CURRICULUMDELIVERYAGREEMENT
ThisCurriculumDeliveryAgreementisenteredintoasofJanuary
2$,
2011(the"EffectiveDate"),byandbetweentheArizonaBoardofRegents,forandonbehalfofArizonaStateUniversity,DepartmentofOnlineEducation("ASU"')and
KnewtonInc.,
aDelawarecorporation("Knewton").ASUandKnewtonarehereinaftercollectivelyreferredtoasthe"Parties"andthisCurriculumAgreement,asamendedfromtimetotime,isreferredtoasthis"Agreement").WHEREAS,ASUhasdevelopedandownscurriculum,materialsandinformationinandforMAT-142andMAT-II?coursesandASUwouldliketodeliverthesecoursestostudentsviaaweb-baseddeliverymethod(eachofMAT-l42andMAT-I17isreferredtoasa"MathCourse",andtogetherthe"MathCourses");andWHEREAS,Knewtonhasanestablishedhistoryanddemonstratedrecordforthedeliveryofmathematicseducationalprogramstoindividualsviaaweb-basedinterface,includingself-directed,self-paced,stand-alonecollegemathremediationcoursesthatsolelyuseKnewtonContentandincorporatemathconceptsanalogoustothoseconceptsprovidedinMAT-142andMAT-I17("Readiness142"and"Readiness117",respectively).Readiness142andReadiness117arecollectivelyreferredtohereinasthe"MRCModules";andWHEREAS,ASUwishestoengageKnewtonandKnewtonwishestobeengaged(i)todelivertheSoftwareincombinationwiththeMathCoursesand/ortheMRCModulesasanonlineservice(the"SAASServices")and(ii)toassistASU
with
integrationoftheSAASServicesintoASU'sexistingonlineeducationalprogramminganddeliverymethodstocreatetheEducationalProgram;andWHEREAS,thePartieswishtosetforththeirmutualunderstandingandagreementregardingtheirrelationshipinthedeliveryoftheSAASServices.NOWTHEREFORE,thePartiesagreeandunderstandasfollows:1.DEFINEDTERMS.CapitalizedtermsusedinthisAgreementshallhavethemeaningssetforthinthissection,orinthesectionwheretheyarefirstused.1.1."ASUContent"meansASU'sname,anyASUMark,andallContentprovided,importedoruploadedtotheSAASServicesbyASUoritsemployees,including,butnotlimitedto,theMathCoursesandanyContentprovidedbyASU'sprofessors.ASUContentspecificallyexcludesUsageDataandProfileData.1.2."ASUThird-PartySoftware"meansanysoftwarethatisproprietarytoaThirdPartylicensedtoASU,includingPearsonLearningStudioLMS.1.3."AuthorizedUser"meansstudents,employeesandauthorizedagentsofASUwhoarecommunicatedtoKnewtontobeauthorizedtoutilizetheSAASServicesthroughtheEducationalProgrampursuanttoavalidlicensepurchasedpursuanttothis
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AgreementandwhoareprovidedwithaccesstotheSAASServices
by
virtueofapasswordorotherformofauthenticationprovided
by
ASU.ASUshallundertake.reasonableeffortstomakeallAuthorizedUsersawareoftheprovisionsofthisAgreementasapplicabletosuchAuthorizedUser'suseoftheSAASServices,andshallusecommerciallyreasonableeffortstocauseAuthorizedUserstocomplywithsuch
provisions,
1.4."Content"means,withoutlimitation,anyandall,sketches,texts,files,links,images,photos,video,sound,scripts,notes,worksofauthorship,articles,orothersimilarmaterials.1.5."Documentation"meansallofthewritten,printed,electronicorotherformatmaterialspublishedorotherwisemadeavailable
by
Knewtonthatrelatetothefunctional,operationalandlorperformancecapabilitiesoftheSAASServices.1.6."EducationalProgram"meanstheintegrationoftheKnewtonTechnology,ASUContentandASUThirdPartySoftwareviaasingleonlinesign-onexperience
'With
