is run through the generators before being passed into the facility.   

	•
	In the event of a loss of power from the grid, power backups are utilized in the following order: commercial utility
underground conduits, two-hour battery backup (industry standard only 15 minutes), diesel generator will full-load capability and 18 hr. fuel supply. 

 Network:  

	•
	Redundant internet connections through a minimum of three separate walls. 

 Startup:  

Blackboard
is responsible for the setup and configuration of the necessary hardware, software and all components of the dedicated server. This includes but not limited to, the server hardware and
software, telecommunications hardware and software, security software and other software that is reasonably necessary to operate and maintain the Hosted Software. 

 Initial Access Dates:  

The
Hosted Software is typically accessible from the hosting site within 7 business days after execution of the ASP Schedule, provided that the Master Terms and the relevant Software Schedule have
been executed, and provided that Customer has provided to Blackboard a URL and any other information required by Blackboard. 

 Accessibility/Service Credit:  

The
Hosted Software is accessible 24/7, with a 99.7% uptime means that for 99.7% of the time during any calendar month, the ASP Services shall be available. Unavailability is a condition in which
there is unavailability of the Blackboard hardware due to hardware failure OR sustained packet loss in excess of fifty percent within the Blackboard hosting facilities for at least fifteen consecutive
minutes due to a failure of Blackboard to provide ASP Services during such period; 

1

 

unavailability
does not include packet loss or network unavailability due to scheduled maintenance, or inability of a user to connect with the ASP Services due to Internet or telecommunications
problems outside the control of Blackboard. In order to receive any service credit, Customer must notify Blackboard within seven (7) days from the time Customer becomes eligible to receive a
service credit. Failure to comply with this requirement will forfeit Customer's right to receive a service credit. The aggregate maximum number of service credits to be issued by Blackboard to
Customer for any and all downtime periods and performance problems during any given calendar month shall not exceed one month of services. Service credits are issued as follows: 

			
	Length of Unavailability

 
	 	Service Credit 
	1 to 4 hours of continuous unavailability	 	[***] of service fees credited [***]
	4 to 48 hours of continuous unavailability	 	[***] of service fees credited [***]
	48 to 96 hours of continuous unavailability	 	[***] of service fees credited [***]

[***]

	*
	All
Service Credit shall be applied to the next month's ASP fees. 

 Disaster Recovery:  

Blackboard
provides comprehensive backups which are stored at a separate facility. Blackboard retains backup data for one month. In the event of a disaster, Blackboard will use reasonable efforts to
restore service. Blackboard will not attempt to restore service if such attempts shall put Blackboard, its employees or its agents at risk for injury. 

 Outages:  

If
a system outage occurs, Blackboard will notify Customer's designated technical contact via email. This notice will include the reason for the system outage and estimated time for restoration of ASP
Services if Blackboard knows this information when it gives this notice. 

Following
recovery from any particular system outage, Blackboard will provide Customer with a post-incident summary that will include: 

	•
	cause of the system outage (if determined);   

	•
	method used to correct the problem; and   

	•
	measures Blackboard will take to prevent similar system outages in the future (if any). 

Upon
receipt of notification of a problem with the Blackboard system or the ASP Services, Blackboard will investigate the problem and determine if a system outage exists. If a system outage exists,
Blackboard will provide Customer with a time estimate for resolution of the problem, if known at that time. Blackboard will promptly commence remedial activities and use commercially reasonable
efforts to resolve the system outage within the time estimate provided to Customer. 

 MONITORING AND PERFORMANCE  

Blackboard
will make network performance reports available focusing on the technical aspect of remote access network services. The reports provide information to help in the continual improvement of
the design and operation of the network. This includes information such as port availability, connection 

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

2

 

quality,
usage profiles, and throughput. Upon request by Customer, Blackboard will provide Customer with monthly reports including information on ASP Services usage, system outages and changes made to
the Blackboard system during that month. Upon request Blackboard will provide the Customer with the following report: 

 Specific System Outage Details:  

Time
of outage

Length of outage

Affected areas

Reason for outage

Customer contact notified (if any)

Remedy to prevent outage reoccurrence (if any) 

Customer
acknowledges and agrees that any of the foregoing reports shall constitute Blackboard's Confidential Information for purposes of this Agreement. 

 Ongoing:  

The
hardware, software and network are monitored and maintained by Blackboard and will be accessible twenty-four (24) hours a day, seven (7) days a week, in accordance with
industry standards, except for scheduled maintenance and required repairs, in advance of which the client shall be notified by email,  

	•
	Blackboard maintains responsibility for all day-to-day server maintenance. Server maintenance may
include, but is not limited to, hardware upgrades, OS upgrades, patch installations, database administration, server user administration and performance tuning.   

	•
	Blackboard maintains a software monitoring system to provide real-time information about the ASP environment
to the Blackboard Network Operations Center (NOC), to assist Blackboard system administrators proactively monitoring the ASP environment.   

	•
	Blackboard guarantees the functioning of all hardware components for which it is responsible under this Exhibit and will
replace any failed components. Hardware replacement will begin immediately upon identification of the hardware failure and if cannot be completed with a reasonable amount of time, the access to the
Hosted Software will be redirected in a temporary server to reduce downtime.   

	•
	Blackboard implements a backup strategy of performing daily incremental and weekly full backups with a retention period of
1 month. Standard tape rotation is performed on a weekly basis with secure offsite storage.   

	•
	Blackboard collects bandwidth usage and web hit statistics on all client-hosted machines. This information will be
provided upon request. 

 DATA CENTER SPECIFICATIONS  

Blackboard
houses servers in a facility that offers environment control, security, and backup power, as more specifically described below: 

Environment:

	•
	The data center is designed to maintain a constant temperature of 681/4F, plus or minus
21/4F, with humidity of 45%. 

3

 

Server
Setup: 

	•
	The servers are set up to maintain fail back, redundant connectivity, comprehensive backups, 24x7 monitoring, and 99.7%
uptime. 

         CUSTOMER RESPONSIBILITIES.    Blackboard is not responsible for management and actual use of the features and function of the
Hosted Software. Customer
bears all responsibility for such management and actual use, including, without limitation: 

	•
	The Customer has full access to the Administrator Menu and is responsible for the following:  

	•
	Creating/Removing Users including Students, Teachers, System Administrators, etc.   

	•
	Modifying all User information   

	•
	Creating/Removing all Course Web Sites   

	•
	Building and Managing all Course Web Sites   

	•
	Customization to the Site   

	•
	System Usage Tracking Reports   

	•
	Deciding which product features will be available or unavailable, how much functionality instructors will be allowed, etc.
[Note: please clarify "etc."]  

	•
	Choosing Icon Themes   

	•
	All changes to the Blackboard-named URL. All Blackboard clients are assigned a URL that reads
http://institutionname.blackboard.com. The institution is allowed to pick the "institutionname." However, any re-directs to other URLs are the responsibility of the Customer and not
Blackboard. For example, if the Customer chooses the URL http://institutionname.org, the institution is responsible for the redirect to the http://institutionname.blackboard.com site using a CNAME
record. 

4

 

 
 

  BLACKBOARD LEARNING SOLUTIONS SCHEDULE LS-3    
    

Blackboard
Learning SolutionsTM ("Schedules") is an addendum to the Blackboard License And Services Agreement between Blackboard and Customer, including the Master Terms and other Schedules
incorporated therein (collectively, the "Agreement"). Capitalized terms used in this Schedule that are not otherwise defined in this Schedule shall have the meaning set forth in the Master Terms. 

SCHEDULE
OF FEES 

								
	 
	 	Number

of Days 	 	Cost (USD) 	 
	 Blackboard Leaning Schedules
	 	 	[***]	 	$	[***]	 
	 Total Fees Due:
	 	 	 	 	$	[***]	 

1.     BLACKBOARD LEARNING SOLUTIONS  

        1.1   Blackboard, upon request of Customer, shall provide learning solutions to Customer. To request or schedule a
learning event for Customer, Customer shall contact its Blackboard Account Manager, who will be designated upon execution of the Agreement. Events are typically scheduled 3 to 6 weeks in
advance. 

        1.2   Hands-on class size is restricted to a maximum of 15 people to maintain an effective instructor-student
ratio. Extra students may require additional materials, instructor fee or additional days. Large groups may request presentation learning instead of the hands-on classroom format. 

        1.3   Each class is structured as a hands-on/active learning seminar held in a computer classroom unless otherwise
agreed. To insure the best learning experience, clients must provide: 

Each
class is structured as a hands-on/active learning seminar held in a computer classroom unless otherwise agreed. To insure the best learning experience, clients must
provide: 

	•
	A computer lab containing one computer for each student. Each computer must have at least 233 MHz processors and 64 MB or
RAM and monitors capable of at least 800x600 resolution.   

	•
	A high bandwidth Internet connection from each computer.   

	•
	Microsoft Internet Explorer 4.0 or later OE, Netscape 4.7 or later installed on each computer.   

	•
	Recommended: Microsoft Office, Adobe Acrobat Reader, Windows Media Player, QuickTime and/or RealPlayer.  

	•
	A video projection device capable of 800x600 resolution attached to a "lead" computer.   

	•
	Access to the locally installed version of Blackboard software or a Blackboard ASP installation. 

        1.4   All Learning Solutions training days purchased pursuant to this Schedule must be used within one (1) year of the
Effective Date. 

2.     FEES FOR BLACKBOARD LEARNING SOLUTIONS STAFF  

        2.1   Customer will reimburse Blackboard for (i) reasonable travel and living expenses incurred by Blackboard's
employees and subcontractors for travel from Blackboard's offices in connection with the performance of the learning solutions, and (ii) international telephone charges. Expense items greater
than $600 must be pre-approved by Customer and supported by reasonable documentation indicating that Blackboard incurred such expenses. Except as provided above, each party will be
responsible for its own expenses incurred in rendering performance under this Schedule including the cost of facilities, work space, computers and computer time, personnel, supplies and the like,
except that Customer shall be responsible for supplying facilities for the learning services if Blackboard conducts learning services at a site other than Blackboard's facilities. 

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

        2.2   Cancellation. In the event that Customer cancels a scheduled training day, Customer shall be billed for cancellation fees
as follows: 

	•
	Prior to 21 days before the scheduled event: [***]  

	•
	13-21 days before the scheduled event: [***]  

	•
	1-14 days before the scheduled event: [***]  

	•
	1-7 days before the scheduled event: the then current fee per cancelled day 

IN
WITNESS WHEREOF, the parties hereto have executed this Schedule as of the date first written above. 

			
	BLACKBOARD	 	CUSTOMER: Charter Learning
	    	 	 
	/s/ Teresa Frazier

  Signature	 	/s/ Andrew Clark

  Signature
	    	 	 
	Teresa Frazier, Senior Director, Contracts

  Print Name and Title	 	Andrew Clark, CEO

  Print Name and Title
	    	 	 
	 

  Date: 12-23-03	 	  

  Date: 12-23-03

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

 
 

  MANAGED CONTACT CENTER SOLUTION SCHEDULE LS-4
  BLACKBOARD LEARNING SYSTEMTM    
    

This
Blackboard Learning System Managed Contact Center Solution ("Schedule") is an addendum to the Blackboard License and Services Agreement between Blackboard and Customer and other Schedules
incorporated therein (collectively, the "Agreement'). Capitalized terms used in this Schedule that are not otherwise defined in this Schedule shall have the meaning set forth in the Master Terms. 

 SITE; SCHEDULING OF FEES  

							
	 
	 	Scope of Coverage 	 	Initial Term Annual Fees

(USD) [***] 	 
	Managed Contact Center Solution	 	Phone based support for up to [***] per month	 	$	[***]	 
	 	 	Additional service requests available in increments of [***] requests priced at [***] per service request	 	 	 	 
	Total Fees Due:	 	 	 	$	[***]	 

1.     Introduction  

Blackboard
Managed Contact Center Solution is designed to provide Customer with a significantly enhanced end-user support capability. In addition to providing 24/7 help-desk
support, Customer will have access to a unique three-tiered support architecture that provides a holistic self-service function through a dedicated, uniquely branded eChat tool. In
addition, we will assign to Customer a dedicated end-user support account manager and provide detailed monthly reporting and conference calls. The data should provide important metrics and
diagnostics that will allow Customer to fine-tune its e-learning offerings over time to reduce the number of support incidents per software interaction (ISI). We believe this
proposal will deliver measurable and improved service levels, and more importantly will yield higher rates of course completion and academic achievement, which in turn will fuel the continued growth
of the Customer program. 

 Service Level  

Presidium
Managed Contact Center agreements include service level agreements to provide reasonable assurance of a timely resolution of issues as well as timely response times. These parameters will be
fully documented in the monthly reporting listed below. 

					
	Response and Resolution

 
	 	Response Guarantee 	 	Response Target/Historical Average 
	1—Call Hold time	 	< 3 Minutes	 	< 1 Minute

2.     Pricing Overview  

Our
Schedule for NU is based on an estimated monthly service request volume of [***] per month, and provides all of the services described above. The contract term for this
Schedule is [***]. 

			
	 Call Center Set-up, Maintenance and Customization
	 	 
	 Standard Price, Annualized:
	 	[***]
	 Charter Learning:
	 	[***]
	 Phone and Chat Based Support for Up to [***] per Month:
	 	 
	 Standard Price, Annualized
	 	[***]
	 Charter Learning:
	 	 [***]

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

 Total:  

 Standard Prices:  

	•
	[***]

 Charter Learning, If executed by 12/23/03  

	•
	[***]

Includes: 

	•
	Phone and Chat based support for up to 100 service requests per month   

	•
	Monthly reporting, dedicated account management   

	•
	All interactions, privately banned 

In
consideration for the services provided in this Schedule with respect to the Initial Term (as defined below), Customer shall pay to Blackboard all fees specified above or otherwise required in this
Schedule, which fees shall be non-cancelable, nonrefundable and payable within thirty (30) days following the date of invoice. Except as otherwise required by this paragraph, all
amounts payable under this Schedule shall be subject to applicable provisions of the Master Terms. 

