BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS MEMORANDUM OF UNDERSTANDING BETWEEN BEIJING WEIMING EDUCATION GROUP & TRAVERSE CITY AREA PUBLIC SCHOOLS The goal of this MOU is to outline the opportunity for Chinese students from Weiming Education Group (Chinese Foreign Students or Chinese Foreign Student) to participate in a Two (2) + Two (2) years program whereas the Chinese Foreign Students will study for Two (2) years at Weiming schools in China and subsequently transfer to Traverse City Area Public Schools for Two (2) years to complete their education and earn a US high school diploma. Students from Traverse City Area Public Schools would also have the opportunity to study at one of Weiming’s high schools for summer/winter camps and/or as exchange students. This Memorandum of Understanding (“Memorandum”) is Non-Binding and merely expresses a convergence of common intent between the Parties for discussion/negotiation purposes. Upon the approval of both Parties (including the TCAPS Board of Education), a separate written and binding Agreement shall be executed by both Parties. The overall goal is to promote international education for the Chinese and American students, teachers, and administrators in order to promote greater understanding between our two great countries and global mindedness. Therefore, this document represents the proposed terms and conditions for establishing a Chinese and American student exchange program between Traverse City Area Public Schools (TCAPS), 412 Webster Street, TRAVERSE CITY, Michigan 49686 and Weiming Education Group company (WEG), No.58 BeiSiHuanXiLu, Ideal Plaza, Unit 610, HaiDian District, Beijing, China, 100080. This document serves to outline all requirements, responsibilities, terms and conditions to be used by both Parties in the final executable and binding Agreement between the Parties. SECTION 1: TERM OF THE AGREEMENT: 1.1 The initial term of this Agreement (the “Initial Term”) shall commence on the Effective Date of this Agreement and expires on July 1, 2017 or when all the Chinese Foreign Students have returned home or are released from the program, whichever is earlier (Termination). 1.2 TCAPS and WEG agree to mutually review the Agreement no later than Twelve (12) months prior to its expiration in order to reasonably assess and evaluate the expectations and results. Traverse City Area Public Schools and WEG agree to mutually review the Agreement annually in order reasonably assess and evaluate the expectations and results of the each and every subsequent year. When no material objection is 1 BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS provided by either party at the review, the memorandum of understanding shall extend for another three (3) years beyond its Termination. 1.3 Either party may terminate this Agreement for Cause upon thirty (30) days prior written notice to the other party. For purposes of this Agreement, “Cause” shall mean the failure to comply with any of the terms of this Agreement after being given written notice of such failure and the failure to cure such condition within five (5) days after receipt of such notice. 1.4 Either Party may terminate this Agreement without cause upon twelve (12) months prior written notice to the other party. SECTION 2: PARTIES AND RELATIONSHIP OF PARTIES: 2.1 WEG is retained by TCAPS to help with the establishment of an educational program to enable Chinese Foreign Students from WEG to pursue high school studies at TCAPS with the goal of earning a high school diploma. Graduation from TCAPS is not guaranteed. It is the responsibility of each student to fulfill the TCAPS graduation requirements. 2.2 WEG shall determine its own methods and manner for performing the WEG services within the overall budgets and policies of TCAPS, as the same may be amended from time to time. SECTION 3: SERVICES TO BE PROVIDED BY WEIMING EDUCATION GROUP (WEG): 3.1 Enrollment: WEG shall provide up to Two Hundred (200) Chinese Foreign Students to TCAPS in 11th and 12th grades for each of the 2014– 2015, 2015– 2016, and 2016– 2017 school years. These limits may be raised or lowered in writing upon mutual agreement of both Traverse City Area Public Schools and WEG. 3.2 WEG in cooperation with TCAPS shall arrange the Chinese Foreign Students to take necessary evaluation of English proficiency prior to the admission by TCAPS. TCAPS and WEG shall work together to develop a unified admissions process (Exhibit A – Selection Process for Weiming Students) to minimize any harm to students. 3.3 WEG shall assist TCAPS in the issuance of any and all documents to the Chinese Foreign Students for admission into high school education program in TCAPS. 3.4 Student Lawful Entry: WEG shall be responsible for obtaining F-1 visas for the Chinese Foreign Students from United States Consulates in China. WEG shall also be responsible for bringing Chinese Foreign Students into Traverse City, MI. 2 BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS 3.5 Home Stay: WEG shall facilitate the appointment of Temporary Custodian/Guardianship authority (“Custodian/Guardianship”) regarding each Chinese Foreign Student from the Chinese Foreign Student’s family to the host family. WEG shall provide reimbursement of up to $One Hundred ($100.00) Dollars per week per student to the Host Family. WEG shall pay TCAPS Twenty-Five ($25.00) Dollars per week for administrative and coordination costs associated with the host families. 