Document:

EX-10.42

Exhibit 10.42

CONFIDENTIAL TREATMENT REQUESTED UNDER

C.F.R. SECTIONS 200.80(b)(4), 200.83 AND 230.406.

[*****] 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.

 

CUSTOMER CARE AND BILLING SERVICES AGREEMENT

BETWEEN

CLEARWIRE US LLC (“Clearwire”)

AND

AMDOCS SOFTWARE SYSTEMS LIMITED

(“Amdocs”)

 

 

 

 

	 	 	 	 	 
	[*****]

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	Amended and Restated Customer Care and Billing Services Agreement	 	Confidential

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	Contents	 	 	 	 
	1	 	TRANSITION; [*****]	 	 	11	 
	2	 	AMDOCS SERVICES	 	 	11	 
	 	 	2.1	 	Generally	 	 	11	 
	 
	 	 	 	2.1.1	 	Implementation	 	 	12	 
	 
	 	 	 	2.1.2	 	Disaster Recovery Plan	 	 	12	 
	 
	 	 	 	2.1.3	 	Additional Releases	 	 	13	 
	 	 	2.2	 	Maintenance Services	 	 	13	 
	 	 	2.3	 	Committed Operation Services	 	 	13	 
	 	 	2.4	 	[*****]	 	 	13	 
	 	 	2.5	 	Additional Services; Change Request Procedure	 	 	13	 
	 
	 	 	 	2.5.1	 	Additional Services	 	 	13	 
	 
	 	 	 	2.5.2	 	Change Request Procedure	 	 	14	 
	 	 	2.6	 	Creditable Performance Specifications	 	 	14	 
	 	 	2.7	 	Non-Exclusivity	 	 	15	 
	 	 	2.8	 	[*****]	 	 	15	 
	3	 	RESPONSIBILITIES OF CLEARWIRE	 	 	15	 
	 	 	3.1	 	Generally	 	 	15	 
	 	 	3.2	 	Overhead; Supplies	 	 	15	 
	4	 	RELATIONSHIP MANAGEMENT	 	 	16	 
	 	 	4.1	 	Steering Committee	 	 	16	 
	 	 	4.2	 	Personnel	 	 	16	 
	 
	 	 	 	4.2.1	 	Key Personnel	 	 	16	 
	 
	 	 	 	4.2.2	 	Program Managers	 	 	17	 
	 
	 	 	 	4.2.3	 	Additional Personnel	 	 	17	 
	 
	 	 	 	4.2.4	 	Non-Solicitation of Employees	 	 	17	 
	 
	 	 	 	4.2.5	 	Responsibility of Personnel	 	 	17	 
	 
	 	 	 	4.2.6	 	Individual Performance	 	 	17	 
	 	 	4.3	 	Acceptance Testing	 	 	18	 
	 
	 	 	 	4.3.1	 	Software Component Testing	 	 	18	 
	 
	 	 	 	4.3.2	 	Non Software Acceptance	 	 	19	 

 

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	 	 	 	4.3.3	 	[*****]	 	 	19	 
	 
	 	 	 	4.3.4	 	Initial release and related documentation	 	 	19	 
	 
	 	 	 	4.3.5	 	Assignment of testing responsibilities	 	 	19	 
	 	 	4.4	 	Dispute Resolution	 	 	19	 
	 
	 	 	 	4.4.1	 	Disputes	 	 	19	 
	 
	 	 	 	4.4.2	 	Unresolved Disputes	 	 	20	 
	 
	 	 	 	4.4.3	 	No Termination or Suspension of Services	 	 	20	 
	 
	 	 	 	4.4.4	 	Injunctive Relief	 	 	20	 
	 	 	4.5	 	Clearwire’s Policies	 	 	20	 
	5	 	CHARGES, CREDITS AND PAYMENTS	 	 	21	 
	 	 	5.1	 	Generally	 	 	21	 
	 
	 	 	 	5.1.1	 	Charges	 	 	21	 
	 
	 	 	 	5.1.2	 	Adjustment of Charges	 	 	22	 
	 
	 	 	 	5.1.3	 	License to Generic Product	 	 	22	 
	 	 	5.2	 	Reporting, Invoicing and Payment	 	 	23	 
	 
	 	 	 	5.2.1	 	Reports	 	 	23	 
	 
	 	 	 	5.2.2	 	Invoicing of License, and Implementation Fees	 	 	23	 
	 
	 	 	 	5.2.3	 	Invoicing of Monthly Subscriber Fee	 	 	23	 
	 
	 	 	 	5.2.4	 	Invoicing of Additional Services	 	 	23	 
	 
	 	 	 	5.2.5	 	Invoices	 	 	24	 
	 
	 	 	 	5.2.6	 	Performance Credits and Bonuses	 	 	24	 
	 
	 	 	 	5.2.7	 	Payments	 	 	24	 
	 
	 	 	 	5.2.8	 	Third Party Services	 	 	25	 
	 
	 	 	 	5.2.9	 	Taxes	 	 	26	 
	 	 	5.3	 	Expenses	 	 	27	 
	6	 	TERM AND TERMINATION	 	 	27	 
	 	 	6.1	 	Term	 	 	27	 
	 	 	6.2	 	Termination For Convenience; Termination For Force Majeure; Termination For Financial Instability; Effect Of Termination	 	 	27	 
	 
	 	 	 	6.2.1	 	Termination for Convenience	 	 	27	 
	 
	 	 	 	6.2.2	 	Termination for Force Majeure Event	 	 	28	 
	 
	 	 	 	6.2.3	 	Termination for Financial
Instability	 	 	28	 
	 
	 	 	 	6.2.4	 	Effect of Termination	 	 	29	 

 

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	 	 	6.3	 	Termination for Cause	 	 	29	 
	 
	 	 	 	6.3.1	 	Critical Defaults	 	 	29	 
	 
	 	 	 	6.3.2	 	Material Defaults	 	 	29	 
	 
	 	 	 	6.3.3	 	Other Defaults	 	 	30	 
	 	 	6.4	 	Extension of Services	 	 	30	 
	 	 	6.5	 	Transfer Assistance	 	 	30	 
	7	 	CONFIDENTIAL INFORMATION AND SECURITY	 	 	31	 
	 	 	7.1	 	Generally	 	 	31	 
	 	 	7.2	 	Exclusions	 	 	32	 
	 	 	7.3	 	Required Disclosure	 	 	32	 
	 	 	7.4	 	Notification	 	 	32	 
	 	 	7.5	 	Return of Confidential Information	 	 	33	 
	 	 	7.6	 	Confidentiality Agreements	 	 	33	 
	 	 	7.7	 	Security	 	 	33	 
	 	 	7.8	 	Off shore [*****]	 	 	33	 
	8	 	INTELLECTUAL PROPERTY RIGHTS	 	 	34	 
	 	 	8.1	 	Ownership of Customized Materials; License to Use Customized Materials	 	 	34	 
	 
	 	 	 	8.1.1	 	Allocation of Rights	 	 	34	 
	 
	 	 	 	8.1.2	 	Categories of Customized Materials	 	 	35	 
	 
	 	 	 	8.1.3	 	Escrow	 	 	38	 
	 
	 	 	 	8.1.4	 	In-Sourcing	 	 	40	 
	 
	 	 	 	8.1.5	 	Intellectual Property Protection	 	 	40	 
	 	 	8.2	 	Ownership of Standard Materials; License to Use Standard Materials	 	 	40	 
	 
	 	 	 	8.2.1	 	Ownership by Amdocs	 	 	40	 
	 
	 	 	 	8.2.2	 	License to Standard Materials	 	 	40	 
	 	 	8.3	 	Copyright Notice	 	 	41	 
	 	 	8.4	 	Rights and Licenses	 	 	41	 
	 
	 	 	 	8.4.1	 	Amdocs Third Party Materials	 	 	41	 
	 
	 	 	 	8.4.2	 	Clearwire Third Party Materials	 	 	42	 
	9	 	INDEMNIFICATION AND INSURANCE	 	 	42	 
	 	 	9.1	 	Indemnity by Amdocs and Clearwire	 	 	42	 
	 	 	9.2	 	Tax Indemnity by Amdocs	 	 	42	 

 