			
	Increased Usage

 
	 	Incremental Fee,

Payable Quarterly

after incurred 
	 Additional 25 Requests Per Month
	 	[***]
	 Additional 50 Requests per month
	 	[***]
	 Additional 75 Requests per month
	 	[***]

3.     On-Site Kick-Off Process  

To
maximize the value of our expanded support and managed contact center solutions for Customer, Blackboard recommends a kick-off meeting to develop an overarching project plan, success
and accountability materials, and to provide program administrators and facilitators with an overview of this enhanced offering. The meeting follows a structured process of information gathering
designed to collect all necessary information to launch the support engagement successfully. This information is utilized in training our staff, and producing a client specific repository of
information that will be used when helping end-users from Customer. 

The
meeting is expected to last from one to two days depending on the complacency of the supported applications and the business practices as Customer. 

4.     Methods of Accessing Support  

This
support package will include chat-based and phone-based support for all named students and faculty members. It is expected that international users will rely on chat-based
tools. 

5.     Support Availability  

Support
will be available to faculty and students 24/7/365. 

6.     Monthly Reporting  

Included
in the support package are monthly reports that audit all incidents received during the period and categorize them by severity and affected applications uses. This information will be useful
in adjusting certain program aspects to reduce the number of end-user problems in future months. 

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

7.     TERM  

This
Schedule shall become effective when executed by authorized representatives of both Parties (the date upon which Blackboard executes this Schedule, the "Scheduled Effective Date") and shall
continue in effect for a period of [***] (the "Initial Term"), unless earlier terminated. Upon termination of this Schedule, all licenses granted under this Schedule shall
immediately cease, and will (i) immediately discontinue all use of Software licensed under this Schedule; (ii) pay to Blackboard all amounts due and payable hereunder;
(iii) remove the Software from its server and provide to Blackboard proof of the destruction of the original copy and any other copies of the Software; and (iv) return all Documentation
and related materials to Blackboard within a reasonable time at no cost. 

8.     TERMINATION  

Termination.    Either party may terminate this Schedule upon thirty (30) days prior written notification to the other party. 

Effect of Termination.    Upon termination of this Agreement, this Schedule shall automatically and immediately terminate, and all licenses
granted hereunder shall immediately cause. Upon termination, Customer will immediately discontinue all use materials licensed under this Schedule, and will pay to Blackboard all amounts due and
payable hereunder. Each Party (i) will immediately cease any use of the other Party's Confidential Information; (ii) will delete any of the other Party's Confidential Information from
its computer storage or any other media, including, but not limited to, online and off-line libraries; and (iii) will return to the other Party or, at the other Party's option,
directly, all copies of the other Party's Confidential Information thus in its possession. 

IN
WITNESS WHEREOF, the parties hereto have executed this Statement of Work as of the date first written above. 

			
	BLACKBOARD	 	CUSTOMER: Charter Learning
	    	 	 
	/s/ Teresa Frazier

  Signature	 	/s/Andrew Clark

  Signature
	    	 	 
	Teresa Frazier, Senior Director, Contracts

  Print Name and Title	 	Andrew Clark, CEO

  Print Name and Title
	    	 	 
	  

  Date: 12-23-03	 	  

  Date: 12-23-03

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

 

 

        VOID IF EXECUTIED AFTER MARCH 16, 2005 

 
 

  ADDENDUM TO THE BLACKBOARD MASTER TERMSTM MANAGED CONTACT CENTER SOLUTION SCHEDULE LS-4 BLACKBOARD LEARNING SYSTEMTM BETWEEN BLACKBOARD AND  BRIDGEPOINT EDUCATION (FORMERLY CHARTER LEARNING) DATED 23 DECEMBER,
2003    
    

        This
Addendum to The Blackboard Master Terms Managed Contact Center Solutions Schedule LS-4 Blackboard Learning System between Blackboard and Bridgepoint Education
dated 23 December, 2003, is made as of             March, 2005.  

	1.
	The
existing SITE: SCHEDULE OF FEES hereby deleted in its entirety and replaced as follows: 

							
	 
	 	Scope of Coverage 	 	First Renewal Term

Annual Fees (USD)

[***] 	 
	 Managed Contact Center Solution
	 	Infrastructure and Reporting Environment	 	$	[***]	 
	 Phone and Chat Based Support
	 	Up to [***] per month	 	$	[***]	 
	 Total Fees Due:
	 	 	 	$	[***]	 

[***]

	2.
	The
Section 7 "Term" is hereby deleted in its entirety and replaced as follows: 

7.     TERM  

This
Schedule shall become effective when executed by authorized representatives of both Parties (the date upon which Blackboard executes this Schedule, the "Schedule Effective Date") and shall
continue in effect for a period of [***] (the "Initial Term"), unless earlier terminated. Thereafter, the Schedule will renew automatically for successive one
(1)-year periods (each, a "Renewal Term"), unless either Party provides notice of its desire not to renew not less than thirty (30) days prior to the end of the Initial Term or
then-current Renewal term, as applicable. Upon termination of this Schedule, all licenses granted under this Schedule shall immediately case, and will (i) immediately discontinue
all use of Services licensed under this Schedule; (ii) pay to Blackboard all amounts due and payable hereunder; and (iii) return all Documentation and related training materials to
Blackboard within a reasonable time at Customer's cost. 

All
other terms and conditions of the Agreement shall remain in full force and effect. 

IN
WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date written below. 

			
	BLACKBOARD	 	BRIDGEPOINT EDUCATION
	    	 	 
	/s/ Tess Frazier

  Signature	 	/s/ Andrew Clark

  Signature
	    	 	 
	Tess Frazier—Senior Director

  Print Name and Title	 	Andrew Clark CEO

  Print Name and Title
	    	 	 
	Date:	 	Date: 3/17/05

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

1

 
 
 

  Bridgepoint Education Pricing Summary    
    

										
	Product Description

 
	 	Quantity 	 	Units 	 	Total Price 	 
	 LEARNING SYSTEM ASP SERVICE
	 	 	1	 	YR	 	 	[***]	 
	 LS DEVELOPER EDITION
	 	 	1	 	YR	 	 	[***]	 
	 LEARNING SYSTEM
	 	 	1	 	YR	 	 	[***]	 
	 LEARNING SYSTEM ASP SETUP
	 	 	1	 	Each	 	 	[***]	 
	 COMMUNITY SYSTEM
	 	 	1	 	YR	 	 	[***]	 

 

					
	 Subtotal:
	 	 	[***]	 
	 Tax:
	 	 	[***]	 
	 Shipping:
	 	 	[***]	 
	 Total:
	 	 	[***]	 

 SPECIAL PROVISIONS  

Payment Terms: Solely for the Initial Term, Blackboard agrees that [***] will be due in accordance with the Master Terms (net 30), and the remaining
amount [***] will be due 90 days after the date of the invoice.

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

2

 

        VOID IF EXECUTED AFTER MARCH 17, 2005 

 
 

  SOFTWARE SCHEDULE LS-5
  BLACKBOARD LEARNING SYSTEMTM/BLACKBOARD COMMUNITY SYSTEMTM    
    

This
Blackboard Learning SystemTM/Blackboard Community SystemTM Software Schedule ("Schedule") is made as of the last date indicated below, by and between Blackboard and
Bridgepoint Education ("Customer") and is an addendum to the Blackboard License And Services Agreement between Blackboard and Customer, including the Master Terms and other Schedules incorporated
therein (collectively, the "Agreement"). This Software Schedule cancels and supercedes the previous Learning System Basic Schedule between the parties. Capitalized terms used in this Schedule that are
not otherwise defined in this Schedule shall have the meaning set forth in the Master Terms. In consideration of the foregoing premises, and other good and valuable consideration, the receipt of which
are hereby acknowledged, the parties hereby agree as follows: 

SITE;
SCHEDULE OF FEES 

								
	 
	 	Quantity 	 	Initial Term

Annual Fees (USD) 	 
	 Blackboard Learning System Annual License
	 	 	1	 	$	[***]	 
	 Blackboard Community System Annual License
	 	 	1	 	$	[***]	 
	 Total Fees Due:
	 	 	 	 	$	[***]	 

 

							
	Designated Server Site

(Physical Location of the Software):

Hosted by BLACKBOARD	 	Database Version:

Hosted By BLACKBOARD	 	Operating System:

Hosted By BLACKBOARD	 	Hardware Model:

Hosted By BLACKBOARD
	USER BAND: 2,000	 	 	 	 	 	 

Solely
for the Initial Term, Blackboard agrees that [***] will be due in accordance with the Master Terms (net 30), and the remaining amount [***] will
be due 90 days after the date of the Invoice. 

1.     ADDITIONAL DEFINITIONS  

        1.1   "Application Pack" means the object code software utility release(s) that are designed to work
with the Software that may be, in Blackboard's sole discretion, issued in between Updates, designated by APH, and/or later incorporated into Updates or Upgrades. 

        1.2   "Authorized End User" means any individual who is a student resident in a degree- or certificate-
granting program of Customer, prospective student, alumni, consortia student registered to take one of Customer's regularly offered courses of instruction, employee, trustee, or collaborating
researcher of customer or a Customer employee (solely to the extent any such employees use the Software for Customer's internal training purposes). 

        1.3   "Corrections" means a change (e.g. fixes, workarounds and other modifications) made by or
for Blackboard which corrects Software Errors in the Software, provided in temporary form such as a patch, and later issued in the permanent form of an update. 

        1.4   "Designated Server Site" means the physical location where the Software will be installed, as
identified in the table above. 

        1.5   "Software" means, for purposes of this Schedule only, the version(s) of the type of Blackboard
proprietary software identified in the table above, including Virtual Installations. 

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

3

 

        1.6   "Software Error" means a failure of any Software materially and substantially to conform to
applicable Documentation, provided that such failure can be reproduced and verified by Blackboard using the most recent version of such Software made available to Customer, and further provided that
Software Errors do not include any nonconformity to applicable Documentation caused by (i) Customer's or its end users' negligence, (ii) any modification or alteration to the Software
not made by blackboard, (iii) data that does not conform to Blackboard's specified data format, (iv) operator error, (v) use on any system other than the operating system
specified in the Documentation, (v) accident, misuse or any other cause which, in Blackboard's reasonable determination, is not inherent in the Software; or (vi) any use of the Software
other than expressly authorized in this Schedule. 

        1.7   "Supported Interface" means application-based interfaces (API), network protocols, data formats,
database schemes, and file formats available for use in the Software as expressly specified in the Documentation. 

        1.8   "Third-Party Software" means the software manufactured by third parties that has been
incorporated by Blackboard into the Software. 

        1.9   "Updates" means the object code versions of the Software that have been developed by Blackboard
to correct any software Error and/or provide additional functionality and that have been commercially released with a version number that differs from that of the prior version in the number to the
right of the decimal point (e.g., 2.0 vs. 2.1) and that are not marketed as a separate product or module. 

        1.10 "Upgrades" means the object code versions of the Software that have been customized, enhanced,
or otherwise modified by or on behalf of Blackboard, acting in its sole discretion, to include additional functionality and that have been released with a version number that differs from that of the
prior version in the number to the left of the decimal point (e.g., 3.0 vs. 2.0) and that are not marketed as a separate product or module. 

2.     LICENSES  

        2.1    Grant of License.    Subject to the terms and conditions of
this Schedule and the Master Terms, Blackboard grants Customer a limited, non-exclusive, non-transferable non-sublicenseable license (i) to install and use
one (1) production copy and one unsupported Test Copy of the Software on a single computer server at Customer's Designated Server Site, solely in the form of machine-readable, executable,
object code or bytecode, as applicable, and solely in connection with providing access to Customer Content to Customer's Authorized End Users. Customer acknowledges and understands that, in the event
it wishes to use the Software for any purposes other than expressly permitted by the foregoing, including, without limitation, to provide course materials or other content to any end users who are not
Customer's Authorized End Users, Customer will be required to obtain additional license rights from Blackboard pursuant to a separately executed Schedule and payment of additional license fees. 

        2.2    General Usage Restriction.    Customer agrees not to use the
Software for any purposes beyond the scope of the license granted in Section 2.1 Without limiting the foregoing, except as expressly contemplated in this Agreement or as otherwise agreed in
writing between the Parties, Customer shall not (i) copy or duplicate the Software, provided that, notwithstanding the foregoing, Customer shall be permitted to cerate one (1) copy of
the Software for archival, non-productive purposes provided that Customer reproduces on the copy all copyright notices and any other confidential or proprietary legends that are on or
encoded in the Software; (ii) decompile, disassemble, reverse engineer or otherwise attempt to obtain or perceive the source code from which the Software is compiled or interpreted, and
Customer hereby acknowledges that nothing in this Agreement shall be construed to grant Customer any right to obtain or use such source code; (iii) install or use the Software on any 

4

 

computer,
network, system or equipment other than the Designated Server Site, except with the prior written consent of Blackboard; (iv) modify the Software or create any derivative product of
the Software, except with the prior written consent of Blackboard, provided that the foregoing shall not be construed to prohibit Customer from configuring the Software to the extent permitted by the
Software's standard user interface; (v) sublicense, assign, sell, lease or otherwise transfer or convey, or pledge as security or otherwise encumber, Customer's rights under the license granted
in Section 2.1; or (vi) use the Software to provide services to third parties other than Authorized End Users in the nature of a service bureau, time sharing arrangement or as an
application service provided, as such terms are ordinarily understood within the software industry. Customer will not obscure, remove or alter any of the trademarks, trade names, logos, patent o r
copyright notices or markings to the Software, nor will Customer add any other notices or markings to the Software or any portion thereof. Customer shall not use the Software except in compliance with
Blackboard's obligations to any third party incurred prior to the Effective Date, provided that Blackboard has notified Customer of such obligation. Customer shall ensure that its use of the Software
complies with all applicable laws, statutes, regulations or rules promulgated by governing authorities having jurisdiction over the Parties or the Software. Customer
warrants that its Authorized End Users will comply with the provisions of this Schedule in all respects, including, without limitation, the restrictions set forth in this Section 2.2. 

        2.3    Further Restrictions.    Customer acknowledges that certain
Blackboard Software contains an "Auto Report" feature, which provides to Blackboard aggregate usage statistics regarding the Software, and Blackboard represents and warrants that the Auto Report
feature does not report individually identifiable use information to Blackboard or any third party. Customer will not disable the Auto Report feature of the Software, or undertake any action which has
the affect of preventing such feature from operating correctly or the effect of modifying the information reported thereby. 

