Exhibit 10.27
EXECUTION COPY
CONFIDENTIAL TREATMENT REQUESTED UNDER
17 C.F.R. SECTIONS 200.80(b)(4), 200.83 AND 230.24b-2.
[*****] INDICATES OMITTED MATERIAL THAT IS THE
SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST
FILED SEPARATELY WITH THE COMMISSION.
THE OMITTED MATERIAL HAS BEEN FILED
SEPARATELY WITH THE COMMISSION.
BETWEEN
CLEARWIRE COMMUNICATIONS LLC
AND
INTEL CORPORATION
EXECUTION COPY
TABLE OF CONTENTS
SECTION REFERENCES
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1. PREAMBLE |
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4 |
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2. PURPOSE AND SCOPE |
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3. TERM AND MVNO OPTION |
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4. DEVICE EMBEDDING RATES, DISTRIBUTION INCENTIVES AND EMBEDDING SUPPORT ACTIVITIES |
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5. ACTIVATION FEES FOR EMBEDDED DEVICES |
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6. CLEARWIRE COMMUNICATIONS NETWORK DEPLOYMENT |
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7. REMEDIES FOR MISSED PERFORMANCE TARGETS |
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8. [*****] |
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9. DATABASE, TRACKING OF ACTIVATIONS AND AUDITS |
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10. MARKETING AND CO-BRANDING |
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11. [*****] |
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12. REVENUE SHARE |
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13. RESERVED |
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14. OPEN PATENT ALLIANCE |
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15. QUARTERLY MANAGEMENT REVIEW |
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16. REPORTS AND PAYMENTS |
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17. PRIOR AGREEMENTS |
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18. WIMAX DEVELOPMENT ROADMAP AND SUPPORT |
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25 |
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19. RESERVED |
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27 |
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20. WIMAX CHIPSET SOURCING TERMS |
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THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE
COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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21. COLLABORATION ON GLOBAL ADOPTION |
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22. CUSTOMER RELATIONS |
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23. DEMONSTRATION AND TEST ACCOUNTS |
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24. NETWORK DATA |
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25. INTELLECTUAL PROPERTY OWNERSHIP |
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26. DISCLAIMER OF WARRANTIES |
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27. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF INTEL |
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28. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF CLEARWIRE COMMUNICATIONS |
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29. CONFIDENTIAL INFORMATION |
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30. SEC FILING |
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31. INDEMNITY |
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32. LIMITATION OF LIABILITY |
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33. TERMINATION |
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34. REGULATORY REQUIREMENTS AND STANDARDS |
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35. COMPLIANCE WITH LAWS |
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36. MARKS |
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37. TAXES, DUTIES AND APPLICABLE TAX LAWS |
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38. FORCE MAJEURE |
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39. NOTICES |
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44 |
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40. RESERVED |
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41. CHOICE OF LAW; DISPUTE RESOLUTION |
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42. SEVERABILITY |
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THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE
COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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43. SURVIVAL |
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44. BINDING EFFECT; ENTIRE AGREEMENT |
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45. AMENDMENTS; NO WAIVER |
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46. CONSTRUCTION AND INTERPRETATION |
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47. INCORPORATION BY REFERENCE |
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48. COUNTERPARTS; FAX SIGNATURES |
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INDEX OF APPENDICES
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Appendix A
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Definitions List |
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Appendix B
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Intel MVNO Bundling Requirements |
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Appendix C
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Method of Measuring POPs Coverage |
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Appendix D
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[*****] |
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Appendix E
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Technical Performance Requirements |
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Appendix F
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Trademark License Agreement |
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Appendix G
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RFI/RFP Provisions |
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE
COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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This
Market Development Agreement (“
Agreement”) dated November 28, 2008, is by and between
Clearwire Communications LLC, a
Delaware limited liability company (“
Clearwire
Communications”), having an office at 0000 Xxxxxxxx Xxxxx, Xxxxxxxx, XX 00000 and
Intel
Corporation, (“Intel”) a
Delaware corporation, having an office at 0000 Xxxxxxx Xxxxxxx Xxxxxxxxx,
Xxxxx Xxxxx, Xxxxxxxxxx, 00000. Clearwire Communications and Intel are each a “
Party”, and
collectively are referred to as the “
Parties”. Initially capitalized terms not defined
when first used are defined in
Appendix A, “
Master Definitions List”.
1. PREAMBLE
1.1 WHEREAS, Clearwire Communications, together with various subsidiaries and affiliated
companies, owns, controls, and operates telecommunications systems and is licensed by the
FCC to provide telecommunications and information services over the 2.5GHz spectrum in
specified market segments;
1.2 WHEREAS, Clearwire Communications is in the process of building and deploying a wireless
broadband 2.5 GHz telecommunications network in the United States using the WiMAX technology
standard;
1.3 WHEREAS, Clearwire Communications desires that its Customers be able to use a variety of
WiMAX enabled Devices on the Clearwire Communications Network;
1.4 WHEREAS, Intel has developed, and intends to develop, one or more WiMAX Chipsets
suitable for embedding in Devices;
1.5 WHEREAS, Clearwire Communications and Intel wish to work together to market and promote
WiMAX to consumers and original equipment manufacturers of Devices in an effort to
accelerate deployment and adoption of WiMAX Devices and WiMAX Services in the United States;
1.6 WHEREAS, Sprint and Intel, and Clearwire and Intel, have each previously entered into
separate agreements for the development and deployment of WiMAX-based chipsets and a
WiMAX-based network;
1.7 WHEREAS, Clearwire Communications’ predecessor in interest and Intel are entering into
the Transaction Agreement pursuant to which Intel will make an investment
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION
OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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in Clearwire Communications at the Closing (as defined therein) thereunder, the occurrence
of which is a condition precedent to the Parties entering into this Agreement.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
2. PURPOSE AND SCOPE
2.1 Under this Agreement, the Parties contemplate the good faith commitment by Clearwire
Communications to deploy the Clearwire Communications Network in the United States and
promote the use of Qualifying Intel Devices, and Intel’s good faith commitment to develop,
market, sell, and support certain WiMAX Chipsets for use in Devices that may be used on the
Clearwire Communications Network.
2.2 The objective of the Parties is to jointly accelerate deployment and adoption of WiMAX
products and services in the United States across a broad array of devices for use on the
Clearwire Communications Network, by the deployment of the Clearwire Communications Network
and, subject to applicable law, by providing incentives to OEMs and ODMs to incorporate
WiMAX Chipsets into Devices in commercial quantities as soon as possible. To that end,
Clearwire Communications is making certain commitments to build out the Clearwire
Communications Network, and Intel is making certain commitments to meet certain Embedding
Rates. Intel and Clearwire Communications also, among other things, are agreeing to certain
appropriate [*****] commitments, subject to applicable law, to accelerate the deployment and
adoption of WiMAX products and services by OEMs and ODMs.
2.3 Both Parties understand that their efforts to accelerate deployment and adoption of
WiMAX products and services are, among other things, dependent on competitive pricing of
WiMAX Chipsets and WiMAX broadband Services that are sufficiently low to encourage OEMs and
ODMs to incorporate WiMAX Chipsets into a large segment of OEM and ODM Device product lines
and to encourage a large number of potential Clearwire Communications Customers to use WiMAX
broadband Services on the Clearwire Communications Network.
3. TERM AND MVNO OPTION
3.1 The term of this Agreement will be from the date that this Agreement has been executed
by both Parties (“Effective Date”) and for seven (7) years thereafter (the
“Initial Term”). After the Initial Term, but only for so long as Intel (a) each
year after the Initial Term continues to meet its Annual Spending Requirements, (b) each
year after the Initial Term achieves an Embedding Rate of not less than [*****] (c) each
year after Year Six achieves an Embedding Rate for [*****] that is greater than or equal to
[*****] of the Embedding Rate that was achieved by Intel in the prior year for each such
Device, provided that the Embedding Rate is never less than [*****] and (d) is not
otherwise in material breach of this Agreement at the time of commencement of an Intel
Renewal
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION
OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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Term, then Intel may, at its sole option, extend this Agreement for successive one (1) year
terms (each an “Intel Renewal Period”) up to a maximum of thirteen (13) times for a
total potential term of twenty (20) years by giving written notice to Clearwire
Communications of Intel’s election to renew at least ninety (90) calendar days before the
expiration of the Initial Term or an Intel Renewal Period, as applicable. Notwithstanding
the foregoing, if Intel has elected to extend this Agreement for the maximum period set
forth in the preceding sentence, then beginning with the twentieth (20th) year, this
Agreement will automatically renew for successive one (1) year renewal periods (each a
“Renewal Period”), provided however that at the beginning of the twentieth (20th)
year of this Agreement or no later than the first day of any subsequent year, either Party
my terminate this Agreement by giving written notice to the other Party at least one (1)
year prior to the commencement of the next Renewal Period (for example only, if this
Agreement were extended by Intel through the twentieth (20th) year, Clearwire Communications
may terminate this Agreement effective at the end of the twentieth (20th) year by giving
written notice to Intel no later than the first day of the twentieth (20th) year). The
Initial Term, together with any applicable Intel Renewal Periods and any applicable Renewal
Periods, is referred to as the “Term.”
3.2 3G MVNO Option. Concurrent with the execution of this Agreement and subject to the
provisions of Section 3.3 below, the Parties contemplate that Intel will enter into
a separate written agreement with a Sprint subsidiary pursuant to which Intel and the Sprint
subsidiary will agree upon the terms and conditions under which Intel shall, if it so
elects, have the right to become a Party (as defined therein) to that certain MVNO Support
Agreement dated as of May 7, 2008, as amended, modified or supplemented from time to time
(the “3G MVNO Agreement”) among Sprint Spectrum; Comcast MVNO II, LLC; TWC Wireless,
LLC; and BHN Spectrum Investments, LLC.
3.3 At any time during the Initial Term, Intel shall have the right to elect to become
either (a) a Party (as defined therein) to that certain 4G MVNO Agreement dated as of the
Effective Date, as amended, modified or supplemented from time to time (the “4G MVNO
Agreement”) among Clearwire Communications; Sprint Spectrum; Comcast MVNO II, LLC; TWC
Wireless, LLC; and BHN Spectrum Investments, LLC (a “4G MVNO Election”), or (b) a
Party to both the 4G MVNO Agreement and the 3G MVNO Agreement (a “Combined MVNO
Election”). Any 4G MVNO Election shall be on terms and conditions that are the same as
those offered to any MSO Member who is a Party (as defined therein) to the 4G MVNO
Agreement with Clearwire Communications, executed concurrently with this Agreement, and
which will include an obligation on Intel to bundle additional services with WiMAX access
service (whether such additional services are Intel branded or are provided through an
arrangement with a third party provider of additional services) as provided in Appendix
B to this Agreement (the “Intel Bundled Services”), subject to the following
conditions:
3.3.1 At both the time of any 4G MVNO Election or Combined MVNO Election, and at the
time a 4G MVNO Election or a Combined MVNO Election
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL
INFORMATION OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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becomes effective, Intel must (a) be in compliance with its Intel MDF commitment in
the calendar year just prior to when the 4G MVNO Election or Combined MVNO Election
becomes effective in accordance with Section 10.1, (b) have met its
Embedding Rate commitment for the year just prior to when the 4G MVNO Election or
Combined MVNO Election becomes effective for [*****] as provided in Table
4.1, and (c) not be in material breach of this Agreement; and
3.3.2 If Intel makes a 4G MVNO Election or a Combined MVNO Election in the first
three (3) years of this Agreement, then this Agreement shall terminate three (3)
years after the Effective Date. If Intel makes a 4G MVNO Election or Combined MVNO
Election more than three (3) years after the Effective Date, but before the end of
the seventh year of this Agreement, then this Agreement shall terminate at the time
such 4G MVNO Election or Combined MVNO Election becomes effective. In either case,
if Intel exercises either a 4G MVNO Election or a Combined MVNO Election, it will do
so in good faith by making commercially reasonable efforts to (a) develop, promote,
and sell a WiMAX mobile broadband service, and (b) make available WiMAX chipsets to
OEMs for, and work with such OEMs to accomplish, the embedding of WiMAX Chipsets in
Intel Devices during the seven (7) year period immediately following the Effective
Date.
3.4 Procedure for making a MVNO Election. If Intel makes a 4G MVNO Election, it will do so
by delivery of the joinder agreement that is an exhibit under the 4G MVNO Agreement. If
Intel makes a Combined MVNO Election, it will do so by delivery of the joinder agreement
that is an exhibit under both the 3G MVNO Agreement and the 4G MVNO Agreement. Prior to
execution of a joinder agreement, Clearwire Communications will provide to Intel copies of
amendments, if any, to the 3G MVNO Agreement and 4G MVNO Agreements.
3.5 Notwithstanding anything to the contrary in this Agreement or in the 4G MVNO Agreement
between the Parties, and notwithstanding anything to the contrary in the 3G MVNO Agreement
between Intel and a Sprint subsidiary, if Intel is in material breach of this Agreement
and/or in material breach of any 4G MVNO Agreement between the Parties, or is in material
breach of any 3G MVNO Agreement between Intel and a Sprint Subsidiary, and has not cured
such material breach as provided for in this Agreement for breaches related to this
Agreement or any such 4G MVNO Agreement for breaches related to such 4G MVNO Agreement or
any such 3G MVNO Agreement, then Clearwire Communications may terminate this Agreement and
the 4G MVNO Agreement (solely with respect to Intel and not as to any other party to such
agreements) between the Parties by giving written notice of termination to Intel.
4. |
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DEVICE EMBEDDING RATES, DISTRIBUTION INCENTIVES AND |
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION
OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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EMBEDDING SUPPORT ACTIVITIES |
4.1 Intel Device Commitments.
4.1.1 Intel shall achieve the Embedding Rate for Intel-Based Devices as set forth in
Table 4.1 and, if Intel elects to extend this Agreement under Section
3.1, in Section 4.1.2 below:
TABLE 4.1
Intel Embedding Rate Commitment for [*****]
Sold to [*****]
[*****]
4.1.2 Notwithstanding anything to the contrary, during the Initial Term, [*****].
4.2 Annual Reviews and Embedding Rate Targets. Within forty-five (45) days after June 30 of
each year as part of the Parties’ annual goal setting process, Intel shall translate the
Embedding Rates specified above into [*****] for the forthcoming year. Intel shall use
commercially reasonable efforts to obtain relevant sales data from its OEMs and their
respective distributors in order to determine the number of [*****] that are sold to [*****]
each year. If Intel is, after using commercially reasonable efforts, unable to obtain such
data, the Parties shall meet and confer in good faith and shall agree on a mutually
acceptable method of determining the number of [*****] that are sold to [*****] each year.
4.3 [*****]. Except as otherwise provided in this Agreement, subject to applicable law,
[*****] Clearwire Communications shall not directly or indirectly provide [*****].
4.4 [*****].
4.5 Design-Win and Design-In Engineering and Validation Support. During the Term, Intel
shall provide and perform appropriate and necessary Design-Win and Design-In engineering and
validation support for such activities as thermal and electrical testing, layout, antenna
specification design and placement, and lab/field testing to ensure that Qualifying [*****]
are available for use, and function properly, on the Clearwire Communications Network.
4.6 Interoperability Testing. As part of its support of its OEM and ODM customers and
certain other third parties, Intel shall support and coordinate IOT on the Clearwire
Communications Network to ensure Qualifying Intel Devices, infrastructure equipment, and
services interoperate pursuant to a mutually agreed upon IOT schedule, which IOT schedule
the Parties will use good faith efforts to accomplish promptly after execution of
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION
OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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this Agreement. Clearwire Communications shall coordinate with Intel to facilitate any
required IOT with the OEMs and ODMs that manufacture Qualifying [*****] that are intended to
operate on the Clearwire Communications Network, and upon Intel’s reasonable request,
Clearwire Communications shall make its personnel reasonably available to discuss the
Clearwire Communications Network with OEMs that manufacture Qualifying [*****] in an effort
to reasonably assist Intel in meeting its Embedding Rate commitments.
4.7 Automatic Updates. Intel shall make commercially reasonable efforts to implement and
make available to consumers one or more systems that will provide automatic software updates
including without limitation new releases, correction patches, bug fixes and promotional
offers, to Devices containing Qualifying WiMAX Chipsets.
4.8 Device Certification.
4.8.1 Streamlined Certification Requirements. Certification requirements for
Devices on the Clearwire Communications Network shall conform to the certification
standards established by the WiMAX Forum and any additional reasonable streamlined
certification requirements established by Clearwire Communications. If such
certification requirements require access to Clearwire Communications facilities
and/or personnel, Clearwire Communications shall provide the same level and scope of
access to Intel or Intel’s designated third party engineering partners (subject to
execution of an appropriate non-disclosure agreement by such third party engineering
partners), as Clearwire Communications provides to other parties seeking
certification. Access shall not be unreasonably withheld or delayed. Clearwire
Communications shall make available to Intel or its designated third party
engineering partners estimated schedules and timelines for the streamlined
certification process to support the development of product launch timelines.
4.8.2 The certification requirements and Clearwire Communications’ Quarterly
Services Roadmap are among other things Clearwire Communications anticipates
discussing with its MSO Members during the Forum discussions between such parties.
Clearwire Communications shall use good faith reasonable efforts to include
provisions in its MVNO agreements that afford Intel the opportunity to participate
in all Forum discussions between Clearwire Communications and the MSO Members. If
Intel is unable to participate as described herein, Clearwire Communications will
provide a reasonably detailed update to Intel of Clearwire Communications’ Quarterly
Services Roadmap after each Forum meeting, unless such information is deemed
confidential by the members of the Forum.
4.8.3 The Parties will confer in good faith to discuss support and certification for
Non-Standard Network Service features, but Intel shall not be obligated to support
any such non-standard features.
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION
OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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4.8.4 Intel will be responsible for the certification identified in Section
4.8.1, including any associated costs incurred by Intel directly and reasonable
associated direct costs of Clearwire Communications, if requested by Clearwire
Communications, for any Qualifying Intel Devices on the Clearwire Communications
Network (“Certification Costs For Intel Qualifying Devices”) consistent with
the certification process described in this Agreement provided however that such
Certification Costs For Intel Qualifying Devices are no greater than any other cost
reimbursement Clearwire Communications receives from any other third party for such
certification process. In the event Clearwire Communications requests Intel to
reimburse Clearwire Communications for such Certification Costs For Intel Qualifying
Devices, Clearwire Communications will first provide Intel with written
documentation estimating such Clearwire Communications Certification Costs For Intel
Qualifying Devices and upon completion of such certification all final documentation
specifying in detail the actual Clearwire Communications Certification Costs For
Intel Qualifying Devices.
5. ACTIVATION FEES FOR EMBEDDED DEVICES
5.1 Payments to Intel. Commencing on the Start Date and for the period specified in
Table 5.1 below, as consideration for Intel achieving the Embedding Rates set forth
in Section 4.1 above, Clearwire Communications shall pay to Intel Embedded Device
Activation Fees as set forth in Table 5.1 below, subject to any adjustments, for
each Qualifying Intel Device Activated on the Clearwire Communications Network:
THIS DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION
OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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TABLE 5.1
Intel Embedded Device Activation Fees
[*****]
5.2 [*****]. Subject to Section 5.2.1., Embedded Device Activation Fees shall
[*****].
5.2.1 [*****]. Notwithstanding the provisions of
Section 5.2, [*****]:
[*****]
5.2.2 [*****], then in order to determine whether [*****] in Section 5.2
above [*****] under Section 5.1, [*****] as the basis for calculating the
amount of [*****] referenced in Section 5.2, and the resulting amount will
be used to determine if [*****]. Unless the Parties agree otherwise, the method of
calculation in this Section 5.2.2 shall not apply to [*****] and the
provisions of Section 5.2 shall be used to determine if [*****].