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	 	 	9.3	 	Third Party Matters	 	 	43	 
	 	 	9.4	 	Indemnification Procedures	 	 	43	 
	 	 	9.5	 	Subrogation	 	 	44	 
	 	 	9.6	 	Insurance	 	 	44	 
	10	 	LIMITATION OF LIABILITY; REMEDIES	 	 	45	 
	 	 	10.1	 	Limitation of Liability and Disclaimers	 	 	46	 
	 	 	10.2	 	Remedies	 	 	46	 
	 
	 	 	 	10.2.1	 	Remedies	 	 	46	 
	 
	 	 	 	10.2.2	 	Attorney’s Fees	 	 	46	 
	 	 	10.3	 	Breach	 	 	47	 
	 	 	10.4	 	Delay	 	 	47	 
	11	 	WARRANTY	 	 	47	 
	 	 	11.1	 	Authorization and Enforceability	 	 	47	 
	 	 	11.2	 	Compliance with Laws and Obligations	 	 	48	 
	 	 	11.3	 	Additional Amdocs’ Representations, Warranties and Covenants	 	 	48	 
	12	 	DEFINITIONS; INTERPRETATION	 	 	49	 
	 	 	12.1	 	Defined Terms	 	 	49	 
	 
	 	 	 	12.1.1	 	Acceptance Testing	 	 	50	 
	 
	 	 	 	12.1.2	 	Account	 	 	50	 
	 
	 	 	 	12.1.3	 	Additional Licenses	 	 	50	 
	 
	 	 	 	12.1.4	 	Additional Licenses Fees	 	 	50	 
	 
	 	 	 	12.1.5	 	Additional Release	 	 	50	 
	 
	 	 	 	12.1.6	 	Additional Services	 	 	50	 
	 
	 	 	 	12.1.7	 	Additional Services Fees	 	 	50	 
	 
	 	 	 	12.1.8	 	Additional Services Order or ASO	 	 	50	 
	 
	 	 	 	12.1.9	 	Affiliate	 	 	51	 
	 
	 	 	 	12.1.10	 	          Agreement	 	 	51	 
	 
	 	 	 	12.1.11	 	          Amdocs	 	 	51	 
	 
	 	 	 	12.1.12	 	          Amdocs Competitor	 	 	51	 
	 
	 	 	 	12.1.13	 	          Amdocs Indemnitees	 	 	51	 
	 
	 	 	 	12.1.14	 	          Amdocs Integration Testing	 	 	51	 
	 
	 	 	 	12.1.15	 	          Amdocs Legal Requirements	 	 	51	 

 

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	 	 	 	12.1.16	 	          Amdocs Program Manager	 	 	51	 
	 
	 	 	 	12.1.17	 	          Amdocs Rate	 	 	51	 
	 
	 	 	 	12.1.18	 	          Amdocs Testing Activities	 	 	52	 
	 
	 	 	 	12.1.19	 	          API DFS	 	 	52	 
	 
	 	 	 	12.1.20	 	          Arbitrator	 	 	52	 
	 
	 	 	 	12.1.21	 	          [*****]	 	 	52	 
	 
	 	 	 	12.1.22	 	          [*****]	 	 	52	 
	 
	 	 	 	12.1.23	 	          Audits	 	 	52	 
	 
	 	 	 	12.1.24	 	          Change Requests or CRs	 	 	52	 
	 
	 	 	 	12.1.25	 	          Change Requests Charges or CRs Charges	 	 	52	 
	 
	 	 	 	12.1.26	 	          Change Requests Form or CR Request Form	 	 	52	 
	 
	 	 	 	12.1.27	 	          Clearwire	 	 	52	 
	 
	 	 	 	12.1.28	 	          Clearwire 4G Portal	 	 	53	 
	 
	 	 	 	12.1.29	 	          Clearwire 4G	 	 	53	 
	 
	 	 	 	12.1.30	 	          Clearwire Business Initiative	 	 	53	 
	 
	 	 	 	12.1.31	 	          Clearwire Competitor	 	 	53	 
	 
	 	 	 	12.1.32	 	          Clearwire Data	 	 	53	 
	 
	 	 	 	12.1.33	 	          Clearwire-Owned Property	 	 	53	 
	 
	 	 	 	12.1.34	 	          Clearwire Entity	 	 	54	 
	 
	 	 	 	12.1.35	 	          Clearwire Indemnitees	 	 	54	 
	 
	 	 	 	12.1.36	 	          Clearwire Legal Requirements	 	 	54	 
	 
	 	 	 	12.1.37	 	          Clearwire’s Program Manager	 	 	54	 
	 
	 	 	 	12.1.38	 	          Clearwire Restricted Data	 	 	54	 
	 
	 	 	 	12.1.39	 	          Clearwire Testing Activities	 	 	54	 
	 
	 	 	 	12.1.40	 	          Committed Operation Services	 	 	54	 
	 
	 	 	 	12.1.41	 	          Computable Amounts	 	 	54	 
	 
	 	 	 	12.1.42	 	          Confidential Information	 	 	55	 
	 
	 	 	 	12.1.43	 	          Conversion Testing	 	 	55	 
	 
	 	 	 	12.1.44	 	          CPSs	 	 	55	 
	 
	 	 	 	12.1.45	 	          Critical Defaults	 	 	55	 
	 
	 	 	 	12.1.46	 	          Customized Product	 	 	55	 
	 
	 	 	 	12.1.47	 	          Customized Materials	 	 	55	 

 

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	 	 	 	12.1.48	 	          Customization	 	 	56	 
	 
	 	 	 	12.1.49	 	          Customization Services	 	 	56	 
	 
	 	 	 	12.1.50	 	          Data Center	 	 	56	 
	 
	 	 	 	12.1.51	 	          Data and Modified Data	 	 	56	 
	 
	 	 	 	12.1.52	 	          Default	 	 	56	 
	 
	 	 	 	12.1.53	 	          Defense	 	 	57	 
	 
	 	 	 	12.1.54	 	          Delay	 	 	57	 
	 
	 	 	 	12.1.55	 	          Deliverables	 	 	57	 
	 
	 	 	 	12.1.56	 	          Device	 	 	57	 
	 
	 	 	 	12.1.57	 	          Disabling Device	 	 	57	 
	 
	 	 	 	12.1.58	 	          Disentanglement Obligations	 	 	58	 
	 
	 	 	 	12.1.59	 	          Dispute Resolution Process	 	 	58	 
	 
	 	 	 	12.1.60	 	          Documentation	 	 	58	 
	 
	 	 	 	12.1.61	 	          Due Date	 	 	58	 
	 
	 	 	 	12.1.62	 	          Effective Date	 	 	58	 
	 
	 	 	 	12.1.63	 	          Feature	 	 	58	 
	 
	 	 	 	12.1.64	 	          Final Acceptance	 	 	58	 
	 
	 	 	 	12.1.65	 	          Final Conversion Date	 	 	58	 
	 
	 	 	 	12.1.66	 	          Final Conversion Milestone	 	 	59	 
	 
	 	 	 	12.1.67	 	          Force Majeure Event	 	 	59	 
	 
	 	 	 	12.1.68	 	          GAAP	 	 	59	 
	 
	 	 	 	12.1.69	 	          Generic Product	 	 	59	 
	 
	 	 	 	12.1.70	 	          Impact Assessment Document	 	 	59	 
	 
	 	 	 	12.1.71	 	          Implementation Fees	 	 	59	 
	 
	 	 	 	12.1.72	 	          Implementation Contact and Escalation List	 	 	59	 
	 
	 	 	 	12.1.73	 	          [*****]	 	 	59	 
	 
	 	 	 	12.1.74	 	          Infringement Claims	 	 	59	 
	 
	 	 	 	12.1.75	 	          Initial Release	 	 	60	 
	 
	 	 	 	12.1.76	 	          Interest	 	 	60	 
	 
	 	 	 	12.1.77	 	          Interconnectivity Testing	 	 	60	 
	 
	 	 	 	12.1.78	 	          International Affiliate	 	 	60	 
	 
	 	 	 	12.1.79	 	          Issues	 	 	60	 

 

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	 	 	 	12.1.80	 	          Key Personnel	 	 	60	 
	 