        2.4    Interoperability.    To the extent permitted by the
specifications as outlined in the Documentation for the Software at http://behind.blackboard.com, if the Customer wishes to achieve interoperability of the Software with another software program and
requires interface specifications or other information in order to do so, the Customer should request that information from Blackboard. Nothing in this Section 2.4 authorizes Customer to use
any interfaces except the Supported Interfaces for the Software level. Customer may not use any Supported Interface in a manner that is inconsistent with the Documentation. 

        2.5    Third Party Software/Content.    Customer acknowledges that the
Software may utilize software and/or content made available to Blackboard by third parties, which shall constitute "Third Party Software." Pursuant to its agreements with these third parties,
Blackboard hereby grants to Customer a non-exclusive, non-transferable license to load and/or operate and use the Third Party Software solely in connection with Customer's own
instructional activities. 

        2.6    Ownership of Software.    Blackboard and its licensors shall be
deemed to own and hold all right, title and interest in and to the Software, and Customer acknowledges that it neither owns or acquires any additional rights in and to the Software not expressly
granted by this Agreement, and Customer further acknowledges that Blackboard hereby reserves and retains all rights not expressly granted in this Agreement, including, without limitation, the right to
use the software for any purpose in Blackboard's sole discretion. 

        2.7    Expansion of Licensed Use.    [***].
Blackboard's assessment of additional license fees will be in accordance with Blackboard's then-current pricing. In the event of growth related to a Customer merger or acquisition,
Blackboard's assessment of additional license fees will be in accordance with Blackboards then-current pricing. 

        2.8    Other Rights.    Customer hereby grants to Blackboard the
limited right to use Customer's name, logo and/or other marks for the sole purpose of listing Customer as a user of the software in 

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

5

 

Blackboard's
promotional materials. Blackboard agrees to discontinue such use within fourteen (14) days of Customer's written request. 

3.     DELIVERY  

Unless
otherwise agreed by the Parties, as soon as commercially practicable after the Schedule Effective Date, Blackboard will make available a copy of the Software for downloading from the Internet
by Customer for purposes of installation by Customer, and delivery of the Software shall be deemed complete when blackboard notifies Customer that the software is available for download. Customer
acknowledges that the download site will be made available to Customer for a period not longer than thirty (30) days from the date of such notice, and Customer will have no right to download
the Software after this thirty (30)-day period. Upon Customer's request, Blackboard will deliver to Customer a CD containing a backup copy of the Software. 

4.     FEES  

In
consideration for the services provided and license(s) granted in this Schedule with respect to the Initial Term (as defined below), Customer shall pay to Blackboard all fees specified above or
otherwise required in this Schedule, which fees shall be non-cancelable and non-refundable. Solely for the Initial Term, Blackboard agrees that [***]
will be due in accordance with the master Terms (net 30), and the remaining amount [***] will be due 90 days after the date of the Invoice. With respect to each Renewal
term (as defined below), if any, Customer shall pay to Blackboard the
then-current fees for such services and licenses, which amounts shall be due and payable within thirty (30) days following the beginning of such Renewal Term. Customer further
agrees to reimburse Blackboard for (i) reasonable travel and living expenses incurred by Blackboard's employees and subcontractors in connection with the performance of maintenance and support
services under this Schedule and (ii) any other expenses described in this Schedule, provided that Blackboard will receive Customer's prior approval for single expenses greater than $250, and
further provided that, upon Customer's request, Blackboard will provide reasonable documentation indicating that Blackboard incurred such expenses. Except as otherwise required by this paragraph, all
amounts payable under this Schedule shall be subject to applicable provisions of the master Terms. 

5.     TERM  

This
Schedule shall become effective (i) when executed by authorized representatives of both Parties (the date upon which Blackboard executes this Schedule, this "Schedule Effective Date"); or
(ii) the Effective Date of the Agreement, whichever later occurs, and shall continue in effect for a period of [***] (the "Initial Term"), unless earlier terminated.
Thereafter, the Schedule will renew automatically for successive one (1)-year periods (each, a "Renewal Term"), unless either Party provides notice of its desire not to renew not less than
thirty (30) days prior to the end of the initial Term or then-current Renewal term, as applicable. Upon termination of this Schedule, all licenses granted under this schedule shall
immediately cease, and Customer will (i) immediately discontinue all use of Software licensed under this Schedule; (ii) pay to Blackboard all amounts due and payable hereunder;
(iii) remove the Software from its server and provide to Blackboard proof of the destruction of the original copy and any other copies of the Software; and (iv) return all Documentation
and related training materials to blackboard within a reasonable time at Customer's cost. 

6.     LIMITED SOFTWARE WARRANTY  

Blackboard
warrants, solely for the benefit of Customer, that any Software licensed under this Schedule which is manufactured by Blackboard will substantially conform to applicable Documentation for a
period of ninety (90) days after the relevant Available Date, provided that (i) Blackboard has received all amounts owed under this Agreement; (ii) Customer is not in material
breach of this Agreement; 

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

6

 

(iii) Customer
has installed any Corrections, upgrades and Updates made available to Customer; and (iv) Customer has notified Blackboard in writing of any failure of the Software to
conform to the foregoing warranty within the warranty period. CUSTOMER ACKNOWLEDGES AND AGREES THAT THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES BY BLACKBOARD, AND THAT BLACKBOARD'S SOLE
OBLIGATION, AND CUSTOMER'S SOLE REMEDY, WITH RESPECT TO ANY BREACH OF THE FOREGOING WARRANTY, IS REPAIR OR REPLACEMENT (AT BLACKBOARD'S OPTION) OF THE RELEVANT SOFTWARE IN A TIMELY MANNER. 

7.     SUPPORT AND MAINTENANCE  

        7.1    Telephone Product Support.    Customer is eligible to receive
Product Support (as defined below) in English from Blackboard. Customer may designate up to two of its personnel for purposes of receiving Product Support under this Schedule ("Technical Contact"),
and Customer may designate substitute personnel to be Technical Contacts by providing written notice to Blackboard (provided that not more than two (2) persons may be designated as Technical
Contacts at any particular time). Provided that Customer remains in compliance with Blackboard's minimum configuration requirements, Customer's Technical Contacts may contact Blackboard, via the web
or telephone at the telephone number provided by Blackboard from time to time, for purposes of receiving Product Support. For purposes of this Schedule, the term "Product Support" means the provision
of advice and responses by Blackboard's personnel to inquiries from Customer's then-current Technical Contacts related to installation, configuration and use of the Software. Product
Support will be made available in English only twenty-four (24) hours a day, seven (7) days a week, 365 days a year, excluding the US Federal public holidays of New
Year's Day, Martin Luther King Day, Presidents' Day, Memorial Day, July 4, Labor Day, Thanksgiving and Christmas. Unless otherwise specified by Blackboard, Product Support is available by
calling 1-888-788-5264. In addition to the foregoing support services, Blackboard may make representatives available for onsite support, at its sole discretion, at
Blackboard's then prevailing rates. 

        7.2    Installation Assistance.    Notwithstanding Section 7.1
of this Schedule, Customer is responsible for all installation of the Software and any Upgrades provided pursuant to this Agreement. If Customer desires Blackboard to provide assistance to Customer
related to the installation of the Software and/or Upgrades, Customer acknowledges that it will be required to enter into a separate Blackboard professional Services Agreement. 

        7.3    Initial Technical Contacts.    Customer's initial Technical
Contacts are as follows: 

							
	Name

 
	 	Title 	 	Email 	 	Phone 
	[***]	 	[***]	 	[***]	 	[***]

        7.4    Support Limitations.    Blackboard shall provide Product
Support only with respect to the then-current generally available version of the Software and the two (2) most recent previously issued Updates of the Software. Customer
acknowledges that Blackboard has no obligation under this Schedule to provide Product Support or other support services with respect to (i) any Third-Party Software, including, without
limitation, any Third-Party Software provided under this Agreement; (ii) any Software Error or problems relating to the Software arising from (x) use of the Software other than strictly
according to the terms of this Agreement, including, without limitation, human error, (y) modification of the software by Customer or any third party; or (z) any combination or
integration of the Software with hardware, software and/or technology not provided by blackboard, or problems arising from Customer's host or applications software, Customer's hardware and cabling
power or environmental conditions. Support is not available from Blackboard in languages other than English. 

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

7

 

        7.5    Error Resolution.    In the event that Blackboard determines,
in its good faith discretion, that any request for Product Support by Customer's then-current Technical Contacts arises from a verifiable Software Error, Blackboard will classify such
Software Error according to the appropriate Severity Code, as determined by reference to the categories listed in the table below, and will exercise commercially reasonable efforts to correct the
relevant Software Error according to the relevant Error Resolution Protocol set forth for each such category. Notwithstanding the foregoing, Customer acknowledges that no warranty is made regarding
any such Error Response protocol with respect to all or any Software Errors. Customer further acknowledges that Severity Code 1, 2, and 3 Software Errors will take priority over requests for Product
Support not arising from Software Errors. 

						
	Severity

Code

 
	 	Description/Examples 	 	Response Protocol 
	 	1	 	Software is not functioning. Some examples of Severity Code 1 Software Errors are as follows: (i) Software is down and will not restart; (ii) Software is not able to communicate with external systems; and
(iii) Software is generating a data corruption condition.	 	Blackboard will use its commercially reasonable efforts to resolve Severity Code 1 Software Error reports on a twenty-four (24) hour basis.* When a Severity Code 1 Software Error is reported, Blackboard will assign
resources necessary to work to correct the Software Error. If access to the Software is required, Customer will provide a contact available to Blackboard and access to Customer's system and other software for the duration of the error correction
procedures.
	
 	
2	
 	
Software is running but that Customer is unable to use major portions of the Software. Some examples of Severity Code 2 Software Errors are as follows: (i) intermittent Software Error and (ii) major
functional component is unavailable.	
 	
Severity Code 1 Software Errors will take priority over Severity Code 2 Software Errors. Blackboard will assign appropriate technical resources to Severity Code 2 Software Errors as long as there are no Severity Code
1 Software Errors awaiting resolutions.
	
 	
3	
 	
Software is operating close to normal but there is a non-critical Software Error.	
 	
Severity Code 3 Software Errors may be fixed in the next scheduled Upgrade or Update or made available on Blackboard's Web site. Blackboard will research Severity Code 3 Software Errors after Severity Code 1 and
Severity Code 2 Software Errors. Blackboard may correct Severity Code 3 Software Errors in the next scheduled Upgrade or Update or make corrections available to Customer on Blackboard's Web site.

	*
	Response
time goals are to be measured after verification and replication by Blackboard of the relevant Software Error. 

        7.6    Maintenance.    From time to time Blackboard may, in its
discretion, develop Corrections, Application Packs, Updates or Upgrades to the Software. Provided that Customer had paid to Blackboard all fees and other amounts due and payable under this Agreement,
Blackboard will, during the period while this Schedule remains in effect, make available to Customer such Corrections, Application Packs, Updates and/or Upgrades, if and when developed, at no
additional cost. Any such Corrections, Application Packs, Updates and/or Upgrades shall, if and when provided or made available, be deemed to constitute part of the Software and shall be subject to
all terms and provisions 

8

 

set
forth in this Agreement, otherwise applicable to the Software, including, without limitation, terms and provisions related to licenses, use restrictions and ownership of the Software. 

        7.7    Additional Services.    Any time or expense incurred by
Blackboard in diagnosing or fixing problems that are not caused by the Software or are not covered by the support services are billable to Customer at Blackboard's then-existing services
rates, with a one-hour minimum charge per call. If Customer desires such additional services, it must execute a copy of Blackboard's Professional Services Agreement for the services. 

        The
Parties agree to the above terms and have executed this Schedule as of the last date set forth below. 

			
	BLACKBOARD	 	CUSTOMER: Bridgepoint Education
	    	 	 
	 

  Signature	 	/s/Andrew Clark

  Signature
	    	 	 
	TESS FRAZIER—SENIOR DIRECTOR

  Print Name and Title	 	Andrew Clark CEO

  Print Name and Title
	    	 	 
	Date:

  

 	 	Date: 3/17/05

 

9

 

        VOID IF EXECUTIED AFTER MARCH 17, 2005 

 
 

  ASP SCHEDULE LS—6
  BLACKBOARD ASP SCHEDULE    
    

This
Blackboard ASP Schedule ("ASP Schedule") is made as of the last date indicated below, by and between Blackboard and Bridgepoint Education ("Customer") and is an addendum to the Blackboard License
And Services Agreement between Blackboard and Customer, including the Master Terms and other Schedules incorporated therein (collectively, the "Agreement"). Capitalized terms used in this Schedule
that are not otherwise defined in this Schedule shall have the meaning set forth in the Master Terms. This ASP Schedule cancels and supersedes the previous ASP Schedule between the parties. In
consideration of the foregoing premises, and other good and valuable consideration, the receipt of which are hereby acknowledged, the parties hereby agree as follows: 

ASP—SCHEDULE
OF FEES

											
	 
	 	Initial Active

User Capacity 	 	Initial

Bandwidth 	 	Initial

Storage 	 	Initial Term

Annual Fees

(USD) 	 
	 Blackboard ASP—LS Setup Fee
	 	 	 	 	 	 	 	 	[***]	 
	 Blackboard ASP—LS Annual Use Fee
	 	[***]	 	256 kbps

(minimum)	 	10 GB

(minimum)	 	$	[***]	 
	 Total Fees Due:
	 	 	 	 	 	 	 	$	[***]	 

[***]

Solely
for the Initial Term, Blackboard agrees that [***] will be due in accordance with the Master Terms, and the remaining amount [***] will be due
90 days after the date of the invoice.  

	1.
	ADDITIONAL
DEFINITIONS 

        1.1   "Active User Capacity" means the number of Authorized End Users, at any particular time, permitted to be registered to
access one (1) or more educational courses provided through the Hosted Software. As of the Schedule Effective Date (as defined below), the initial Active User Capacity will be equal to the
number indicated in the table above. 

        1.2   "ASP Services" means the services provided by Blackboard pursuant to this ASP Schedule. The initial ASP Services are
indicated in the table above. 

        1.3   "Authorized End User" will have the meaning set forth in the Software Schedule as defined below. 

        1.4   "Available Date" means, for purposes of this ASP Schedule, the date upon which Customer receives notice from Blackboard
that the features and functions of the Hosted Software are available for access by Customer's Authorized End Users. 

