PROFESSIONAL SERVICES AGREEMENT THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this first day of July, 2016, by and between AlphaCom, Inc. (“Vendor”) an Indiana Corporation and Indiana Virtual Education Foundation, Inc., (“Client”) an Indiana Non-Profit Corporation doing business as Indiana Virtual School. WITNESSETH: WHEREAS, Vendor is in the business of providing consulting, technology, and administrative/facility support services; and WHEREAS, Client desires to engage Vendor to perform services for its school known as Indiana Virtual School as provided in this Agreement, and Vendor desires to perform these services. NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 1. Services to be provided. Vendor agrees to be engaged by the Client to provide consulting, technology, and administrative/facility services including but not limited to: a. School Operations Services, to include support staffing, including strategic and tactical; b. Support Services, to include administrative, social and special needs; c. Facilities Services, to include security, maintenance, utilities, hazardous weather, communications/internet, housekeeping, etc.; supplies; d. Web Site Content development, modifications and professional development, search engine optimization, and related portal services, the text content of which (“Content”) is to be owned by Client. Vendor shall, if requested, sign all documents that are reasonably requested by Client to ensure that ownership of all works relative to the Client’s website created by Vendor on Client’s behalf, as well as the Content, reside in Client; e. Grant Writing and Fund Raising services; and, f. Any other services requested by Client, and agreed to by Vendor. 2. Compensation. a. Standard Services. Client agrees to pay Vendor for services rendered in the following categories: (i) Facility Operations; (ii) Student Services; and (iii) Technology/Connectivity, all as set forth in more detail in Exhibit “A” attached hereto and incorporated herein by reference. b. Additional Services. Client shall compensate Vendor for all additional services provided hereunder by Vendor’s employees and/or independent contractors (other than those services described in Section 2(a)) at the standard rates established pursuant to Exhibit “A”. c. Travel. Client acknowledges and agrees that Vendor shall be entitled to charge Client for travel time; however, charges for travel time to locations within Marion County, Indiana, shall not exceed one (1) hour travel time per trip. 1 d. Rate Changes. Vendor may change its hourly rates and billing policies at the end of the “initial term” of this Agreement and at the end of each “renewal term” hereof, effective for the following “renewal term”. Vendor shall give written notice to Client of its new hourly rates and billing policies at least sixty (60) days prior to the expiration of the “initial term” or “renewal term.” Client may reject the proffered changes in hourly rates and billing policies by giving written notice of non-renewal as provided in Section 5(b). e. Status. Compensation payable to Vendor hereunder shall be remitted gross, it being the intention of the parties that Vendor is in all respects an independent contractor to Client. Neither party shall hold itself out as an agent, partner or joint venturer of the other party, it being the parties’ intention that each party is an independent contractor. f. Taxes; Withholdings. Vendor shall be solely responsible for the payment of all taxes on compensation paid to Vendor hereunder, and shall indemnify and hold harmless Client against all losses, claims, damages and expenses, including reasonable attorneys' fees and costs, arising out of any claims for taxes arising out of the payment of compensation hereunder to Vendor, other than taxes based on the income of Client. Client shall deduct all amounts it is required to deduct by law. 3. Expenses. Vendor shall charge Client for all expenses incurred by Vendor in the course of performing its duties hereunder, if allocation and payment of the expenses are not already addressed by the provisions of Section 1 above. 4. Invoices and Payment Terms. Vendor shall submit invoices to client at the end of each calendar month for services provided and expenses incurred during that month. Client shall pay all invoices in full within thirty (30) days after prior month end close. 5. Term; Termination. a. Initial Term. This Agreement shall remain in full force and effect through the duration of the Agreement between the Indiana Virtual School’s Authorizer and Indiana Virtual School (the “Initial Term”), unless otherwise terminated as provided herein. b. Renewal Terms. This Agreement shall automatically be renewed for a period of one (1) year (July 1 through June 30) (each a “Renewal Term”) at the end of the Initial Term and each Renewal Term hereof, upon the same terms and conditions set forth herein, unless either party gives written notice to the other that this Agreement shall not be so renewed at least ninety (90) days prior to the expiration of the Initial Term or any such one-year Renewal Term. c. Termination. This Agreement may be terminated: i. Mutual: At any time determined by the parties by mutual agreement in writing, which termination shall be effective on the date specified in the writing; ii. By Vendor: By Vendor “for cause”, including, without limitation, Client’s failure to make any payment required hereunder in a timely manner (and failure to cure the payment default during any cure period), Client’s material breach of this Agreement (which is not cured during any cure period), Client’s failure or refusal to perform its obligations hereunder (which is not cured during any cure 2 period). All such terminations shall be effective immediately upon written notice to Client. iii. By Client: By Client “for cause”, based on Vendor’s material breach of this Agreement which is not cured during the cure period, if any, provided herein or at law. Any such termination will be effective on the date that is 90 days following transmission of written notice to Vendor unless (x) the breach can feasibly be cured; and (y) prior to expiration of the 90-day period, Vendor has undertaken and is continuing with concerted efforts to cure the breach. Client shall pay Vendor all sums due hereunder not later than thirty (30) days after termination or expiration of this Agreement. 