	 	 	 	12.1.81	 	          License Fees	 	 	60	 
	 
	 	 	 	12.1.82	 	          Maintenance Services	 	 	60	 
	 
	 	 	 	12.1.83	 	          Major Additional Release	 	 	61	 
	 
	 	 	 	12.1.84	 	          Materials	 	 	61	 
	 
	 	 	 	12.1.85	 	          Milestones	 	 	61	 
	 
	 	 	 	12.1.86	 	          Monthly Subscriber Fees	 	 	61	 
	 
	 	 	 	12.1.87	 	          Offer	 	 	61	 
	 
	 	 	 	12.1.88	 	          Other Default	 	 	61	 
	 
	 	 	 	12.1.89	 	          Overall CPS Score	 	 	61	 
	 
	 	 	 	12.1.90	 	          Overall Timeline	 	 	61	 
	 
	 	 	 	12.1.91	 	          Party	 	 	61	 
	 
	 	 	 	12.1.92	 	          Payment Method	 	 	61	 
	 
	 	 	 	12.1.93	 	          Performance Credits	 	 	62	 
	 
	 	 	 	12.1.94	 	          Performance Testing	 	 	62	 
	 
	 	 	 	12.1.95	 	          Person	 	 	62	 
	 
	 	 	 	12.1.96	 	          Personnel	 	 	62	 
	 
	 	 	 	12.1.97	 	          Privacy Restricted Data	 	 	62	 
	 
	 	 	 	12.1.98	 	          Project Plan	 	 	62	 
	 
	 	 	 	12.1.99	 	          Release	 	 	62	 
	 
	 	 	 	12.1.100	 	          Root-Cause Analysis	 	 	62	 
	 
	 	 	 	12.1.101	 	          Sales and Use Taxes	 	 	62	 
	 
	 	 	 	12.1.102	 	          SAS Document	 	 	63	 
	 
	 	 	 	12.1.103	 	          Services	 	 	63	 
	 
	 	 	 	12.1.104	 	          Software Components	 	 	63	 
	 
	 	 	 	12.1.105	 	          Software/Hardware Environments	 	 	63	 
	 
	 	 	 	12.1.106	 	          Specifications	 	 	63	 
	 
	 	 	 	12.1.107	 	          Standard Materials	 	 	63	 
	 
	 	 	 	12.1.108	 	          Steering Committee	 	 	64	 
	 
	 	 	 	12.1.109	 	          Sub System Testing	 	 	64	 
	 
	 	 	 	12.1.110	 	          Subcontractor	 	 	64	 
	 
	 	 	 	12.1.111	 	          Subscriber	 	 	64	 

 

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	 	 	 	12.1.112	 	          Subsidiary	 	 	64	 
	 
	 	 	 	12.1.113	 	          Suspension	 	 	65	 
	 
	 	 	 	12.1.114	 	          System Test Results	 	 	65	 
	 
	 	 	 	12.1.115	 	          System Testing	 	 	65	 
	 
	 	 	 	12.1.116	 	          Term	 	 	65	 
	 
	 	 	 	12.1.117	 	          Termination Date	 	 	65	 
	 
	 	 	 	12.1.118	 	          Termination Notice	 	 	65	 
	 
	 	 	 	12.1.119	 	          Termination Statement	 	 	65	 
	 
	 	 	 	12.1.120	 	          Testing Activities	 	 	65	 
	 
	 	 	 	12.1.121	 	          Testing Environment	 	 	65	 
	 
	 	 	 	12.1.122	 	          Third Party	 	 	65	 
	 
	 	 	 	12.1.123	 	          Unfavorable CPS Points	 	 	66	 
	 
	 	 	 	12.1.124	 	          Unit Testing	 	 	66	 
	 
	 	 	 	12.1.125	 	          United States	 	 	66	 
	 	 	12.2	 	Interpretation	 	 	66	 
	13	 	GENERAL	 	 	66	 
	 	 	13.1	 	Assignment and Binding Nature	 	 	66	 
	 	 	13.2	 	Audits, Records	 	 	67	 
	 	 	13.3	 	Data Privacy	 	 	69	 
	 	 	13.4	 	Force Majeure	 	 	69	 
	 	 	13.5	 	Freedom of Action	 	 	70	 
	 	 	13.6	 	Governing Law and Jurisdiction	 	 	71	 
	 	 	13.7	 	Risk of Loss	 	 	71	 
	 	 	13.8	 	Interpretation	 	 	71	 
	 	 	13.9	 	Modifications	 	 	72	 
	 	 	13.10	 	Notifications and Approvals	 	 	72	 
	 	 	13.11	 	Publicity	 	 	74	 
	 	 	13.12	 	Relationship, Subcontractors	 	 	74	 
	 	 	13.13	 	Severability	 	 	75	 
	 	 	13.14	 	Survival	 	 	75	 
	 	 	13.15	 	Third Party Beneficiaries	 	 	75	 
	 	 	13.16	 	Waiver	 	 	75	 

 

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	 	 	13.17	 	Captions; Section Numbers	 	 	76	 
	 	 	13.18	 	Counterparts	 	 	76	 
	 	 	13.19	 	Entire Agreement	 	 	76	 
	 	 	13.20	 	Order of Precedence	 	 	76	 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 
	Schedule	 	Title
	Schedule A

	 	Customized Product Functionality, Implementation and Conversion Roles and Responsibilities
	Schedule B

	 	Roles and Responsibilities
	Schedule C

	 	Creditable Performance Specifications (CPSs)
	Schedule D

	 	Charges
	Schedule E

	 	Data Centers
	Schedule F

	 	Steering Committee
	Schedule G

	 	Key Personnel and Program Manager
	Schedule H

	 	Overall Timeline
	Schedule I

	 	Place Holder
	Schedule J

	 	Envelope Parameters
	Schedule K

	 	Party Competitors
	Schedule L

	 	Clearwire Third Party Materials
	Schedule M

	 	Form of Additional Services
	Schedule N

	 	Services Matrix
	Schedule O

	 	Change Request Procedure
	Schedule P

	 	Privacy and Security Attachment
	 
	 	 
	Exhibits
	 	 
	Exhibit A

	 	Electronic Payment Platform
	Exhibit B

	 	Form of Statement by Clearwire Regarding Termination

 

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CUSTOMER CARE AND BILLING SERVICES AGREEMENT

     THIS CUSTOMER CARE AND BILLING SERVICES AGREEMENT (“Agreement”) is made as of the 31 day of
March 2009 (the “Effective Date”) by and between CLEARWIRE US LLC, a limited liability company
organized under the laws of the State of Nevada, having offices at 4400 Carillon Point, Kirkland,
WA 98033 (hereinafter referred to as “Clearwire”); and AMDOCS SOFTWARE SYSTEMS LIMITED, a company
incorporated under the laws of Ireland having offices at First Floor, Block S, East Point Business
Park, Dublin 3, Ireland (hereinafter referred to as “Amdocs”).

RECITALS

     A. Clearwire, with its Subsidiaries and Affiliates, operates a WiMAX network.

     B. Amdocs provides customer care and billing software and services for operators of wireless
networks.

     C. Amdocs and [*****], a Subsidiary of Clearwire, are parties through divestiture to that
certain Additional Services Order [*****], issued pursuant to the provisions of that certain Amended and Restated Customer
Care and Billing Services Agreement between Amdocs and [*****], as amended (the “Original
Agreement”), pursuant to which Amdocs provides customer care and billing system and related
services for the 4G operation operated by [*****].

     D. For and in consideration of the mutual promises and covenants contained herein, the
Parties, intending to be legally bound, hereby contract and agree as follows (capitalized terms
herein not otherwise defined being used as defined in Section 12):

	1	 	TRANSITION; [*****]

     The Parties agree that: (i) the terms and conditions set forth in this Agreement shall apply
to the Services and other performance of the Parties hereunder on or after the Effective Date; and
(ii) the terms and conditions of [*****] shall continue to apply with respect to any claim or
obligation related to the Services (as such term was defined in the Original Agreement) and other
performance of the Parties under the Original Agreement prior to the Effective Date.

	2	 	AMDOCS SERVICES

	 	2.1	 	Generally

          Amdocs shall perform the Services in accordance with this Agreement, as further specified
herein below. Amdocs shall also provide any Additional Services specified in Orders entered into
pursuant to the provisions of Section 2.5.1.