5.3 [*****]. If in any year (as measured on the first day of July for the preceding twelve
(12) month period) [*****]. For the purposes of this Section 5.3, [*****] as
provided in this Section 5.3, then within thirty (30) calendar days after the
[*****] in this Section 5.3. For the avoidance of doubt, the Parties acknowledge
that the [*****] under this Agreement.
5.4 [*****]. Clearwire Communications will pay to Intel the Embedded Device Activation Fees
due in accordance with the payment terms specified in Section 16.3. Subject to
Section 5.2, the Parties agree that [*****].
5.5 Clearwire Communications and Intel shall engage in good faith discussions regarding
Embedded Device Activation Fees and/or other joint activities to agree on [*****].
Notwithstanding anything to the contrary in this Agreement, until the Parties have (a)
agreed that a particular [*****] and (b) agreed upon deliverables specific to those agreed
upon [*****]. Nothing herein shall obligate either Party to enter into an agreement
concerning [*****].
6. CLEARWIRE COMMUNICATIONS NETWORK DEPLOYMENT
6.1 Clearwire Communications shall achieve the POPs Coverage set forth in Table
6.1 below:
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OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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TABLE 6.1
Clearwire Communications POPs Coverage Commitment
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POPs Coverage to be Achieved by Clearwire |
Time Period |
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Communications |
[*****] |
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[*****] |
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6.2 Network Coverage Service Level. Solely for the purposes of this Section 6 and
for no other purpose, Clearwire Communications’ POPs Coverage shall be determined by the
methodology set forth on Appendix C to this Agreement.
6.3 Notwithstanding anything to the contrary in this Agreement, if Clearwire Communications
has (or in the case where December 31, 2008 is prior to the Effective Date, then if
Clearwire and Sprint acting independently have in the aggregate) [*****]. If Clearwire
Communications (or in the case where December 31, 2008 is prior to the Effective Date, then
if Clearwire and Sprint acting independently but in the aggregate) [*****]. Notwithstanding
anything to the contrary in this Agreement, [*****]. In the event December 31, 2008 is
after the Effective Date, Clearwire Communications will within thirty (30) days thereafter
provide Intel with written notice as to the total number of POPs Coverage as of December 31,
2008 in major metropolitan service areas in the United States. Clearwire and Sprint each
have separately acknowledged in a written agreement that they will provide their respective
POPs Coverage numbers, as of December 31, 2008, to Intel.
7. REMEDIES FOR MISSED PERFORMANCE TARGETS
7.1 RESERVED
7.2 Except as otherwise provided in Section 7.3, the remedies specified in the
following Table 7.2 are in addition to any other remedies the respective Parties
have in the event either Intel fails to meet its Embedding Rate targets and/or Clearwire
Communications fails to meet its POPs Coverage targets.
TABLE 7.2
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Remedies for Missed Performance Targets
[*****]
7.3 Sole and Exclusive Remedies. Notwithstanding the provisions of Section 7.2, in
the event that Intel uses commercially reasonable efforts to [*****] and still fails to do
so and/or Clearwire Communications uses commercially reasonable efforts to meet the POPs
Coverage targets and still fails to do so, then the respective remedies set forth in
Table 7.2 shall be the other Party’s sole and exclusive remedy with respect to the
[*****]. In the event that Intel elects to renew this Agreement after the Initial Term as
provided for in Section 3.1 above and uses commercially reasonable efforts to
[*****] or any subsequent applicable yearly period and still fails to do so, the sole remedy
of Clearwire Communications shall be that Intel shall not have any right under Section
3.1 to extend the Term for any additional Intel Renewal Periods.
8. [*****]
8.1 OEM/ODM Incentives. Subject to applicable law, as between Intel and Clearwire
Communications [*****] shall be responsible for providing necessary and appropriate
engineering support, technical support and commercially reasonable financial incentives to
OEMs and ODMs in order to achieve the Embedding Rates specified in Section 4.1 of
this Agreement for [*****]. In order to (a) facilitate accelerated embedding of Qualifying
WiMAX Chipsets in [*****] and (b) further the Parties’ mutual goal to accelerate the
deployment of a leading edge wireless broadband network with related services, [*****]
shall, subject to applicable law, act as [*****] with respect to providing commercially
reasonable [*****] including conducting all [*****] related thereto, and [*****] shall
provide such commercially reasonable [*****] shall have no obligation or responsibility to
provide [*****] under this Agreement to [*****] with respect to Embedding Rates or the
[*****]. For the avoidance of doubt, the Parties hereby acknowledge and agree that [*****]
the Embedded Device Activation Fees payable under this Agreement is [*****] obligations
under Section 4.1 of this Agreement, and [*****] over the duration of the Term.
Notwithstanding the foregoing, nothing herein shall restrict or otherwise prevent [*****]
provided that such activities are not designed to circumvent the provisions of this
Section 8.1, or Section 4.3.
8.2 OEM/ODM Promotional Activities. If Clearwire Communications desires that Intel pursue
and engage in reasonable specific promotions or other like activities with OEMs and/or ODMs
to improve Embedding Rates or Activation Rates, Clearwire Communications may provide
reasonable suggestions in writing to Intel, and Intel shall use commercially reasonable
efforts to implement such suggestions in a timely manner.
8.3 Retail Channels. Except as otherwise provided in this Agreement, Intel shall have
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no responsibility for providing appropriate incentives, financial or otherwise, to retail or
other sales channels for the promotion of WiMAX related products and services.
8.4 Customer Care. Clearwire Communications shall use commercially reasonable efforts to
(a) coordinate with OEMs to establish a customer care process, subject in all instances to
Clearwire Communications’ policies and procedures for customer care, pursuant to which OEMs
may redirect customers to Clearwire Communications to resolve performance issues concerning
the Clearwire Communications Network, (b) assist customers in resolving verified performance
issues with the Clearwire Communications Network, and (c) include a disclaimer of liability
notice to end users with respect to Clearwire Communications Network performance for
Clearwire Communications, OEMs and Intel.
9. DATABASE, TRACKING OF ACTIVATIONS AND AUDITS
9.1 Subject to applicable law, Intel or a third party retained by Intel shall (a) use
commercially reasonable efforts to develop, maintain and operate a database, along with
appropriate accounting software, to track and correlate sales, shipments and activations of
Qualifying Intel Devices, [*****], and Intel-based MIDs (the “Activation Database”);
and (b) administer, maintain and operate the Activation Database to track and settle any
financial incentives owed to its OEM and/or ODM customers. Clearwire Communications and
Intel shall cooperate in good faith in an effort to appropriately integrate Intel’s
Activation Database with Clearwire Communications’ network operating systems to ensure
automatic, cost-effective, and timely reconciliation of accounts.
9.2 Audits. Intel and Clearwire Communications will each maintain complete and accurate
records of (a) all amounts owed, all Marketing Tonnage and payments made, by Intel and
Clearwire Communications hereunder, and (b) all data concerning POPs Coverage, Device
volumes and activations, and any other data that is reasonably related to the scope and
purpose of, or reasonably necessary to determine compliance with, this Agreement, all in
accordance with U.S. generally accepted accounting principles. Intel and Clearwire
Communications will each retain such records for a period of three (3) years from the date
of expiration or termination of this Agreement. Subject to applicable law, Intel and
Clearwire Communications agree to provide reasonable supporting documentation to each other
concerning any discrepancies within thirty (30) calendar days after receipt of written
notification of such discrepancies.
9.2.1 Upon at least thirty (30) calendar days’ prior written notice, either Party
may, at its own expense, retain an independent third party auditing firm to conduct
an audit of the other Party’s relevant records and documents for the purpose of
determining compliance with the terms of this Agreement (an “Audit”). A
Party may conduct such Audit only once per year during the Term at the audited
Party’s business offices during the audited Party’s normal business
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hours at such facility and in such a manner as to not interfere with the audited
Party’s normal business operations. Notwithstanding the foregoing, the Parties
shall utilize commercially reasonable efforts to mutually agree on timing of any
such Audit and shall use reasonable good faith efforts to avoid conducting such
Audit during a Party’s year end and quarterly financial preparation and internal
audit processes. The auditing firm (the “Auditor”) will be required to
execute a confidentiality agreement, and the data utilized for the independent Audit
and the results of the independent Audit will be confidential and will be disclosed
only to Clearwire Communications and Intel, except in the case of CPNI which shall
not be disclosed to Intel. The Auditor shall discuss its preliminary findings with
Intel and Clearwire Communications representatives prior to reducing its finding to
writing and afford both Intel and Clearwire Communications an opportunity at such
meeting and for at least three (3) business days thereafter to provide additional
information or suggest alternate views of the reported results. Thereafter, the
Auditor who conducts the examination shall simultaneously provide Intel and
Clearwire Communications with a copy of the Auditor’s written report. In the case
of an Audit by Intel of Clearwire Communications’ records, the Auditor shall, under
the terms of its non-disclosure agreement with Clearwire Communications, be
expressly prohibited from sharing any CPNI with Intel. Intel shall use reasonable
efforts to also instruct the Auditor not to share any CPNI with Intel. CPNI shall
constitute the Confidential Information of Clearwire Communications. If Intel comes
into possession of any CPNI it will promptly return to Clearwire Communications, or
at the request of Clearwire Communications destroy, such CPNI. Notwithstanding
anything to the contrary, if Intel makes a 4G MVNO Election pursuant to this
Agreement, at the time of such election the Parties shall meet in confer in good
faith to mutually agree on (a) certain restrictions that will be placed on
competitively sensitive data, and (b) joint instructions to the Auditor for the
handling and use of competitively sensitive data, all of which shall be subject to
applicable law.
9.2.2 In the event that the results of such independent Audit shows that a Party has
not materially complied with the terms of this Agreement, such Party shall promptly
commence reasonable efforts to cure, and shall cure, the material non-compliance
within thirty (30) calendar days after receipt of the Auditor’s written report
containing such results.
9.2.3 In the event that a Party has, to the extent such Party is obligated to pay
any amounts to or for the benefit of the other Party, underpaid any amounts, the
Party shall, within thirty (30) days after completion of the Audit, pay such amounts
that are due and owing.
9.2.4 If any of the situations described in Section 9.2.2 or Section
9.2.3 occurs, notwithstanding anything to the contrary in this Agreement, in
addition to any other remedies under this Agreement that are available to the Party
conducting the
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Audit, the audited Party will reimburse the auditing Party for the reasonable
out-of-pocket costs of the Audit.
10. MARKETING AND CO-BRANDING
10.1 Intel Market Development Funds. Except as expressly provided in this Section
10, during the seven (7) year period commencing on the first day of [*****], Intel shall
deliver into the United States marketplace not less than [*****] worth of Marketing Tonnage
(the “Intel MDF”) through [*****] . Intel shall deliver not less than [*****] of
the Intel MDF during the [*****] following the Start Date [*****] of the Intel MDF during the remaining [*****] consistent with generally acceptable [*****]. The Intel MDF shall be solely
for use in connection with [*****] be spent on programs and activities as reasonably
determined by Intel [*****] will include marketing funds spent on [*****]
promotional activities as specified in this Section 10. [*****].
10.1.1 [*****] Clearwire Communications shall provide Intel with a written summary
of the cumulative Access Revenues received by Clearwire
Communications from [*****]. The summary shall identify
what percentage of Access Revenues [*****]. If at the end of [*****] total
amount of Access Revenue received by Clearwire Communications [*****] If at the
end of [*****] the total amount of Access Revenue received by Clearwire
Communications [*****] obligated to deliver into [*****] marketplace in the
form of Marketing Tonnage [*****] To the extent that Intel has, at the end of
[*****].
10.2 Marketing Program Reviews. As part of the quarterly review specified in Section
15 of this Agreement, the Parties shall discuss the effectiveness of the marketing
programs and activities contemplated under this Agreement. If Clearwire Communications
desires that Intel pursue and engage in reasonable specific promotions or other activities,
Clearwire Communications may provide reasonable marketing and/or reasonable co-branding
suggestions in writing to Intel, and Intel shall use commercially reasonable efforts to
implement such suggestions in a timely manner. Upon request by Clearwire Communications,
Intel shall provide a written summary, in a form to be mutually agreed upon, of its efforts
to implement such suggestions.
10.3 Brand Association and Co-Branding. Prior to the first day of Year One, Intel shall
commence and complete development of the Co-Branding Construct to promote the Clearwire
Communications Network and the Clearwire Communications brand in close association with
Intel’s own brand(s). Intel shall keep Clearwire Communications reasonably apprised of
Intel’s progress in developing the Co-Branding Construct. Each Party will license to the
other Party its Marks necessary for the Co-Branding Construct in accordance with the
Trademark License in Appendix F attached hereto. The Co-Branding Construct will be
prominently featured in Intel’s own direct advertising
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campaigns in accordance with the Trademark License in Appendix F, and made available
for license by Intel, under Intel’s standard license terms, to OEMs and Intel’s other
channel partners that [*****] program or other Intel programs for use in their marketing
efforts to promote Qualifying Intel Devices that work on the Clearwire Communications
Network and where appropriate to support the [*****] efforts of third parties for [*****].
Conceptual drawings of the Co-Branding Construct are set forth in Appendix D to this
Agreement, and the final Co-Branding Construct shall be similar to the conceptual drawings
contained in Appendix D. Upon completion of the Co-Branding Construct, Intel will
provide Clearwire Communications with replacements for the conceptual drawings contained in
Appendix D, and these will constitute the Co-Branding Construct. If requested by
Clearwire Communications, Intel will meet and confer in good faith to discuss licensing of
the Co-Branding Construct or a substantially similar co-branding construct to Clearwire
Communications third party Resellers, MVNO Partners, and/or Affiliates.
10.4 Licensing Agreement. Attached to this Agreement as Appendix F is a separate
royalty-free trademark license agreement (the “Trademark License”) between Intel and
Clearwire Communications, which shall be executed concurrent with this Agreement, and which
shall remain valid for the Term, unless earlier terminated pursuant to its own terms.
Notwithstanding anything to the contrary in this Agreement, the terms and conditions of the
Trademark License shall govern the Parties’ respective rights, duties and obligations with
respect to each Party’s Marks under this Agreement. In the event of a conflict between the
terms of this Agreement and the terms of the Trademark License, the terms of the Trademark
License shall govern but only to the extent necessary to resolve the conflict.
10.5 Marketing and Brand Strategy. No later than the first day of [*****], Intel shall
commence [*****] of its WiMAX solutions in the [*****] using the final Co-Branding Construct
(subject to any pre-existing contractual obligations to provide advance notice under Intel’s
[*****]), incorporate the Co-Branding Construct into Intel’s [*****], and permit the
Co-Branding Construct [*****]. The Intel MDF shall be used to [*****] as described in more
detail in this Section 10, all of which shall be at Intel’s reasonable choosing,
except as otherwise provided in Section 10.6, and which may include some but not
necessarily all, of the marketing activities or environments described in this Section
10.
10.5.1 Determination of Appropriate Activities. Intel shall, through its customary
brand marketing and brand strategy development and approval process, select which
marketing and branding activities or environments would be most appropriate in
Intel’s reasonable opinion to include in the final marketing and brand strategy (or
any specific marketing campaign) for promotion of the Co-Branding Construct. During
such process Intel shall obtain Clearwire Communications’ input related to such
marketing and brand strategy, but notwithstanding anything to the contrary in this
Agreement Intel shall have the right in its reasonable discretion to determine the
specific marketing and branding
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programs and/or environments related to Intel’s promotion of the Co-Branding
Construct and its implementation details, except as otherwise provided in
Section 10.6.
10.6 Minimum Enabling Requirements. Notwithstanding the provisions of Section 10.5,
during the Term, Intel shall perform all of the marketing and co-branding activities set
forth in this Section 10.6, which activities shall collectively be the minimum
enabling requirements (the “Minimum Enabling Requirements”) under this Agreement.
Intel shall have the right to propose in good faith reasonable alternatives to the Minimum
Enabling Requirements. Clearwire Communications shall review such proposals in good faith
and may approve or deny such request, provided however that Clearwire Communications shall
not unreasonably refuse to approve a proposed alternative. [*****].
10.6.1 [*****]
10.6.2 [*****]
10.6.3 [*****]
10.6.4 [*****]
10.6.5 [*****]
10.7 Additional Marketing Environments. Intel’s marketing campaigns may include a wide
range of possible marketing environments at Intel’s reasonable choosing. For purposes of
illustration only the following are descriptions of possible marketing environments and the
implementation processes, and do not represent a commitment by Intel to pursue or implement
any particular environment(s) unless expressly provided for in the final Intel marketing and
brand strategy for promotion of the Co-Branding Construct.
10.7.1 Enterprise Sales Materials. Intel has relationships within its management
team that call on senior technology staff of Fortune 1000 companies in the United
States. If applicable Intel will use commercially reasonable efforts to integrate
WiMAX and Clearwire Communications specific educational and promotional messages
into Intel’s materials for use with this constituency as appropriate. Subject to
applicable law, Intel will similarly fund as appropriate and commercially reasonable
the integration of such messages into the enterprise sales efforts of its OEM and
other partners who promote WiMAX and call on the Fortune 1000 companies.
10.7.2 Retail Point of Purchase Displays. This category consists of in-store
merchandising displays and literature applicable to the Co-Branding Construct
designed to educate and assist in the purchase decision of the buyer at the point of
purchase so that the buyer understands the benefits of and ultimately selects
systems that support the Services. If applicable Intel will integrate the
Co-Branding Construct into its own Point of Purchase display and through its
indirect marketing programs fund the inclusion of the Co-Branding Construct in the
Point of Purchase displays of OEMs as appropriate.
10.7.3 Retail Merchandising & Circulars. This category consists of advertising
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vehicles created by retailers for promotion of sales and merchandise. If
applicable, Intel will integrate the Co-Branding Construct in its own efforts to
support its platforms in these vehicles and will, through its indirect marketing
programs, fund the OEMs to do the same.
10.7.4 Web Ads. If applicable, Intel will integrate the Co-Branding Construct into
its direct online advertising as appropriate and will similarly fund through its
indirect marketing programs the integration of the Co-Branding Construct into the
online advertising of OEMs for their relevant platforms.
10.7.5 Print Advertising. If applicable, Intel will integrate the Co-Branding
Construct into its direct print advertising as appropriate and will similarly fund
through its indirect marketing programs the integration of the Co-Branding Construct
into the print advertising of OEMs for their relevant platforms.
10.7.6 Television Advertisements. If applicable, Intel will integrate the
Co-Branding Construct into its direct television advertising as appropriate and
would similarly fund through its indirect marketing programs the integration of the
Co-Branding Construct into the television advertising of OEMs for their relevant
platforms.
10.7.7 Outdoor & Environmental. If applicable, Intel will integrate the Co-Branding
Construct into its direct marketing outdoor advertising as appropriate and will
similarly fund through its indirect marketing programs the integration of the
Co-Branding Construct into the outdoor advertising and other event marketing of OEMs
for their relevant platforms.
10.7.8 Trade Shows & Events. If applicable, Intel will integrate the Co-Branding
Construct into its direct trade show and events efforts as appropriate and will
similarly fund consistent with the “Intel Inside®” program the integration of the
Co-Branding Construct into the print advertising of OEMs for their relevant
platforms.
10.7.9 Promotions & Public Relations. If applicable, Intel will promote the
Clearwire Communications Network through public events such as the Consumer
Electronics Show and the Intel Developer Forum promoting Qualifying Intel Devices.
Within the context of Intel Inside program and other channel marketing programs, if
applicable, Intel will make available and promote marketing programs that encourage
its customer and channel partners to promote the Services in conjunction with
Qualifying Intel Devices. The common purpose of these marketing efforts is to
promote the Clearwire Communications Network and Qualifying Intel Devices for use on
the Clearwire Communications Network. If applicable, Intel commits to participate
as the major launch partner in the top
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Clearwire Communications market launches and likewise, subject to applicable law,
create appropriate incentives for participation of Intel’s marketing partners.