        1.5   "Hosted Software" means the Software licensed to Customer pursuant to the Software Schedule for which Blackboard is to
provide the ASP Services. 

        1.6   "Test Copy Hosted Software" means the Test Copy Software licensed to Customer pursuant to the Software which Blackboard
is hosting. Test Copy Hosted Software is to be used solely for the purposes of testing the Software and is not used for production purposes and unless otherwise indicated in Exhibit A of the
ASP Schedule is not covered by Service Level specifications described in Exhibit B. 

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

10

 

        1.7   "Schedule Effective Date" mans the later of (i) the date on which this ASP Schedule has been executed by
authorized representatives of both Parties and (ii) the Effective Date of the Agreement. 

        1.8   "Software Schedule" means the Software Schedule which has been executed by Blackboard and Customer for which Customer
seeks to have Blackboard provide ASP Services and that is in effect during the term of this ASP Schedule.  

	2.
	BLACKBOARD
RESPONSIBILITIES 

        2.1    Provision of Access to Hosted Software.    As soon as commercially practicable after the Schedule Effective
Date, Blackboard will make access to the features and functions of the Hosted Software available to Customer's Authorized End Users. Blackboard will specify to Customer procedures according to which
Customer and/or its Authorized End Users may establish and obtain such access. 

        2.2    Responsibility for Hosting.    Blackboard shall install and operate the Hosted Software on computer servers and
systems under its direct or indirect control. Blackboard will also install and store the Customer Content for purposes of access by the Hosted Software, provided that nothing in this ASP Schedule
shall be construed to require Blackboard to provide for, or bear any responsibility with respect to, the design, development, operation or maintenance of any Web site owed or operated by Customer, or
with respect to any telecommunications or computer network hardware required by Customer to provide access from the internet to any such Customer Web site. Nothing in this ASP Schedule shall be
construed to grant Customer a license to access and/or use Blackboard's systems except for purposes of accessing and using the Hosted Software and except pursuant to the procedures and protocols
specified by Blackboard pursuant to Section 2.1. Solely to the extent necessary to perform Blackboard's obligations pursuant to this ASP Schedule, customer grants to Blackboard a
royalty-free, non-exclusive, worldwide license to use, reproduce, transmit, distribute, perform, display, and, to the extent required by the Hosted Software, modify and create
derivative works form the Customer Content. As between Customer and Blackboard, Customer retains ownership of the Customer Content. Blackboard shall maintain confidentiality of all Customer Content
that is stored on its servers in accordance with Section 4 of the Master Terms. 

        2.3    Availability and Operations Specifications.    Blackboard will undertake commercially reasonable measures to
ensure that, from and after the Available Date and for so long as this ASP Schedule remains in effect the ASP Services provided pursuant to this ASP Schedule will (i) be available and
accessible as contemplated in this ASP Schedule twenty-four (24) hours per day, seven (7) days per week within the parameters set forth in Exhibit B, and
(ii) conform in all material respects to the technical specifications and performance parameters set forth in Exhibit B. Exhibit B may be modified from time to time, upon notice
to Customer. Notwithstanding the foregoing, Blackboard will have no liability under this Section 2.3 to the extent any nonconformity with the standards set forth in Exhibit B arises, in
whole or in part, from (i) any use of the Hosted Software by Customer or any Authorized End User other than in accordance with the terms and conditions set forth in this Agreement;
(ii) any failure by Customer or any Authorized End User to comply with any procedures, technical standards and/or protocols specified by Blackboard pursuant to Section 2.1 of this ASP
Schedule or (iii) any causes beyond the control of Blackboard or which are not reasonable foreseeable to Blackboard, including but not limited to, interruption or failure of telecommunication
or digital transmission links and internet slow-downs or failures. It is agreed and acknowledged that the service credits referred to in Exhibit B shall be Customer's sole remedy,
and Blackboard's sole obligation, with respect to failures of the ASP Services to meet the technical specifications and performance parameters set forth in Exhibit B. Blackboard does not
warrant or guarantee the ASP Services except as expressly stated in this ASP Schedule. 

        2.4    Data Restoration Policy.    Blackboard will back-up and archive Customer Content at a secure
location for the retention period(s) specified in Exhibit B. In the event that Customer requests recovery 

11

 

of
any lost or damaged Customer Content, Blackboard will exercise reasonable efforts to restore the relevant data from the most recently archived copies (or such earlier copies as requested by
Customer), provided that such data is, at the relevant time, still available pursuant to the applicable retention policy and Customer has provided to Blackboard all information necessary to enable
Blackboard to perform such services. Blackboard shall perform up to four (4) data restorations at no charge to Customer; thereafter, except with respect to restoration of data that are lost or
damaged as a result of Blackboard's error or a failure of the ASP Services, Customer agrees to pay Blackboard its then-standard applicable rates for such restoration services. 

        2.5    Additional Storage and Bandwidth Policy.    As a normal operating procedure Blackboard does not cap storage and
bandwidth. Blackboard will, no less than quarterly, monitor Customer's storage and bandwidth usage. In the event Customer has exceeded Initial Storage and/or Initial Bandwidth in a sustained period of
sixty (60) days or more, Blackboard will provide a report to Customer concerning the current storage and bandwidth usage. In the event Customer has not purchased additional storage and/or
bandwidth within thirty (30) days of receiving the report, Blackboard reserves the right to change Customer additional fees at then-standard applicable rates. 

        2.6    Migration Policy.    In the event that Blackboard or Customer requests an Update/Upgrade of the Hosted
Software, Blackboard and Customer shall engage in commercially reasonable migration planning. In the event that the migration planning requires an expanded or new environment not covered by the
then-current Hosted Software environment (defined here as "Migration"), Customer shall pay a Migration Set Up fee as mutually negotiated. Blackboard will be obligated to perform no more
than one successful test migration per six (6)-month period. If Customer requires more than one Migration test or more than one Migration within a six-month period, it must execute a copy
of Blackboard's Professional Services Agreement for the services. 

        2.7    Additional ASP Services.    In the event that Customer desires to receive ASP Services in addition to the
particular services specified in the table above, including, by way of example, incremental storage capacity and/or additional bandwidth capacity and/or higher Active User Capacity, Customer may
submit a written and executed purchase order requesting such additional ASP Services. Subject to Customer's payment of all applicable fees required by Section 4, and further subject to all
applicable provisions of this Agreement, including, without limitation, the Master Terms and this ASP Schedule, Blackboard agrees to make such additional ASP Services available to Customer for so long
as this ASP Schedule remains in effect after acceptance of such purchase order. For the avoidance of doubt, no such purchase order shall be binding upon Blackboard unless and until Blackboard accepts
such purchase order in writing and further provided that Blackboard will have no liability to Customer with respect to any purchase orders that are not accepted or for any terms contained in the
purchase order other than the type of service and the payment amount. 

        2.8    IP Addresses.    Any IP addresses assigned or allocated to Customer by Blackboard shall remain, at all times,
the property of Blackboard and shall be nontransferable and Customer shall have no right to use such IP addresses upon termination of this Agreement. Any change requested by Customer to the Blackboard
allocated addresses must be agreed to by the Parties. Customer understands that the IP Services provided under this Agreement (including Internet use) may require registrations and related
administrative reports that are public in nature.  

	3.
	CUSTOMER
RESPONSIBILITIES. 

        3.1    General Usage Limitations.    Customer acknowledges that use and operation of the Hosted Software by Customer
and/or any Authorized End User is subject to the terms of the Software Schedule. Notwithstanding the Software Schedule, for so long as this ASP Schedule remains in effect, Customer may not install,
host or operate the Hosted Software, nor may Customer or its Authorized End Users otherwise use the Hosted Software, except as hosted and made available by Blackboard under this Agreement. In the
event that Customer has installed the Hosted Software upon any 

12

 

computer
server(s) prior to the Schedule Effective Date (as defined below), Customer agrees promptly to remove the Hosted Software from such computer server(s). Customer agrees that it may not cause
or permit any third parties to access the Hosted Software other than Authorized End Users, nor may Authorized End Users in excess of the then-current Active User Capacity access and use
the Hosted Software at any time, provided that the Active User Capacity may be modified in accordance with Section 2.5. Customer shall refrain from, and shall ensure that Authorized End Users
refrain from, using the ASP Services in a manner that is libelous, defamatory, obscene, infringing or illegal, or otherwise abusing the ASP Services or the resources available through the ASP
Services. Customer warrants that its Authorized End Users will comply with the provisions of this ASP Schedule in all respects. 

        3.2    Customer Content.    Customer represents and warrants that (i) Customer owns or has sufficient rights in
and to the Customer Content, including without limitation, personal educational and financial information contained within the Customer Content, in order to use, and permit the use of, the Customer
Content as contemplated in this ASP Schedule and to grant the license granted in Section 2.2; and (ii) the Customer Content does not and shall not contain any content, materials,
advertising or services that infringe on or violate any applicable laws, regulation or right of a third party. Customer also acknowledges that Customer Content may be stored on servers located within
the United States or accessed by Blackboard's support or ASP personnel in the United States, and hereby authorizes such access and storage. Blackboard only provides access to the Hosted Software;
Blackboard does not operate or control the information, services, opinions or other content of the Internet. Blackboard does not monitor and shall have no liability or responsibility whatsoever for
the Customer Content of any transmissions or communications transmitted or otherwise disseminated via the Hosted Software. Customer agrees that it shall make no claim whatsoever against Blackboard
related to the Customer Content or content of the Internet or respecting any information, product, service or software ordered
through or provided via the Internet, and Customer shall indemnify and hold Blackboard harmless from any and all claims (including claims by governmental entities seeking to impose penal sanctions)
related, directly or indirectly, to such Customer Content.  

	4.
	FEES

        4.1   In
consideration for provision of the ASP Services, Customer shall, during the Initial Term (as defined below) pay to Blackboard (i) an annual fee in an amount
set forth above with respect to this particular ASP Services provided under this ASP Schedule, which fees shall be due and payable upon Agreement execution; as well as (ii) any other fees
otherwise required by this ASP Schedule (for additional services, additional bandwidth, or additional users). Solely for the Initial Term, Blackboard agrees that [***] will be
due in accordance with the Master Terms, and the remaining amount [***] will be due 90 days after the date of the invoice. In the event that Customer requires additional
ASP Services as contemplated in Section 2.9, applicable fees shall be due and payable from and after the month during which such additional services are first made available. All fees payable
under this ASP Schedule shall be non-cancelable and non-refundable. 

        4.2   If
Customer elects to pay ASP fees monthly, then Blackboard shall charge Customer an additional 5% on the total ASP fees. Blackboard reserves the right to temporarily
suspend the ASP Services if Customer's account becomes more than sixty (60) days past due. Suspension of ASP Services does not constitute a termination or suspension of this Agreement nor does
such suspension of Service alleviate Customer's obligation to pay past, current, or future charges incurred hereunder. Once Customer pays in full the past due fees, Blackboard will resume services. 

        4.3   With
respect to each Renewal Term (as defined below), if any, Customer shall pay to Blackboard the then-current fees for such ASP Services upon commencement
of the Renewal Term. Except as provided above, each party will be responsible for its own expenses incurred in rendering the performance under this ASP Schedule, including, without limitation, the
cost of facilities, work space, 

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

13

 

computers
and computer time, development tools and platforms, utilities management, personnel and supplies. Except as otherwise required by this paragraph, all amounts payable under this ASP Schedule
shall be subject to applicable provisions of the Master Terms.  

	5.
	TERM 

This
ASP Schedule shall become effective on the Schedule Effective Date, and shall continue in effect for a period of [***] (the "Initial Term"), unless earlier terminated or
otherwise specified in Exhibit A. Thereafter, the ASP Schedule will renew automatically for successive one (1)-year periods (each, a "Renewal Term"), unless either Party provides
notice of its desire not to renew not less than thirty (30) days prior to the end of the Initial Term or then-current Renewal term, as applicable. Upon termination of this ASP
Schedule, all licenses granted under this ASP Schedule shall immediately cease, and Customer will (i) immediately discontinue access to and/or use the Hosted Software under this ASP Schedule;
(ii) pay to Blackboard all amounts due and payable under this ASP Schedule; and (iii) return all Documentation and related training materials to Blackboard within a reasonable time at
Customer's cost. 

The
Parties agree to the above terms and have executed this ASP Schedule as of the last date set forth below. 

			
	BLACKBOARD	 	CUSTOMER: Bridgepoint Education
	    	 	 
	 

  Signature	 	/s/Andrew Clark

  Signature
	    	 	 
	TESS FRAZIER-SENIOR DIRECTOR

  Print Name and Title	 	Andrew Clark CEO

  Print Name and Title
	    	 	 
	    	 	 
	Date:

 	 	Date: 3/17/05

 

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

14

 

 

        VOID IF EXECUTED AFTER MARCH 17, 2005 

 
 

  EXHIBIT A
  ASP SPECIFICATIONS    
    

Blackboard
Learning SystemTM 

	•
	Set Up Fee includes service for each installation of the Software or update/upgrade requiring a revised or new hardware
and/or software configuration.   

	•
	Initial Term Annual Fee includes services for up to [***] Users* and 20 Gb of storage and 512 kbps
of bandwidth measured using the 95th percentile calculation (as defined below) delivered via 100 mbps Internet uplink and Managed Firewall Service   

	•
	Each additional 10 GB and each additional 1 mbps of connectivity are separately charged   

	•
	Additional Service units for [***] additional Users*, additional 512 bandwidth and 20 GB
additional storage are separately charged 

Data
Restoration Policy—per restore fees are separately charged per chargeable restore incident 

Additional
Storage and Bandwidth Annual Fees for Content System are separately charged 

*
User is defined as a person enrolled in one or more course, or part of one or more organization. 

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

EXHIBIT A-1

 

        VOID IF EXECUTED AFTER MARCH 17, 2005 

 
 

  EXHIBIT B
  ASP SERVICES SPECIFICATIONS—As of the Available Date    
    

NOTE: CUSTOMER ACKNOWLEDGES THAT NOTHING IN THIS EXHIBIT B CREATES ANY ADDITIONAL WARRANTIES OR GUARANTEES, OTHER THAN AS SET FORTH IN THE ASP SCHEDULE, THE SOFTWARE SCHEDULE
AND/OR THE MASTER TERMS, AS APPLICABLE.