          Amdocs agrees to maintain and operate the Initial Release for the benefit of Clearwire and to
further customize the Customized Product and develop the Customized Product in accordance with the
Specifications with respect to Additional Release No. 1 (as described in Schedule A) including
conversion of Clearwire’s existing billing systems data to the Customized Product (which will
ultimately

 

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replace Clearwire’s existing billing systems) for the remainder of the Term and, during
such operational period, to continue to customize the Customized Product in Additional Releases,
and implement such
Additional Releases in the Customized Product, to be further specified by mutual agreement of
Amdocs and Clearwire. Amdocs agrees, [*****], to procure, operate, and maintain the
Software/Hardware Environments (unless such expense is required due to an Additional Services Order
or a change in Clearwire’s network or requirements), and to provide Documentation and other
deliverables required herein, and technical, professional and other resources that are necessary or
appropriate in order to accomplish the foregoing, as provided for in this Agreement and in
accordance therewith.

	 	2.1.1	 	Implementation

               (a) Amdocs shall develop and implement Additional Releases of the Customized Product and
provide the Services in accordance with the overall project plan and timeline attached hereto as
Schedule H (the “Overall Timeline”) as described in this Section 2.1.1 and the Additional
Services Orders pursuant to Section 2.5.1 and in accordance with the Overall Timeline. Each such
Additional Services Orders shall be written pursuant to the provisions of Section 2.5.1 and
shall:

                    (i) include a list of all Deliverables for each phase of the Release and the timeline for the
required completion of the included tasks; and

                    (ii) be, [*****], consistent with the requirements set forth in Schedule A.

               (b) As set forth in more detail in the Additional Services Orders, a required activity of
each phase for each Release shall be to complete and deliver to Clearwire the documents described
in the applicable Additional Services Orders. [*****].

               (c) Prior to commencement of any activities for the Additional Releases, but no later than
the date specified therefor in the applicable Overall Timeline, Amdocs shall complete and deliver
to Clearwire (i) an Additional Services Order for such Additional Releases in a form reasonably
acceptable to Clearwire (in accordance with the criteria set forth for non-software acceptance in
Section 4.3.2 hereof and including a detailed work plan of milestones and Deliverables and in
conformity with the requirements of this Agreement and (ii) an estimate for hours (based on a
model agreed to by Clearwire that supports completing all applicable requirements of this
Agreement for that Release within the applicable hours estimate) and expenses for that Additional
Release (if applicable). [*****]. The first estimation will be an initial high level estimate,
followed by a detailed Impact Assessment walkthrough, which will result in a High Level
Estimation (“HLE”). If accepted by Clearwire in writing (including as part of an ASO), the HLE
will become a binding commitment and the ASOs for each Additional Release will be done based on
this level of estimation. If Amdocs is unable to deliver an Additional Services Order for any
such Release reasonably acceptable to Clearwire in accordance with the terms hereof, Clearwire
shall be permitted to require review of the matter in accordance with the dispute resolution
process set forth in Section 4.3.5.

               (d) The deliverables to be set forth in the relevant Additional Services Orders shall include
all Deliverables and documents applicable to each phase and to all the Services.

	 	2.1.2	 	Disaster Recovery Plan

 

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               (a) [*****] Amdocs shall deliver to Clearwire a disaster recovery architecture and plan (the
“Disaster Recovery Plan”) providing, inter alia that [*****] Amdocs will, [*****] set up and
maintain during the Term, an alternate data center site and the hardware and software required for
the provision of disaster recovery services; [*****]. Amdocs shall comply with the requirements
of such documents and Disaster Recovery Plan. [*****].

	 	2.1.3	 	Additional Releases

               The Parties will hold regular, detailed discussions regarding the scope and timetable of any
releases of the Customized Product subsequent to the Initial Release (each an “Additional Release”
and any Additional Releases, collectively, each a “Release” or the “Releases”) to be developed in
any certain calendar year. The Parties anticipate that there will be [*****]. Each such
Additional Release shall include written agreement to each of the following: (i) an overall
project plan and timeline (each, a “Subsequent Project Plan”); (ii) any CPSs applicable to the
Additional Release (including applicable changes, if any, to the existing CPSs due to such
Additional Release); and (iii) any modifications or additions to the Roles and Responsibilities
schedule hereunder applicable to the Additional Release. Amdocs shall perform the additional
modifications of the then existing Release and implement such new Additional Release as described
above in Section 2.1.1(a) and additional implementation Additional Services Orders referred to
therein and in accordance with the applicable Subsequent Project Plan. The obligations of Amdocs
with respect to each such Additional Release shall be deemed “Services” under this Agreement and
the Additional Release shall be governed by all the terms and conditions of this Agreement, to the
extent that such terms are not inconsistent with those agreed to by the Parties with respect to
such Additional Release.

	 	2.2	 	Maintenance Services

          During the Term, Amdocs shall perform the maintenance services included in Schedule B
(Roles and Responsibilities) (the “Maintenance Services”) and in accordance with applicable service
level requirements.

	 	2.3	 	Committed Operation Services

          During the Term, Amdocs shall perform the operation services set forth in Schedule B
(the “Committed Operation Services”) and in accordance with the applicable service level
requirements.

	 	2.4	 	[*****]
	 
	 	 	 	[*****]
	 
	 	2.5	 	Additional Services; Change Request Procedure

	 	2.5.1	 	Additional Services

          The Parties may agree from time to time, by an Additional Services Order, to add Additional
Services to the scope of this Agreement. Additional Services Orders shall be substantially in the
form of Schedule M attached hereto and made a part hereof and the applicable provisions of
this

 

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Agreement relating to the Additional Services (including but not limited to Schedules
B, C, D, J and L) shall apply, respectively, to the
corresponding sections of the Additional Services Order.

          The Additional Services Order shall also serve, if applicable, and as provided in such
Additional Services Order, as an amendment to this Agreement. Amdocs shall provide the Additional
Services as set forth in the Roles and Responsibilities Section of the Additional Services Order
and technical, professional, training and project management services and other resources that are
necessary
or appropriate in order to accomplish the foregoing, as provided for in the Additional
Services Order and in accordance therewith.

          If Amdocs wishes to designate a particular Additional Services Order(s) to be executed and
performed by an Amdocs Affiliate(s) other than Amdocs, then Amdocs shall notify Clearwire in
writing. [*****].

	 	2.5.2	 	Change Request Procedure

          Clearwire may order from Amdocs CRs, by using the Change Request Procedure attached hereto as
Schedule O. Clearwire and Amdocs shall execute Additional Services Orders for such CRs.
For the avoidance of doubt, services performed by Amdocs under such Additional Services Order are
“Services” hereunder and, to the extent relating to the Customized Product, are “Customization
Services” hereunder.

	 	2.6	 	Creditable Performance Specifications

	 	(a)	 	Commitment to CPSs

               Except as otherwise specified in this Agreement, Amdocs shall perform all Services at least in
accordance with the CPSs. Any future applications developed by Amdocs pursuant to the terms hereof
shall incorporate methods permitting measurement of CPSs.

	 	(b)	 	CPS Measurement and Reporting

               Amdocs shall measure and report its performance results against, and otherwise comply with,
the CPSs, and the Parties shall meet to discuss such results, in the manner set forth in
Schedule C.