Subject to applicable law, Intel will continue to make available its cooperative
marketing programs to allow its partners to continue to fund and promote the
Clearwire Communications Network service using co-op funds and Intel will continue
to feature the Co-Branding Construct in its own marketing efforts for as long it is
commercially reasonable to do so. Other than industry or technical communications,
such as standards work, Intel will use commercially reasonable efforts to refer to
Clearwire Communications by name if appropriate in WiMAX-related marketing
promotions and public relations in the United States as reasonably determined by
Intel.
10.7.10 [*****].
10.7.11 Bezel Promotion. Where applicable, a temporary sticker applied at the
point of manufacture of [*****] that is designed to call the user’s attention to the
Clearwire Communications Network feature included in the Intel-based Performance
Notebook and to encourage the user to sign up for the Services. Consistent with
industry practice this sticker will be prominently and visibly positioned on the
“palm rest” so that it was visible to shoppers in point of purchase system displays
and to the user at the time of use.
10.7.12 Out of the Box Experience. Upon first use, the user is generally walked
through an interactive set up process that will include signing up for applications
and services. If applicable, Intel will work with, and use commercially reasonable
efforts to [*****].
10.8 Remedies Pertaining to Minimum Enabling Requirements. Upon Clearwire Communications’
request, Intel shall document its compliance with the provisions of Section 10.6 and
Section 10.7. During the quarterly management review meetings as proscribed by
Section 15, Intel will provide a status report to Clearwire Communications of
Intel’s progress in fulfilling its obligations under Section 10.6. Clearwire
Communications may, in accordance with Section 9.2, perform an Audit of Intel for
the purpose of determining Intel’s compliance with Section 10.6. If Intel fails to
fulfill its Minimum Enabling Requirements set forth in Section 10.6 for any
particular Qualifying Intel Device, then, in addition to any other Clearwire Communications
remedies, the Embedded Device Activation Fee shall be reduced by [*****], provided however
that if Intel uses commercially reasonable efforts to meet the [*****].
10.9 General Marketing Activities. Subject to Section 29.8, during the Term, Intel
will plan and coordinate public relations activities with Clearwire Communications related
to the Clearwire Communications Network and the launch of Intel Devices with Clearwire
Communications. The Parties will use commercially reasonable efforts to ensure that a
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consistent, mutually agreeable message is communicated to the general public with respect to
the marketing of WiMAX technology and services, provided however nothing herein shall
prevent a Party from engaging in any specific marketing activity nor shall either Party be
obligated to obtain the other Party’s prior approval for its own good faith marketing
activities related to WiMAX.
10.10 [*****].
11. [*****]
11.1[*****]
11.1.1[*****]
11.1.2[*****]
11.1.3[*****]
11.2[*****]
11.2.1[*****]
11.2.2[*****]
11.3 No Restriction on Certain Practices. Notwithstanding anything to the contrary in this
Agreement, nothing herein shall prevent Intel from (a) continuing its current business and
marketing practices as to Intel’s OEM and channel customers, including Intel’s [*****] and
the joint marketing program component thereof, [*****], and (b) co-marketing related to
WiMAX in a generic manner [*****].
11.4 [*****]
11.4.1 [*****]
11.4.2 [*****]
11.5 [*****]
11.5.1 Notwithstanding anything to the contrary in this Agreement, other than as
expressly provided for in Section 11.5.2, and subject to applicable law,
[*****].
11.5.2 [*****]
11.5.3 [*****] Clearwire Communications will within thirty (30) days of receipt of
such notice provide Intel with written assurances specifying Clearwire
Communications’ compliance with this Section. Should Clearwire Communications fail
to respond to Intel’s written notice, Clearwire Communications shall be deemed in
breach of this Section and Intel will be free to seek specific performance as
specified in Section 11.5.4 below.
11.5.4 Clearwire Communications agrees that monetary damages alone would be an
insufficient remedy to Intel for any breach of this Section 11.5.4 and
hereby acknowledges, agrees and consents to the entering of an order of appropriate
equitable relief including but not limited to an order granting specific performance
to compel Clearwire Communications to comply with the obligations of this
Section 11.5.4. The Parties hereby agree that in any action or proceeding
brought by Intel under this Section 11.5.4, the initial burden of proof
shall be on Clearwire Communications to establish that Intel is not entitled to the
issuance of an injunction. Any such equitable relief shall not limit any other
remedy to which Intel may be entitled at law or in equity.
12. REVENUE SHARE
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12.1 Access Revenues. Intel shall receive a portion of Access Revenues as described below.
12.1.1 On a calendar quarter basis, Clearwire Communications shall pay to Intel
[*****] of Access Revenues received by Clearwire Communications from [*****].
Notwithstanding anything to the contrary in this Agreement, Clearwire
Communications’ obligation to pay [*****].
12.1.2 On a calendar quarter basis, Clearwire Communications shall pay to Intel
[*****] Access Revenues received by Clearwire Communications [*****].
Notwithstanding anything to the contrary in this Agreement, Clearwire
Communications’ obligation to pay [*****].
12.1.3 [*****]
12.1.4 [*****]
12.2 [*****]
12.3 [*****] Notwithstanding anything to the contrary in this Agreement, until the Parties
have [*****].
12.4 [*****]
13. RESERVED
14. OPEN PATENT ALLIANCE
14.1 Open Patent Alliance. Intel and other parties in the technology and telecommunications
industries are working toward the development of the OPA with the goal of increasing
competition by supporting the widespread implementation, adoption and use of WIMAX and
fostering a pro-competitive intellectual property landscape.
14.2 Subject to applicable law, Intel will work with the OPA to facilitate Clearwire
Communications joining the OPA as a founding LLC Member and Clearwire Communications agrees
to join the OPA as a founding LLC Member in accordance with all applicable membership
requirements, including the payment of an initial capital contribution of up to [*****] and
meeting calls for additional capital contributions of up to [*****] per year in each of the
following four (4) years. The foregoing obligation is contingent upon the following:
14.2.1 The OPA is formed with a minimum of four (4) founding LLC Members (including
Intel and Clearwire Communications) as of the Closing Date;
14.2.2 Initial, and any additional, capital contribution payments by Clearwire
Communications are no greater than amounts that any other founding LLC Member is
required or requested to pay under the membership agreement; and
14.2.3 The OPA is formed, operates and continues to operate in a manner consistent
with the Guiding Principles of the OPA.
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14.3 During the Term, Clearwire Communications agrees to use OPA patent pool participation
as a major selection criteria in choosing its equipment and device vendors. To the extent
Clearwire Communications’ existing vendors as of the Start Date are not members of the OPA,
Clearwire Communications will encourage such vendors to join the OPA. In furtherance of
this commitment, Clearwire Communications agrees to use substantially similar language in
its WiMAX-related Requests for Information (RFI) and/or Requests for Proposals (RFP) as
provided in Appendix G to this Agreement.
15. QUARTERLY MANAGEMENT REVIEW
15.1 Quarterly Management Reviews. During the Term, once per calendar quarter at a date,
time and place to be mutually agreed to, representatives of senior management of both
Parties shall meet in good faith to review progress and provide their respective updates
toward the mutual business objectives contained in this Agreement.
16. REPORTS AND PAYMENTS
16.1 Clearwire Communications Reports. Beginning in the first full calendar quarter
commencing after the Effective Date, within forty-five (45) days after the close of each
calendar quarter, Clearwire Communications will submit a report to Intel, in a form
reasonably acceptable to Intel, certified by an authorized representative of Clearwire
Communications that includes the following information:
16.1.1 The number of Qualifying Intel Devices Activated on the Clearwire
Communications Network, both the cumulative amount since the Effective Date and the
additive amount for the prior calendar quarter;
16.1.2 The amount of Embedded Device Activation Fees owed to Intel for the prior
calendar quarter;
16.1.3 The total amount of Access Revenue and the amount of Intel Revenue Share for
the prior calendar quarter;
16.1.4 The POPs Coverage, both the cumulative amount since the Effective Date and
the additive amount for the prior calendar quarter; and
16.1.5 Any other information mutually agreed upon by the Parties that is reasonably
necessary to verify Clearwire Communications’ compliance with its obligations under
this Agreement. Notwithstanding anything to the contrary in this Agreement,
Clearwire Communications shall not be obligated to provide information to Intel that
would allow Intel to extrapolate Clearwire
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Communications’ financial results or performance other than with respect to the
calculation of amounts owed by Clearwire Communications to Intel under this
Agreement.
16.2 Intel Reports. Beginning in the first full calendar quarter commencing after the
Effective Date, within forty-five (45) days after the close of each calendar quarter, Intel
will provide Clearwire Communications with a written report, in a form reasonably acceptable
to Clearwire Communications, certified by an authorized representative of Intel, that
includes the following information:
16.2.1 The volume of all Qualifying Intel Devices sold in the United States, both
the cumulative amount sold since the Effective Date and the additive amount sold for
the prior calendar quarter;
16.2.2 The volume of all Intel Devices sold in the United States, both the
cumulative amount sold since the Effective Date and the additive amount sold for the
prior calendar quarter;
16.2.3 Any other information mutually agreed upon by the Parties that is reasonably
necessary to verify Intel’s compliance with its obligations under this Agreement.
Notwithstanding anything to the contrary in this Agreement, Intel shall not be
obligated to provide information to Clearwire Communications that would allow
Clearwire Communications to extrapolate Intel’s financial results or performance
other than with respect to the calculation of amounts earned by Intel or any true up
payments due under this Agreement.
16.3 Payments. With respect to any payments due from Clearwire Communications to Intel for
Embedded Device Activation Fees and/or Intel Revenue Share, Clearwire Communications shall
pay such amounts on a calendar quarterly basis, within forty-five (45) days after the end of
a calendar quarter, in accordance with wire transfer instructions it receives from Intel.
17. PRIOR AGREEMENTS
17.1 Termination of Prior Agreements. Concurrent with the Effective Date, the following
agreements will become null, void, and shall terminate without any Party having any further
liability or obligation to the other Party, except to the extent such agreements contained
provisions concerning the confidentiality of information, in which case those
confidentiality provisions will, to the extent provided in those agreements, continue to
survive:
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17.1.1 That certain WiMAX Market Development and Co-Marketing Agreement between
Sprint/United Management Company and Intel Corporation, dated July 28, 2006.
17.1.2 That certain Mobile WiMAX Network Collaboration Agreement between Intel
Corporation and Clearwire Corporation dated June 28, 2006.
18. WIMAX DEVELOPMENT ROADMAP AND SUPPORT
18.1 Intel Roadmap. Intel will, as part of its standard business practices, develop a
multi-year road map for the development and support of WiMAX. Such WiMAX road map is
considered Intel Confidential Information and will be provided to Clearwire Communications
for informational purposes only and is subject to change at Intel’s sole discretion. Any
such road map will include but not be limited to the following items (a) WiMAX Chipsets that
are designed to comply with the WiMAX Forum Wave 2 Profile and (b) integrated WiFi/WiMAX
Chipsets (including both base band and RF elements) for Devices supporting industry standard
certification profiles.
18.2 Clearwire Communications participation in the Intel roadmap.
18.2.1 Intel will provide Clearwire Communications with periodic reviews of its
WiMAX roadmap, and in no event less than once per calendar year, and permit
Clearwire Communications to make suggestions and feedback to Intel’s roadmap.
18.2.2 Within ninety (90) days after Effective Date, the Parties will agree on a
procedure for Clearwire Communications making suggestions and feedback to Intel’s
roadmap and Intel’s use of those suggestions and feedback.
18.2.3 Intel and Clearwire Communications will explore options to develop and deploy
features and functionality of WiMAX that may be exclusive or proprietary to
Clearwire Communications. Any development or deployment of exclusive or proprietary
features for Clearwire Communications in Qualifying WiMAX Chipsets is subject to
technical and business due diligence and mutual agreement of the Parties with regard
to terms and timelines to be negotiated in such event.
18.3 Support. The Parties will support the collaboration contemplated hereunder by, among
other things:
18.3.1 Determining if it is desirable for the Parties to develop a plan to advocate
and jointly pursue standardization efforts and profile changes in the WiMAX Forum
and 3GPP and 3GPP2-related standards bodies consistent with Clearwire Communications
FDD implementation requirements, applicable law and the rules of such standards
bodies. To that end, Intel and Clearwire Communications through their respective
alliance managers will work together to understand
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Clearwire Communications FDD implementation requirements, including but not limited
to: (i) undertaking an FDD feasibility study; and (ii) identifying specific
recommendations.
18.3.2 Providing support for both the U.S. and ITU/European WiMAX band plans (2.3
GHz, 2.5 GHz and 3.5 GHz) on a WiMAX Chipset.
18.3.3 Providing support, at Clearwire Communications’ request, for up to one
additional WiMAX frequency band plan as mutually agreed by the Parties (based on
scope and nature of the business opportunity).
18.3.4 Providing support for Clearwire Communications’ chosen WiMAX broadcasting
methods upon mutual agreement by the Parties (subject to additional technical and
business due diligence by Intel).
18.4 Middleware.
18.4.1 Upon mutual agreement of the Parties, Intel will support a Clearwire
Communications designated common middleware interface for all Qualifying WiMAX
Chipsets and WiMAX Chipsets (subject to additional technical and business due
diligence by Intel).
18.4.2 In addition, Intel will make available to Clearwire Communications, or its
designated vendors and suppliers, its APIs for Intel’s middleware platform for
Qualifying WiMAX Chipsets on commercially reasonable terms in conjunction with such
Qualifying WiMAX Chipsets.
18.5 Reserved.
18.6 Equipment Certification. Intel and Clearwire Communications will cooperate as provided
for herein to obtain WiMAX Equipment Certification, to the extent such certification program
is established.
18.7 No Limitations on Clearwire Communications WiMAX Services. Clearwire Communications
reserves the right to offer any access, telecommunications, and/or information product or
service to its Customers over the Clearwire Communications Network that is compatible with
WiMAX, even if Standards Bodies have not yet published ratified standards for such product
or service. By way of illustration only, Clearwire Communications may offer over the
Clearwire Communications Network, Clearwire Communications proprietary WiMAX services that
have not been standardized by industry standard setting organizations.
18.8 Non-WiMAX Clearwire Communications Products and Services. Nothing in this Agreement
restricts Clearwire Communications from using the Clearwire Communications Network to offer
non-WiMAX products, applications and services to its
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customers, and except as expressly provided for herein no remedies or penalties shall be
imposed on Clearwire Communications for doing so.
18.9 [*****]
18.10 Clearwire Communications Quarterly Services Roadmap. Clearwire Communications will
provide Intel with the Clearwire Communications Quarterly Services Roadmap at the same time
as Clearwire Communications provides such roadmap to any MSO Member, consistent with
Clearwire Communications’ MVNO agreements with such MSO Members.
19. RESERVED
20. WIMAX CHIPSET SOURCING TERMS
20.1 Clearwire Communications as OEM. If during the Term, Clearwire Communications and/or
its Affiliates choose to undertake the manufacture of products incorporating Qualifying
WiMAX Chipsets or WiMAX Chipsets, (either directly or in connection with third party
vendors, but if the latter, then only if (i) Clearwire Communications and/or its Affiliates
have direct input on chipset selection and purchases and (ii) Clearwire Communications
and/or its Affiliates directly purchases such Qualifying WiMAX Chipsets or WiMAX Chipsets on
behalf of such third party vendor for Clearwire Communications and/or its Affiliate’s own
consumption), the Parties will undertake to negotiate the terms and conditions of a separate
and independent purchase agreement between Intel (through its Affiliate Intel Americas) and
Clearwire Communications and/or Intel (through its Affiliate Intel Americas) and such
Clearwire Communications Affiliate for such purchases of Qualifying WiMAX Chipsets or WiMAX
Chipsets, including without limitation, any applicable intellectual property indemnification
provisions, pricing and other terms and conditions, in a timely manner.
21. COLLABORATION ON GLOBAL ADOPTION
21.1 Standards Advocacy. The Parties will use commercially reasonable efforts to
collaborate on global adoption of WiMAX standards as follows:
21.1.1 Clearwire Communications will publicly support the WiMAX technology standard
as a global standard as long as Clearwire Communications determines it is in
Clearwire Communications’ interests to do so;
21.1.2 The Parties will work together to encourage other wireless operators outside
the United States to deploy WiMAX technology;
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21.1.3 Intel and Clearwire Communications will proactively participate in the WiMAX
Forum and in 3GPP and 3GPP2-related industry committees and working groups;
21.1.4 Pursuant to the confidentiality provisions in this Agreement and subject to
the rules of an applicable standards body and applicable law, Intel and Clearwire
Communications will put forth their best effort to provide each other with advance
notice (and opportunity to comment) on submissions to the WiMAX Forum which impact
United States deployment of WiMAX, and will support each other’s submissions to the
extent that each company deems it commercially feasible; provided that if either
Party has an obligation of confidentiality to another party in connection with all
or any portion of a proposed submission, the obligated Party shall not be obligated
to disclose such confidential information to the other. If either Intel or
Clearwire Communications objects to each other’s proposed submission to WiMAX Forum,
Intel and Clearwire Communications will work together in good faith to find a
mutually acceptable solution.
22. CUSTOMER RELATIONSHIPS
22.1 Clearwire Communications Customer Relationship. At all times the Customer
relationship with regard to the Clearwire Communications Network and Devices sold by
Clearwire Communications to Customers will be solely between the Customer and Clearwire
Communications. Intel acknowledges that Clearwire Communications reserves the right to:
(a) discontinue Services to any Customer; (b) change the rates charged for the Services; (c)
identify and define which Services may be provided; and (d) define the coverage area of the
Services provided to Customers.
22.2 Pricing. Clearwire Communications will retain complete discretion in determining the
prices of its Devices and Services sold to Customers by Clearwire Communications and
Clearwire Communications authorized sales channels.
22.3 Potential Clearwire Communications Customers. Both Parties acknowledge that Clearwire
Communications’ Customer has the ultimate purchasing decision, and may choose a different
wireless service to support its business needs. Intel acknowledges that nothing herein
shall obligate or require Clearwire Communications to conduct business, negotiate or sign an
agreement with any potential Customer if Clearwire Communications desires not choose to deal
with such potential Customer for any reason whatsoever.
22.4 Clearwire Communications Right to Terminate Network Service. Clearwire Communications
reserves the right in all instances to terminate a Customer Contract or other wireless
service agreement with any of its Customers at any time in its sole discretion.
23. DEMONSTRATION AND TEST ACCOUNTS
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23.1 Demonstration and Test Accounts. Clearwire Communications agrees to provide Intel with
the following complimentary demonstration service plans to use for testing, demonstration
and support of the Clearwire Communications Services: thirty (30) accounts for the Term of
this Agreement and twenty (20) ninety-day (90-day) temporary accounts that may be renewed at
Intel’s discretion. Intel earns no Embedded Device Activation Fees or Intel Revenue Share
in connection with demonstration plans.
23.2 Demonstration Devices. Intel will use commercially reasonable efforts to arrange with
its Device OEMs to obtain a reasonable number of demonstration devices containing WiMAX
Chipsets. Intel earns no Embedded Device Activation Fees or Intel Revenue Share in
connection with the Activation of demonstration devices.
23.3 Unauthorized Products. This Agreement does not authorize Intel to market any other
products or services specifically for use on the Clearwire Communications Network except as
provided in this Agreement, even if such unauthorized products appears to be compatible or
usable with the Clearwire Communications Network.
24. NETWORK DATA
24.1 During the Term, if Intel is given access to data generated, gathered, or otherwise
collected by or collectible from the Clearwire Communications Network (collectively the
“Network Data”), Intel will only use Network Data to the extent necessary to perform
its obligations under this Agreement. Intel hereby acknowledges that the provisions of this
Section 24.1 are a material element of this Agreement and in the event of a material
breach of this Section 24.1 Clearwire Communications will be entitled to obtain
equitable and/or injunctive relief as appropriate to enforce its rights, subject to the
terms of this Agreement.