 SERVICE LEVEL  

 Security:  

	•
	Single point of entry to co-location is guarded 24 hours a day with access controlled by an access
database and video surveillance   

	•
	Monitoring of the co-location area and only those persons authorized by Blackboard's access list are allowed
past a control point.   

	•
	Surveillance cameras located throughout the facility capture activity to help ensure no unauthorized entry to protected
areas. 

 Power:  

	•
	 State-of-the-art generators clean and condition commercial electrical power to remove
irregularities in the signal. Power is run through the generators before being passed into the facility.   

	•
	In the event of a loss of power from the grid, power backups are utilized in the following order: commercial utility
underground conduits, two-hour battery backup (industry standard only 15 minutes), diesel generator with full-load capacity and 18 hr. fuel supply. 

 Network:  

	•
	Redundant Internet connections through dual Tier-1 Internet Service Providers 

 Startup:  

Blackboard
is responsible for the setup and configuration of the necessary hardware, software and all components of the dedicated server. This includes but not limited to, the server hardware and
software, telecommunications hardware and software, security software and other software that is reasonably necessary to operate and maintain the Hosted Software. 

 Initial Access Date:  

The
Hosted Software is typically accessible from the hosting site within 7 business days after execution of the ASP Schedule, provided that the Master Terms and the relevant Software Schedule have
been executed, and provided that Customer has provided to Blackboard a URL and any other information required by Blackboard. Blackboard shall provide Customer with procedures for access; the
procedures may include, without limitation, provision of any access codes, passwords, technical specifications, connectivity standards or protocols, or any other relevant procedures, to the limited
extent any of the foregoing may be necessary to enable Customer to permit its Authorized End Users to access and use the Hosted Software as contemplated in this ASP Schedule. 

EXHIBIT B-1

 

 Availability/Service Credit:  

The
Hosted Software is accessible 24/7, with a 99.7% targeted uptime. 99.7% uptime means that for 99.7% of the time during any calendar month, the ASP Services shall be available. Unavailability is a
condition in which there is unavailability of the Hosted Software due to hardware failure OR sustained packet loss in excess of fifty percent within the Blackboard hosting facilities for at least
fifteen consecutive minutes due to a failure of Blackboard to provide ASP Services during such period; unavailability does not include packet loss or network unavailability due to scheduled
maintenance, or inability of a user to connect with the ASP Services due to Internet or telecommunications problems outside the control of Blackboard. In order to receive any service credit, Customer
must notify Blackboard within seven (7) days from the time Customer becomes ineligible to receive a service credit. Failure to comply with this requirement will forfeit Customer's right to
receive a service credit. The aggregate maximum number of service credits to be issued by blackboard to Customer for any and all downtime periods and performance problems during any given calendar
month shall not exceed one month of service. Service credits are issued as follows: 

			
	Length of Unavailability 	 	Service Credit 
	1 to 4 hours of continuous unavailability below 99.7%	 	[***] of service fees credited [***]
	4 to 48 hours of continuous unavailability below 99.7%	 	[***] of services fees credited [***]
	48 to 96 hours of continuous unavailability below 99.7%	 	[***] of services fees credited [***]

[***]

	*
	All
Service Credit shall be applied to the next period's ASP fees. 

 Backup and Disaster Recovery:  

Blackboard
provides comprehensive redundant backups which are stored online and at a separate facility. Blackboard retains backup data for one month. In the event of a disaster, Blackboard will use
reasonable efforts to restore service. Blackboard will not attempt to restore service if such attempt shall put Blackboard, its employees or its agent at risk for injury. 

 Outages  

If
a system outage occurs, Blackboard will notify Customer's designated technical contact via email. This notice will include the reason for the system outage and estimated time for restoration of ASP
Services if Blackboard knows this information when it gives this notice. 

Following
recovery from any particular system outage, Blackboard will provide Customer with a post-incident summary that will include: 

	•
	cause of the system outage (if determined);   

	•
	method used to correct the problem; and  

	•
	measures Blackboard will take to prevent similar system outages in the future (if any). 

Upon
receipt of notification of a problem with the Blackboard system or the ASP Services, Blackboard will investigate the problem and determine if a system outage exists. If a system outage exists,
Blackboard will provide Customer with a time estimate for resolution of the problem, if 

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

EXHIBIT B-2

 

known
at that time. Blackboard will promptly commence remedial activities and use commercially reasonable efforts to resolve the system outage within the time estimate provided to Customer. 

 MONITORING AND PERFORMANCE  

Blackboard
will make network performance reports available focusing on the technical aspect of remote access network services. The reports provide information to help in the continual improvement of
the design and operation of the network. This includes information such as port availability, connection quality, usage profiles, and throughput. Upon request by Customer, Blackboard will provide
Customer with monthly reports including information on ASP Services usage, system outages and changes made to the Blackboard system during that month. Upon request Blackboard will provide the Customer
with the following report: 

Specific System Outage Details:

Time of outage

Length of outage

Affected areas

Reason for outage

Customer contact notified (if any)

Remedy to prevent outage reoccurrence (if any) 

Customer
acknowledges and agrees that any of the foregoing reports shall constitute Blackboard's Confidential information for purposes of this Agreement. 

 Ongoing:  

The
hardware, software and network are monitored and maintained by Blackboard and will be accessible twenty-four (24) hours a day, seven (7) days a week, in accordance with
industry standards, except for scheduled maintenance and required repairs, in advance of which the client shall be notified by email.  

	•
	Blackboard maintains responsibility for all day-to-day server maintenance. Server maintenance may
include, but is not limited to, hardware upgrades, OS upgrades, patch installations, database administration, server user administration and performance tuning.   

	•
	Blackboard maintains a software monitoring system to provide real-time information about the ASP environment
to the Blackboard Network Operations Center (NOC), to assist Blackboard system administrators proactively monitoring the ASP environment.   

	•
	Blackboard maintains the functioning of all hardware components for which it is responsible under this Exhibit and will
replace any failed components. Hardware replacement will begin immediately upon identification of the hardware failure and if cannot be completed with a reasonable amount of time, the access to the
Hosted Software will be redirected to a temporary server to reduce downtime.   

	•
	Blackboard implements a backup strategy of performing daily incremental and weekly full backups with a retention period of
1 month. Standard tape rotation is performed on a weekly basis with secure offsite storage.   

	•
	Blackboard collects bandwidth usage and web hit statistics on all client-hosted machines. This information will be
provided upon request. 

EXHIBIT B-3

 

 DATA CENTER SPECIFICATIONS  

Blackboard
houses servers in a facility that offers environment control, security, and backup power, as more specifically described below: 

 Environment:  

	•
	The data center is designed to maintain a constant temperature of 681/4F, plus or minus
21/4F, with humidity of 45%. 

 Server Setup:  

The
servers are set up to maintain fail back, redundant connectivity, comprehensive backups, 24x7 monitoring, and 99.7% uptime. 

         CUSTOMER RESPONSIBILITIES.    Blackboard is not responsible for management and actual use of the features and function of the
Hosted Software. Customer
bears all responsibility for such management and actual use, including, without limitation: 

	•
	The Customer has full access to the Administrator Menu and is responsible for the following:  

	•
	Creating/Removing Users including Students, Teachers, System Administrators, etc.   

	•
	Modifying all User Information  

	•
	Creating/Removing all Course Web Sites  

	•
	Building and Managing all Course Web Sites  

	•
	Customization to the Site  

	•
	System Usage Tracking Reports  

	•
	Deciding which product features will be available or unavailable, how much functionality instructions will be allowed,
etc.   

	•
	Choosing Icon Themes  

	•
	All changes to the Blackboard-named URL. All Blackboard clients are assigned a URL that reads
http://instituionname.blackboard.com. The institution is allowed to pick the "institutionname". However, any re-directs to other URLs are the responsibility of the Customer and not
Blackboard. For example, if the Customer chooses the URL http://institutionname.org, the institution is responsible for the redirect to the http://institutionname.blackboard.com site using a CNAME
record. Any IP addresses are allocated by Blackboard to Customer are in accordance with the American Registry for Internet Numbers (ARIN) guidelines for Internet Numbers and applicable agencies. 

EXHIBIT B-4

 

 

VOID IF EXECUTED AFTER: December 20, 2007

Ashford University 

 
 

  Ashford University Pricing Summary    
    

										
	Product Description

 
	 	Qty. 	 	Units 	 	Net Price 	 
	 MANAGED CONTACT CNTR USER INCR
	 	 	9	 	MO	 	 	[***]	 
	 MANAGED CONTACT CENTER -RNWL
	 	 	9	 	MO	 	 	[***]	 
	 TOTAL:
	 	 	 	 	 	 	 	[***]	 

 

							
	Designated Server Site

(Physical Location of the Software):

13500 Evening Creek Drive

San Diego, CA 92128

USA	 	Database Version:	 	Operating System:	 	Hardware Model:
	Customers FTE/User Band: [***]

	 	 

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

1

 
 
 

  ADDENDUM No. Two
  TO THE MANAGED CONTACT CENTER SOLUTION SCHEDULE LS-4,
  BLACKBOARD LEARNING SYSTEMTM DATED DECEMBER 23, 2003
  BETWEEN BLACKBOARD INC. AND
  ASHFORD UNIVERSITY (FORMERLY KNOWN AS
BRIDGEPORT EDUCATION)    
    

This
Addendum to the Managed Contact Center Solution Schedule LS-4, Blackboard Learning SystemTM dated December 23, 2003 ("Agreement") between
Blackboard Inc. ("Blackboard") and Ashford University (formerly known as Bridgeport Education) ("Customer") is made as of the last signature date below ("Addendum"). 

The
purpose of this Addendum is to extend the current renewal term and add additional users to Customer's Agreement. 

The
parties hereby agree to the following terms regarding the use of the Blackboard Software by Customer. The following sections of the Agreement are modified as follows: 

1.     The following is hereby replaces Section 2 entitled Pricing Overview:

        2.7    Fees    

The
pricing below is in an effort to account for the growth that we have seen and the projected growth over the next 12 months. The fees below takes into account the extension of the current
term by [***] months and to allow for the [***] growth expected by the end of 2008. The term for the proposed services is
[***]. 

 Incident Pricing:  

											
	Months

 
	 	Number of Incidents 	 	Cost Per Incident 	 	Total 	 
	 April 08-June 08
	 	 	[***]	 	$	[***]	 	$	[***]	 
	 July 08-Dec 08
	 	 	[***]	 	$	[***]	 	$	[***]	 

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

2

 

 Total Pricing:  

							
	Managed Contact Center Solutions

 
	 	Scope of Support 	 	Fees (USD) 	 
	 Call Center Support Operations
	 	An additional [***] support requests priced at an approximately [***] per support request	 	$	[***]	 
	 Account Management Fees
	 	 A named Account Manager will continue to provide regular maintenance and up-keep of the account and be available for regular
conference calls and communications
	 	
$	

[***]	 
	 Contact Center Infrastructure
	 	 Fee for contact center infrastructure support software including ticketing, routing, and deployment of self-help knowledge
resources, live chat, eSurvey, animated tutorials and related software implementation services
	 	
$	

[***]	 
	 
	 	 	 	
$	

[***]	 
	 
	 	 	 	$	[***]	 
	 
	 	 	 	$	[***]	 
	 	 	 	 	 	 
	 Total Costs Due
	 	 	 	$	[***]	 

Note: Presidium Learning will offer a [***] buffer over the allotted incidents to be absorbed by Presidium Learning. All incidents beyond the
[***] buffer will be charged at a cost of $[***] per incident.

2.     The following is hereby added to Section 7, entitled Term:

The
Parties agree that the current renewal term ("Renewal Term"), [***] will be extended by [***] months, until [***].
Thereafter, the Schedule will renew automatically for successive one (1)-year periods (each, a "Renewal Term"), unless either Party provides notice of its desire not to renew more than
thirty (30) days prior to the end of the Initial Term or then-current Renewal Term, as applicable. 

 All other terms and conditions remain in full force and effect.  

IN
WITNESS WHEREOF, the parties hereto have executed this Addendum as of the last date written below. 

			
	BLACKBOARD	 	CUSTOMER: Ashford University
	    	 	 
	 

  Signature	 	 

  Signature
	    	 	 
	  

  Print Name and Title

Tess Frazier, Vice President

Date:	 	

  Print Name and Title

  

Date:

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

3

 

        VOID IF EXECUTED AFTER: December 28, 2007

Ashford University 

 
 

  [BLACKBOARD LOGO]    
    

 
 

  BLACKBOARD LICENSE AND SERVICES AGREEMENT
  COVER PAGE    
    

The
attached documents describe the relationship between Blackboard and the Customer identified below. The documents attached to this cover page will consist of the Master Terms, which describe and
set forth the general legal terms governing the relationship, and one (1) or more schedules describing and setting forth detail about that relationship, depending upon the particular software
and/or services Blackboard will provide to the Customer. 

This
License and Services Agreement includes this cover page, the attached pricing summary and Master Terms, and all Schedules that are attached to such Master Terms and are separately executed by
the Parties. This Agreement will become effective when the attached documents are executed by authorized representatives of both Parties. 