	 	(c)	 	Root-Cause Analysis and Resolution

               Within [*****] of Amdocs’ discovery of, or if earlier, Amdocs’ receipt of a notice from
Clearwire in respect of (i) Amdocs’ failure to meet a Milestone; or (ii) Amdocs’ failure to provide
any of the Services or Deliverables in accordance with this Agreement, including any instances, in
which Amdocs’ performance with respect to any CPS is rated [*****] Yellow [*****] pursuant to the
methodology set forth in Schedule C, Amdocs shall: (A) perform a root-cause analysis
(“Root-Cause Analysis”) to identify the cause of such failure; (B) promptly commence and diligently
pursue the correction of such failure [*****]; and (C) as soon as practicable, provide Clearwire
with a written report detailing the cause of, and procedure for correcting such failure. The
correction of any such failure shall be performed entirely [*****], and, if Clearwire determines in
its reasonable discretion that Amdocs is

 

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[*****] or more responsible for such failure,
Clearwire shall be entitled to (i) return any failed deliverables to Amdocs, at Amdocs’ expense,
and Amdocs shall correct, replace or credit, at Clearwire’s option, and (ii) the payment of the
applicable Performance Credits pursuant to Schedule C. In the event that Clearwire
determines in its reasonable discretion that Amdocs responsibility for the failure is equal to or
greater than [*****] but less than [*****], the determination of the Parties’ responsibility for
paying for the correction of any such failure, and of the application of Performance Credits, shall
be made [*****] on the basis of the extent to which each Party contributed to the cause of the
failure in question. In the event Clearwire [*****] that Amdocs is less than [*****] responsible
for such failure, Amdocs shall neither have responsibility for paying for the correction of such
failure, nor be subject to the application of Performance Credits with respect to such failure. In
the event that Amdocs disagrees with any
determination by Clearwire regarding Amdocs’ percentage of responsibility for any such failure
pursuant to this clause (c), Amdocs shall be permitted to escalate the matter in accordance with
Section 4.3.5.

	 	(d)	 	Envelope Parameters

               Clearwire shall (to the extent it is reasonably able to) provide Amdocs with advance notice
of, and the Parties shall discuss, significant increases or decreases in Clearwire’s Services
requirements, and any anticipated deviation from the parameters specified in Schedule J.
Deviations from the parameters specified in Schedule J may result in modifications to the
CPS, and/or the imposition of additional fees payable by Clearwire to Amdocs hereunder, as the case
may be, during the term of the deviation, in accordance with Schedule J.

	 	2.7	 	Non-Exclusivity

          Nothing herein shall prevent Clearwire from obtaining any type of Services, or any other
services, from any other provider during the Term; provided that Clearwire shall remain responsible
for all of the obligations and commitments specifically applicable to it hereunder.

	 	2.8	 	[*****]
	 
	 	 	 	[*****]

	3	 	RESPONSIBILITIES OF CLEARWIRE

	 	3.1	 	Generally

          Clearwire agrees to perform the tasks specifically identified as Clearwire tasks on Schedule
B. Clearwire may use Subcontractors or an outsourcing service provider to perform any service
required to be performed by it hereunder; [*****].

	 	3.2	 	Overhead; Supplies

          In the case of, or to the extent that any of the Services are to be performed by Amdocs at
Clearwire’s premises, Clearwire will provide to Amdocs, to the extent reasonably available from
Clearwire’s existing resources at the time it is determined such Services are to be performed by
Amdocs at Clearwire’s premises, at no cost to Amdocs, such space, office furnishings, janitorial
service, telephone

 

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service (for calls within the United States), utilities (including air
conditioning), office-related equipment (excluding computers), supplies, duplicating services, and
premises security services in Clearwire’s facilities for at least [*****] persons and as Amdocs
reasonably requires in connection with the performance of the Services, consistent with those that
Clearwire provides for its own personnel. At all Clearwire facilities, Clearwire will provide
Amdocs reasonable access to and use of Clearwire’s voice and data telecommunications equipment and
telecommunications lines (for use with communications within the United States), including
printers, terminals, and cabling. In addition, Clearwire shall provide Amdocs with a data line
connected to those Amdocs’ Data Centers, and to a development center designated by Amdocs; provided
that such Data Centers and development center are located in the United States. Clearwire will
give Amdocs access to such facilities [*****]; provided that: (i) Amdocs complies with Clearwire’s
security requirements and (ii) Amdocs schedules such access so as to minimize any impact on the
running of Clearwire’s business. Clearwire will be responsible for leasehold improvements at
Clearwire’s facilities that the Parties agree are required for Amdocs to provide the Services. For
avoidance of doubt, in no event shall this provision obligate Clearwire to obtain new or
additional, or retain existing, office space for the purpose of being able to provide Amdocs
Clearwire premises from which to perform Services but rather Clearwire may re-allocate existing
available premises for such purpose.

	4	 	RELATIONSHIP MANAGEMENT

	 	4.1	 	Steering Committee

          The Parties shall establish and maintain a Steering Committee, which shall be composed of
[*****] number of Amdocs’ representatives and Clearwire’s representatives. The initial
representatives and their positions with Clearwire and Amdocs, respectively, are set forth in
Schedule F (Steering Committee). The members appointed by either Party may be replaced at
the discretion of such Party. The general responsibilities of the Steering Committee shall be:
(i) to monitor the performance of the Services; (ii) to analyze and attempt to resolve matters
referred by the Program Managers; and (iii) when required, to consider and discuss amendments to
this Agreement. The Steering Committee shall meet as frequently as requested by either Clearwire
or Amdocs, not to exceed once every [*****], with [*****] prior written notice, to discuss the
status of the Services and significant events that have occurred since the previous meeting. Among
other topics, the Steering Committee shall discuss (a) a joint road map that will advance
Clearwire’s strategic business goals, and (b) the use of Amdocs’ next generation products and
services to support such road map.

	 	4.2	 	Personnel

	 	4.2.1	 	Key Personnel

          Each of Parties’ respective Key Personnel shall have the functions assigned to him or her as
set forth in Schedule G. The Parties shall use all reasonable efforts to retain the
involvement of their respective Key Personnel. The Parties may review Schedule G hereto
and mutually agree to any additions and deletions thereto. If any one of a Party’s Key Personnel
is unable to perform the functions or responsibilities assigned to him or her in connection with
this Agreement, or if he or she is no longer employed by that Party, the respective Party shall
promptly replace such person or reassign the functions or responsibilities to another person.

 

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	 	4.2.2	 	Program Managers

                    (a) Amdocs Program Manager. Amdocs represents that Amdocs’ Program Manager is an
experienced manager who is, or will undertake reasonable efforts to become, knowledgeable as to
Clearwire’s business activities. Clearwire shall have the right to interview Amdocs Program
Manager and any replacement thereof, and Amdocs shall not designate its Program Manager without
Clearwire’s prior written consent, which shall not be unreasonably withheld. Amdocs’ Program
Manager shall act as the primary liaison between Amdocs and the Clearwire Program Manager, shall
have overall responsibility for directing all of Amdocs’ activities hereunder, and shall be vested
with all necessary authority to fulfill that responsibility, excluding approval of any amendment to
this Agreement, which may not be made without the express written consent of Amdocs’ Steering
Committee members.

                    (b) Clearwire Program Manager. Clearwire’s Program Manager shall act as the primary
liaison between Clearwire and Amdocs’ Program Manager and shall have overall responsibility for
directing all of Clearwire’s activities hereunder and shall be vested with all necessary authority
to fulfill that responsibility, excluding approval of any amendment to this Agreement, which may
not be made without the express written consent of all of Clearwire’s Steering Committee members.
In addition to the above, Amdocs and Clearwire shall review on at least an annual basis the list of
Clearwire’s Key Personnel and mutually agree to any additions and deletions thereto.

	 	4.2.3	 	Additional Personnel

                    In addition to Amdocs’ Key Personnel, Amdocs shall make available such additional Amdocs
Personnel as is reasonably determined by Clearwire to be necessary to properly perform the
Services.

	 	4.2.4	 	Non-Solicitation of Employees

                    During the Term and for [*****] thereafter, neither Party shall, without the other Party’s
prior written consent, which may be withheld in such Party’s sole discretion, directly or
indirectly solicit any employee of the other Party whose duties and responsibilities include: (i)
participation, directly or indirectly, in the performance of this Agreement; or (ii) the
performance of other information or technology services; to leave the other Party’s employ in order
to accept employment with the soliciting Party, its Affiliates, or contractors or any other Person.
Notwithstanding the foregoing, neither Party shall be restricted or prohibited from non-targeted
general advertising or activities, such as sponsoring or participating in job fairs, nor from
hiring the other Party’s employees who apply for employment as a result of such non-targeted
advertising or activities.

	 	4.2.5	 	Responsibility of Personnel

                    Each Party shall be responsible for the management, direction, control, supervision and
compensation of its own employees.

	 	4.2.6	 	Individual Performance

                    Notwithstanding Sections 4.2.1 and 4.2.2, [*****].