25. INTELLECTUAL PROPERTY OWNERSHIP
25.1 Background Intellectual Property. Clearwire Communications shall own all right, title
and interest in and to any and all of Clearwire Communications’ Intellectual Property
existing prior to the Effective Date (“Clearwire Communications Background Intellectual
Property”). Intel shall own all right, title and interest in and to any and all of
Intel’s Intellectual Property existing prior to the Effective Date (“Intel Background
Intellectual Property”).
25.2 No Implied Rights. Except as expressly set forth in this Agreement, nothing herein
will be deemed to grant to a Party, by implication, estoppel, or otherwise, and neither
Party will acquire, any right, interest or license with respect to any Intellectual Property
of the other Party.
25.3 To the extent that Intel and Clearwire Communications collaborate on future
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developments or enhancements to WiMAX technology, including but not limited to those related
to the Clearwire Communications Network, WiMAX Chipsets, and Devices, the Parties will,
prior to undertaking any joint development work, meet in good faith and agree on an
ownership structure for such jointly developed technology. If the Parties agree to
undertake the joint development of technology, the Parties will give reasonable
consideration to a structure under which one of the Parties owns the Intellectual Property
rights to the jointly developed technology and that Party grants a license to the other
Party, provided however that nothing herein shall compel either Party to agree to any joint
development agreement.
26. DISCLAIMER OF WARRANTIES
26.1 No Other Warranties. EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, THE
WARRANTIES GIVEN BY EACH PARTY IN THIS AGREEMENT ARE THE ONLY WARRANTIES GIVEN BY EACH PARTY
AND ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED BY STATUTE OR OTHERWISE, ARE
SPECIFICALLY EXCLUDED BY THE PARTIES, INCLUDING WITHOUT LIMITATION, IMPLIED WARRANTIES OF
MERCHANTIBILITY; FITNESS FOR A PARTICULAR PURPOSE OR WARRANTIES OF NON-INFRINGMENT.
27. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF INTEL
Intel represents, warrants and covenants that:
27.1 Organization; Authorization.
Intel is duly organized, validly existing and in
good standing under the laws of its jurisdiction of formation and has all corporate powers
and all governmental licenses and consents required to carry on its business as now
conducted, except for those governmental licenses and consents the absence of which would
not reasonably be expected to result, individually or in the aggregate, in a material
adverse effect on Intel. Intel has all requisite power and authority to enter into this
Agreement and to perform the obligations to be performed by it under this Agreement.
27.2 The execution and delivery of this Agreement, and the performance by Intel of its
obligations under this Agreement, have been duly authorized by all necessary actions on the
part of Intel. This Agreement has been, or will be, duly executed and delivered by Intel,
and constitutes, and will constitute, a legal, valid and binding obligation of Intel, as the
case may be, enforceable against it in accordance with its terms.
27.3 Non-Contravention. The execution, delivery and performance of this Agreement, and the fulfillment of
and compliance with the terms and conditions of this Agreement do not or will not (as the
case may be), with the passing of time or the giving of notice or
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both, violate or conflict
with, constitute a breach of or default under, (a) any term or provision of the charter
documents or equivalent organizational documents of Intel, (b) any contractual obligation of
Intel, or (c) any judgment, decree or order to which Intel is a party or by which Intel or
any of its respective properties are bound.
28. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF CLEARWIRE COMMUNICATIONS
Clearwire Communications represents and warrants that:
28.1 Organization; Authorization. Clearwire Communications is duly organized, validly
existing and in good standing under the laws of its jurisdiction of formation and has all
corporate powers and all governmental licenses and consents required to carry on its
business as now conducted, except for those governmental licenses and consents the absence
of which would not reasonably be expected to result, individually or in the aggregate, in a
material adverse effect on Clearwire Communications. Clearwire Communications has all
requisite power and authority to enter into this Agreement and to perform the obligations to
be performed by it under this Agreement.
28.2 The execution and delivery of this Agreement, and the performance by Clearwire
Communications of its obligations under this Agreement, have been duly authorized by all
necessary actions on the part of Clearwire Communications. This Agreement has been, or will
be, duly executed and delivered by Clearwire Communications, and constitutes, and will
constitute, a legal, valid and binding obligation of Clearwire Communications, as the case
may be, enforceable against it in accordance with its terms.
28.3 Non-Contravention. The execution, delivery and performance of this Agreement, and the
fulfillment of and compliance with the terms and conditions of this Agreement do not or will
not (as the case may be), with the passing of time or the giving of notice or both, violate
or conflict with, constitute a breach of or default under, (a) any term or provision of the
charter documents or equivalent organizational documents of Clearwire Communications, (b)
any contractual obligation of Clearwire Communications, or (c) any judgment, decree or order
to which Clearwire Communications is a party or by which Clearwire Communications or any of
its respective properties are bound.
29. CONFIDENTIAL INFORMATION
29.1 Confidential Information. The confidential, proprietary and trade secret information
of the disclosing Party (“Confidential Information”) to be disclosed hereunder is
(i) information in tangible form that bears a “confidential,” “proprietary,” “secret,” or
similar legend, or which based upon the circumstances of disclosure would
lead a reasonable person to conclude it is intended to be confidential and (ii) discussions
relating to that information whether those discussions occur prior to, concurrent with, or
following disclosure of the information.
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29.2 Obligations of Receiving Party. The receiving Party will maintain the confidentiality
of the Confidential Information of the disclosing Party with at least the same degree of
care that it uses to protect its own confidential and proprietary information, but no less
than a reasonable degree of care under the circumstances. The receiving Party will not
disclose any of the disclosing Party’s Confidential Information to any employees or to any
third parties except to the receiving Party’s employees, parent company and majority-owned
subsidiaries who have a need to know and who agree to abide by nondisclosure terms at least
as comprehensive as those set forth herein; provided that the receiving Party will be liable
for breach by any such entity. For the purposes of this Agreement, the term “employees”
shall include independent contractors of each Party. The receiving Party will not make any
copies of the Confidential Information received from the disclosing Party except as
necessary for its employees, parent company and majority-owned subsidiaries with a need to
know.
29.3 Period of Non-Assertion. The disclosing Party will not assert any claims of breach of
this Section or misappropriation of trade secrets against the receiving Party arising from
the receiving Party’s disclosure of the disclosing Party’s Confidential Information made
more than seven (7) years from the date of the disclosure. However, unless at least one of
the exceptions set forth in Section 29.4 below has occurred, the receiving Party
will continue to treat such Confidential Information as the confidential information of the
disclosing Party and only disclose any such Confidential Information to third parties under
the terms of a non-disclosure agreement.
29.4 Termination of Obligation of Confidentiality. The receiving Party will not be liable
for the disclosure of any Confidential Information which is:
(a) rightfully in the public domain other than by a breach of a duty to the
disclosing Party;
(b) rightfully received from a third party without any obligation of
confidentiality;
(c) rightfully known to the receiving Party without any limitation on use or
disclosure prior to its receipt from the disclosing Party;
(d) independently developed by employees of the receiving Party; or
(e) generally made available to third parties by the disclosing Party without
restriction on disclosure.
29.5 Title. Title to Confidential Information as between the parties will remain with the
disclosing Party.
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29.6 No Obligation of Disclosure; Termination. Except as expressly provided for herein,
neither Party has any obligation to disclose any Confidential Information to the other. Upon
termination of this Agreement, each Party shall either return or destroy (and in the case of
destruction certify such destruction) all of the other Party’s Confidential Information
disclosed under this Agreement, and all copies thereof; unless the Party in possession of
the information is required by law to retain such other Party’s Confidential Information.
29.7 Confidentiality of Terms. Except for any mutually agreed press release, the parties
hereto shall keep the terms of this Agreement confidential and shall not now or hereafter
divulge these terms to any third party except: (a) with the prior written consent of the
other Party; (b) as otherwise may be required by law or legal process, including to legal
and financial advisors in their capacity of advising a Party in such matters; (c) during the
course of litigation, so long as the disclosure of such terms and conditions are restricted
in the same manner as is the confidential information of other litigating parties; or (d)
in confidence to its legal counsel, accountants, banks and financing sources and their
advisors solely in connection with complying with financial transactions; provided that, in
(b) through (d) above, (i) the disclosing Party shall use all legitimate and legal means
available to minimize the disclosure to third parties, including without limitation seeking
a confidential treatment request or protective order whenever appropriate or available; and
(ii) the disclosing Party shall provide the other Party with at least ten (10) days prior
written notice of such disclosure.
29.8 No Publicity. Except as otherwise expressly provided for in the Marketing Plan,
neither Party may use the other Party’s name in advertisements or otherwise disclose the
existence or content of this Agreement without the other’s prior written consent. The
obligations stated in this Section 29 shall survive the expiration or termination of this
Agreement.
30. SEC FILING
30.1 If either Party is required by applicable law to disclose and file this Agreement with
the Securities and Exchange Commission (“SEC”) or other regulatory body, it must
notify the other Party and allow such Party to identify language in this Agreement it deems
should be redacted prior to such filing and disclosure. If the non-disclosing Party
requests confidential treatment, the disclosing Party agrees to file such a request and use
its reasonable best efforts in responding to any SEC or other regulatory body comments to
pursue assurance that confidential treatment will be granted, in both cases reasonably
cooperating with the non-disclosing Party (including, without limitation, providing the
non-disclosing Party with the opportunity to review and comment on the request and the
responses to any such SEC comments). Although the Party filing this Agreement under
applicable law agrees to comply with the provisions set forth above in this Section
30.1,
such Party in all cases shall be entitled to determine to what extent to redact this
Agreement and the nature and content of its communications with the SEC or other regulatory
body.
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31. INDEMNITY
31.1 Intel Indemnity Against [*****].
31.1.1 Subject to Section 31.1.2 below for [*****] Intel will defend,
indemnify and hold Clearwire Communications harmless from, (and, in Intel’s
discretion, settle) any suit, proceeding or claim brought against Clearwire
Communications (and its officers, directors, employees, permitted successors, and
its Affiliates) (collectively, the “Clearwire Communications Indemnitees”)
based upon a Claim that all or any portion of such [*****]. For the avoidance of
doubt, the foregoing obligations to defend, indemnify and hold Clearwire
Communications harmless shall include Claims asserted against [*****], provided that
such Claim asserts that the [*****].
31.1.2 Notwithstanding anything to the contrary, the foregoing indemnification
obligation specified in Section 31.1.1 above as to [*****] used,
distributed, sold or offered for sale by Clearwire Communications Indemnitees.
31.1.3 Subject to the limitations specified in Section 32 below, Intel will
pay all damages and costs awarded against Clearwire Communications Indemnitees for
such Claims provided that Intel solely controls the defense or settlement of the
Claim if the defense or settlement does not admit liability of Clearwire
Communications Indemnitees, except if Intel reasonably determines that [*****] by
Intel or Clearwire Communications Indemnitees is necessary to [*****]. Clearwire
Communications Indemnitees will promptly notify Intel of any Claim and in the case
of Clearwire Communications Indemnitees, they consent to such recitation. If the
Clearwire Communications Indemnitees do not reasonably consent to a settlement that
the complaining party insists must contain [*****] and the settlement requires no
other action by the Clearwire Communications Indemnitees, then Intel’s indemnity
obligation is limited to the amount of the proposed settlement to which the
Clearwire Communications Indemnitees did not consent. Clearwire Communications
Indemnitees will reasonably cooperate with and provide reasonable requested
authority, information and assistance to Intel in defending the suit. Intel shall
be relived of its obligation to defend, indemnify and hold Clearwire Communications
Indemnitees harmless, but only to the extent that Intel is actually prejudiced by
any of the following and only to the extent of the prejudice, (i) Clearwire
Communications Indemnitees fails to promptly notify Intel in writing of such Claim;
or (ii) Clearwire Communications Indemnitees fail to reasonably cooperate and
provide reasonable requested authority, information and assistance to Intel to
properly defend any such suit or proceeding (at Intel’s expense). Intel will not be
responsible for any costs, expenses or compromise
incurred or made by Clearwire Communications Indemnitees without Intel’s prior
written consent.
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31.1.4 The indemnification obligation hereunder in favor of Clearwire Communications
Indemnitees is not intended to create any obligation by Intel in favor of any third
party or to otherwise create any third party beneficiary, including without
limitation, [*****].
31.2 General Indemnification
31.2.1 Each Party (the “Indemnifying Party”) will defend, indemnify and hold
harmless the other Party and its respective Affiliates and their respective
officers, directors, employees, and agents (each an “Indemnified Party”)
from any suit or proceeding brought against the Indemnified Party arising out of any
third party Claim alleging personal or bodily injury, death, property damage or
theft, resulting from the negligent acts or omissions of the Indemnifying Party, its
agents or subcontractors, whether arising under common law, statute, strict tort
liability, strict products liability, negligence, misrepresentation, or breach of
warranty or otherwise; provided however, that an Indemnifying Party will have no
obligation to defend, indemnify, or hold an Indemnified Party harmless for any third
party Claim under this Section 31.2 to the extent such Claim results from
the Indemnified Party’s negligence or willful misconduct. Subject to the
limitations specified in Section 32 below, the Indemnifying Party will pay
all damages and costs awarded against the Indemnified Party for such Claims provided
that the Indemnifying Party solely controls the defense or settlement of the Claim.
The Indemnifying Party will reasonably cooperate with and provide reasonable
requested authority, information and assistance to the Indemnified Party in
defending the suit. The Indemnifying Party shall be relived of its obligation to
defend, indemnify and hold the Indemnified Party harmless, but only to the extent
that the Indemnifying Party is actually prejudiced by any of the following and only
to the extent of the prejudice: (i) the Indemnified Party fails to promptly notify
the Indemnifying Party in writing of such Claim; or (ii) the Indemnified Party
Indemnitees fail to reasonably cooperates and provide reasonable requested
authority, information and assistance to the Indemnifying Party to properly defend
any such suit or proceeding (at the Indemnify Party’s sole expense). The
Indemnifying Party will not be responsible for any costs, expenses or compromise
incurred or made by the Indemnified Party without the Indemnifying Party’s prior
written consent
31.2.2 To the extent an Indemnifying Party is obligated under this Section
31 to defend, indemnify and/or hold harmless an Indemnified Party against any
damages as provided for in this Section 31, an Indemnifying Party will be
the original and primary source of payment of such damages without demand or
presentment by an Indemnified Party, or the need or requirement that an
Indemnified Party first make payment on such damages prior to seeking reimbursement
from an Indemnifying Party.
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31.3 Entire Obligation. The foregoing indemnities are personal to the Parties hereto and
shall not be assignable, transferable or subject to pass-through to any third party. The
foregoing states the entire obligation with respect to any indemnification obligation
hereunder. Notwithstanding anything to the contrary, the obligations contained in this
Section 31 are subject to the limitation of liability and the cap on liability as
specified in Section 32 below.
32. LIMITATION OF LIABILITY
32.1 General Limitation. EXCEPT FOR BREACHES OF THE CONFIDENTIALITY OBLIGATIONS CONTAINED
IN SECTION 29 ABOVE AND NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
AGREEMENT, NEITHER PARTY WILL BE LIABLE HEREUNDER FOR CONSEQUENTIAL, INDIRECT, SPECIAL,
INCIDENTAL OR PUNITIVE DAMAGES (INCLUDING WITHOUT LIMITATION LOST PROFITS OR SAVINGS) FOR
ANY CAUSE OF ACTION, WHETHER IN CONTRACT, TORT OR OTHERWISE, EVEN IF THE PARTY WAS OR SHOULD
HAVE BEEN AWARE OF THE POSSIBILITY OF THESE DAMAGES. FOR THE AVOIDANCE OF DOUBT THE
FOREGOING WILL NOT RESTRICT A PARTY’S ABILITY TO RECOVER ACTUAL DIRECT DAMAGES FOR BREACH OF
THIS AGREEMENT
32.2 Cap on Liability. Except in the case of a tort claim for intentional or willful
misconduct (such as tortuous interference or fraud), by one Party as to a third party, which
misconduct results in liability of the other Party to that third party, in no event shall
either Party’s liability to each other, any Clearwire Communications Indemnitee and/or an
Indemnified Party arising out of this Agreement, under any cause of action or theory of
liability exceed [*****]. The foregoing cap on liability shall not apply
to [*****], or (b) any obligations contained in Section 5.3 of this Agreement [*****]. For
the avoidance of doubt “intentional or willful misconduct” does not include conduct that is
adjudicated willful infringement of a patent
33. TERMINATION/ASSIGNMENT/CHANGE OF CONTROL
33.1 Termination for Cause. Either Party has the right to terminate this Agreement in its
entirety or any affected portion thereof, without any penalty, by written notice to the
other Party upon the occurrence of a Event of Default which the defaulting Party has not
cured within thirty (30) calendar days after delivery of a written notice of such event of
default. The occurrence of any of the following will constitute an “Event of
Default” under this Agreement:
33.1.1 A Party is in material breach of any part or provision of this Agreement; or
33.1.2 A Party (i) files a voluntary petition in bankruptcy or has an involuntary
petition in bankruptcy filed against it that is not dismissed within forty-five (45)
days of such involuntary filing, (ii) admits the material allegations of any
petition in bankruptcy filed against it, (iii) is adjudged bankrupt, or (iv) makes a
general
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assignment for the benefit of its creditors, or if a receiver is appointed
for all or a substantial portion of its assets and is not discharged within sixty
(60) days after his appointment, and any such filing, proceeding, adjudication or
assignment as described herein above will otherwise materially impair such Party’s
ability to perform its obligations under this Agreement.
33.2 Assignment. Neither Party may sell, transfer, assign, subcontract or delegate
(collectively, “Transfer”) in whole or in part this Agreement (whether by operation
of law or otherwise), or any rights, duties, obligations or liabilities under this
Agreement, without the prior written consent of the other Party. Subject to the foregoing,
this Agreement will inure to the benefit of and be binding upon each Party’s permitted
successors and permitted assigns. Any Transfer in contravention of this Section
33.2 will be null and void. For purposes of this Agreement, any Change of Control (as
defined below) involving a Party, including without limitation, a Change of Control pursuant
to which the contracting Parties to this Agreement remain unchanged, shall be deemed a
Transfer by such Party.
33.3 Assignment Upon Change of Control. Notwithstanding the provisions of
Section 33.2, a Party may Transfer this Agreement, and all of the rights, duties,
obligations and liabilities hereunder, in a Change of Control (as defined below) provided
that:
|
33.3.1 |
|
the Party undergoing the Change of Control (the “Change of Control
Party”) complies with the applicable provisions of Section 33.3
below; |
|
|
33.3.2 |
|
if the Change of Control Party is Clearwire Communications and the other
party to the Change of Control (the “Clearwire Communications
Acquiror”) is (1) [*****] or any Affiliate
(as defined below) of [*****] or
any entity that has acquired substantially all of the assets or business of
[*****]; (2) any other third party primarily engaged in the business of
designing or manufacturing integrated circuits or any Affiliate of such a third
party; or (3) a Non-WiMAX Supporter, then Intel may terminate this Agreement in
its sole discretion effective immediately upon written notice to Clearwire
Communications given no later than thirty (30) calendar days after the
consummation of such Change of Control unless Clearwire Communications has
obtained the prior written consent of Intel to such Change of Control; |
|
|
33.3.3 |
|
if the Change of Control Party is Intel and the other party to the Change of
Control (the “Intel Acquiror”) is (1) [*****], or any of their
respective Affiliates (as defined below), or any entity that has acquired
substantially all of the assets or business of [*****]; (2) any other operator
of a WiMAX
wireless network in the United States or any Affiliate of such operator; or
(3) a Non-WiMAX Supporter, then Clearwire Communications may terminate this
Agreement in its sole discretion effective immediately upon written notice
to Intel given no later than thirty (30) calendar days after the
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|
|
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consummation of such Change of Control unless Intel has obtained the prior
written consent of Clearwire Communications to such Change of Control; |
|
|
33.3.4 |
|
the contracting party to this Agreement following such Change of Control
shall expressly agree in writing to assume this Agreement and all of the
rights, duties, obligations and liabilities hereunder, including without
limitation, in the case of a Change of Control of Clearwire Communications, the
obligations of Clearwire Communications under Section 5.1 in respect of
Intel Embedded Device Activation Fees and Section 12.1 in respect of
the Intel Revenue Share, and in the case of a Change of Control of Intel, the
obligations of Intel under Section 4.1 in respect of Embedding Rate
commitments, Section 10 in respect of co-marketing and co-branding
activities, and Section 11 in respect of [*****]; and |
|
|
33.3.5 |
|
if the Party that is not the Change of Control Party (the “Other
Party”), in its sole discretion, determines that, by reason of the identity
of the Clearwire Communications Acquiror or Intel Acquiror, as applicable, or
any Affiliate of the Clearwire Communications Acquiror or Intel Acquiror, as
applicable, continuation of the branding relationship contemplated by this
Agreement following consummation of the Change of Control could impair or
reflect unfavorably upon the goodwill, good name, reputation or image of the
Other Party or the Other Party’s Marks, then at the written election of the
Other Party, which election shall be given within thirty (30) days after the
consummation of such Change of Control, the following provisions of this
Agreement shall terminate effective as of the date of the written notice of
election, and such provisions thereafter shall have no further force or effect:
Section 10 (other than Section 10.6, to the extent it does not
relate to the [*****], and Section 10.8), Section 11 and
Section 12 hereof. |
33.4 Notice. Within ten (10) days after entering into, effecting, permitting or approving
any transaction that would result in a Change of Control, the Change of Control Party shall
give the other Party written notice of such event (the “Change of Control Notice”).