6. Representations and Warranties. a. By Client: Client represents and warrants to Vendor as follows: i. Client has full power and authority to execute, deliver and perform this Agreement, and doing so will not violate or contravene any provisions of law or result in a breach or constitute a default under any contract or agreement to which Client is a party. This Agreement constitutes a valid and binding agreement of Client, enforceable against Client in accordance with its terms. ii. Client is a non-profit corporation duly organized and validly existing in good standing under and by virtue of the laws of the State of Indiana. The execution and delivery by Client of this Agreement and the performance of Client’s obligations hereunder have been duly authorized and approved by the Client’s Board of Directors or other appropriate persons. Client has full power and authority to execute, deliver and perform this Agreement, and doing so will not violate or contravene any provision of law, the Articles of Incorporation, ByLaws or other organizational documents of Client. b. By Vendor: Vendor represents and warrants to Client as follows: i. Vendor has full power and authority to execute, deliver and perform its obligations under the Agreement, and doing so will not violate or contravene any provisions of law or result in a breach or constitute a default under any contract or agreement to which Vendor is a party. This Agreement constitutes a valid and binding agreement of Vendor, enforceable against Vendor in accordance with its terms. ii. Vendor is a corporation organized and existing and in good standing under and by virtue of the laws of the State of Indiana. The execution and delivery by Vendor of this Agreement and the performance of Vendor’s obligations hereunder have been duly authorized and approved by all necessary corporate actions and approvals. c. Effect of Expiration or Termination. The representations and warranties made by Client and Vendor herein shall survive the termination or expiration of this Agreement. 7. Remedies. a. Breach by Client: In the event of a breach by Client of this Agreement, Vendor shall have all remedies available to Vendor at law or in equity, and under this Agreement, and Vendor may; 3 i. cease all work to be performed by Vendor hereunder without the cessation constituting a breach of this Agreement, and in these circumstances, Vendor shall return all records to Client within five (5) days; and ii. institute and prosecute proceedings in any court of competent jurisdiction, either in law or in equity, to obtain damages limited to cost incurred to date of termination for any breach of this Agreement, to enforce the specific performance hereof by Client or to obtain any other available remedy. b. Breach by Vendor: In the event of the breach by Vendor of this Agreement, Client shall have all remedies available to Client at law or in equity, and Client may: i. Direct Vendor to return all records to Client within five (5) days of date of termination; and ii. institute and prosecute proceedings in any court of competent jurisdiction, either in law or in equity, to obtain damages for any breach of this Agreement, to enforce the specific performance hereof by Vendor (if available) or to obtain any other remedy. c. Fees and Costs. Each party in any litigation brought under this Agreement shall pay for their own cost of litigation and legal fees. 8. Governing Law; Jurisdiction and Venue. This Agreement is made and to be performed in the State of Indiana and shall be governed by the internal laws of the State of Indiana without application of any principles of conflict of laws. All actions arising out of or in any way related to this Agreement shall be brought and maintained exclusively in the state or federal courts located in Marion County, Indiana. The parties hereby waive all defenses premised upon questions of personal jurisdiction or venue in any such action and the application of the doctrine of forum non-conveniens and all similar doctrines, rules or principles. 9. Notices. Any notice given hereunder shall be in writing, and shall be given by (i) personal delivery, (ii) United States registration or certified mail, postage prepaid, or (iii) a nationallyrecognized courier via overnight delivery. In each case, notice shall be addressed to the party at the address stated below, or to such other address as may be designated in writing by the party to be served in accordance with this section. Notices shall be deemed to have been given (i) on the day received if transmitted by personal delivery, (ii) two (2) business days after the date on which the notice is sent by registered or certified mail, and (iii) one (1) business day after the notice is sent via nationally-recognized courier as provided above. If to Vendor: AlphaCom, Inc. 510 E. 96th Street, Suite #190 Indianapolis, IN 46240 If to Client: Indiana Virtual Education Foundation, Inc./Indiana Virtual School 500 E. 96th Street, Suite #400 Indianapolis, IN 46240 4 10. Assignment. Neither party hereto shall, without the prior written consent of the other, assign or transfer this Agreement or any rights or obligations hereunder, which consent shall not be unreasonably withheld. 11. Non-Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or conditions. 12. Severability. The invalidity or unenforceability of any term or provision of this Agreement, or any clause or portion thereof, shall in no way impair or affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 13. Entire Agreement; Modifications. This Agreement, together with the exhibits hereto, embodies the entire understanding between the parties with respect to the subject matter hereof. All prior correspondence, conversations, or memoranda have been merged herein and replaced hereby. This Agreement replaces any previous Agreement between Client and Vendor and all previous agreements are null and void. No change, alteration or modification hereof may be made except in writing signed by both parties hereto. 