 

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	 	4.3	 	Acceptance Testing

	 	4.3.1	 	Software Component Testing

                    (a) Amdocs shall design, develop and execute the Unit Testing, Sub System Testing, Amdocs
Integration Testing, System Testing, Conversion Testing, of the Customized Product, all components
thereof and any other software to be provided hereunder in connection with each Release. The
Parties shall conduct the Testing Activities (as defined below) in accordance with the process set
forth below in order to verify compliance of the Customized Product with the applicable Impact
Assessment Document and Amdocs shall provide such assistance and cooperation to Clearwire as is
reasonably requested by Clearwire in connection with Interconnectivity Testing, Performance
Testing, and Acceptance Testing in accordance with this Agreement, including Schedule B
(collectively, the “Amdocs Testing Activities”). With the reasonable assistance of Amdocs,
Clearwire shall conduct Interconnectivity Testing, Performance Testing, Conversion Testing and
Acceptance Testing and assist Amdocs with System Testing of the Customized Product (collectively,
the “Clearwire Testing Activities,” and collectively with the Amdocs Testing Activities, the
“Testing Activities”). [*****]. For Amdocs’ System Testing activities, Clearwire shall provide
Amdocs, at least [*****] prior to the commencement of the Acceptance Testing referred to herein
below, with all of the test cases to be used by Clearwire for the Clearwire Testing Activities.
For all Testing Activities, Amdocs will provide Clearwire, upon prior request, with access to any
test case databases, test cases executed, test data used, defect logs, test entrance and exit
criteria, and data from Amdocs’ data extraction tool, and any relevant test result documentation.
Clearwire will also provide access to its defect management tool to all relevant Amdocs personnel
for the purposes of fixing defects opened by Clearwire. In addition, and as a prerequisite for
Amdocs’ ability to meet its respective undertakings including but not limited to the System Test
exit criteria, Clearwire will provide Amdocs access to a mini RTB environment (i.e., access to
Clearwire environments that includes non Amdocs applications (e.g. OMA-DM) and Third Party
interfaces with real time connectivity. or any future system interfacing with the Customized
Product) for Amdocs to conduct end to end testing as part of the System Test.

                    Section 4.3.1(a) shall apply to the applicable BSS Deliverables as well as to the applicable
software portions of the Clearwire 4G Portal.

                    [*****]

                    The Parties agree that the System Test exit criteria as well as the decisive factors that
need to be met by the Parties prior to the System Test exit date are hereby agreed as [*****].

                    (b) Clearwire reserves the right to observe and verify Amdocs’ performance of and results from
all Amdocs’ Testing Activities, including review of test cases (except for Unit Testing and Sub
System Testing), test execution and test results of the software components contained or to be
contained in the Customized Product, including Customizations pursuant to the applicable Impact
Assessment Document (“Software Components”). Upon Amdocs’ notification to Clearwire that Amdocs
has completed Unit Testing, System Testing, and Conversion Testing of all of the Software
Components [*****].

                    (c) Upon successful completion of the Acceptance Testing [*****].

 

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                    (d) Notwithstanding the above, the Parties agree that CRs shall be tested by Amdocs and the
provisions of this Section 4.3.1 shall not apply to CRs. [*****]. Amdocs shall deliver to
Clearwire the results of any testing conducted pursuant to this paragraph.

	 	4.3.2	 	Non Software Acceptance

                    All tangible Deliverables required to be provided for Clearwire pursuant to a Services Order
hereunder that are not a Software Component shall also be subject to acceptance by Clearwire as
provided below. The Parties shall establish specific approval criteria with respect to each of the
material non-software Deliverables hereunder, and shall include such approval criteria within the
applicable Services Order. Clearwire shall review each of the Deliverables under any such
specifically established approval criteria and within the time established for such Deliverables
pursuant to the applicable Services Order (or, if none is so established then within a reasonable
time). Upon completion of the reviews, Clearwire shall notify Amdocs in writing of Clearwire’s
approval (an “Approving Notice”) or rejection (a “Rejection Notice”) of the Deliverables.
Deliverables may be rejected due to a failure to meet the approval criteria for such Deliverables,
or, in the absence of any approval criteria, a defect, provided that Clearwire will not
unreasonably reject conforming Deliverables. In the event that Clearwire does not send to Amdocs
an Approving Notice or a Rejection Notice within [*****] of delivery, the Deliverables shall be
deemed accepted. If the Deliverables are rejected, Clearwire shall include in the Rejection Notice
a statement of the material defect or the approval criteria that were not met. Amdocs shall
correct any identified material defects or unmet approval criteria promptly, and in any event,
within any time frame established in the applicable Services Order and that Clearwire shall not be
charged for the hours expended by Amdocs to effect such correction. Upon delivery of the revised
Deliverables, the review process described above shall recommence with respect to all aspects of
such Deliverables that were to have been corrected and any other aspects that may have been
affected as a result of such corrections.

	 	4.3.3	 	[*****]

                    [*****]

	 	4.3.4	 	Initial release and related documentation

                    For the avoidance of doubt, the Initial Release and related Documentations have been granted
Final Acceptance and are not subject to the provisions of this Section 4.3.

	 	4.3.5	 	Assignment of testing responsibilities

                    Should Clearwire request to assign to Amdocs Clearwire’s acceptance testing or user acceptance
testing responsibilities the Parties agree to negotiate in good faith an Additional Services Order
to that effect.

	 	4.4	 	Dispute Resolution

	 	4.4.1	 	Disputes

 

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                    In the event of any dispute under or in relation to this Agreement (including but not limited
to a dispute regarding the subject matter of Section 4.3, any Services Order, or any damages
claimed by one Party from the other Party, the Program Managers shall discuss and make an effort to
resolve such dispute at or prior to the next Steering Committee meeting, and for at least [*****].
If the Program Managers shall have executed a written resolution of the dispute, each Party shall
begin performance in accordance with such resolution, provided that no agreement of the Program
Managers may amend or modify the terms of this Agreement without the concurrence of the Steering
Committee. In the event the Program Managers have been unable to resolve the dispute, the dispute
shall be referred to the Steering Committee for its resolution at the first occurring meeting
thereof following the elapse of the above-mentioned [*****], or such longer period as agreed to in
writing by the Parties; provided that, at any time, a Party may call a meeting of the Steering
Committee in order to refer a dispute to the Steering Committee for resolution.

	 	4.4.2	 	Unresolved Disputes

                    If any dispute arises between the Parties, and the disputed matter has not been resolved by
the Program Managers within [*****] after such dispute has come to their attention (or a longer,
reasonable period, if so agreed between the Program Managers), and the disputed matter has not been
resolved by the Steering Committee at the first occurring meeting thereof following the elapse of
the above-mentioned [*****], or such longer period as agreed to in writing by the Parties, or, if
otherwise, at the meeting thereof called to consider the dispute, and without regard to whether
either Party has contested whether these procedures, including the duty of good faith, have been
followed, each Party shall have the right to refer the unresolved dispute (and, in connection with
such referral, such Party shall provide a summary of the dispute and each Party’s position) to the
President of Clearwire and the Division President of Amdocs, who will then attempt in good faith to
resolve the dispute. In the exceptional event that the Presidents of the Parties or their
respective designees cannot resolve the dispute within a time frame agreed to by the Presidents
(or, if not agreed, within a period of [*****]), the dispute shall be resolved as provided for in
Section 13.6.

	 	4.4.3	 	No Termination or Suspension of Services

                    [*****]

	 	4.4.4	 	Injunctive Relief

                    Neither Party shall be obligated to follow the procedures set forth in Section 6.5, Section
4.4.1 and Section 4.4.2, and each Party shall be entitled to seek relief in a court of competent
jurisdiction, in order to seek injunctive relief for violations of this Agreement, provided that
the Party seeking relief shall provide the other Party [*****] notice prior to seeking such relief,
which notice shall include a description of why it is seeking such relief and during which [*****]
notice the Party seeking such relief shall attempt in good faith to discuss the issue with the
Program Manager or a Steering Committee member of the other Party.