The Change of Control Notice shall describe in reasonable detail the proposed terms of the
transaction or transactions that would constitute a Change of Control and shall identify
each “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act) that is a party to such transaction or transactions and each “person” or “group” that
is, or is proposed to become, the “beneficial owner” (as defined in Rule l3d-3 under the
Exchange Act) of the Change of Control Party or of any such person or group, directly or
indirectly. The Change of
Control Notice shall be delivered as soon as practicable but no later than ten (10) days
after the date the Change of Control Party first approves or agrees to such offer or
proposed Change of Control and in any case at least twenty (20) days before the closing of
such Change of Control. The Change of Control Party also shall notify the other Party
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(1) of any material changes to the information required to be included in the Change of
Control Notice prior to the consummation of such Change of Control and (2) of the
consummation of any Change of Control within ten (10) days thereafter. If the Change of
Control Party enters into an exclusivity or “no-shop” arrangement or agreement or
confidentiality agreement in connection with a proposed Change of Control, the Change of
Control Party shall use commercially reasonable efforts to secure from the other party to
the Change of Control transaction an exception permitting the Change of Control Party to
provide the Change of Control Notice and other information required pursuant to this
Section 33.4. The Change of Control Party shall provide to the other Party,
promptly upon request, any information reasonably requested by such other Party regarding
the identity of any person that is a party to such Change of Control or any Affiliate
thereof, the brand and marketing plans of such person and its Affiliates with respect to
the business of the Change of Control Party following the consummation of the Change of
Control and any other information reasonably required by such other Party for the purpose
of making the determination to which reference is made in Section 33.3.4 or in
Section 33.3.5. The Party receiving the notice or information hereunder agrees to
keep strictly confidential any such notice or other information received pursuant to this
Section 33.4.
33.5 Obligation to Transfer Agreement. Without the prior written consent of the other
Party, neither Party shall enter into, effect, consent to, permit or approve a Change of
Control that is an Asset Acquisition, a WiMAX Acquisition or a Liquidation if, in
connection with such Change of Control, this Agreement and the rights, duties, obligations
or liabilities hereunder are not assigned by the Change of Control Party to the party in
such Change of Control that acquires substantially all of the assets of the Change of
Control Party.
33.6 No Circumvention. Neither of the Parties shall enter into, effect, consent to or
approve of any transaction designed to circumvent the provisions of Section 33.2
and Section 33.3, and any attempt to do so shall be deemed a breach of this
Agreement by such Party.
33.7 Definitions. Solely for the purposes of this Section 33, and for no other
purpose, the following definitions shall apply
33.7.1 RESERVED
33.7.2 “Change of Control” of a Party shall mean the occurrence or
existence of any of the following events or circumstances, whether accomplished
directly or indirectly, or in one or a series of related transactions:
33.7.2.1 any “person” or “gr
oup” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), is or becomes the “beneficial owner”
(as defined in Rule l3d-3 under the Exchange Act), directly or indirectly, of more than forty percent (40%) of the total voting
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power of the outstanding
equity securities of such Party or, in the case of Clearwire Communications,
its parent company; provided, that, this provision shall not be applicable
to (i) the beneficial ownership or acquisition by Intel or Sprint (or their
respective Affiliates) of equity securities of Clearwire Communications or
its parent company, nor to the beneficial ownership or acquisition by
Clearwire Communications of equity securities of Intel, or (ii), in the case
of Clearwire Communications, any transaction in which any such person or
group becomes the beneficial owner, directly or indirectly, of more than 40%
of the total voting power of the outstanding equity securities of Clearwire
Communications or its parent company for so long as Sprint then has the
power to appoint or elect a majority of the Board of Directors of Clearwire
Communications’ parent company;
33.7.2.2 such Party or, in the Case of Clearwire Communications, its parent
company merges with or into, or consolidates with, or consummates any
reorganization or similar transaction with, another person and, immediately
after giving effect to such transaction, less than forty percent (40%) of
the total voting power of the outstanding equity securities of the surviving
or resulting person is “beneficially owned” (within the meaning of
Rule 13d-3 under the Exchange Act) in the aggregate by the stockholders of
such Party or, in the case of Clearwire Communications, its parent company
immediately prior to such transaction; provided, that, this provision shall
not be applicable to (i) the beneficial ownership or acquisition by Intel or
Sprint (or their respective Affiliates) of equity securities of Clearwire
Communications or its parent company, nor to the beneficial ownership or
acquisition by Clearwire Communications of equity securities of Intel, or
(ii) in the case of Clearwire Communications, any transaction in which any
such person or group becomes the beneficial owner, directly or indirectly,
of more than 40% of the total voting power of the outstanding equity
securities of Clearwire Communications or its parent company for so long as
Sprint then has the power to appoint or elect a majority of the Board of
Directors of Clearwire Communications’ parent company;
33.7.2.3 in one transaction or a series of related transactions, such Party,
directly or indirectly (including through one or more of its subsidiaries)
sells, assigns, conveys, transfers, leases or otherwise disposes of, all or
substantially all of the assets or properties (including equity securities
of subsidiaries) of such Party to a third party, but excluding sales,
assignments, conveyances, transfers, leases or other dispositions of assets
or properties (including equity securities of subsidiaries) by such Party or
any of its subsidiaries to any direct or indirect wholly-owned subsidiary of
such Party or, in the case of Clearwire Communications, its parent company
(an “Asset Acquisition”);
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33.7.2.4 in one transaction or a series of related transactions, such Party,
directly or indirectly (including through one or more of its subsidiaries
and including through any liquidation or dissolution) sells, assigns,
conveys, transfers, leases or otherwise disposes of, a majority of the
assets or properties of, in the case of Clearwire Communications or its
subsidiaries (including equity securities of subsidiaries), such assets or
properties that relate to Clearwire Communications’ WiMAX business, and in
the case of Intel or its subsidiaries (including equity securities of
subsidiaries) such assets or properties that relate to Intel’s WiMAX Chipset
business, but in each case excluding sales, assignments, conveyances,
transfers, leases or other dispositions of assets or properties (including
equity securities of subsidiaries) by Clearwire Communications or any of its
subsidiaries to any direct or indirect wholly-owned subsidiary of Clearwire
Communications, or by Intel or any of its subsidiaries to any direct or
indirect wholly-owned subsidiary of Intel (a “WiMAX Asset
Acquisition”);
33.7.2.5 the adoption of any plan for the liquidation or dissolution of such
Party or, in the case of Clearwire Communications, its parent company, other
than in connection with a reorganization or similar transaction in which the
holders of the voting stock of such Party or, in the case of Clearwire
Communications, its parent company immediately prior to such transaction
continue to represent more than fifty percent (50%) of the combined voting
power of the surviving entity immediately after giving effect to such
transaction (a “Liquidation”); or
33.7.2.6 if the Change of Control Party is Clearwire Communications, shares
representing thirty percent (30%) or more of the aggregate voting power
represented by the issued and outstanding membership interests of Clearwire
Communications or capital stock of its direct parent holding company are
transferred to a Clearwire Communications Acquiror that is described in
Section 33.3.2 and such Clearwire Communications Acquiror, upon a
determination by Intel, in its reasonable discretion, poses a competitive
threat to Intel or its Affiliates or, if the Change of Control Party is
Intel, shares representing thirty percent (30%) or more of the aggregate
voting power represented by the issued and outstanding capital stock of
Intel to an Intel Acquiror that is described in Section 33.3.3 and
such Intel Acquiror, upon a determination by Clearwire Communications, in
its reasonable discretion, poses a competitive threat to Clearwire
Communications or its Affiliates.
33.7.3 “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended.
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33.8 Upon the termination or expiration of this Agreement, the Parties shall promptly (a)
eliminate any mention of a relationship between them in all sales, marketing and/or other
literature or other materials, including electronic media; (b) terminate the Trademark
License; and (c) return, destroy or permanently erase without retaining copies thereof, all
Confidential Information. Both Parties shall continue to perform their obligations under
this Agreement during any notice period prior to the actual termination of this Agreement.
34. REGULATORY REQUIREMENTS AND STANDARDS
34.1 Without the other Party’s prior written consent, such consent not to be unreasonably
withheld or delayed, neither Party nor its respective Affiliates will make any written
submissions to the any industry standards setting body, committee or organization
(collectively “Standards Bodies”), that include or disclose any Confidential
Information of the other Party. In connection with any request for consent, the Party
seeking consent will provide the other Party a copy of any proposed written standards
submission in each case. The Party whose consent is required will have an opportunity to
review and comment on such proposed submission and plans and strategy, and the Party seeking
consent will provide to the other Party such proposed submission and plans and strategy in a
reasonably timely manner in order to permit such review and comment. Neither Party will
work with third parties in a manner specifically designed to circumvent the intent of this
Section 34.1. Any consent of a Party required under this Section 34.1 must
be given by a Vice President (or person of more senior position) of such Party.
35. COMPLIANCE WITH LAWS
35.1 Each Party shall comply with all applicable federal, state, county and local laws,
orders, rules, ordinances, regulations and codes in the performance of its obligations set
forth in this Agreement, including such Party’s obligations, if any, as an employer
regarding the health, safety and payment of its employees. Without limiting the generality
of the foregoing, each Party must comply with laws, rules, regulations and orders relating
to equal employment opportunity, workers’ compensation, unemployment compensation and FICA.
35.2 Each Party agrees that it shall not participate in, or facilitate, any export or other
transfer, by any means, of any commodity or technical data, or any other goods, software or
technology, acquired from the other Party, (a) in violation of applicable law, including but
not limited to the Export Administration Regulations and the International Traffic in Arms
Regulations of the United States, or (b) with knowledge or reason to know that a violation
of such applicable law will or is intended or likely to occur with respect to such goods,
software or technology.
35.3 The Parties shall comply, in executing and performing this Agreement, with the FCPA and
all other applicable anti-corruption laws.
36. MARKS
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36.1 Marks. This Agreement does not grant either Party any rights in the other Party’s
name, trademarks, trade names or logos (“Marks”). Any trademark license necessary
to comply with the terms and conditions of this Agreement are contained in the Trademark
License attached as Appendix F.
37. TAXES, DUTIES AND APPLICABLE TAX LAWS
37.1 The Parties will comply with all federal, state, and local tax laws applicable to
transactions occurring under this Agreement. Each Party is responsible for payment of its
own liability for any federal, state, and local taxes arising from transactions occurring
under this Agreement, including but not limited to income taxes, franchise taxes, taxes
based upon gross revenues or gross receipts, assessments, duties, permits, tariffs, fees or
other charges. The Parties acknowledge that certain sales, excise and similar taxes may be
due on payments made by Clearwire Communications to Intel. Intel will be responsible for,
and indemnity Clearwire Communications against, any tax liability (including penalties and
interest, other than penalties and interest assessed as a result of the delay or failure on
the part of Clearwire Communications to pay any tax or file any return or information, as
provided in Section 37.2 below) which may be due on payments made by Clearwire
Communications to Intel. Notwithstanding the foregoing, if Clearwire Communications
purchases WiMAX Chipsets from Intel pursuant to a separate and independent purchase
agreement between the Parties that agreement will include without limitation mutually
agreeable tax provisions applicable to any such purchases. If requested, each Party will
timely provide the other Party with a completed Form W-9 for federal income tax reporting
purposes.
37.2 Each Party agrees to pay, and to hold the other Party harmless from and against, any
penalty, interest, additional tax or other charge that may be levied or assessed as a result
of the delay or failure to pay any tax or file any return or information required by law,
order rule or regulation.
37.3 The Parties agree to furnish or cause to be furnished to one another, upon request, as
promptly as practicable, such relevant tax-related information and assistance reasonably
necessary in preparing and filing all tax returns, the preparation for any audit by any
taxing authority and the prosecution or defense of any claim or proceeding relating to any
tax return. The Parties shall cooperate with each other in the conduct of any audit or
other proceeding related to taxes.
38. FORCE MAJEURE
38.1 Neither Party will be deemed in default of, and each Party will be excused from
performance under this Agreement to the extent that any delay or failure in the performance
of its respective obligations is directly caused by or directly results from acts of God,
fires, explosions, earthquakes, floods, epidemics, wars, civil unrest, insurrections, or
acts of the government in either its sovereign or contractual capacity, but
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in every case
the failure to perform must be beyond the reasonable control and without fault or negligence
of the Party failing to perform (each a “Force Majeure Condition”). If any Force
Majeure Condition occurs, the Party whose performance fails or is delayed because of such
Force Majeure Condition will give prompt written notice to the other Party, and such other
Party may elect at any time after such notice is given to suspend its own performance under
this Agreement for the duration of the Force Majeure Condition and require the delayed Party
to resume performance under this Agreement once the Force Majeure Condition ceases, while at
the same time extending the performance date for the length of time of the Force Majeure
Condition. In all cases, the Party whose performance fails or is delayed because of any
such Force Majeure Condition will use reasonable efforts to avoid or remove such cause of
nonperformance, excusable failure or delay.
39. NOTICES
39.1 Except as otherwise specified in this Agreement, all notices, consents, waivers or
other communications hereunder shall be sent postage prepaid, by certified mail, or by
courier to the addresses set forth below and will be effective upon actual receipt.
If to Clearwire Communications:
Chief Executive Officer
Clearwire Communications
0000 Xxxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Facsimile No.: (000) 000-0000
With a copy to:
Vice President/General Counsel
Clearwire Communications
0000 Xxxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Facsimile No.: (000) 000-0000
If to Intel:
General Counsel
Intel Corporation
0000 Xxxxxxx Xxxxxxx Xxxxxxxxx
Xxxxx Xxxxx, Xxxxxxxxxx 00000
with a copy to:
Post Contract Management
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Intel Corporation
0000 XX 00xx Xxxxxx
Xxxxxxxxx, Xxxxxx 00000
39.2 Written notice given pursuant to this Section 39 will be delivered to
recipients authorized by Clearwire Communications and Intel, as the case may be, in writing
and when so delivered will be deemed to have been fully served and delivered. The above
addresses may be changed at any time by giving thirty (30) calendar days prior written
notice as above provided.
40. RESERVED
41. CHOICE OF LAW; DISPUTE RESOLUTION
41.1. Choice of Law. This Agreement will be governed by and interpreted in accordance with
the state of
Delaware, without resort to it choice of law principles. The Parties agree
that the Uniform Computer Information Transaction Act (“
UCITA”), or any version of
UCITA adopted by any state, including
Delaware, will not govern or be used to interpret this
Agreement.
41.2 Available Procedures. Subject to the provisions of Section 41.8 below, which
preserves certain judicial remedies, the Parties agree to use the dispute resolution
procedures set forth below in Section 41.5 with respect to all controversies and/or
claims arising out of or relating to this Agreement.
41.3 Service of Process. Service of process in any suit, action or proceeding may be made
by mailing or delivering a copy of such process to Clearwire Communications or Intel, as the
case may be, at the addresses indicated in Section 41 hereof and in the manner set
forth in such Section 39. Nothing in this Section 41.3 will affect the
right of either Party to serve legal process in any other manner permitted by law.
41.4 RESERVED
41.5 Dispute Resolution.
41.5.1 Commencing Dispute Resolution. Except for disputes arising out of the
Trademark License attached as Appendix F hereto, all disputes arising
directly under the express terms of this Agreement, including the other Appendices
attached hereto, or grounds for termination thereof shall be resolved as follows:
First, the Party making a claim shall provide the other Party with a written
description of the dispute. Second, within fifteen (15) days following receipt of
the above description, the senior management or an authorized representative of both
Parties shall meet via telephone or at a mutually agreeable location and confer in
good faith to attempt to resolve the dispute. If the dispute cannot be resolved by
such senior management or authorized representative at that meeting
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then, either
Party may, within five (5) days after the conclusion of that meeting, make a
written demand for formal dispute resolution and specify therein the scope of the
dispute. Within thirty (30) days after receipt of such written notification, the
Parties shall jointly agree upon an impartial mediator to hear the dispute, agree to
meet at a mutually agreeable time and place for one (1) day with such impartial
mediator to attempt to resolve the dispute, and if unsuccessful in resolving the
dispute, to consider dispute resolution alternatives other than litigation. If the
Parties are unable to resolve the dispute through mediation and an alternative
method of dispute resolution is not agreed upon within ten (10) days after the one
(1) day mediation, either Party may begin litigation proceedings unless the Parties
otherwise agree.
41.5.2 Arbitration. If the Parties are unable to resolve the dispute through the
informal procedure described above in Section 41.5.1, and, if the Parties
agree in writing to arbitration within the ten (10) day period following the
informal procedure described in Section 41.5.1, the arbitration provisions
set forth below will be applicable to such dispute. The rules of the arbitration
shall be agreed upon by the Parties prior to the arbitration and based upon the
nature of the disagreement. To the extent that the Parties cannot agree on the
rules of the arbitration, then the Commercial Arbitration Rules of the American
Arbitration Association (“AAA”) in effect at the time of the commencement of
the arbitration or, if applicable, its Supplementary Rules for the Resolution of
Patent Disputes in effect at the time of the commencement of the arbitration, and
except as the applicable rules are modified by this Agreement, shall apply.
41.5.2.1 Location: The arbitration proceedings shall be held in New York, under the
auspices of the AAA.
41.5.2.2 Time Limit: The arbitrator is required to issue a decision within nine (9)
months of his or her appointment.
41.5.2.3 Other Rules: As a minimum set of rules in the arbitration the Parties
agree as follows:
(a) The arbitration shall be held before a single arbitrator mutually
acceptable to both Parties. If the Parties cannot agree on a single
arbitrator within thirty (30) days from the date written demand is made,
each Party shall identify one independent individual who shall meet to
appoint a single arbitrator. If an arbitrator still cannot be agreed upon
within an additional thirty (30) days, one shall be appointed by the AAA.
The arbitrator shall be knowledgeable regarding the semiconductor and wireless
communications industries.
(b) The Parties shall equally bear the costs and fees of the arbitration and
each Party shall bear its own legal expenses. The Parties agree that a
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court reporter will record the arbitration proceedings and that the
reporter’s record will be the agreed to transcript of the proceedings. The
Parties will share the expenses of this recorder.
(c) The arbitrator shall specify the basis for his/her decision, the basis
for the damages award and a breakdown of the damages awarded, and the basis
of any other remedy authorized under this Section 41.5.2. The
decision of the arbitrator shall be subject to de novo appeal by either
Party to any court of competent jurisdiction in the United States.