							
	 CUSTOMER INFORMATION:	 	 
	Name/Company:	 	Ashford University	 	 Principal Contact Person:	 	Rick Gessner, CIO
	Fax:	 	 	 	 Phone:	 	(858) 513-9240
	Address:	 	13500 Evening Creek Drive

Suite 600

San Diego, CA 92128

USA	 	 	 	 
	Billing Contact:	 	Bell, Margarita	 	Title:	 	 
	Address:	 	13500 Evening Creek Drive

Suite 600

San Diego, CA 92128

USA	 	 	 	 
	Phone:	 	858/668-2589	 	 Email Address:	 	 
	Fax:	 	 	 	 	 	 
	Initial Term of Agreement:	 	[***]	 	 	 	 

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

1

 
 
 

  Ashford University Pricing Summary    
    

												
	Product Description

 
	 	Qty. 	 	Units 	 	Initial Term Fees (USD) 	 
	 Blackboard Learning System—COMPLEX HOST MGR ASP SVC
	 	 	1	 	 	YR	 	$	[***]	 
	 Blackboard Learning System—TEST ENVIRONMENT ASP SETUP
	 	 	1	 	 	EA	 	$	[***]	 
	 Blackboard Learning System—Enterprise—TEST ENVIRONMENT ASP SVC
	 	 	1	 	 	YR	 	$	[***]	 
	 Blackboard Learning System—STAGING ENVIRONMENT ASP SETUP
	 	 	 	 	 	EA	 	$	[***]	 
	 	 One Time Price Reduction:
	 	 	 	 	 	 	 	$	[***]	 
	 Blackboard Learning System—Enterprise STAGING ENV ASP SVC
	 	 	1	 	 	YR	 	$	[***]	 
	 	 Credit applied for Customer's current Staging Environment—per this Addendum, Customer is upgrading from Standard environment to a RAC environment
(Renewal Amount in August, 2008 will [***]):
	 	 	 	 	 	 	 	$	[***]	 
	 Blackboard Learning System—HIGH AVAILABILITY ASP SETUP
	 	 	1	 	 	EA	 	$	[***]	 
	 Blackboard Learning System—Enterprise HIGH AVAIL ASP SVC
	 	 	1	 	 	YR	 	$	[***]	 
	 Blackboard Learning System—Enterprise ASP ADDL STORAGE TO 1TB
	 	 	1	 	 	YR	 	$	[***]	 
	 	 Price Reduction:
	 	 	 	 	 	 	 	$	[***]	 
	 Blackboard Learning System—Enterprise ASP ADDL SERVICE UNIT
	 	 	1	 	 	YR	 	$	[***]	 
	 Blackboard Learning System—Enterprise ASP ADDL SERVICE UNIT
	 	 	1	 	 	YR	 	$	[***]	 
	 Blackboard Learning System—ASP BUSINESS CONT LVL 1
	 	 	1	 	 	YR	 	$	[***]	 
	 	 TOTAL:
	 	 	 	 	 	 	 	$	[***]	 

 

							
	Designated Server Site

(Physical Location of the Software):

Hosted by Blackboard	 	Database Version:	 	Operating System:	 	Hardware Model:
	Customers User Band: [***]	 	 	 	 

 SPECIAL PROVISIONS:  

Payment Terms.    Solely with respect to the Initial Term of this Agreement, Blackboard agrees to invoice Customer twice, sending both
invoices upon execution of this Agreement. The first invoice, in the amount of [***], will be due thirty (30) days after the date of the invoice from Blackboard and the
second invoice, in the amount of [***], will be due sixty (60) days after the date of the invoice from Blackboard. 

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

2

 
 
 

  ADDENDUM
  TO THE ASP SCHEDULE LS-6, BLACKBOARD ASP SCHEDULE DATED MARCH 17, 2005
  BETWEEN BLACKBOARD INC. AND ASHFORD UNIVERSITY    
    

This
Amendment to the ASP Schedule LS-6, Blackboard ASP Schedule dated March 17, 2005 ("Agreement") between Blackboard Inc. ("Blackboard") and Ashford University
(formerly known as Bridgepoint Education) ("Customer") is made as of the last signature date below ("Addendum"). 

The
purpose of this Addendum is to add an additional ASP Service Unit to Customer's current ASP Schedule. 

The
parties hereby agree to the following terms regarding the use of the Blackboard ASP Services by Customer. The following sections of the Agreement are modified as
follows: 

	1.
	A new Schedule of Fees is hereby added to the Section entitled ASP—SCHEDULE OF FEES:

        ASP—SCHEDULE
OF FEES 

													
	 
	 	Initial Active

User Capacity 	 	Initial

Bandwidth 	 	Initial

storage 	 	Initial Term

Annual Fees (USD) 	 
	 	 Blackboard Learning System—COMPLEX HOST MGR ASP SVC
	 	 	 	 	 	 	 	 	$	[***]	 
	 	 Blackboard Learning System—Enterprise—TEST ENVIRONMENT ASP SETUP
	 	 	 	 	 	 	 	 	$	[***]	 
	 	 Blackboard Learning System—Enterprise—TEST ENVIRONMENT ASP SVC
	 	 	 	 	Burstable	 	9 GB	 	$	[***]	 
	 Blackboard ASP—Enterprise—Staging Environment—Setup Fee
	 	 	 	 	 	 	 	 	$	[***]	 
	 	 One Time Price Reduction:
	 	 	 	 	 	 	 	 	 	[***]	 
	 Blackboard ASP—Enterprise—Staging Environment
	 	 	8001-15,000	 	512 kbps	 	20 GB	 	$	[***]	 
	 	 Credit applied for Customer's current Staging Environment—per this Addendum, Customer is upgrading from Standard environment to a RAC environment
(Renewal Amount in August, 2008 will be $[***]):
	 	 	 	 	 	 	 	 	$	[***]	 
	 Blackboard ASP—Enterprise—Additional Storage
	 	 	 	 	 	 	1 TB	 	$	[***]	 
	 Price Reduction:
	 	 	 	 	 	 	 	 	$	[***]	 
	 Blackboard ASP—Enterprise—Addl Service Unit
	 	 	 	 	 	 	 	 	$	[***]	 
	 Blackboard ASP Enterprise—Addl Service Unit
	 	 	 	 	 	 	 	 	$	[***]	 
	 	 Blackboard Learning System—Enterprise—HIGH AVAILABILITY ASP SETUP
	 	 	 	 	 	 	 	 	$	[***]	 
	 	 Blackboard Learning System—Enterprise—HIGH AVAIL ASP SVC
	 	 	 	 	 	 	 	 	$	[***]	 
	 	 TOTAL:
	 	 	 	 	 	 	 	 	$	[***]	 

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

3

 
	2.
	The following is hereby added to Exhibit A: 

 
	+
	 Complex Hosting Technical Manager  

Roles
and responsibilities of the Blackboard Complex Hosting Manager ("CHM") will primarily fall under the following three objectives: management, communication and documentation. 

	A.
	Management—Plan and project manage Customer's ASP infrastructure implementation, growth, and
planned and reactive changes. To meet this objective, the CUM'S tasks may include, but not be limited to, the following:  

	•
	Central Point of Contact and Escalation:    The CHM will be the
central point-of-contact within Blackboard ASP CHM Services and maintain day-to-day knowledge of all plans, activities, and status of projects and
issues involving Customer's hosted environment   

	•
	Infrastructure Management:    Plan and manage projects involving
Customer's infrastructure for scalability, optimal performance, and growth in coordination with Customer and all elements within Blackboard   

	•
	Internal Blackboard Delivery Coordination:    Coordinate with
Blackboard Global Services Project Management. Developers, and Customer's Technical Support Manager in ASP CHM Services, and ASP Operations and Engineering and other elements of Blackboard to deliver
and manage Customer's requirements   

	•
	ASP Support Activities:    Support directly the hosted
Blackboard application and infrastructure through:  

	•
	Direct ASP ticket escalation management and documentation  

	•
	Development support activities focused on impact analysis and evaluation based on updates and upgrades  

	•
	Infrastructure Expansion:    Modify and order hardware when
necessary in coordination with Customer   

	•
	Infrastructure and Software Upgrade Management:    Design and
implement ASP testing; and/or staging in coordination with Customer as necessary for testing and evaluation purposes (examples: upgrading from one Blackboard version to another, upgrading application
servers)   

	•
	Auditing:    Regularly conduct systems audit and analysis on
Customer's ASP environment's performance and utilization for proactive monitoring. infrastructure management, forecasting and reporting purposes   

	•
	Customer Business Planning Integration:    Keep master schedule
of Customer's academic activities and key events/milestones. Communicate to entire Blackboard Team on critical events on the calendar.

	B.
	Communication—Build and execute business processes for communication and Customer support (with a
special focus on providing transparency and visibility into the purchased ASP services and change management). To meet this objective, the CHM's tasks may include, but not be limited to, the
following:  

	•
	Contact:    Be fully dedicated to Customer's Systems
Administrators and Operations staff through a dedicated phone number for day-to-day ASP support requests and status reporting   

	•
	Project Communication:    Build two-way
communication processes in coordination with Customer for project management, support issue escalation, and other communication procedures as necessary 

4

 

	•
	Regular Reporting:    Coordinate and facilitate regularly
scheduled (weekly or monthly or quarterly) and ad-hoc project and status update meetings   

	•
	Channel Management:    Modify and update communication processes
and channels as deemed necessary   

	•
	On-site Support:    CHM will make two
on-site visits within the one year contract period,

	C.
	Documentation—Document and report on Customer's ASP infrastructure, projects status, escalation
issues, and other Customer ASP environment-relevant knowledge. Complete and thorough documentation will be a key aspect of meeting the management and communications objectives of the CH M. As such,
the CHM will provide the following documents during the life of the relationship between the CHM and Customer:  

	•
	Operations and Plans:    Develop detailed documents including
Escalation process, Operations Handbook, Infrastructure test and implementation plans   

	•
	Regular Status Reporting:    Document and provide weekly reports
to Customer on all project plans and updates   

	•
	Infrastructure Reporting:    Document and provide monthly
updated reports to Customer on Infrastructure design, hardware inventory, monitoring and management infrastructure. change management logs and other relevant materials   

	•
	Change Management/Status (I):    Provide timely and detailed
reports of planned infrastructure changes; planned or unplanned service outages, or degradation of services; and issue resolution reports   

	•
	Change Management/Status (II):    Document and communicate any
procedural changes that regulate the flow of code fixes, patches to the production environment   

	•
	SLA Performance Reporting/Analysis:    Provide monthly reports
(and as often as necessary to manage system stability) on system utilization and performance, including MRTG graphs, user activities summaries, and systems performance analysis. Goal will be to
develop, mutually with Customer, a standard set of reporting for overall systems management.

 

	+
	Blackboard Non-Production Test Environment:  

	•
	Initial Term is a minimum of six (6) months and renew automatically for successive 6-month terms (each,
a "Renewal Term"), unless either Party provides notice of its desire not to renew more than thirty (30) days prior to the end of the Initial-Term or then-current Renewal
Term.   

	•
	Setup Fee includes installation of Test Copy Hosted Software on computer servers and systems in Blackboard's
non-production environment.   

	•
	Initial Term Fee includes 9 GB of server storage and burstable bandwidth provided through Blackboard's broadband
connection, and grants Customer full root access to servers.   

	•
	The Non-Production Environment is not designed to frilly replicate or clone the production environment in
terms of physical infrastructure   

	•
	Non-Production Test Environment by its nature DOES NOT meet the Service Level specifications under
Exhibit B, and therefore, DOES NOT qualify for Service Level Guarantees.

 

	+
	Blackboard ASP- Enterprise—Staging Environment (Staging RAC
Environment):

	•
	The Staging Environment is designed for Customer to test and approve new update/upgrade software and changes in software
configuration before implementing such software in a production environment. It may NOT be used for production purposes. For instance, a staging 

5

 

environment
would be used to rum a new version of our products to produce training material prior to upgrading the production system.  

	•
	The Staging Environment is not designed to fully replicate or clone the production environment in terms of physical
infrastructure.   

	•
	The Staging RAC environment will have minimum of 2 dedicated database servers as database nodes  

	•
	ASP will provide up to four (4) clones of the client's product data a year. Up to 500GB of storage can be used for
a period of up to six months of the year. No backups will be done of this clone.   

	•
	Setup Fee includes installation of Test Copy Hosted Software on servers in Blackboard's production environment.  

	•
	20 GB storage (in addition to the clone production data) as "soft quota"—but storage is never capped  

	•
	512 Kbps of bandwidth as "soft quota" -but bandwidth is never capped

 

	+
	Blackboard High Availability/High Performance ASP Service

	•
	Oracle RAC clustered database nodes configuration pointing to a separate Customer-dedicated RAID-4 protected
storage volumes for redundant and load balanced database servers configuration.   

	•
	Oracle RAC license included   

	•
	Two (2) dedicated database servers as database nodes   

	•
	Includes Oracle Recovery Manager (RMAN) database backup service, which allows point-in-time
database backup and restore capability.

 

	3.
	The Section entitled Availability/Service Credit is replaced in its entirety with the following:

 Availability/Service Credit:  

        The
Hosted Software is accessible 24/7, with a 99.9% targeted uptime. 99.9% uptime means that for 99.9% of the time during any calendar month, the ASP Services shall be available.
Unavailability is a condition in which there is unavailability of the Hosted Software due to hardware failure OR sustained packet loss in excess of fifty percent within the Blackboard hosting
facilities for at least fifteen consecutive minutes due to a failure of Blackboard to provide ASP Services during such period; unavailability does not include packet loss or network unavailability due
to scheduled maintenance, or inability of a user to connect with the ASP Services due to Internet or telecommunications problems outside the control of Blackboard. In order to receive any service
credit, Customer must notify Blackboard within seven (7) days from the time Customer becomes eligible to receive a service credit. Failure to comply with this requirement will forfeit
Customer's right to receive a service credit. The aggregate maximum number of service credits to be issued by Blackboard to Customer for any and all downtime periods and performance problems during
any given calendar month shall not exceed one month of service. Service Credits will not 

6

 

apply
if errors/unavailability are caused by Customers Building Block. Service credits are issued as followed: 

			
	Length of Unavailability (per calendar month)

 
	 	Service Credit 
	1 to 4 hours of aggregate unavailability below 99.9%	 	[***] of service fees credited [***]
	4 to 8 hours of aggregate unavailability below 99.9%	 	[***] of services fees credited [***]
	8 to 96 hours of aggregate unavailability below 99.9%	 	[***] of service fees credited [***]

[***]

	*
	All
Service Credit shall be applied to the next period's ASP fees. 

 All other terms and conditions remain in full force and effect.  

        IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date written below. 

			
	BLACKBOARD	 	CUSTOMER: Ashford University
	    	 	 
	 

  Signature	 	 

  Signature
	    	 	 
	TESS FRAZIER- VICE PRESIDENT

  Print Name and Title	 	 

  Print Name and Title
	    	 	 
	Date:

 	 	Date:

 

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

7

 

 
 

  BLACKBOARD ASP BUSINESS CONTINUITY SCHEDULE    
    

        This Blackboard ASP Business Continuity Schedule ("ASP Schedule") is made as of the last date indicated below, by and between
Blackboard and Ashford University ("Customer") and is an addendum to the Blackboard License And Services Agreement between Blackboard and Customer, including the Master Terms, dated
December 23, 2003, and other Schedules incorporated therein (collectively, the "Agreement"). Capitalized terms used in this Schedule that are not otherwise defined in this Schedule shall have
the meaning set forth in the Master Terms. In consideration of the foregoing premises, and other good and valuable consideration, the receipt of which are hereby acknowledged, the parties hereby agree
as follows:. 