	 	4.5	 	Clearwire’s Policies

                    Amdocs shall ensure that it, its employees, agents, and Subcontractors comply prospectively
after notice with the policies as attached as part of Schedule P (if such policies or

 

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subsequent changes thereto require a time frame to comply and/or investment/costs on the part
of Amdocs, the Parties shall negotiate these in good faith), and Amdocs shall cooperate with
Clearwire to facilitate Clearwire’s compliance with such policies, provided that nothing in these
policies contradicts any United States law, rule or regulation:

                    (a) Security

                    At all times during the Term, Amdocs shall provide all Services in a manner [*****].

                    (b) Computer Information and Access

                         Prior to performing any services pursuant to this Agreement, Amdocs’ personnel who will access
Clearwire computer data and software, including the Clearwire Data, shall execute Clearwire’s
standard forms, to the extent they exist, concerning access protection and data/software security.
At all times during the Term, Amdocs shall ensure that [*****].

                    (c) Ethical Business Practices

                         Amdocs and Clearwire and any Subcontractors used by them in the performance of Services
hereunder shall fulfill their obligations hereunder in an ethical manner, and shall comply with all
applicable laws and regulations and Amdocs shall comply with any code of ethics maintained by
Clearwire as of the date hereof, or implemented subsequent to the date hereof, as such may be
amended from time to time. Clearwire shall provide copies of such code of ethics to, and discuss
such code with, Amdocs.

                    (d) Other Policies

                         Amdocs shall, and shall cause its Subcontractors and employees performing Services hereunder
to, abide by all Clearwire corporate policies applicable to the performance of the Services
hereunder that may be established by Clearwire from time to time. Clearwire shall provide copies
of any such policies to, and discuss any such policies with, Amdocs.

                    (e) Holidays

                         The Parties agree that Amdocs’ holidays are to be determined in accordance with Clearwire
policies.

	5	 	CHARGES, CREDITS AND PAYMENTS

	 	5.1	 	Generally

	 	5.1.1	 	Charges

                    As the sole and entire financial consideration for the Services to be performed and
deliverables and intellectual property to be provided by Amdocs under this Agreement, Clearwire
shall pay to Amdocs the amounts set forth in this Section 5, which consist of:

 

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                    (a) License Fees and Additional Licenses Fees: Clearwire shall pay the License Fees and
Additional Licenses Fees in accordance with the terms and conditions of this Agreement and as set
forth in Schedule D;

                    (b) Implementation Fees: Clearwire shall pay the Implementation Fees in accordance with the
terms and conditions of this Agreement and as set forth in Schedule D;

                    (c) Monthly Subscriber Fee: Clearwire shall pay the Monthly Subscriber Fee in accordance with
the terms and conditions of this Agreement and as set forth in Schedule D;

                    (d) Reimbursable expenses: Clearwire shall reimburse Amdocs for certain expenses in
accordance with Annex 3 to Schedule D;

                    (e) Charges for Additional Services: Clearwire shall pay Amdocs the charges for Additional
Services as set forth in the Additional Services Orders; and

                    (f) Charges for CRs: Clearwire shall pay Amdocs for the CRs the CRs Charges as set forth in
the applicable Additional Services Orders;

                    (g) Any other charges that are mutually agreed upon by the Parties.

	 	5.1.2	 	Adjustment of Charges

                    The enumerated fees and charges set forth in Section 5.1.1 to be paid by Clearwire to Amdocs
are subject to change due to the addition of services by mutual agreement which are not at the time
of execution of this Agreement within the scope of the Services hereunder. In the event that
Clearwire requires any such additional services hereunder, Clearwire and Amdocs will negotiate the
fees and charges (and related expenses where applicable) to be paid by Clearwire to the extent such
rates are not addressed in Schedule D. Further, to the extent that Schedule J contemplates
any additional fees to be payable by Clearwire to Amdocs in the event that an envelope parameter
stated therein is exceeded, and in the event that the Parties agree that any conditions to the
payment of any such additional fees have been met, then Clearwire shall pay such fees to Amdocs.

	 	5.1.3	 	License to Generic Product

                    (a) Group A Generic Products — the Parties recognize that on the Effective Date
Clearwire is a [*****] Affiliate and as such, pursuant to the provisions of [*****], is granted the
rights of use to Amdocs’ Group A Generic Product as set forth in subsection 5.1.3(a)(i) below:

                         (i) So long as Amdocs provides to Clearwire Services similar in scope to the Services ordered
hereunder as of the Effective Date of this Agreement (including natural growth) , Amdocs affirms
that Clearwire possesses, and otherwise hereby grants to Clearwire, and Clearwire hereby accepts, a
royalty-free, fully-paid, non-transferable (except as permitted in this Agreement) license for
Clearwire to [*****] with respect to [*****] or [*****] from [*****] the benefit of such use of,
all modules of the [*****] as well as any [*****] in accordance with the provisions of this
Agreement. Notwithstanding, [*****].

 

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               (b) Group B Generic Products — the Parties further recognize that with respect to
Generic Products as set forth in subsection 5.1.3(b)(i) below ordered directly by Clearwire from
Amdocs (i.e. Generic Products which were not ordered by [*****] pursuant to the Original Agreement
and which license fees were paid directly by Clearwire):

                    (i) Subject to payment of the applicable license fees pursuant to the provisions of Schedule D
to this Agreement, Amdocs affirms that Clearwire possesses, and otherwise hereby grants to
Clearwire, and Clearwire hereby accepts, a royalty-free, fully-paid, perpetual(provided however
that such license may be terminated by Amdocs for a Material Default as determined by the
Arbitrator pursuant to the provisions of Section 6.3.2), non-transferable (except as permitted in
this Agreement) license for Clearwire to [*****].

               (c) Amdocs hereby represents and warrants that at the time of execution of this Agreement,
Amdocs’ Generic Product only includes the modules and software products listed under Groups A and B
in Annex 1 to Schedule D.

	 	5.2	 	Reporting, Invoicing and Payment

	 	5.2.1	 	Reports

               Amdocs shall issue monthly reports in accordance with the provisions of this Agreement,
including without limitation, Schedule B and Schedule C.

	 	5.2.2	 	Invoicing of License, and Implementation Fees

               Upon [*****] determination of the occurrence of each event designated as a “Milestone” for the
implementation or conversion, as applicable, of the Customized Product in Schedule D in
accordance with the criteria set forth in Section 4.3, Clearwire shall pay Amdocs in accordance
with the provisions of Schedule D with respect to such “Milestone” (including any
applicable partial payments stated therein). The same invoicing process shall be followed with
respect to each Additional Release when being provided by Amdocs on a fixed price basis.

	 	5.2.3	 	Invoicing of Monthly Subscriber Fee

               [*****], Amdocs shall invoice Clearwire the Monthly Subscriber Fee.

	 	5.2.4	 	Invoicing of Additional Services

               Amdocs shall invoice Clearwire the charges for the Additional Services as provided for in the
Additional Services Order. However, if no specific invoicing or payment terms are agreed upon,
Amdocs shall invoice Clearwire such charges at the end of each month during which Amdocs has
performed the Additional Services. If an Additional Services Order, or portion thereof, designates
fees to be paid on a Milestone basis, then, upon the occurrence of the Milestone, Amdocs may
invoice Clearwire for the amount set forth in connection with such Milestone. If an Additional
Services Order, or portion thereof, designates fees to be paid on a time and materials basis, or
does not designate a specific fee structure, Amdocs may invoice Clearwire monthly for the amount
due and payable in accordance with the Additional Services Order based upon Additional Services
already performed.

 

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	 	5.2.5	 	Invoices

               (a) All reports and invoices issued by Amdocs hereunder shall be sent to both the Clearwire
Program Manager and Clearwire Accounts Payable shall be in such reasonable detail as requested or
approved by the Joint Committee of Clearwire and Amdocs referred to in Subsection 5.2.7 herein
below. Such invoices shall contain, in addition to any other types of information agreed upon by
the Joint Committee, the following detailed information, as applicable: identification of any
Milestone applicable to each payment, Clearwire’s purchase order number (which purchase order
number shall be provided by Clearwire to Amdocs in a timely manner), service descriptions, hours of
service against specific enumerated tasks and responsibilities (including any Milestone, if any),
credits, if applicable, and, in the case of Services provided on a time and material basis,
identification of individuals performing services. All invoices shall be denominated in currency
of the United States.