(d) Any arbitration proceeding hereunder shall be conducted on a
confidential basis, and the results shall be treated as Confidential
Information unless a Party chooses to appeal the results in which case the
Party filing the appeal will use reasonable efforts to seek confidential
treatment of all filings.
(e) The arbitrator shall apply the substantive laws of the State of
Delaware
in interpreting and resolving disputes.
(f) The Parties shall attempt to agree upon what, if any, discovery shall be
permitted. If the Parties cannot agree on discovery within thirty (30) days
after the appointment of the Arbitrator, then any discovery shall be within
the discretion of the arbitrator; provided, however, that the arbitrator
shall allow reasonable discovery in the forms permitted by the Federal Rules
of Civil Procedure, to the extent consistent with the purpose of the
arbitration, and any discovery that is permitted shall take no more than six
months. The arbitrator shall permit live testimony at the arbitration
proceeding.
(g) For the purposes of any arbitration governed by this Section
41.5.2, the Parties agree that monetary damages as limited below are
adequate and agree that the arbitrator will not have the power or authority
to award injunctive or equitable relief
(h) Without limiting the generality of the foregoing, the arbitrator shall
not award any damages of a type excluded pursuant to Section 32.1 or
in excess of the cap set forth in Section 32.2.
(i) Preliminary Hearing. As promptly as practicable after the selection of
the arbitrator, a preliminary hearing shall be held among the
Parties and/or their attorneys or other representatives and the arbitrator.
Unless the Parties agree otherwise, the preliminary hearing will be
conducted by telephone conference call rather than in person. By agreement
of the Parties and/or order of the arbitrator(s), the pre-hearing activities
and the hearing procedures that will govern the arbitration will
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be
memorialized in a Scheduling and Procedure Order. At the preliminary
hearing the matters to be considered shall include, without limitation:
(i) service of a detailed statement of claims, damages and defenses,
a statement of the issues asserted by each Party and positions with
respect thereto, and any legal authorities the Parties may wish to
bring to the attention of the arbitrator;
(ii) stipulations to uncontested facts;
(iii) the extent to which discovery shall be conducted;
(iv) exchange and pre-marking of those documents which each Party
believes may be offered at the hearing;
(v) the identification and availability of witnesses, including
experts, and such matters with respect to witnesses including their
biographies and expected testimony as may be appropriate;
(vi) whether, and the extent to which, any sworn statements and/or
depositions may be introduced;
(vii) the extent to which hearings will proceed on consecutive days;
(viii) the possibility of utilizing mediation or other
non-adjudicative methods of dispute resolution; and
(ix) the procedure for the issuance of subpoenas.
41.6 Tolling. All applicable statutes of limitation will be tolled to the extent permitted
by applicable law while the dispute resolution procedures specified in this Section
41 are pending, and nothing herein will be deemed to bar any Party from taking such
action as the Party may reasonably deem to be required to effectuate such tolling, provided
such tolling does not exceed one hundred eighty (180) days, unless otherwise agreed by the
Parties.
41.7 Activation Fee Disputes. In the event of a dispute over payment of Activation Fees, if
it is determined that Activation Fees are owing to Intel, such Activation Fees shall be paid
to Intel in one lump sum within thirty (30) calendar days of resolution of the
dispute. If it is determined that Clearwire Communications has overpaid Activation Fees, at
Clearwire Communications’ option Intel shall either (i) repay the excess Activation Fees
within thirty (30) calendar days of receipt of Clearwire Communications’ written request for
repayment, or (ii) apply the overpayment as a credit to the next scheduled
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Activation Fee
payment so as to reduce the amount owed by Clearwire Communications to Intel.
41.8 Judicial Remedies and Injunctions. Notwithstanding the foregoing provisions of this
Section 41, judicial remedies may be sought immediately with respect to any
controversies and/or claims arising out the following section of this Agreement pursuant to
the terms of this Section 41.8.
Section 3.3.2
Section 48 (“Confidential Information”)
Section 11.5 (“Clearwire Communications Deployment Exclusivity”)
41.9 Venue. Any court proceeding brought by either Party must be brought in
Delaware in the
United States District Court or, in the event no federal court in
Delaware has jurisdiction,
then in any
Delaware state court having jurisdiction over the subject matter. Each Party
agrees to personal jurisdiction in these courts. The parties agree to continue performance
during the pendency of any dispute, unless this Agreement is terminated in accordance with
the terms of this Agreement. The Parties further agree that irreparable damage may occur in
the event that any of the provisions contained in
Section 41.8 of this Agreement
were not performed in accordance with their specific terms or were otherwise breached and it
is accordingly agreed that, in addition to any other remedy to which any Party may be
entitled at law or in equity, the Parties will be entitled to equitable relief, including
injunction, to prevent such breaches and to specifically enforce such terms and provisions.
42. SEVERABILITY
42.1 If any of the provisions of this Agreement are invalid or unenforceable, such
invalidity or unenforceability will not invalidate or render unenforceable the entire
Agreement, but rather the entire Agreement will be construed as if not containing the
particular invalid or unenforceable provision or provisions, and the rights and obligations
of each Party will be construed and enforced accordingly. The Parties will negotiate in
good faith to amend this Agreement to include provisions that provide the Parties with the
same economic effect as such severed provision.
43. SURVIVAL
43.1 Notwithstanding anything contained herein to the contrary, all representations,
warranties, covenants and other terms set forth in the following sections will survive any
termination or expiration of this Agreement for any reason:
Section 9.2 (“Audit”)
Section 25 (“Intellectual Property Ownership”)
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Section 26 (“Disclaimer of Warranties”)
Section 29 (“Confidential Information”)
Section 32 (“Limitation of Liability”)
Section 37 (“Taxes, Duties And Applicable Tax Laws”)
Section 39 (“Notices”)
Section 41 (“Choice of Law; Dispute Resolution”)
Section 44.2 (“Entire Agreement”)
Appendix A (Definitions)
44. BINDING EFFECT; ENTIRE AGREEMENT
44.1 This Agreement is binding upon each Party and will inure to the benefit of each such
Party’s successors and permitted assigns.
44.2 This Agreement contains the entire agreement and understanding between the Parties with
respect to the subject matter hereof and supersedes all prior oral and written agreements,
understandings, representations and warranties relating to such subject matter. Each Party
agrees that, except for the representations and warranties contained herein, neither Party
makes any other representations or warranties, and each hereby disclaims any other
representations or warranties made by itself or any of its officers, directors, employees,
agents, or other representatives, with respect to the execution and delivery of this
Agreement or the transactions contemplated hereby.
45. AMENDMENTS; NO WAIVER
45.1 No amendment, modification or waiver of any part of this Agreement will be effective or
binding on the Parties unless reduced to writing and executed by senior executives of both
Parties.
45.2 No course of dealing or failure of either Party to strictly enforce any term, right or
condition of this Agreement will be construed as a waiver of such term, right or condition.
If any representation, warranty or covenant contained in this Agreement is breached by
either Party and thereafter waived by the other Party, such waiver will be limited to the particular breach so waived and not be deemed to waive any other breach under
this Agreement.
46. CONSTRUCTION AND INTERPRETATION
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46.1 The language of this Agreement will in all cases be construed as a whole and in
accordance with its fair meaning. This Agreement has been prepared jointly and each Party
has been given the opportunity to independently review this Agreement with legal counsel.
46.2 Section or paragraph headings contained in this Agreement are for reference purposes
only and will not affect the meaning or interpretation of this Agreement. The singular use
of words will include the plural use and vice versa.
47. INCORPORATION BY REFERENCE
47.1 The terms and conditions of any Appendices or Exhibits are integral parts of this
Agreement and are fully incorporated into this Agreement by this reference.
48. COUNTERPARTS; FAX SIGNATURES
48.1 This Agreement may be executed by the Parties on any number of separate counterparts,
and all of said counterparts taken together will be deemed to constitute one and the same
instrument. The Parties hereby agree that signatures transmitted and received via facsimile
or other electronic means will be treated for all purposes of this Agreement as original
signatures and will be deemed valid, binding and enforceable by and against both Parties.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, Clearwire Communications and Intel have caused this Agreement to be
executed in duplicate counterparts, each of which will be deemed to be an original instrument, as
of the Effective Date.
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INTEL CORPORATION |
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CLEARWIRE COMMUNICATIONS LLC |
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By:
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/s/ Xxxxxx Xxxxxxx
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By:
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/s/ Xxxx Xxxxxxx
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Title:
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EVP, Intel Corp/President, Intel
Capital
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Title:
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Xxxx Xxxxxxx, Senior Vice President,
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(Print or type)
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Finance and Treasurer
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Date:
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November 24, 2008
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Date:
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November 28, 2008 |
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DEFINITIONS
Except in the case of
Appendix F (Trademark License), for the purposes of the
Market
Development Agreement, including all Appendices and Exhibits, the following definitions will apply.
If a defined term listed below refers to a section of a document containing the definition, the
section reference is to a section of the
Market Development Agreement.
“3G MVNO Agreement” has the meaning defined in Section 3.2.
“3GPP” means the Third Generation Partnership Project.
“4G MVNO Agreement” has the meaning defined in Section 3.3.
“4G MVNO Election” has the meaning defined in Section 3.3.
“AAA” has the meaning defined in Section 41.5.2.
“Access Revenue” [*****].
“Activated” [*****].
“Activation Database” has the meaning defined in Section 9.1.
“Activation Rate” has the meaning defined in Section 5.3.
“Ad Hoc Customer” means a Customer who Activates a Device on the Clearwire Communications
Network on a temporary basis and who does not enter into a monthly or longer subscription-based
agreement for Services.
[*****]
[*****]
“Adjusted Retail Revenue” has the meaning defined in Section 12.1.4.
“Advance-Xxxxxxxx” means Advance/Xxxxxxxx Communications.
“AD/VAS” means revenue derived by Clearwire Communications from advertising, value
added services or similar sources of revenue resulting from anything other than access to the
Clearwire Communications Network.
“Affiliate” means a legal entity that directly or indirectly controls, is controlled by, or
is under common control with a Party. An entity is considered to control another entity if it owns,
directly
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or indirectly, more than fifty percent (50%) of the total voting securities or other such similar
voting rights.
“Annual Spending Requirements” has the meaning defined in Section 12.2.
“API” means application program interfaces.
“Asset Acquisition” has the meaning defined in Section 33.7.2.3.
[*****]
“Audit” has the meaning defined in Section 9.
“Auditor” has the meaning defined in Section 9.2.1.
“AWS” means advanced wireless services spectrum as allocated by the FCC.
“Centrino Processor Technology” means the current brand designation that Intel uses to
indicate that a Performance Notebook contains a premium Intel Architecture CPU and Intel wireless
components plus other hardware or software (whether manufactured by Intel or outsourced to a third
party by Intel), and includes any future evolution of the Centrino Processor Technology brand or
any other brand that serves the function in Intel’s brand hierarchy of indicating premium Intel
Architecture CPU and wireless components for Performance Notebooks or MIDs.
“CE Devices” means consumer electronic devices consisting of both portable and non-portable
devices that may provide multimedia, communication, information, or computing capabilities (such as
audio/video devices and other media center devices).
“Change of Control” has the meaning defined in Section 33.7.2.
“Change of Control Notice” has the meaning defined in Section 33.4.
“Change of Control Party” has the meaning defined in Section 33.3.1.
“Claim” means any demand, lawsuit, action, administrative proceeding, or claim seeking
redress of any nature, regardless whether at law or in equity arising out of this Agreement.
“Clearwire” means Clearwire Corporation.
“Clearwire Communications FDD Implementation Requirements” means the Clearwire
Communications Network design requirements as determined by Clearwire Communications.
“Clearwire Communications Acquiror” has the meaning defined in Section 33.3.2.
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“Clearwire Communications Background Intellectual Property” has the meaning defined in
Section 26.1.
[*****]
“Clearwire Communications Network” means Clearwire Communications’ implementation of a
WiMAX-based network in the United States owned, controlled, operated or managed by Clearwire
Communications for its own Customers or Customers acquired through its subsidiaries, MVNOs,
Affiliates or Resellers.
“Clearwire Communications Parent” means Newco (as such term is defined in the Transaction
Agreement).
“Clearwire Communications Quarterly Services Roadmap” means the Clearwire Communications
services roadmap document detailing Clearwire Communications’ plans for (i) Future Network
Services, (ii) modifications, enhancements and updates to existing Standard Network Services for
both Clearwire Communications’ direct retail operations and wireless resale service operations, and
(iii) the timing and location of new market launches.
[*****]
[*****]
“Co-Branding Construct(s)” [*****].
“Combined Election” has the meaning defined in Section 3.3.
“Comcast” means Comcast Corporation, a Pennsylvania corporation.
“Complementary Services” means non-WiMAX based products, applications and services that
complement, support and/or enhance the Services, including but not limited to backhaul and
broadcast applications, technology or services. Complementary Services do not include alternative
wireless broadband or data technologies, but would include WiFi, and WiFi or WiMAX femto cell
applications.
“Confidential Information” has the meaning defined in Section 29.
“Connection Manager” means a general software program that enables a user of a Device to
connect to or disconnect from a network service and select and/or subscribe to network providers.
“Controlled Affiliate” means, with respect to any Person, such Person’s Ultimate Parent and
any Affiliate of such Ultimate Parent that is controlled by such Ultimate Parent.
“Core Network” means, with respect to certification of Qualifying Intel Devices, the
wireless voice and data service infrastructure that provides access in the form of connectivity and
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transmission via the Clearwire Communications Network, as the same may be modified, enhanced or
updated by Clearwire Communications from time to time.
“CPNI” means customer proprietary network information.
[*****]
“Customer” means a subscriber to the Clearwire Communications Network.
“Customer Contract” means a contract, subscription agreement, amendment or other
documentation used by Clearwire Communications, or any of its MVNOs or Resellers or Affiliates, to
initiate Services for a Customer.
“Design-In” means the engineering, technical and other support performed to allow an OEM
Device to incorporate products of another vendor, such as a CPU or wireless module.
“Design-Win” means sales and marketing efforts that convert Design In activities into
actual product orders.
“Devices” means collectively CE Devices, MIDs, and Notebooks.
[*****]
“Effective Date” has the meaning defined in Section 3.1.
“Embedded Device” means a Device having embedded WiMAX capability (as opposed to a Device
that uses an external means to connect to a WiMAX network such as an air card).
“Embedded Device Activation Fee” [*****].
“Embedding Rate” [*****].
“Essential Patent Claims” means patent claims owned or controlled by a vendor and
necessarily infringed by an implementation of at least one of the mandatory features of the main or
optional profile(s) of the WiMAX Forum Mobile System Profile or Network Profile.
“Event of Default” has the meaning defined in Section 33.1.
“Exchange Act” has the meaning defined in Section 33.7.4.
“FCC” means the United States Federal Communications Commission.
“FCPA” means the U.S. Foreign Corrupt Practices Act, 15 U.S.C., §78dd-1, et seq., as
amended.
“Force Majeure Conditions” has the meaning defined in Section 38.
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“Forum” means the quarterly discussion vehicle between Clearwire Communications, MSO
Members and Intel to discuss at a minimum the Clearwire Communications Quarterly Services Roadmap,
development and offering of Standard Network Service, Non-Standard Network Service, Future Network
Service and Other Services, all pursuant to the MVNO agreements between Clearwire Communications
and the MSO Members.
“Future Network Service” means Clearwire Communications’ plans for development and roll-out
of new Standard Network Services not offered by Clearwire Communications as of the date each
Clearwire Communications Quarterly Services Roadmap to be provided by Clearwire Communications to
Intel and the MSO Members.
“Google” means Google Inc.
“Indemnified Party” has the meaning that is defined in Section 31.3.
“Indemnifying Party” has the meaning defined in Section 31.3.
“Initial Intel Exclusivity Period” has the meaning defined in Section 11.2.
“Initial Term” has the meaning defined in Section 2.
“
Intel” means Intel Corporation, a
Delaware corporation.
“Intel Acquiror” has the meaning defined in Section 33.3.3.
“Intel Architecture CPU” means any microprocessor sold by Intel based on Intel’s X86
instruction set or its successors, including low power implementations.
“Intel Background Intellectual Property” has the meaning defined in Section 26.1.
“Intel-Based MIDs” means MIDs containing an Intel Architecture CPU and Intel wireless
components that allow it to qualify to bear the Centrino Processor Technology (its successors or
equivalent) brand regardless of whether such MIDs actually bear such brand.
[*****]
[*****]
“Intel Bundled Services” has the meaning defined in Section 3.3.
“Intel Co-Marketing Exclusivity Obligations” has the meaning defined in Section
11.2.
“Intel
Devices” means collectively and individually
[*****], [*****] and Intel-Based MIDs.
“Intel MDF” has the meaning defined in Section 10.1.
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“Intel Renewal Period” has the meaning defined in Section 3.1.
“Intel [*****] Revenue Share” [*****].
[*****]
“Intellectual Property” means (a) all copyrightable works, all copyrights including all
applications, registrations and renewals thereof, (b) all trade names, fictional business names,
trade dress rights, trademarks and service marks, (c) all inventions (whether patentable or
unpatentable and whether or not reduced to practice), all improvements thereto and all patents,
patent applications and patent disclosures, together with all reissuances, divisions,
continuations, continuations-in-part, substitutes, extensions and reexaminations thereof, as well
as any foreign counterparts of any of the foregoing, (d) all proprietary formulations, know-how,
show-how, confidential business information, trade secrets, research and development results,
projections, analyses, models and other technical information and technology, (e) all mask works
and all applications, registrations and renewals in connection therewith, (f) all computer software
(including data and related documentation), whether purchased, licensed or internally or jointly
developed, (g) all copies and tangible embodiments of the foregoing in whatever form or medium, and
(h) all rights in or to the foregoing.
“Interim POPs Coverage” has the meaning defined in Section 6.3.
“IOT” means interoperability testing.
“Liquidation” has the meaning defined in Section 33.7.2.5.
“LLC Member” means an entity holding an equity interest in the OPA prior to a public
announcement of the launch of the OPA.
“LTE” means long term evolution.
“Marketing Tonnage” means expenditures made directly or indirectly by a Party on marketing
activities, including by way of example and not by limitation, advertising, promotions, and other
similar activities.
“Marks” has the meaning defined in Section 36.1.
“MDF” means market development funds.
“MFC” means most favored customer as described in Section 20.1.
“MIDs” means mobile internet devices, other than Notebooks, with internet capability and
web browser functionality and which have a diagonal screen of less than seven (7) inches.
Notwithstanding the foregoing, the following are specifically excluded from the definition of a
MID: (a) any mobile internet device, handset or smart-phone with the primary purpose of voice
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communication, (b) any mobile internet device sold by or for Clearwire Communications under a cell
phone-like model where Clearwire Communications specifies, buys, and/or brands such device for
resale to consumers through its, or its partners’ distribution channels.
“Minimum Enabling Requirements” has the meaning defined in Section 10.6.
“Minimum Revenue Threshold” has the meaning defined in Section 5.2.
“MSO” means multiple system operator.
“MSO Core Services” means, with respect to each MSO Member, such MSO Member’s or any of its
Affiliates’ non-mobile multi-channel video service, wireline high-speed data internet access
services, facilities-based wireline telephone service and any future subscriber paid, recurring
charge based, wireline service that naturally evolves from the foregoing services offered by such
MSO Member or any of its Affiliates.
“MSO Members” means Comcast, Time Warner, Advance/Xxxxxxxx and any other MSO who enters
into an MVNO agreement with Clearwire Communications after the Effective Date hereof.
“MVNO” means a mobile virtual network operator who resells WiMAX services.
“MVNO Co-Branding Construct” has the meaning defined in Section 11.1.3.
“MVNO End User” means, with respect to Intel, any end user customer purchasing MVNO Service
from Intel (or a Controlled Affiliate of Intel pursuant to Section 2.7 of the 4G MVNO
Agreement.)
“MVNO Election” has the meaning defined in Section 3.2.