14. Headings; Recitals. The headings in this Agreement are intended solely for the convenience of reference and shall be given no effect in the construction or interpretation hereof. The parties affirm that the recitals are true, accurate and complete and form a part of this Agreement as if fully set forth herein. 15. Licenses; Insurance. Each party shall maintain all required licenses, if any, required of them by law, statute, regulation or ordinance. Each party shall also maintain adequate comprehensive general liability insurance coverage with a reputable insurance company. 16. Intellectual Property Rights. a. License; Ownership. Vendor grants Client a limited, revocable, non-transferable license (“License”) to use any intellectual property (“Intellectual Property”) made available by Vendor to Client pursuant to this Agreement, including, without limitation, modified or developed course programs (“Course Programs”). Client shall have no right to sublicense the Intellectual Property, provided, however, that Client may provide temporary revocable licenses to enrolled students for use of any Course Programs made available by Vendor for the courses in which the students are enrolled, which temporary licenses expire on the students’ completion of the course or withdrawal from the course, whichever first occurs. This Agreement confers no license or rights by implication, estoppel, or otherwise. The Intellectual Property shall be used by Client solely for the purposes identified by Vendor and agreed to by the parties, and for no other purposes. Notwithstanding the grant of a limited licenses to Client and the allowance of the grant of temporary revocable licenses for Course Programs, Vendor shall retain full, absolute and complete ownership of all Intellectual Property including all modifications or enhancements to the Intellectual Property that may be made by Client. Client shall, if requested, promptly execute all documents necessary to convey to Vendor and/or confirm ownership of any modifications or enhancements by Vendor. 5 b. Infringement. Vendor makes no representations or warranties to Client as to whether the Intellectual Property or Client’s use of the Intellectual Property may infringe or be alleged to infringe on the intellectual property rights of third persons. c. Modifications. Client shall not modify or attempt to reverse engineer any Intellectual Property licensed to Client hereunder without the prior, written consent of Vendor, which consent may be unreasonably withheld. d. Term; Termination. The License shall terminate automatically without further action by Vendor on termination or expiration of the Agreement, unless the License is earlier terminated by Vendor. On termination of the License, Client shall immediately cease all use of the Intellectual Property and shall return all copies of Intellectual Property to Vendor. This License shall terminate immediately upon: (i) Client ceasing to conduct business as a going concern; (ii) Client commencing a case under Title 11, United States Code, or such a case is commenced against it; or becomes insolvent, or is the subject of the appointment of a receiver or an assignment for the benefit of creditors or some other similar proceeding. Vendor may terminate the License on ten (10) business days’ notice to Client in the event Client breaches this Agreement and fails to cure the default within any cure period hereunder. e. Warranties. VENDOR MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE of any material or Intellectual Property provided to or made available to Client hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day of and year first written above. “VENDOR” AlphaCom, Inc. By: __________________________________ Printed: Christopher VanWinkle Title: President “CLIENT” INDIANA VIRTUAL EDUCATION FOUNDATION, INC. By: __________________________________ Printed: James Tilford Title: Treasurer 6 EXHIBIT A ALPHACOM, INC. 2016-17 Professional Services Rates All information contained herein is considered confidential and privileged. It is intended for purpose of documenting detailed compensation related directly to the negotiation of the services provided to the Client by AlphaCom, Inc. It is understood, by and between the parties, all services performed on behalf of the Client shall be executed in accordance with the terms and conditions set forth in the written agreement herein above. Consulting, Technology & Administrative/Facility Services Fees 1.) AlphaCom, Inc., will maintain a services fee rate equal to Ten percent (10%) of the Basic Grant disbursement per student for Operations. The “basic grant disbursement” amount shall be calculated jointly by the parties based on information from the Indiana Department of Education and other sources. The percentage amount will remain static to an enrollment level of 5,000 students. Upon attaining 5,000 students, any additional students from 5,001 through 7,500 will be charged at a rate of Eight and one-half percent (8.5%) of the Basic Grant disbursement Any additional students from 7,501 to 10,000 will be charged at a rate of Seven Percent (7%) of the Basic Grant disbursement all enrollment Once the school attains the enrollment of 10,000 students, all remaining students from 10,001 and up will be charged at a rate of Six Percent (6%) of the Basic Grant disbursement. 2.) AlphaCom, Inc., will maintain a rate equal to $20.00 per student for all educational platform technology services to include, but not limited to, portal, connectivity, maintenance, general updates. Any additional services such as management systems development, course development, and course modification will be billed on a per job basis at an hourly rate comparable to the industry standards. 3.) AlphaCom, Inc., will maintain a rate equal to $15.00 per student for any standardized educational services provided by schools that are not “Brick-and-Mortar” processes. All specialized services such as Individual Education Plans will be billed at a market standard for the services utilized, per student, or $175.00 per hour, as it relates to special needs. 7