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.
MARKET DEVELOPMENT
AGREEMENT
CLEARWIRE COMMUNICATIONS
LLC
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4
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5
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4. DEVICE EMBEDDING RATES, DISTRIBUTION
INCENTIVES AND EMBEDDING SUPPORT ACTIVITIES
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7
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5. ACTIVATION FEES FOR EMBEDDED
DEVICES
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10
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6. CLEARWIRE COMMUNICATIONS NETWORK
DEPLOYMENT
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11
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7. REMEDIES FOR MISSED PERFORMANCE
TARGETS
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12
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13
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9. DATABASE, TRACKING OF ACTIVATIONS AND
AUDITS
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14
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10. MARKETING AND CO-BRANDING
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16
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21
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15. QUARTERLY MANAGEMENT REVIEW
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23
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23
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24
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18. WIMAX DEVELOPMENT ROADMAP AND
SUPPORT
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25
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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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27
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28
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23. DEMONSTRATION AND TEST
ACCOUNTS
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28
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25. INTELLECTUAL PROPERTY
OWNERSHIP
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26. DISCLAIMER OF WARRANTIES
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30
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27. GENERAL REPRESENTATIONS, WARRANTIES AND
COVENANTS OF INTEL
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30
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28. GENERAL REPRESENTATIONS, WARRANTIES AND
COVENANTS OF CLEARWIRE COMMUNICATIONS
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31
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29. CONFIDENTIAL INFORMATION
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34
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32. LIMITATION OF LIABILITY
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36
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36
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34. REGULATORY REQUIREMENTS AND
STANDARDS
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42
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42
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42
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37. TAXES, DUTIES AND APPLICABLE TAX
LAWS
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43
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45
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41. CHOICE OF LAW; DISPUTE
RESOLUTION
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45
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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
- 2 -
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49
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44. BINDING EFFECT; ENTIRE
AGREEMENT
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50
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45. AMENDMENTS; NO WAIVER
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50
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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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51
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Definitions
List
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Intel MVNO
Bundling Requirements
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Method of
Measuring POPs Coverage
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[*****]
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Technical
Performance Requirements
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Trademark
License Agreement
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RFI/RFP
Provisions
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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
- 3 -
MARKET DEVELOPMENT AGREEMENT
BETWEEN
CLEARWIRE COMMUNICATIONS LLC
AND
INTEL CORPORATION
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 4400 Carillon Point, Kirkland, WA 98033 and Intel
Corporation , (“Intel”) a Delaware corporation,
having an office at 2200 Mission College Boulevard, Santa Clara,
California, 95052. 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 ”.
1.1 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
- 4 -
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:
2.1 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.
3.1 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
- 5 -
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
- 6 -
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
- 7 -
|
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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 [*****].
4.5 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
- 8 -
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
- 9 -
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
- 10 -
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
THIS DOCUMENT
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TABLE 6.1
Clearwire Communications POPs Coverage
Commitment
|
|
|
|
|
|
|
|
|
POPs Coverage to be Achieved by
Clearwire
|
|
Time
Period
|
|
Communications
|
|
|
|
|
[*****]
|
|
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
7.2 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.
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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.
8.1 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.
[*****].
10.7 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.
10.7.11 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.
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
[*****].
11.5.1
Notwithstanding anything to the contrary in this Agreement, other
than as expressly provided for in Section 11.5.2 , and
subject to applicable law, [*****].
11.5.3 [*****]
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.
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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
[*****].
12.3 [*****]
Notwithstanding anything to the contrary in this Agreement, until
the Parties have [*****].
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.
16.1 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.
17.1
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).
18.4.1 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.
18.6 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.
18.10 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.
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.
24.1 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
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