3.4 Communication: WEG shall coordinate the communication between the Chinese Foreign Students (including their families) and TCAPS on all aspects of Chinese Foreign Students' study, stay and safety. 3.5 Curriculum & Staff: WEG shall work cooperatively with TCAPS to develop a Stage One curriculum for Chinese Foreign Students to meet and/or exceed requirements of Common Core curriculum for 9th and 10th grades. The Curriculum will be adopted in Weiming schools in China. WEG shall send Chinese teachers to Traverse City, MI to be trained or intern in TCAPS public high school on an annual basis. The acceptance any Chinese Teachers into TCAPS classrooms shall be as determined by Traverse City Area Public Schools at its sole discretion. WEG shall provide compensation and living expenses for Chinese teachers. WEG shall recruit, ideally with TCAPS assistance, and provide compensation for American teachers to teach in WEG schools in China. WEG acknowledges and agrees its duties do not require a teaching certificate of any type, regardless whether it, or any of its owners, employees or agents, are so certified. Therefore, WEG agrees it, and its owners, employees and agents do not have and will not acquire tenure under the Teacher Tenure Act and are forever estopped from asserting otherwise. Traverse City Area Public Schools will not withhold or pay any sums, state, federal, or local taxes, including, but not limited to, FICA, FUTA, Unemployment and Michigan Business taxes, MESC insurance or workers’ compensation insurance for WEG (collectively the “Sums and Taxes”). WEG shall indemnify, defend and hold Traverse City Area Public Schools harmless from and against any and all claims, costs and expenses, including reasonable attorney’s fees, for workers’ compensation by or on account of WEG or any of its employees or in connection with the payment of such sums, interest, penalties or costs, including reasonable attorney’s fees, in connection with the collection of any Sums and Taxes. No employee right shall arise or accrue as a result of the performance of this Agreement by WEG. 3 BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS 3.6 Immunization &Health: WEG shall ensure the Chinese Foreign Students with all necessary immunizations in consistence with the Michigan law. WEG shall provide proof of immunizations prior to the Chinese Foreign Students' arrival. WEG shall also subscribe the Chinese Foreign Students to sufficient healthcare insurance coverage for the time of their study in TCAPS and stay with the host families. Intra- and Inter-scholastic sports accidental insurance shall be covered by TCAPS blanket policy and Weiming shall reimburse the cost of Weiming students to such policy. 3.7 Lunch Expense: WEG shall pay the cost of lunch up to $500 for students on the days that the students attend TCAPS public high school. Any necessary additional funding shall be the responsibility of the Student and their Chinese Parents. If necessary, WEG shall notify the Chinese parents to ensure there is adequate additional funding available for each student for lunch. 3.8 Tuition & Payment: WEG shall pay TCAPS the tuition of Eight Thousand Dollars ($8,000) per student for services listed in 4.1 through 4.5 and 4.7 through 4.8, and an additional Two Thousand Dollars ($2,000) per student for the services listed in 4.6 on or just prior to the student arrival. If students return home prior to the start of second semester, half of the tuition shall be reimbursed. If the student returns home after starting the second semester, there will be no reimbursement of tuition. SECTION 4: SERVICES TO BE PROVIDED BY TRAVERSE CITY AREAPUBLIC SCHOOLS (TCAPS): 4.1 Enrollment: TCAPS shall admit up to Two Hundred (200) Chinese Foreign Students in 11th and 12th grades for each of the 2014─2015, 2015─2016, and 2016─2017 school years. Academic credits that Chinese Foreign Students receive from their preceding study in China shall be transferable. TCAPS reserves the right to test each student for the necessary proficiency before placement in academic classes. TCAPS shall also provide appropriate documentation for admission into the high school educational programs in the TCAPS. TCAPS will work with each student to ensure that each student has the opportunity to graduate. 4.2 Student Lawful Entry: TCAPS shall issue Form I-20, Certificate of Eligibility for Nonimmigrant (F-1) Student Status-For Academic and Language Students, and other necessary documentation to the Chinese Foreign Students in order to assist the F-1 visa application. TCAPS shall also work toward securing the necessary college and/or university partnership so that Chinese Foreign Students can obtain a second or third year of study to complete their high school diploma. 