 ASP—SCHEDULE OF FEES  

					
	 
	 	Initial Term Annual Fees (USD) 	 
	 Blackboard ASP—Business Continuity Setup Fee
	 	$	[***]	 
	 Blackboard ASP—Business Continuity Annual Fee
	 	$	[***]	 
	 Total Fees Due:
	 	$	[***]	 

 ASP—SCHEDULE OF SERVICES  

								
	Product Description

 
	 	Active User Capacity 	 	RTO Guarantee 	 	RPO Guarantee 
	 Blackboard ASP—Business Continuity Service
	 	 	 	 	[***]	 	[***]

1.     ADDITIONAL DEFINITIONS  

        1.1   "Active User Capacity" means the number of Authorized End Users, at any particular time,
permitted to be registered to access one (1) or more educational courses provided through the Hosted Software. This is the maximum number of users that the backup site must be able to support
during a disaster period. 

        1.2   "ASP Services" means the services provided by Blackboard pursuant to this ASP Schedule. The
initial ASP Services are indicated an the table above. 

        1.3   "Authorized End User" will have the meaning set forth in the Software Schedule, as defined below. 

        1.4   "Available Date" means, for purposes of this ASP Business Continuity Schedule, the date upon
which Customer hosting the primary Blackboard production environment locally ("a locally-hosted Customer") receives notice from Blackboard that the Business Continuity environment is up and ready to
support Customer during a disaster period. For Customer hosting the primary Blackboard production environment with ASP Services ("ASP-hosted Customer"), this will be the time that the
disaster recovery site is up and ready to support a disaster period. 

        1.5   "Business Continuity Service" is a disaster recovery service provided by Blackboard and means
network environment and Customer, dedicated equipment that came on line within the Service Level specifications described in Exhibit B when Customer's primary hosting environment in a
physically separate location—whether hosted by Blackboard or locally basted by Customer—fails. Failure is understood to be a catastrophic failure at the hosted site. Customer
must have executed a Blackboard Software Schedule to receive this Business Continuity Service. 

        1.6   "Schedule Effective Date" means the later of G) the date on which this ASP Business
Continuity Schedule has been executed by authored representatives of both Parties and (ii) the Effective Date of the Agreement. 

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

8

 

2.     BLACKBOARD RESPONSIBILITIES.  

        2.1   Prevision of Access to Hosted Software. 

        In
cases where Customer is locally hosting the primary site: Once the Customer has contacted Blackboard ASP to notify them of a disaster scenario, Blackboard will bring up the backup
site as per the defined RTO and RPO (see Exhibit B). At that point, Blackboard will make access to the features and functions of the Hosted Software available to Customer's Authorized land
Users. Blackboard will specify to Customer procedures according to which Customer should contact Blackboard in the event of a disaster. 

        In
cases where Blackboard ASP is hosting the primary site: Once Blackboard has determined that a disaster scenario has occurred; Blackboard will bring up the backup site as per the
defined RTO and RPO (see Exhibit B). At that point, Blackboard will make access to the features and functions of the Hosted Software available to Customer's Authorized End Users. Blackboard
will specify to Customer procedures according to which Customer should contact Blackboard in the event of a disaster. 

        2.2    Responsibility for Hosting During Disaster
Period.    Blackboard shall install and operate the Halted Software an computer servers and systems under its direct or indirect control. Blackboard will also install
and stare the Customer Content for purposes of access by the Hosted Software, provided that nothing in this ASP Business Continuity Schedule shall be construed to require Blackboard to provide for, or
bear any responsibility with respect to, the design, development, operation or maintenance of any Web site owned or operated by Customer, or with respect to any telecommunications or computer
network hardware required by Customer to provide access from the Internet to any such Customer Web site. Nothing in this ASP Business Continuity Schedule shall be construed to grant to Customer a
license to access and/or use Blackboard's systems except for purposes of accessing and using the hosted Software and except pursuant to the procedures and protocols specified by Blackboard pursuant to
Section 2.1. Solely to the extent necessary to perform Blackboard's obligations pursuant to this ASP Business Continuity Schedule, Customer grants to Blackboard a royalty-free,
non-exclusive, worldwide license to use, reproduce, transmit, distribute, perform, display, and, to the extent required by the Hosted Software, modify and create derivative works from the
Customer Content. As between Customer and Blackboard, Customer retains ownership of the Customer Content. Blackboard shall maintain the confidentiality of all Customer Content that is stored on its
servers in accordance with Section 4 of the Master Terms. 

        2.3    Availability and Operational Specifications.    Blackboard will
undertake commercially reasonable measures to ensure that, from and after the Available Date and for so long as this ASP Business Continuity Schedule remains in effect the ASP Services provided
pursuant to this ASP Business Continuity Schedule will (i) be available and accessible as contemplated in this ASP Business Continuity Schedule twenty-four (24) hours per
day, seven (7) days per week within the parameters set forth in Exhibit B, and (ii) conform in all material respects to the technical specifications and performance parameters set
forth in Exhibit B. Exhibit B may be modified from time to time, neon notice to Customer. Notwithstanding the foregoing, Blackboard will have no liability under this Section 2.3
to the extent any nonconformity with the standards set forth in Exhibit B arises, in whole or in part, from (i) any use of the Hosted Software by Customer or any Authorized End User
other than in accordance with the terms and conditions set forth in this Agreement; (ii) any failure by Customer or arty Authorized End User to comply with any procedures, technical standards
and/or protocols specified by Blackboard pursuant to Section 2.1 of this ASP Business Continuity Schedule or (iii) any causes beyond the control of Blackboard or which are not reasonably
foreseeable to Blackboard, including but not limited to, interruption or failure of telecommunication or digital transmission links and Internet slow-downs or failures. It is agreed and
acknowledged that the service credits referred to in Exhibit B shall be Customer's sole remedy, and Blackboard's sole obligation, with respect to failures of the ASP Business Continuity
Services to meet the technical specifications and performance 

9

 

parameters
set forth in Exhibit B. Blackboard does not warrant or guarantee the ASP Business Continuity Services except as expressly stated in this ASP Schedule. 

        2.4    Data Restoration Policy.    Once Business Continuity Service
conies online and while the Business Continuity environment is active, Blackboard will back-up and archive Customer Content at a secure location for the retention period(s) specified in
Exhibit B. In the event that Customer requests recovery of any lost or damaged Customer Content, Blackboard will exercise reasonable efforts to restore the relevant data front the most recently
archived copies (or such earlier copies as requested by Customer), provided that such data is, at the relevant time, still available pursuant to the applicable retention policy and Customer has
provided to Blackboard all information necessary to enable Blackboard to perform such services. Blackboard shall perform up to four (4) data restorations at no charge to Customer; thereafter,
except with respect to restoration of data that are lost or damaged as a result of Blackboard's error or a failure of the ASP Services, Customer agrees to pay Blackboard its then-standard
applicable rates for such restoration services. 

        2.5    IP Addresses.    Any IP addresses assigned or allocated to
Customer by Blackboard shall remain, at all times, the property of Blackboard and shall be nontransferable and Customer shall have no right to use such IP addresses upon termination of this Agreement.
Any change requested by Customer to the Blackboard allocated addresses must be agreed to by the Parties. Customer understands that the IP Services provided under this Agreement (including Internet
use) may require registrations and related administrative reports that are public in nature. 

        2.6    Reverse-DR.    In cases where Customer is locally
hosting the primary site: Once the disaster is over, and the customer is ready to bring up their production site, Blackboard ASP will provide disk backups of all client data. However, it is up to the
customer themselves to bring up their production site. ASP is not responsible for bringing; up the production site. 

        In
cases where Blackboard ASP is hosting the primary site: Once the disaster is over, Blackboard ASP will be responsible for brining up the primary site again, should they decide to do
so. They may also decide to continue using the backup as the production site and use the newly brought up disaster site as the backup. 

3.     CUSTOMER RESPONSIBILITIES.  

        3.1    General Usage Limitations.    Customer acknowledges that use
and operation of the Hosted Software by Customer and/or any Authorized End User is subject to the terms of the Software Schedule. Notwithstanding the Software Schedule, for so long as this ASP
Schedule remains in effect, Customer may not install, host or operate the Hosted Software, nor may Customer or its Authorized End Users otherwise use the Hosted Software; except as hosted and made
available by Blackboard under this Agreement. Customer agrees that it may not cause or permit any third parties to access the Hosted Software other than Authorized End Users, nor may Authorized End
Users in excess of the then-current Active User Capacity access and use the Hosted Software at any time, provided that the Active User Capacity may be modified in accordance with
Section 2.5. Customer shall refrain from, and shall ensure that Authorized End Users refrain from, using the ASP Services in a manner that is libelous, defamatory, obscene, infringing or
illegal, or otherwise abusing the ASP Services or the resources available through the ASP Services. Customer warrants that its Authorized End Users will comply with the provisions of this ASP Business
Continuity Schedule in all respects. 

        3.2    Customer Content.    Customer represents and warrants that
(i) Customer owns or has sufficient rights in and to the Customer Content, including, without limitation, personal, educational and financial information contained within the Customer Content,
in order to use, and permit use of, the Customer Content as contemplated in this ASP Schedule and to grant the license granted in Section 2.2; and (ii) the Customer Content does not and
shall not contain any content, materials, advertising or services that infringe on or violate any applicable law, regulation or right of a third party. 

10

 

Customer
also acknowledges that Customer Content may be stored on servers located within the United States or accessed by Blackboard's support or ASP personnel in the United States, and hereby
authorizes such access and storage. Blackboard only provides access to the hosted Software; Blackboard does not operate or control the information, services, opinions or other content of the Internet.
Blackboard does not monitor and shall have no liability or responsibility whatsoever for the Customer Content of any transmissions or communications transmitted or otherwise disseminated via the
Hosted Software. Customer agrees that it shall make no claim whatsoever against Blackboard relating to the Customer Content or content of the Internet or respecting any information, product, service
or software ordered through or provided via the Internet, and Customer shall indemnify and hold Blackboard harmless from any and all claims (including claims by governmental entities seeking to impose
penal sanctions) related, directly or indirectly, to such Customer Content. 

        3.3    Provision of Data, Customer Content and Customization and Configuration
files.    In cases where Customer is locally hosting the primary site, Customer is responsible for providing Blackboard through a pre-established,
mutually agreed process between Customer and Blackboard, all data, Customer Content and Customization and Configuration Files that Blackboard will back up on Business Continuity Service in accordance
with the service specifications stated under Business Continuity Service Guarantees in Exhibit B. Failure on Customer's part to provide this information will release Blackboard from any
obligation or liability pursuant to this ASP Business Continuity Schedule, 

        3.4    Domain Name System (DNS).    In cases where Customer is locally
hosting the primary site, it is the responsibility of Customer to ensure that either they communicate a separate URL for the backup site, or that a redirect page has been established to send users to
the backup site. It is not the responsibility of Blackboard ASP to ensure that Customer has notified its authorized End Users of a new address and IP address for the Blackboard site. 

        In
cases where Blackboard is hosting the primary site, Blackboard will handle all DNS issues and redirect Customer's Authorized End Users automatically to the new site. 

4.     FEES  

        4.1   In consideration for provision of the ASP Business Continuity Services, Customer shall, during the Initial Term (as
defined below) pay to Blackboard (i) the set up fee, (ii) an annual fee in air amount set forth above with respect to the particular ASP Services provided under this ASP Business
Continuity Schedule, which fees shall be due and payable upon Agreement execution; as well as (iii) any other fees otherwise required by this ASP Business Continuity Schedule (for additional
services, additional bandwidth, or additional users). In the event that the Business Continuity Service comes on line, Blackboard will operate the Service 30 days from the first activation day.
For locally-hosted Customer, if Customer desires Blackboard to continue to maintain the service on line after the initial 30 days, Customer must pay the then-current monthly
recurring charge for the ASP Service. In the event that Customer requests additional ASP Services as contemplated in Section 2.9, applicable fees shall be due and payable from and after the
month during which such additional services are first made available. All fees payable under this ASP Business Continuity Schedule shall be non-cancelable and non-refundable. 

        4.2   Blackboard reserves the right to temporarily suspend the ASP Services if Customer's account becomes more than sixty
(60) days past due. Suspension of ASP Services does not constitute a termination or suspension of this Agreement nor does such suspension of Service alleviate Customer's obligation to pay past,
current, or future charges incurred hereunder. Once Customer pays in full the past due fees, Blackboard will resume services. 

        4.3   With respect to each Renewal Term (as defined below), if any, Customer shall pay to Blackboard the
then-current fees for such ASP Business Continuity Services upon commencement of the Renewal Term. Except as provided above, each party will be responsible for its own expenses 

11

 

incurred
in rendering performance under this ASP Business Continuity Schedule, including, without limitation, the cost of facilities, work space, computers and computer time, development tools and
platforms, utilities management, personnel and supplies. Except as otherwise required by this paragraph, all amounts payable tinder this ASP Business Continuity Schedule shall be subject to applicable
provisions of the Master Terms. 

5.     TERM  

        This ASP Business Continuity Schedule shall became effective on the Schedule Effective Date, and shall continue in effect for a period of
[***] (the "Initial Term"), unless earlier terminated. Thereafter, the ASP Business Continuity Schedule will renew automatically for successive one (1)-year periods
(each, a "Renewal Term"), unless either Party provides notice of its desire not to renew not less than thirty (30) days prior to the end of the Initial Term or then-current Renewal
Term, as applicable. Upon termination of this ASP Business Continuity Schedule, all licenses granted under this ASP Business Continuity Schedule shall immediately cease, and Customer will
(i) pay to Blackboard all amounts due and payable under this
ASP Business Continuity Schedule; and (ii) return all Documentation and related training materials to Blackboard within a reasonable time at Customer's cost. 

        The
Parties agree to the above terms and have executed this ASP Business Continuity Schedule as of the last date set forth below. 