“MVNO Service” means, with respect to Intel, the Wireless Broadband Service provided by
Clearwire Communications or any of its Controlled Affiliates over the Clearwire Communications
Network, but sold by Intel (or by a Controlled Affiliate of Intel pursuant to Section 2.7
of the 4G MVNO Agreement) to end user customers as a reseller of the Wireless Broadband Service
pursuant to the 4G MVNO Agreement.
“Network Data” has the meaning that is defined in Section 24.1.
“Network Enablers” mean the non-transmission elements of the Clearwire Communications
Network that provide information and functionality necessary to provide services and applications
over the Clearwire Communications Network. For purposes of clarification, Network Enablers
include, but are not limited to, the underlying network elements and interfaces such as quality of
service, identity information, device management, multicast media streaming and location services.
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“Non-Standard Network Service” means a custom interface, customized configuration, service,
specific functionality or capability, or implementation of Other Services under the MVNO agreements
between Clearwire Communications and an MSO that is unique to a MSO Member(s).
[*****]
“Notebooks” means notebook or sub-notebook computers.
“ODMs” means original design manufacturers of mobile computing devices. For the avoidance
of doubt, ODMs may also do business as OEMs.
“OEM” means original equipment manufacturers of Devices who sell a branded product.
“OPA” means the Open Patent Alliance, LLC formed to protect and promote the global
implementation of WiMAX and create one or more patent pools for the efficient and transparent
licensing of Essential Patent Claims to practice the IEEE 802.16e-2005 specification as specified
by the WiMAX Forum Interoperability and Network Architecture Profiles.
“OS” means operating system.
“OSS” means operating support system.
“Other Party” has the meaning defined in Section 33.3.5.
“Other Reseller” has the meaning defined in Xxxxxxx 0.00.0 (x) xx xxx 0X XXXX
Xxxxxxxxx.
“Other Services” are services that may be provided by Clearwire Communications over the
Clearwire Communications Network that do not include Standard Network Services or Non-Standard
Network Services.
“Performance Notebooks” means Notebooks that contain advanced microprocessors.
“Person” means any individual, partnership, limited liability partnership, limited
liability company, corporation, trust, other business association or business entity, estate or
other entity.
“POPs” means the population within the radio frequency coverage area of the Clearwire
Communications Network.
“POPs Coverage” means natural persons who reside in the U.S. (such number of natural
persons based on most recent census data) who can access the Clearwire Communications Network at
their place of residence at a standard level of service as mutually agreed upon by the Parties in
Appendix C to the Agreement.
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“Product Segment” means a product category suitable for embedding a WiMAX Chipset, for
example without limitation: personal computers, notebooks, UMPCs, portable media players, PDAs and
smart-phones, portable gaming devices, consumer electronics.
[*****]
“Qualifying Intel-Based MIDs” means Intel-Based MIDs embedded with a Qualifying WiMAX
Chipset, that are certified on the Clearwire Communications Network.
“Qualifying [*****]” means [*****] embedded with a Qualifying WiMAX Chipset, that are
certified on the Clearwire Communications Network.
“Qualifying [*****]” means [*****] embedded with a Qualifying WiMAX Chipset, that are
certified on the Clearwire Communications Network.
“Qualifying Intel Devices” means collectively and individually Qualifying [*****],
Qualifying [*****] and Qualifying Intel-Based MIDs.
“Qualifying WiMAX Chipsets” means WiMAX Chipsets whether sold by Intel or outsourced by
Intel to third parties that (a) contain silicon sourced in-house from Intel or from a third party
that is part of an Intel branded product, (b) contains Intel activation software certified to
operate on the Clearwire Communications Network and (c) excepting [*****], when combined with an
Intel Architecture CPU would enable the Device to bear the Intel Centrino brand (its successors or
equivalent) according to Intel’s definition and brand requirements as set forth in the Intel Inside
Program and channel program materials. For the avoidance of doubt, Qualifying WiMAX Chipsets do
not include any OS used in conjunction with such Qualifying WiMAX Chipset.
“Renewal Period” has the meaning defined in Section 3.1.
“Reseller” means a third party which purchases from Clearwire Communications access
services to the Clearwire Communications Network, repackages the services and then sells the
services to Customers.
[*****]
“RF” has the meaning defined in Appendix C.
“SEC” has the meaning defined in Section 30.1.
“Services” means the access, information and communications services offered by Clearwire
Communications over the Clearwire Communications Network to Customers.
“Sprint” means Sprint Nextel Corporation.
“Sprint Spectrum” means Sprint Spectrum L.P.
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“Standard Network Services” are the WiMAX Services provided by Clearwire Communications
over the Core Network to retail Customers that provide voice or data transmission functionality and
access and that are of a nature that a Reseller could not procure from a third party.
“Standard WiMAX Device” has the meaning defined in Appendix C.
“Standards Bodies” has the meaning that is defined in Section 34.1.
“Start Date” means the date that is three (3) months from the Effective Date.
“Strategic Investors” means the Comcast Corporation, Time Warner Cable Inc., Google Inc.
and Intel Corporation.
[*****]
“Term” has the meaning that is defined in Section 3.1.
“
Time Warner” means Time Warner Cable Inc., a
Delaware corporation.
“Trademark License” has the meaning defined in Section 10.4.
“Transaction Agreement” means the Transaction Agreement and Plan of Merger dated as of May
7, 2008 among Clearwire Corporation, Sprint Nextel Corporation, Comcast Corporation, Time Warner
Cable Inc., Advance/Xxxxxxxx Partnership, Google Inc. and Intel Corporation, as amended, modified
or supplemented from time to time.
“Transfer” has the meaning defined in Section 33.2.
“True Up Date” has the meaning defined in Section 5.3.
“TWC” means Time Warner Cable Inc.
“Ultimate Parent” means, with respect to any Person at any time, the Person (other than any
natural person or any trust or other investment vehicle established primarily for the benefit of
any natural person) that directly or indirectly controls such Person and all other Persons with a
direct or indirect controlling interest in such Person, which, on the date hereof, (i) in the case
of Brighthouse is Advance/Xxxxxxxx Partnership, (ii) in the case of Comcast is Comcast Corporation,
(iii) in the case of TWC is Time Warner Cable Inc., (iv) in the case of Sprint is Sprint Nextel
Corporation, (v) in the case of Clearwire Communications is Clearwire Corporation, formerly known
as New Clearwire Corporation, (vi) in the case of Google is Google Inc. and (vii) in the case of
Intel is Intel Corporation (it being understood that if a publicly traded corporation or other
entity directly or indirectly controls any Person, such publicly traded corporation or other entity
shall be deemed to be the Ultimate Parent of such
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Person regardless of whether any other Person may have a direct or indirect controlling interest in
such publicly traded corporation or other entity).
“United States” means the fifty states of the United States and excludes Puerto Rico, Guam
or any other territories.
[*****]
[*****]
“Wave 1 Certification” means the first wave of certification testing as defined by the by
the WiMAX Forum for 802.16-2005.
“Wave 2” means the Mobile WiMAX certification testing that uses the feature set designated
as Wave 2 by the WiMAX Forum.
“Wave 2 Certification” means the second wave of certification testing as defined by the
WiMAX Forum for 802.16-2005.
[*****]
[*****]
[*****]
“WiFi” means the IEEE 802.11 industry standard.
“Wireless Broadband Service” means any service technically capable of being provided over
the Clearwire Communications Network and to be provided by Clearwire Communications or any of its
Controlled Affiliates under the 4G MVNO Agreement, including any service utilizing a Network
Enabler, but excluding any service that is not within or reasonably related to Clearwire
Communications’ commercial offerings and not provided to any Other Reseller; provided that Wireless
Broadband Service shall not include any applications or content offered by Clearwire
Communications, its Controlled Affiliates or third parties over the Clearwire Communications
Network or any service that Clearwire Communications may not provide over the Clearwire
Communications Network under applicable law.
“WiMAX” means technology that complies with the IEEE 802.16e-2005 Wave 2 technology
standard, including future evolution thereof (as defined by the WiMAX Forum).
“WiMAX Asset Acquisition” has the meaning defined in Section 33.7.2.4.
“WiMAX Chipsets” means chipsets and modules designed to comply with WiMAX industry
standards.
“WiMAX Equipment” means IEEE 802.16-2005 based WiMAX Network infrastructure, components,
and systems.
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“WiMAX Equipment Certification” means certification conducted by the WiMAX Forum that
network infrastructure, components, and systems comply with WiMAX industry standards and WiMAX
Forum defined profiles.
“WiMAX Forum” means the industry-led, non-profit corporation formed to promote and certify
compatibility and interoperability of broadband wireless products utilizing industry standard, IEEE
802.16.
“WiMAX Network” means a broadband wireless network based on WiMAX.
“Year One” means calendar year 2009. With respect to any reference to other years, i.e.,
“Year Two”, “Year Three”, etc., each such reference will be with regard to Year One and its
following years, and shall follow sequentially.
***End of Appendix A***
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INTEL MVNO BUNDLING REQUIREMENTS
The “Intel Bundled Services” means, with respect to Intel, MVNO Service offered as part of
an unlimited data service plan to MVNO End Users as part of a service package for deployment on
Intel Devices that includes (x) a set of applications that integrate Intel-branded applications,
content and customer experience and that requires the creation of a log-in account by the
applicable MVNO End User to Intel’s and its Controlled Affiliates’ primary portal prior to or in
connection with the activation of MVNO Service on such Device and (y) at least one MSO Core Service
or Sprint Wireless Service offered by Intel to its end users under the 3G MVNO Agreement.
*** End of Appendix B ***
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Method of Measuring POPs Coverage
[*****]
*** End of Appendix C***
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[*****]
*** End of Appendix D***
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Technical Performance Requirements
Systems performance of the Clearwire Communications Network communicating with Mobile Terminals
must meet the technical performance standards set forth in this document.
[*****]
*** End of Appendix E ***
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APPENDIX F TO MARKET DEVELOPMENT AGREEMENT
Trademark License Agreement
Trademark License Agreement
This Trademark License Agreement (the “Trademark Agreement”) is entered into on the Effective Date
(as defined below) by and between Intel Corporation, a Delaware corporation with its principal
place of business at 0000 Xxxxxxx Xxxxxxx Xxxxxxxxx, Xxxxx Xxxxx, Xxxxxxxxxx 00000 (“Intel”) and
Clearwire Communications LLC, a Delaware limited liability company with its principal place of
business at 0000 Xxxxxxxx Xxxxx, Xxxxxxxx, XX 00000 (“Clearwire Communications”).
Whereas, Intel and Clearwire Communications have entered into a Market Development Agreement (the
“Commercial Agreement” as defined below) concerning the development and deployment of a WiMAX
network and WiMAX enabled devices;
Whereas, in connection with the Commercial Agreement, Clearwire Communications and Intel wish to
use certain of each other’s respective marks on products, in association with services, in
tutorials, and in a variety of marketing materials to promote Clearwire Communications’ and Intel’s
products, services and technologies, and to allow certain of Intel’s licensees under the standard
terms and conditions of other Intel program agreements to use Clearwire Communications’ marks on
such licensees’ products, in tutorials, and in a variety of marketing materials to promote
Clearwire Communications’ and Intel’s products, services and technologies.
Therefore, in consideration of the mutual covenants and promises contained herein, Intel and
Clearwire Communications agree as follows:
|
1.1. |
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The following capitalized words and phrases used in this Trademark Agreement shall have
the same meaning as the definitions of those words and phrases in the Commercial Agreement,
and are incorporated herein by reference: Qualifying [*****], Qualifying [*****],
Qualifying Intel-Based MIDs, Services, Start Date, and WiMAX. |
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1.2. |
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“Co-branding Constructs” [*****]. |
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1.3. |
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“Commercial Agreement” shall mean the Market Development Agreement between Clearwire
Communications and Intel dated November 28, 2008. |
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1.4. |
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“Effective Date” shall mean the later of the parties’ signature dates below. |
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1.5. |
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“Intel Marks” shall mean Intel’s Licensed Marks, INTEL, INTEL INSIDE, and all other
Intel trademarks incorporated in Intel’s Licensed Marks, including, but not limited to, the
INTEL corporate logo, INTEL CENTRINO, the INTEL CENTRINO logo, and any other Intel marks
added to Exhibit A as it is modified in writing by the parties. |
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1.6. |
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“Intel’s Licensed Marks” or “Intel Licensed Marks” shall mean the INTEL CENTRINO logo,
to be added to Exhibit A, and any other Intel marks added to Exhibit A, as it is modified
in writing by the parties, or such additional or replacement marks as Intel may provide,
and no other logo, xxxx, or designation. |
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1.7. |
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“Intel Licensees” shall mean licensees of Intel’s trademarks under Intel’s standard
trademark licensing program agreements, such as the Intel Inside Program, and channel and
retail licensing programs. |
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1.8. |
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“Licensed Marks” shall mean Intel’s Licensed Marks and/or Clearwire Communications’
Licensed Marks, respectively. |
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1.9. |
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“Clearwire Communications Marks” shall mean XOHM and the XOHM logo, and all other
Clearwire Communications trademarks incorporated in Clearwire Communications’ Licensed
Marks all other Clearwire Communications trademarks incorporated in Clearwire
Communications’ Licensed Marks and any other Clearwire Communications marks added to
Exhibit A as it is modified in writing by the parties. |
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1.10. |
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“Clearwire Communications’ Licensed Marks” or “Clearwire Communications Licensed
Marks” shall mean XOHM and the XOHM logo, to be added to Exhibit A, and any other Clearwire
Communications marks added to Exhibit A, as it is modified in writing by the parties, or
such additional or replacement marks as Clearwire Communications may provide, and no other
logo, xxxx, or designation. |
|
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1.11. |
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“Clearwire Communications’ WiMAX Network” shall mean Clearwire Communications’
implementation of a WiMAX-based wireless mobile broadband network owned, controlled,
operated or managed by Clearwire Communications. For the avoidance of doubt, the Clearwire
Communications WiMAX Network as used in this Trademark Agreement shall not include mobile
virtual network operators (“MVNOs”), affiliates or resellers. |
|
|
1.12. |
|
“Qualifying Intel Materials” shall mean Intel’s direct marketing materials associated
with Qualifying Licensee Products and the Intel products incorporated therein. |
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1.13. |
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“Qualifying Licensee Products” shall mean Qualifying [*****], Qualifying [*****], and
Qualifying Intel-Based MIDS, individually and collectively. |
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1.14. |
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“Qualifying Clearwire Communications Service” shall mean WiMAX-based services offered
by Clearwire Communications on Clearwire Communications’ WiMAX Network. |
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1.15. |
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“Territory” shall mean the United States of America. |
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2.1. |
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Effective as of the Start Date, and subject to and conditioned upon Intel’s compliance
with this Trademark Agreement, including without limitation Sections 3, 4 and 5, Clearwire
Communications grants to Intel, and Intel accepts, a limited, non-exclusive,
non-transferable (except as expressly provided below), royalty-free, revocable license to
use Clearwire Communications’ Licensed Marks as they appear within the Co-branding
Constructs in Exhibit A, in the Territory, in connection with Qualifying Intel Materials as
provided in this Trademark Agreement, and as required or permitted in the Commercial
Agreement. [*****] No other right, title or license is granted hereunder, |
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2.2. |
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Effective as of the Start Date, and subject to and conditioned upon Clearwire
Communications’ compliance with this Trademark Agreement, including without limitation
Sections 3, 4 and 5, Intel grants to Clearwire Communications, and Clearwire Communications
accepts, a limited, non-exclusive, non-transferable, royalty-free, revocable license to use
Intel’s Licensed Marks as they appear within the Co-branding Constructs in Exhibit A, in
the Territory, in advertising and |
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promotional materials for Qualifying Clearwire Communications Service as provided in this
Trademark Agreement, and as required or permitted in the Commercial Agreement. No other
right, title or license is granted hereunder. |
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2.3. |
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Upon completion of the Co-branding Construct, and in any case not later than December
31, 2008, the parties will amend this Agreement by modifying Exhibit A to accurately
reflect each party’s respective licensed Marks necessary to implement the Co-branding
Construct. |
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3.1. |
|
Intel shall use Clearwire Communications’ Licensed Marks only in connection
with Qualifying Intel Materials, [*****]. Clearwire Communications shall use Intel’s
Licensed Marks only in connection with Qualifying Clearwire Communications Service and
related advertising and promotional materials. |
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3.2. |
|
Intel shall comply with all applicable laws and regulations in its advertising,
promotion, display, distribution and sale of Qualifying Intel Materials bearing
Clearwire Communications’ Licensed Marks, and Clearwire Communications shall comply
with all applicable laws and regulations in its advertising, promotion, display,
distribution and sale of Qualifying Clearwire Communications Service and related
advertising and promotional materials bearing Intel’s Licensed Marks. |
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3.3. |
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Clearwire Communications shall use Intel’s Licensed Marks, and Intel shall use
[*****] Clearwire Communications’ Licensed Marks, only in connection with products or
services that meet or exceed the quality and performance standards customary in the
industry and commensurate with Clearwire Communications’ and Intel’s overall
reputations for high quality products and/or services. |
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3.4. |
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Each party shall give prompt Notice to the other party of any material
complaint by any customer or other third party that Qualifying Intel Material or
Qualifying Clearwire Communications Service bearing the other party’s Licensed Marks
may not conform to the quality control requirements in this Section 3 of the Trademark
Agreement. |
|
|
3.5. |
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Intel shall have the right, and upon reasonable Notice be given the
opportunity, to review, inspect and/or test Clearwire Communications’ materials bearing
Intel’s Licensed Marks, and Clearwire Communications shall have the right, and upon
reasonable Notice be given the opportunity, to review, inspect and/or test Intel’s
materials bearing Clearwire Communications’ Licensed Marks, to ensure compliance with
this Trademark Agreement. To the extent that Intel has non-confidential Intel Licensee
materials bearing Clearwire Communications’ Licensed Marks, Intel will reasonably
cooperate with Clearwire Communications’ reasonable requests to review, inspect and/or
test Intel Licensees’ materials bearing Clearwire Communications’ Licensed Marks, to
ensure compliance with this Agreement. |
4. |
|
Proper Usage/ Review of Materials |
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4.1. |
|
Clearwire Communications shall comply with reasonable usage guidelines for
Intel’s Licensed Marks to be provided promptly by Intel to Clearwire Communications
after the Co-branding Constructs are finalized, and in all cases prior to Clearwire
Communications’ use of such Licensed Marks as permitted herein. Intel shall comply
with reasonable usage guidelines for Clearwire Communications’ Licensed Marks to be
provided promptly |
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by Clearwire Communications to Intel after the Co-branding Constructs are finalized,
and in all cases prior to Intel’s use of such Licensed Marks as permitted herein. |
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4.2. |
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Clearwire Communications shall not alter Intel’s Licensed Marks in any way or
integrate any Intel’s Licensed Marks or Intel Marks into any of its own trademarks,
logos, or designs or those of third parties, with the exception of the Co-branding
Constructs, where each party’s marks will appear as separate logos near each other.