4.3 Home Stay: TCAPS shall secure home stays for the Chinese Foreign Students prior to their arrival. WEG acknowledges and agrees that the actual number of host families 4 BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS available is outside the control of TCAPS and the actual number of home stays available may vary from year to year. In the event that no alternative housing is available for any given school year, the number of students accepted by the Traverse City Area Public Schools in that year shall be limited and based solely upon the number of willing Host Families that reside within the District. TCAPS and WEG shall work together to resolve any issues regarding the lack of Host Families, if necessary. If necessary, TCAPS shall provide written proof of its responsibility for securing home stay for visa application. Both Parties acknowledge that the host families shall assume Temporary Custodian/Guardianship of the Chinese Foreign Students. TCAPS shall also provide, if necessary, in district transportation to Chinese Foreign Students for commuting between host families and the school. 4.4 Academic Study: TCAPS will be responsible for the academic study of the Chinese Foreign Students, and shall provide English as a second language (ESL) and tutorial support as needed and determined by eligibility requirements set forth by the State of Michigan, for the academic success of the Chinese Foreign Students. TCAPS will design, implement, and support an orientation program to assist each Chinese Foreign Student with acclimation to the District and its surrounding areas which shall include, but is not limited to weekend and after school activities. TCAPS shall also provide appropriate guidance counseling for course selection. 4.5 College Application: TCAPS shall provide guidance counseling to assist the Chinese Foreign Students to select colleges and universities for which to apply, to apply for scholarships and to fill-out financial aid applications. In essence, TCAPS will provide the same guidance counseling services as the resident TCAPS high school students receive. 4.6 Curriculum& Staff: TCAPS shall work cooperatively with Weiming to develop a Stage One curriculum for Chinese Foreign Students to meet and/or exceed requirements of Common Core curriculum for 9th and 10th grades. The Curriculum will be adopted in Weiming schools in China. TCAPS shall provide opportunities to Weiming Chinese teachers to be trained and/or intern in its public high school in order to assimilate the teaching under Stage One curriculum. TCAPS shall also assist to recruit American teachers for, and/or exchange teachers with Weiming schools in China. 4.7 Stage One Enrollment: TCAPS shall recognize of the enrollment of students in the above mentioned Stage One program at Weiming schools in China. Such recognition shall include, but not limited to, printed and online certification to the admission of the students into the Stage One program and the endorsement to the students' transcripts and credits during their Stage One enrollment. 5 BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS 4.8 Tuition & Refund: TCAPS agrees to charge WEG the tuition of Eight Thousand Dollars ($8,000) per student for services listed in 4.1 through 4.5 and 4.7 through 4.8, and an additional Two Thousand Dollars ($2,000) per student for services listed in 4.6 on or just prior to the student arrival. If students return home prior to the start of second semester, TCAPS shall reimburse half the tuition. If the student returns home after starting the second semester, there will be no reimbursement of tuition. SECTION 5: EXCLUSIVITY AND RIGHT OF FIRST REFUSAL: 5.0 The parties agree that, during the Initial Term and during any Renewal Term, WEG shall be the exclusive authorized entity to operate the program to bring Chinese Foreign Students to TCAPS. WEG acknowledges and agrees that TCAPS and the Dalian University of Technology has a pre-existing relationship and that relationship may continue during the Initial and Renewal Terms of this Agreement notwithstanding any language contained within this Agreement. SECTION 6: GOVERNING LAW: 6.0 This Agreement shall be deemed to have been entered into and to be performed in the State of Michigan and shall be governed, construed, and enforced in accordance with the laws of the State of Michigan. Any dispute over the terms of this Memorandum will be resolved by a court located in Grand Traverse County, Michigan SECTION 7: ENTIRE AGREEMENT 7.0 The parties agree that this Memorandum of Understanding constitutes the entire agreement between them and that it supersedes any and all promises or agreements, oral or written, related to the enrollment of Chinese students in the District. NOTICE: Any and all notices, designations, consents, offers, acceptance or other communications provided for herein shall be given to either party in writing, 6 BEIJING WEIMING EDUCATION GROUP – TRAVERSE CITY AREA PUBLIC SCHOOLS To Traverse City Area Public Schools: Attn: Stephen Cousins Superintendent Traverse City Area Public Schools Traverse City, MI 49686 To Weiming Education (Hong Kong) Limited: (a Weiming Education Group company) Attn: Lin Hao President & CEO Unit 610, 6th Floor, Ideal Plaza No. 58 BeiSiHuanXiLu, Haidian District Beijing, China, 100080 Traverse City Area Public Schools Weiming Education (Hong Kong) Limited By:_________________________________ Stephen Cousins By:_________________________________ Lin Hao Its: Superintendent Its: President & CEO 7