			
	BLACKBOARD	 	CUSTOMER: Ashford University
	    	 	 
	 

  Signature	 	 

  Signature
	    	 	 
	TESS FRAZIER—VICE PRESIDENT

  Print Name and Title	 	 

  Print Name and Title
	    	 	 
	Date:

 	 	Date:

 

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

12

 

        VOID IF EXECUTED AFTER: December 28, 2007

Ashford University 

 
 

  EXHIBIT A
  ASP Business Continuity SERVICES SPECIFICATIONS- As of the Available Date    
    

NOTE: CUSTOMER ACKNOWLEDGES THAT NOTHING IN THIS EXHIBIT B CREATES ANY ADDITIONAL WARRANTIES OR GUARANTEES, OTHER THAN AS SET FORTH IN THE ASP SCHEDULE, THE SOFTWARE SCHEDULE
AND/OR THE MASTER TERMS, AS APPLICABLE.

 SERVICE LEVEL  

 Security:  

	•
	Single point of entry to co-location is guarded 24 hours a day with access controlled by an access
database and video surveillance.   

	•
	Monitoring of the co-location area and only those persons authorized by Blackboard's access list are allowed
past a central point.   

	•
	Surveillance cameras located throughout the facility capture activity to help ensure no unauthorized entry to protected
areas. 

 Power:  

	•
	 State-of-the-art generators clean and condition commercial electrical power to remove
irregularities in the signal. Power is run through the generators before being passed into the facility.   

	•
	In the event of a toss of power from the grid, power backups are utilized in the following order: commercial utility
underground conduits, two-hour battery backup (industry standard only 15 minutes), and diesel generator with full-load capability and 18 hr. fuel supply. 

 Network:  

	•
	Redundant Internet connections through dual Tier-I Internet Service Providers 

 Startup:  

Blackboard
is responsible for the setup and configuration of the necessary hardware, software and all components of the backup site. This includes but not limited to, the server hardware and software,
telecommunications hardware and software, security software and other software that is reasonably necessary to operate and maintain the Hosted Software 

 Business Continuity Service Guarantees:  

Disaster
Recovery Environment in stand-by in Blackboard's disaster recovery datacenter to back up the Customer's Production Environment in
Customer's / ASP'S production datacenter. 

Blackboard
provides the following levels of Business Continuity Service guarantees. Customer will receive service guarantees in accordance to the level that Customer has subscribed: 

									
	 
	 	OS / Database

Environment 	 	Recovery Time

Objective (RTO) 	 	Recovery Point

Objective (RPO) 	 	Customization &

Configuration 
	 Blackboard ASP—hosted Production Environment
	 	Linux/Oracle	 	[***]	 	[***]	 	Fully Backed Up

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

13

 

	•
	Recovery Time Objective (RTO) is defined as the time it takes from Blackboard being notified of the loss of the business
function of the primary site to activation of the Business Continuity Service.   

	•
	Recovery Point Objective (RPO) is defined as the specific point-in-time that the data was backed
up and can be recovered.   

	•
	Customization is limited to any customizations made to Customer's Hosted Software for which Customer has notified
Blackboard and has given Blackboard the permission to backup and store. Similarly, configuration is limited to any and all hardware and software configuration files that Customer has given Blackboard
the permission to backup and store (in the case of Customer-hosted primary site).   

	•
	In addition to the above Service Guarantees, Blackboard may make available at Customer's request, a detailed data backup
time and date report.   

	•
	Blackboard will also perform a disaster recovery test once a year at a time coordinated with Customer in order to ensure
the readiness of the Business Continuity Service.   

	•
	The RTO only covers the time that it takes for the Blackboard application to become available to Customers. In cases where
Customer is locally hosting; the primary site, the RTO does not cover the time it takes for Customer to let Authorized End-Users know what the backup URL is or adjust their DNS
configurations. 

 Service Credit:  

If
Blackboard fails to meet the RTO and RPO service guarantee time frames, Blackboard will issue service credits to Customer to be applied against future Blackboard ASP service fees. In order to
receive any service credit, Customer must notify Blackboard within seven (7) days from the time Customer becomes eligible to receive a service credit. Failure to comply with this requirement
will forfeit Customer's right to receive a service credit. Service credits are issued as followed: 

			
	Length of Unavailability 	 	Service Credit* 
	Up to 12 hours beyond the guaranteed RTO and/or RPO	 	[***] of annual Business Continuity service fees credited
	Between 12 to 24 hours beyond the guaranteed RTO and/or RPO	 	[***] of annual Business Continuity service fees credited
	Above 24 hours beyond the guaranteed RTO and/or RPO	 	[***] of annual Business Continuity service fees credited

	*
	All
Service Credit shall be applied to the next period's ASP fees.  

[***]

 Ongoing.  

The
hardware, software and network are monitored and maintained by Blackboard and will be accessible twenty-four (24) hours a day, seven (7) days a week, in accordance with
industry standards, except for scheduled maintenance and required repairs, in advance of which the client shall be notified by email.  

	•
	Blackboard maintains responsibility for all day-to-day server maintenance. Server maintenance may
include, but is not limited to, hardware upgrades, OS upgrades, patch installations, database administration, server user administration and performance tuning. 

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

14

 

	•
	Blackboard maintains a software monitoring system to provide real-time information about the ASP environment
to the Blackboard Network Operations Center (NOC), to assist Blackboard system administrators proactively monitoring the ASP environment.   

	•
	Blackboard maintains the functioning of all hardware components for which it is responsible under this Exhibit and will
replace any failed components. Hardware replacement will begin immediately upon identification of the hardware failure.   

	•
	Blackboard implements a backup strategy of performing daily backups with a retention period of 1 month. Where
possible, data is replicated to an offsite location.   

	•
	Blackboard collects bandwidth usage and web hit statistics on all Customer-hosted machines. This information will be
provided upon request. 

 DATA CENTER SPECIFICATIONS  

Blackboard
houses servers in a facility that offers environment control, security, and backup power, as more specifically described below: 

 Environment:  

	•
	The data center is designed to maintain a constant temperature of 68%E, plus or minus 2'!<F, with humidity of
45%. 

 Server Setup:  

The
servers are set up to maintain fail back, redundant connectivity, comprehensive backups, 24x7 monitoring, and 99.7% uptime. 

CUSTOMER RESPONSIBILITIES.    Blackboard is not responsible for management and actual use of the features and function of the Hosted Software.
Customer bears all responsibility for such management and actual use, including, without limitation: 

	•
	The Customer has full access to the Administrator Menu and is responsible for the following:  

	•
	Creating/Removing Users including Students, Teachers, System Administrators, etc.   

	•
	Modifying all User Information   

	•
	Creating/Removing all Course Web Sites   

	•
	Building and Managing all Course Web Sites   

	•
	Customization to the Site   

	•
	System Usage Tracking Reports   

	•
	Deciding which product features will be available or unavailable, how much functionality instructors will be allowed, etc.  

	•
	Choosing Icon Themes   

	•
	All changes to the Blackboard-named URL. All Blackboard clients are assigned a URL that reads
http://institutionname.blackboard.com. The institution is allowed to pick the "institutionname". However, any re-directs to other URLs are the responsibility of the Customer and not
Blackboard. For example, if the Customer chooses the URL http://institutionname.org, the institution is responsible for the redirect to the http://institutionname.blackboard.com site using a CNAME
record. Any IP addresses are allocated by Blackboard to Customer are in accordance with the American Registry for Internet Numbers (ARIN) guidelines for Internet Numbers and applicable agencies. 

15

 

 

        VOID IF EXECUTED AFTER: March 26, 2008

Bridgepoint Education 

 
 

  [BLACKBOARD LOGO]    
    

  

Bridgepoint
Education Pricing Summary 

											
	Product Description

 
	 	Qty. 	 	Units 	 	Initial Term

Fees (USD) 	 
	 Blackboard Learning System—Enterprise—Increase in User Band
	 	 	1	 	YR	 	$	[***]	 
	 COMMUNITY System—Increase in User Band
	 	 	1	 	YR	 	$	[***]	 
	 	 TOTAL:
	 	 	 	 	 	 	$	[***]	 

 

							
	Designated Server Site

(Physical Location of the Software):

Hosted by Blackboard	 	Database Version:	 	Operating System:	 	Hardware Model:
	Customers User Band: [***]	 	 	 	 

 SPECIAL PROVISIONS:  

Prior
to the increase in User Band listed above, Customer's renewal fees for their Blackboard Learning SystemTM Enterprise Software License and their Community System Software License would
have been [***] and [***] respectively. Customer's renewal invoice will reflect both the old User Band fees plus the fees for the increase of its User
Band, for a total of [***]. 

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

1

 
 
 

  AMENDMENT
  TO THE BLACKBOARD LICENSE AND SERVICES AGREEMENT, DATED DECEMBER 23, 2003
  INCLUDING ALL ATTACHMENTS AND SCHEDULES
  BETWEEN BLACKBOARD AND ASHFORD UNIVERSITY    
    

An
Amendment to the Blackboard License and Services Agreement, dated December 23, 2003 ("Agreement"), including all attachments and schedules thereto, between Blackboard Inc.
("Blackboard") and Ashford University ("Customer") is made of the last signature date below ("Amendment"). 

The
Parties hereby agree that Customer will now be known as Bridgepoint Education. 

The
Parties also agree that Customer now includes the University of the Rockies as part of their Authorized End Users. 

ALL OTHER TERMS AND CONDITIONS REMAIN IN FULL FORCE AND EFFECT.

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date last written below. 

			
	BLACKBOARD	 	CUSTOMER: Bridgepoint Education

(Formerly known as Ashford University)
	    	 	 
	 

  Signature	 	 

  Signature
	    	 	 
	Tess Frazier, Vice President

  Print Name and Title	 	  

  Print Name and Title
	 

  Date:	 	  

  Date:

2

 
 
 

  AMENDMENT NO. TWO
  TO THE SOFTWARE SCHEDULE LS-5,
  BLACKBOARD LEARNING SYSTEMTM/BLACKBOARD COMMUNITY SYSTEMTM DATED MARCH 17, 2005
  BETWEEN BLACKBOARD AND BRIDGEPOINT EDUCATION    

This
Amendment to the Software Schedule LS-5, Blackboard Learning SystemTM/Blackboard Community SystemTM dated March 17, 2005 ("Agreement") between
Blackboard Inc. ("Blackboard") and Bridgepoint Education (formerly known as Ashford University)("Customer") is made as of the last signature date below ("Amendment"). 

The
purpose of this Amendment is to add users onto Customer's current license. 

The
parties hereby agree to the following terms regarding the use of the Blackboard Software by Customer. The following sections of the Agreement are modified as follows: 

	1.
	The
following is hereby added to the Section entitled SITE; SCHEDULE OF FEES: 

											
	Product Description

 
	 	Qty. 	 	Units 	 	Annual Term

Fees (USD) 	 
	 LEARNING SYSTEM—USER INCREASE
	 	 	1	 	YR	 	$	[***]	 
	 COMMUNITY SYSTEM—USER INCREASE
	 	 	1	 	YR	 	$	[***]	 
	 	 TOTAL:
	 	 	 	 	 	 	$	[***]	 

All other terms and conditions remain in full force and effect.

IN
WITNESS WHEREOF, the parties hereby have executed this Amendment as of the last date written below. 

			
	BLACKBOARD	 	CUSTOMER: Bridgepoint Education
	    	 	 
	 

  Signature	 	/s/ Daniel J. Devine

  Signature
	  

  Print Name and Title

Tess Frazier, Vice President

Date:	 	Daniel J. Devine

  Print Name and Title

  

Date: 4-30-08

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

3

QuickLinks

Exhibit 10.20

Charter Learning Pricing Summary

BLACKBOARD MASTER TERMS

SOFTWARE SCHEDULE LS-1 BLACKBOARD LEARNING SYSTEMTM BASIC EDITION OPTION

ASP SCHEDULE LS-2 BLACKBOARD LEARNING SYSTEMTM ASP SCHEDULE

EXHIBIT A ASP FEES

EXHIBIT B ASP SERVICES SPECIFICATIONS As of this Available Date

BLACKBOARD LEARNING SOLUTIONS SCHEDULE LS-3

MANAGED CONTACT CENTER SOLUTION SCHEDULE LS-4 BLACKBOARD LEARNING SYSTEMTM

ADDENDUM TO THE BLACKBOARD MASTER TERMSTM MANAGED CONTACT CENTER SOLUTION SCHEDULE LS-4 BLACKBOARD LEARNING SYSTEMTM BETWEEN BLACKBOARD AND BRIDGEPOINT EDUCATION (FORMERLY CHARTER LEARNING) DATED 23
DECEMBER, 2003

Bridgepoint Education Pricing Summary

SOFTWARE SCHEDULE LS-5 BLACKBOARD LEARNING SYSTEMTM/BLACKBOARD COMMUNITY SYSTEMTM

ASP SCHEDULE LS—6 BLACKBOARD ASP SCHEDULE

EXHIBIT A ASP SPECIFICATIONS

EXHIBIT B ASP SERVICES SPECIFICATIONS—As of the Available Date

Ashford University Pricing Summary

ADDENDUM No. Two TO THE MANAGED CONTACT CENTER SOLUTION SCHEDULE LS-4, BLACKBOARD LEARNING SYSTEMTM DATED DECEMBER 23, 2003 BETWEEN BLACKBOARD INC. AND ASHFORD UNIVERSITY (FORMERLY KNOWN AS BRIDGEPORT
EDUCATION)

[BLACKBOARD LOGO]

BLACKBOARD LICENSE AND SERVICES AGREEMENT COVER PAGE

Ashford University Pricing Summary

ADDENDUM TO THE ASP SCHEDULE LS-6, BLACKBOARD ASP SCHEDULE DATED MARCH 17, 2005 BETWEEN BLACKBOARD INC. AND ASHFORD UNIVERSITY

BLACKBOARD ASP BUSINESS CONTINUITY SCHEDULE

EXHIBIT A ASP Business Continuity SERVICES SPECIFICATIONS- As of the Available Date

[BLACKBOARD LOGO]

AMENDMENT TO THE BLACKBOARD LICENSE AND SERVICES AGREEMENT, DATED DECEMBER 23, 2003 INCLUDING ALL ATTACHMENTS AND SCHEDULES BETWEEN BLACKBOARD AND ASHFORD UNIVERSITY

AMENDMENT NO. TWO TO THE SOFTWARE SCHEDULE LS-5, BLACKBOARD LEARNING SYSTEMTM/BLACKBOARD COMMUNITY SYSTEMTM DATED MARCH 17, 2005 BETWEEN BLACKBOARD AND BRIDGEPOINT EDUCATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]