Intel shall not alter Clearwire Communications’ Licensed Marks in any way or integrate
any Clearwire Communications’ Licensed Marks or Clearwire Communications Marks into any
of its own trademarks, logos, or designs or those of third parties, with the sole
exception of the Co-branding Constructs, where each party’s marks will appear as
separate logos near each other. |
|
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4.3. |
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Where reasonably practicable, Clearwire Communications shall use Intel’s
Licensed Marks with the respective trademark symbols and the following acknowledgement
line: “[Insert all of Intel’s Licensed Xxxx being used] are trademarks or registered
trademarks of Intel Corporation in the United States and other countries and are used
under license.” Where reasonably practicable, Intel shall use Clearwire
Communications’ Licensed Marks with the respective trademark symbols and the following
acknowledgement line: “[Insert all of Clearwire Communications’ Licensed Marks being
used] are trademarks of Clearwire Corporation, registered or pending registration in
the United States and other countries and are used under license. No unlicensed use is
permitted.” |
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4.4. |
|
Neither party shall use the other’s Licensed Marks in any manner that is
likely to create confusion as to the source or sponsorship of either party’s products
or services, or that in any way indicates to the public that a party is a division or
affiliate of the other party. Wherever either party displays the other’s Licensed
Marks in logo format pursuant to this Trademark Agreement, it must do so solely
within the Co-Branding Constructs, unless otherwise agreed to by the parties in
writing. |
|
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4.5. |
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Each party shall display the other party’s Licensed Marks only in a positive
manner and shall not use the other party’s Licensed Marks in any manner that may
disparage the other party, its brands, or its products or services. Neither party may
use the other party’s Licensed Marks in any manner that, in the licensor party’s
judgment, may diminish or otherwise damage the licensor party’s goodwill in its
Licensed Marks, including but not limited to use on materials that could be deemed to
be obscene, pornographic, violent, or otherwise in poor taste or unlawful, or the
purpose of which is to encourage unlawful activities. |
|
|
4.6. |
|
Intel shall have the right to randomly review and inspect Clearwire
Communications’ materials displaying Intel’s Licensed Marks and Clearwire
Communications shall reasonably cooperate in providing Intel access to such materials.
Clearwire Communications shall have the right to randomly review and inspect Intel’s
materials and non-confidential Intel Licensee’s materials in Intel’s possession
displaying Clearwire Communications’ Licensed Marks, and Intel shall reasonably
cooperate in providing Clearwire Communications access to such materials. Each party
further agrees to make any modification to such materials that are required to comply
with the terms of this Trademark Agreement and are requested by the party owning the
Licensed Marks. |
5. |
|
Protection of Interest |
|
5.1. |
|
Acknowledgment of Rights As between Intel and Clearwire
Communications, Clearwire Communications acknowledges Intel’s exclusive rights to
Intel’s Licensed Marks and the Intel Marks and all goodwill associated therewith, and
acknowledges that any and all use |
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|
|
|
of Intel’s Licensed Marks inures to the sole benefit of Intel. Clearwire
Communications shall not challenge Intel’s exclusive ownership rights in and to
Intel’s Licensed Marks and the Intel Marks, nor take action inconsistent with
Intel’s rights in such trademarks. Clearwire Communications shall not adopt, use,
apply to register and/or register as its own trademark any word or design
confusingly similar to or that dilutes Intel’s Licensed Marks or the Intel Marks.
If at any time Clearwire Communications acquires any rights in, or registrations or
applications for Intel’s Licensed Marks or the Intel Marks by operation of law or
otherwise, Clearwire Communications will immediately and at no expense to Intel
assign such rights, registrations, and/or applications to Intel, along with any and
all associated goodwill. As between Intel and Clearwire Communications, Intel
acknowledges Clearwire Communications’ exclusive rights to Clearwire Communications’
Licensed Marks and the Clearwire Communications Marks and all goodwill associated
therewith, and acknowledges that any and all use of Clearwire Communications’
Licensed Marks inures to the sole benefit of Clearwire Communications. Intel shall
not challenge Clearwire Communications’ exclusive ownership rights in and to
Clearwire Communications’ Licensed Marks and the Clearwire Communications Marks, nor
take action inconsistent with Clearwire Communications’ rights in such trademarks.
Intel shall not adopt, use, apply to register and/or register as its own trademark
any word or design confusingly similar to or that dilutes Clearwire Communications’
Licensed Marks or the Clearwire Communications Marks. If at any time Intel acquires
any rights in, or registrations or applications for Clearwire Communications’
Licensed Marks or the Clearwire Communications Marks by operation of law or
otherwise, Intel will immediately and at no expense to Clearwire Communications
assign such rights, registrations, and/or applications to Intel, along with any and
all associated goodwill. |
|
|
5.2. |
|
Co-Branding Constructs. For the avoidance of doubt, neither party nor
its licensees may apply to register or register the Co-Branding Constructs as their own
xxxx without the prior express written consent of the other party. All use of the
Co-Branding Constructs remains subject to the parties’ underlying rights in their
Licensed Marks under Section 5.1. |
|
|
5.3. |
|
Enforcement. In the event that either party becomes aware of any
unauthorized use of the other party’s Licensed Marks by a third party, that party shall
promptly notify the party owning the Licensed Marks in writing, and shall provide
reasonable cooperation, at the expense of the party owning the Licensed Marks, in any
enforcement of the rights in such Licensed Marks against such third party. The right
of Intel to enforce its rights in Intel’s Licensed Marks and the Intel Marks rests
entirely with Intel and shall be exercised in Intel’s sole discretion. Clearwire
Communications shall not commence any action or claim to enforce Intel’s rights in
Intel’s Licensed Marks or the Intel Marks. The right of Clearwire Communications to
enforce its rights in Clearwire Communications’ Licensed Marks and the Clearwire
Communications Marks rests entirely with Clearwire Communications and shall be
exercised in Clearwire Communications’ sole discretion. Intel shall not commence any
action or claim to enforce Clearwire Communications’ rights in Clearwire
Communications’ Licensed Marks or the Clearwire Communications Marks. |
6. |
|
NO REPRESENTATIONS OR WARRANTIES |
|
|
|
INTEL MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND RESPECTING INTEL’S LICENSED MARKS OR
THE INTEL MARKS, INCLUDING THE VALIDITY OF INTEL’S RIGHTS IN ANY COUNTRY, AND EXPRESSLY
DISCLAIMS ANY AND ALL WARRANTIES THAT MIGHT OTHERWISE BE IMPLIED BY APPLICABLE LAW. CLEARWIRE
COMMUNICATIONS MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND RESPECTING CLEARWIRE
COMMUNICATIONS’ LICENSED XXXX OR THE CLEARWIRE COMMUNICATIONS MARKS, INCLUDING THE VALIDITY OF
CLEARWIRE COMMUNICATIONS’ RIGHTS IN ANY COUNTRY, |
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AND EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES THAT MIGHT OTHERWISE BE IMPLIED BY APPLICABLE
LAW. |
7. |
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Indemnity |
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|
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a. Intel agrees to defend and/or settle (in its sole discretion) any claim threatened against
Clearwire Communications or brought in any suit or proceeding against Clearwire Communications
alleging liability on the basis of : [*****], and Intel will pay all damages, costs and fees
finally awarded against Clearwire Communications and exclusively attributable to any such claim,
provided that (a) Clearwire Communications promptly notifies Intel in writing of any such claim,
(b) Intel solely controls and conducts the defense and/or settlement of the claim, (c) Clearwire
Communications fully and timely cooperates and provides all requested authority, information and
assistance to Intel, at Intel’s expense, and (d) at Intel’s instruction, Clearwire
Communications immediately ceases use of [*****]. In the event of any claim or threatened claim
against Intel or Clearwire Communications [*****], Intel reserves the right to terminate,
immediately upon written Notice, all or a part of this Trademark Agreement, and Clearwire
Communications will take all steps necessary to [*****]. Intel will not be responsible for any
damages, costs, or fees awarded to the extent such amounts reflect Clearwire Communications’
continued [*****] pursuant to this Trademark Agreement. In the event of any claim or threatened
claim against Intel or Clearwire Communications concerning [*****], Clearwire Communications
reserves the right to terminate, immediately upon written Notice, all or part of this Trademark
Agreement, and Intel will take all steps necessary to [*****], and to terminate the right of
[*****], as provided under Section 9.3 below and as allowed under the terms and conditions of
the agreements between Intel and the Intel Licensees. This indemnity shall not cover damages
that Clearwire Communications could have avoided or mitigated through the exercise of reasonable
efforts under the circumstances. |
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|
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b. Clearwire Communications agrees to defend and/or settle (in its sole discretion) any claim
threatened against Intel (including from the Intel Licensees) or the Intel Licensees brought in
any suit or proceeding against Intel or the Intel Licensees alleging liability on the basis of:
[*****], and Clearwire Communications will pay all damages, costs and fees finally awarded
against Intel and/or the Intel Licensees and exclusively attributable to any such claim,
provided that (a) Intel and/or the Intel Licensees promptly notify Clearwire Communications in
writing of any such claim, (b) Clearwire Communications solely controls and conducts the defense
and/or settlement of the claim, (c) Intel and/or the Intel Licensees fully and timely cooperate
and provide all requested authority, information and assistance to Clearwire Communications, at
Clearwire Communications’ expense, and (d) at Clearwire Communications’ instruction, Intel
and/or the Intel Licensees promptly cease use of [*****] in accordance with Section 9.3 below
and as allowed under the terms and conditions of the agreements between Intel and the Intel
licensees. In the event of any claim or threatened claim against Intel, the Intel Licensees, or
Clearwire Communications [*****], Clearwire Communications reserves the right to terminate,
immediately upon written Notice, all or a part of this Trademark Agreement, and Intel and/or the
Intel Licensees will take all steps necessary to [*****] in accordance with Section 9.3 below
and as allowed under the terms and conditions of the agreements between Intel and the Intel
licensees. Clearwire Communications will not be responsible for any damages, costs, or fees
awarded to the extent such amounts reflect Intel’s or the Intel Licensees’ continued [*****]
pursuant to this Trademark Agreement. In the event of any claim or threatened claim against
Intel or Clearwire Communications concerning [*****], Intel reserves the right to terminate,
immediately upon written Notice, all or part of this Trademark Agreement, and Clearwire
Communications will take all steps necessary to [*****]. This indemnity shall not cover damages
that Intel or the Intel Licensees could have avoided or mitigated through the exercise of
reasonable efforts under the circumstances. |
8. |
|
LIMITATION OF LIABILITY |
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NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INCIDENTAL, OR |
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CONSEQUENTIAL DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
THE FOREGOING WILL NOT RESTRICT A PARTY’S ABILITY TO RECOVER ACTUAL DIRECT DAMAGES FOR BREACH OF
THIS TRADEMARK AGREEMENT. |
9. |
|
Term, Termination and Expiration |
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9.1. |
|
Term This Trademark Agreement shall remain in effect until its
termination as provided herein, or the expiration or termination of the Commercial
Agreement, or seven (7) years from the Effective Date, whichever is earlier. |
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|
9.2. |
|
Termination Either party may terminate this Trademark Agreement upon
advance written Notice: (a) by either party if the other party breaches any material
term or condition of this Trademark Agreement and fails to remedy the breach within
thirty (30) days after being given Notice thereof, or immediately upon Notice of
termination if no cure is reasonably possible; (b) by either party immediately upon
Notice to the other if any Qualifying Intel Materials, Licensee Qualifying Products, or
Qualifying Clearwire Communications Service has been found to be defective or
substandard by any government agency or court; (c) by either party immediately upon
Notice to the other party if either party reasonably determines that adverse publicity
concerning the other party, Qualifying Intel Materials, Licensee Qualifying Products,
or Qualifying Clearwire Communications Service may harm the reputation of the
terminating party, Intel’s Licensed Marks, or Clearwire Communications’ Licensed Marks;
(d) by Intel immediately upon Notice to Clearwire Communications if Clearwire
Communications, personally or through another individual or entity, takes any action
inconsistent with Intel’s sole legal and beneficial ownership of any Intel Marks; (e)
by Clearwire Communications immediately upon Notice to Intel if Intel, personally or
through another individual or entity, takes any action inconsistent with Clearwire
Communications’ sole legal and beneficial ownership of any Clearwire Communications
Marks; (f) by either party upon Notice to the other in the event of any claim
threatened against the other party or brought in any suit or proceeding against the
other party that invokes the indemnity provisions of Section 7 above; (g) by either
party if the other party becomes the subject of any voluntary or involuntary proceeding
under the U.S. Bankruptcy Code or state insolvency proceeding and such proceeding is
not terminated within forty-five (45) days of its commencement; or (h) by either party
if the other party ceases to be actively engaged in business. |
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9.3. |
|
Effect of Expiration or Termination Upon any expiration or termination
of this Trademark Agreement, each party shall immediately cease any and all use of the
other party’s Licensed Marks, but the parties will have no obligation to recover or
rebrand past uses of the Licensed Marks. [*****] |
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9.4. |
|
Continuing Obligations Obligations of the parties under the provisions
of Sections 1, 6, 7, 8, 9.3, 10, 11, 12, 14, 15, 16, 17, 19 and 20 shall remain in
force notwithstanding the termination or expiration of the Trademark Agreement. |
10. |
|
Assignment |
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|
|
The rights granted to the parties hereunder are personal [*****], and neither party may
assign this Trademark Agreement or any right or obligation hereunder, whether in conjunction
with a change in ownership, merger, acquisition, the sale or transfer of all, or
substantially all or any part of a party’s business or assets or otherwise, either
voluntarily, by operation of law, or otherwise, without the prior written consent of the
other party, which may be given or withheld in each party’s sole discretion. Any purported
unapproved assignment or transfer shall be deemed a material breach of this Trademark
Agreement and shall be null and void. This Trademark Agreement shall |
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be binding upon and inure to the benefit of the successors and any permitted assigns of the
parties hereto. |
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11. |
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Choice of Law and Jurisdiction |
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The validity, construction and performance of this Trademark Agreement shall be governed by
U.S. federal law and the laws of the State of Delaware, without reference to conflict of
laws principles. The parties further acknowledge and agree that any non-contractual cause
of action that either party may assert, including but not limited to trademark infringement,
trademark dilution, passing off, false designation of origin, unfair competition and other
non-contractual causes of action, will be governed by U.S. federal law and the laws of the
State of New York. |
|
12. |
|
Equitable Relief |
|
|
|
Each party recognizes and acknowledges that an uncured material breach of this Trademark
Agreement will cause the non-breaching party irreparable damage, which cannot be readily
remedied by monetary damages in an action at law, and may, in addition thereto, constitute a
violation of the non-breaching party’s trademark rights and rights under the laws of unfair
competition. In the event of any material breach by either party, including any action that
could cause some loss or dilution of goodwill, reputation, or rights in the non-breaching
party’s Licensed Marks, the non-breaching party shall be entitled to an immediate injunction
in addition to any other remedies available, to stop or prevent such irreparable harm, loss,
or dilution. |
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13. |
|
Representation as to Authority |
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|
|
The parties to this Trademark Agreement represent and warrant that they have the sole right
and exclusive authority to execute this Trademark Agreement and that they have not sold,
assigned, transferred, conveyed, or otherwise disposed of any interest, right, claim or
demand, or portion thereof, relating to any matter in this Trademark Agreement. |
|
14. |
|
Severability |
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|
|
If any provision of this Trademark Agreement is determined by a court of competent
jurisdiction to be invalid, illegal or unenforceable, such determination shall not affect
the validity of the remaining provisions, but rather the entire Trademark Agreement will be
construed as if it did not contain the particular invalid, illegal or unenforceable
provision(s), and the rights and obligations of each party will be construed and enforced
accordingly. However, if either party determines in its discretion that the court’s
determination of invalidity, illegality or unenforceability causes this Trademark Agreement
to fail in any of its essential purposes, it may immediately terminate the Trademark
Agreement. |
15. |
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No Waiver |
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The failure of any party to enforce at any time one or more of the provisions of this
Trademark Agreement shall in no way be construed to be a present or future waiver of such
provisions, nor in any way affect the ability of any party to enforce each and every such
provision thereafter. |
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Relationship of the Parties |
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No agency, partnership, joint venture, franchise, or employment is created between the
parties as a result of this Trademark Agreement. Neither party is authorized to create any
obligation, express or implied, on behalf of the other party. |
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17. |
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No Endorsement |
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Clearwire Communications acknowledges that Intel does not endorse Clearwire Communications
or its products or services. Clearwire Communications shall make no claims that Intel
endorses Clearwire Communications or its products or services. Intel acknowledges that
Clearwire Communications does not endorse Intel or its products or services. Intel shall
make no claims that Clearwire Communications endorses Intel or its products or services. |
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Notices All notices, consents, requests and demands to or upon the respective
parties hereto must be in writing (including e-mail) and may be delivered to the parties at
the below addresses (“Notice”). Such Notice will be effective upon receipt. |
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For Intel Corporation: |
Attn: Director of Trademarks and Brands
Intel Corporation
Mailstop RNB-4-151
0000 Xxxxxxx Xxxxxxx Xxxx
Xxxxx Xxxxx, Xxxxxxxxxx 00000 X.X.X.
xxxxxxxxxx.xxx.xxxxxx@xxxxx.xxx
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For Clearwire Communications: |
Clearwire Communications
0000 Xxxxxxxx Xxxxx
Xxxxxxxx, XX 00000
Attn: General Counsel
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Order of Precedence |
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The terms and conditions of this Trademark Agreement shall govern the parties’ respective
rights, duties and obligations with respect to the content herein. In the event of a
conflict or inconsistency between this Trademark Agreement and the Commercial Agreement, the
terms of this Trademark Agreement shall govern to the extent necessary to resolve the
conflict or inconsistency. |
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DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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20. |
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Entire Agreement |
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This Trademark Agreement constitutes the entire agreement between the parties concerning the
subject matter hereof and supersedes all proposals, oral or written, all negotiations,
conversations, and/or discussions between the parties relating to this Trademark Agreement
and all past courses of dealing or industry customs. This Trademark Agreement may not be
modified except in writing signed by authorized representatives of both parties. |
IN WITNESS WHEREOF, the parties, by their duly authorized representatives, have executed this
Trademark Agreement.
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CLEARWIRE COMMUNICATIONS LLC |
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Signature
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Signature |
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Printed Name
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Title
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Date
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THIS
DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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EXHIBIT A
LICENSED MARKS
Intel’s Licensed Marks: [*****]
Clearwire Communications’ Licensed Marks: [*****]
Co-branding Constructs required for use of other party’s Licensed Marks: [to be inserted, and this
Trademark Agreement amended in writing accordingly, upon completion of the Co-branding Constructs
on or before December 31, 2008.]
*** End of Appendix F***
THIS
DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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APPENDIX G TO MARKET DEVELOPMENT AGREEMENT
RFI/RFP Provisions
Suggested language to be inserted into Carrier’s RFP
Proposed Selection Criteria:
Clearwire Communications would evaluate the proposals in a number of critical areas, including but
not limited to the following:
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Vendor’s participation in the Open Patent Alliance WiMAX patent pool as a licensor and a
licensee |
Proposed question to be included in RFP:
Clearwire Communications supports an environment in which a robust ecosystem can develop for the
widespread implementation, adoption and use of WiMAX products. Towards this goal, Clearwire
Communications supports initiatives seeking to xxxxxx licensing of intellectual property rights to
enable the widespread adoption of WiMAX products. Clearwire Communications believes that the WiMAX
patent pools formed or to be formed by the Open Patent Alliance, LLC (“OPA”) represent such an
initiative and promote an intellectual property landscape with a fair, transparent, reasonable,
non-discriminatory and proportional royalty structure for use of the WiMAX standard. Therefore:
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Would you be willing to join the OPA patent pool(s) as a pool licensor, which would
require you to license all “Essential Patent Claims” on a non-exclusive basis through the
patent pool(s)? As used herein, “Essential Patent Claims” means patent claims owned or
controlled by a vendor and necessarily infringed by an implementation of at least one of
the mandatory features of the main or optional profile(s) of the WiMAX Forum Mobile System
Profile or Network Profile. |
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In addition, would you be willing to join the OPA patent pool(s) as a licensee to the
extent you make, sell, offer for sale or import any WiMAX products in any region in which
the OPA has established a pool? |
In considering your answer to the above questions, assume that the OPA licensing terms and
conditions that apply to you as a licensor or licensee will be no less favorable than those that
apply to other OPA licensors and licensees, as applicable, within the same regional patent pool.
***End of Appendix G***
THIS
DOCUMENT AND ITS CONTENTS CONSTITUTE THE PROPRIETARY AND CONFIDENTIAL INFORMATION OF CLEARWIRE COMMUNICATIONS LLC AND INTEL CORP. – DO NOT DISCLOSE TO THIRD PARTIES
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