PearsonLearningStudioLMS,pursuanttowhichtheKnewtonModuleswillbeaccessiblebyASUstudents.1.7."IntellectualPropertyRights"shallmeananyandallrightsexistingfromtimetotimeunderpatentlaw,copyrightlaw,trademarklaw,tradesecretlaw,unfaircompetitionlaw,moralrightslaw,publicityrightslaw,privacyrightslaw,andanyandallothersimilarproprietaryrights,includingbutnotlimitedto,patents,trademarks,servicemarks,tradenames,brandnames,tradeorbusinessnames,logos,designrights,copyright(includingcopyrightincomputerprograms),databaserights,semi-conductortypographyrights,know-how,methodologiesandconcepts,togetherwithallgoodwillattachingorrelatingthereto;extendingtoanyrenewalsandextensionsthereof,noworhereafterinforceandeffectinanyjurisdictionwhatsoever.1.8."KnewtonModule"meansthedeliveryofaMathCourseoraMRCModuleviatheSAASServicestoanAuthorizedUserforthedurationofanASUacademicterm.1.9."KnewtonTechnology"meanstheSAASServices,theSoftware,theDocumentation,andanyofKnewton'sproprietarytechnology,includingsoftware,processes,algorithms,userinterfaces,know-how,technologies,designsandothertangibleorintangibletechnicalmaterialorinformationmadeavailabletoASUandAuthorizedUsersbyKnewtoninprovidingtheSAASServices,togetherwithallIntellectualPropertyRightstherein,including,butnotlimitedto,anycomputersoftware(inobjectcodeandsourcecodeform),scripts,programmingcode,data,informationorHTMLscriptdevelopedbyKnewtonoritssuppliers,includinganytradesecrets,knowhow,methodologiesandprocesses).1.10."KnewtonThird-PartySoftware"meansanysoftwarethatisproprietarytoaThirdPartylicensedtoKnewton.
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1.11."MAT142"meansASU'sentry-levelmathcourse("collegemath"),requirementforgraduation.1.12."MAT117"meansASU'scollege-levelalgebracourse.1.13."ProfileData"meansanAuthorizedUser'sfirstandlastname,emailandanyotherlog-ininformation.ProfileDataspecificallyexcludesSensitiveUserInformation.1.14."ServiceCommencementDate"meansJune1,2011,orsuchlaterdateuponwhichtheSAASServices(astoMath-142andReadiness142only)goliveandarefullyoperational.1.15."Software"meansKnewton'sproprietaryweb-basedadaptivelearningplatformthatisusedbyKnewtontoprovidetheSAASServicesandallKnewtonThirdPartySoftwareincorporatedintoorutilizedbytheSoftware.1.16."TerminationPayment"means,intheeventofaterminationpursuanttoSection7.2thatwillresultintheterminationdateoccurring:(i)atanytimefromtheEffectiveDatethroughandincludingthefirst(I")anniversaryoftheServiceCommencementDate:$1,000,000;(ii)atanytimeafterthefirst
(1st)
anniversaryoftheServiceCommencementDatebutpriortothesecond(2
nd)
anniversaryoftheServiceCommencementDate:$750,000;(iii)atanytimeafterthesecond(2
nd)
anniversaryoftheServiceCommencementDatebutpriortothethird(3
rd)
anniversaryoftheServiceCommencementDate:$500,000;and(iv)atanytimeafterthethird(3
rd)
anniversaryoftheServiceCommencementDate:$0..1.17."ThirdParty"meanspersons,corporationsandentitiesotherthanKnewton,ASUoranyoftheiraffiliates.1.18."UsageData"meansanyandallinformationsubmittedbyauser,orotherwisecollectedbyKnewton,inconnectionwithanyuser'saccessandusageoftheSAASServices,including,butnotlimitedto,useandaccessofContent,trackingofuserusage,performancedataandreports,scoreresults,datarelatedtoknowledgeretention,sessionlengths,searchtermsused,andanyotherinformationthatisnotSensitiveUserInformation.UsageDataspecificallyexcludesProfileData,SensitiveUserInformation(asdefined
in
Section6.6below)andASUContent.2.PRODUCTSPECIFICATIONSANDDELIVERY.2.1.ProductDeliverv.KnewtonwilladministeranddelivertheSAASServicestoAuthorizedUsersviatheEducationalProgram.TheEducationalProgramandSAASServices(astoMath-142andReadiness142only)willgoliveandbefullyoperationalonorbeforeMay31,2011(the"1stDeliveryDate");
providedhowever,
thatKnewton'sabilitytomeettheforegoing1stDeliveryDateissubjecttoandconditioneduponthecooperationofASUandtheprovidersofASUThirdPartySoftwareandintheir
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