               (b) Amdocs shall provide separate invoicing to Clearwire and any Clearwire Subsidiaries and/or
Affiliates purchasing under this Agreement. The exact mechanism and required documentation allowing
such Clearwire Subsidiaries and/or Affiliates to order directly from Amdocs shall be discussed on a
case by case basis.

               (c) Upon Clearwire’s request, Amdocs shall submit invoices and receive payments electronically
using an electronic platform described in Exhibit A.

	 	5.2.6	 	Performance Credits and Bonuses

               Clearwire will be entitled to Performance Credits and Amdocs shall be entitled to bonuses in
accordance with Schedule C, based on Amdocs’ actual performance of Services as measured
against the CPSs. Performance Credits reflect [*****] Amdocs’ Services as measured against the
CPSs. Performance Credits are not [*****] Clearwire for any breach or default by Amdocs under this
Agreement, [*****]. In no event shall Performance Credits be Clearwire’s sole and exclusive remedy
with respect to any failure of Amdocs to comply with applicable CPSs; provided that any monetary
award granted to Clearwire with respect to such failure shall be reduced by, but shall not be
limited to, any Performance Credit paid by Amdocs with respect to such failure.

	 	5.2.7	 	Payments

               (a) Except for amounts reasonably disputed in good faith (which shall be dealt with as
provided below), Clearwire shall pay all invoices properly issued no later than the [*****] (the
“Due Date”) after receipt thereof. Payments shall be made by Clearwire directly to the following
Amdocs’ bank account:

               [*****]

               (b) Amdocs invoices shall be deemed paid upon delivery of the amounts specified therein to the
above bank account. Amdocs shall be permitted to charge Clearwire Interest on any undisputed
amount payable under this Agreement in the event such undisputed amount is not paid within [*****]
of the Due Date, on the monthly invoice immediately following the month of the invoice including
such unpaid amount, such Interest to be computed from the Due Date to the date of payment.

 

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               (c) Each of Clearwire and Amdocs shall appoint one member of a joint committee (the “Joint
Committee”) established to deal with the issue of Amdocs’ invoices and any disputed amounts payable
under this Agreement. The first members of the Joint Committee will be Clearwire’s Director of
Customer Billing Solutions and Amdocs’ Vice President for the Customer Care and Billing Project.
The committee members will agree on the format of Amdocs’ invoices and the additional information
or documentation, if any, required to support such invoices.

               (d) Upon receiving an Amdocs invoice, Clearwire shall, as soon as reasonably practicable,
review the invoice to verify whether there are any disputed amounts in the invoice; provided that
Clearwire shall retain its right to dispute any amounts contained in such invoice that it discovers
later, including subsequent to the payment of such invoice. In the event Clearwire is of the
opinion that any invoice contains a disputed amount (whether or not the disputed amount has already
been paid by Clearwire), it shall promptly prepare a detailed memorandum explaining the basis for
the dispute and gather reasonable documentation and information, if possible, to substantiate it.
Clearwire shall then promptly bring such material to the attention of the Joint Committee who shall
use all reasonable efforts to resolve the matter of the disputed amount within [*****]. If such a
resolution cannot be reached within the above period (or any other period mutually agreed upon by
the Parties), the matter shall be immediately presented by the Joint Committee to Clearwire’s Chief
Information Officer or Clearwire’s Chief Operations Officer for determination as to whether the
amount in question (or any part thereof) is disputed or not. Provided that the procedure set forth
in this clause (d) has been followed and that such person determines that the amount is disputed
and was initially invoiced on or after the date that is a [*****] prior to the date of the invoice
from which such disputed amount is being withheld, Clearwire shall have the right to withhold such
amount from such invoice and the matter shall be resolved in accordance with the dispute resolution
procedure specified in Section 4.3.5 as if the matter has not been resolved by the Program
Managers; provided, however, that nothing herein shall be construed to restrict or limit in any way
Clearwire’s right to terminate this Agreement, at any time, in accordance with the provisions of
Section 6. Clearwire shall also be permitted to withhold any “Computable Amounts” from any
invoice.

               (e) [*****].

               (f) All payments under this Agreement shall be made in currency of the United States.

               (g) Notwithstanding anything above to the contrary, with regard to the Milestone related
charges specified in Schedule D hereof, Amdocs shall use commercially reasonable efforts
to include such charges on the invoice being issued related to the month in which Acceptance of the
Milestone occurs. If such charges are not included on such invoices, then: (i) Amdocs shall issue
to Clearwire invoices on the anticipated Milestone achievement date; and (ii) subject to
Clearwire’s reasonable determination that the applicable Milestone has been achieved in accordance
with Schedule D, Clearwire shall pay such invoices in accordance with the process set forth in
Section 5.2.7(a) above.

	 	5.2.8	 	Third Party Services

               Clearwire may engage Third Parties to provide services in connection with the Customized
Product; provided that Clearwire shall provide Amdocs with notice prior to engaging any Third Party
who is an Amdocs Competitor to provide such services. To the extent that Clearwire does so,

 

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Amdocs
shall at all times cooperate and coordinate with the selected provider in every respect to
facilitate
the successful accomplishment of the services; provided that (i) such Third Party shall sign a
confidentiality agreement with Amdocs containing confidentiality obligations substantially similar
to those set forth in Section 7 and (ii) Amdocs’ personnel can reasonably do so without adversely
affecting Amdocs’ compliance with the CPSs or other aspects of the Services being delivered
hereunder. Such cooperation shall include, but not be limited to: [*****]. If Amdocs is required
to provide material assistance by Amdocs personnel outside the scope of the Services, Clearwire
shall pay Amdocs, in the absence of mutual written agreement to the contrary, based on the Amdocs
Rate; provided that Amdocs notifies Clearwire in writing of its required assistance and receives
written authorization therefor. Amdocs shall not be required to provide such material assistance
absent such authorization.

	 	5.2.9	 	Taxes

               (a) Compliance

                    The Parties will comply with all federal, state, and local tax laws applicable to transactions
occurring under this Agreement. Amdocs shall provide Clearwire with a completed Form I-9,
applicable Form W-8 series form, or Form 8233, or any other required tax form, as appropriate, for
federal income tax reporting purposes.

               (b) Payment Obligation

                    Clearwire shall be responsible for applicable Sales and Use Tax imposed by a taxing authority
located in the United States on charges for goods and/or services provided by Amdocs pursuant to
this Agreement; provided, however, that Clearwire shall not be responsible for (i) such taxes for
which Clearwire provides Amdocs with a valid properly executed exemption certificate, (ii) any
taxes imposed on Amdocs arising from Amdocs’ consumption of goods and services in connection with
this Agreement, and (iii) any other taxes, assessments duties, permits, tariffs, fees or other
charges of any kind. For sales to Clearwire or Clearwire Subsidiaries and/or Affiliates based and
operating in the United States, Amdocs shall be responsible for any present or future sales,
transaction, or withholding, tax imposed by a taxing authority located outside the United States
for goods and/or services provided by Amdocs pursuant to this Agreement. For sales to or payments
received from Clearwire Subsidiaries and/or Affiliates based and/or operating outside the United
States, Amdocs’ fees are net to be received by Amdocs and do not include and are free and clear of
deduction for any and all present or future taxes, customs, duties, charges or withholdings with
respect thereto, including but not limited to value added tax, sales tax and similar taxes or
duties as well as withholding taxes. For the avoidance of doubt, neither Party shall be
responsible for the payment of any taxes, regardless of the location of the taxing authority,
imposed on the income or personal property of the other Party.

               (c) Invoicing

                    Amdocs shall separately state all taxable and non-taxable charges on all invoices issued to
Clearwire. Amdocs will separately state applicable Sales and Use Taxes on charges for goods and
services provided under this Agreement. If Amdocs fails to properly invoice Clearwire for taxes on
the original invoice for goods and services provided under this Agreement, Clearwire shall not be
responsible for payment to Amdocs of corrected tax amounts on any invoices which are outside the
applicable state or locality statute of limitations, without taking into account any statute
waivers Amdocs

 

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has decided to execute. Except in cases Amdocs is not charging tax on specific
goods and services at the
request of Clearwire, Amdocs will hold Clearwire harmless from and against any penalty,
interest or other costs assessed against Amdocs as a result of the failure of Amdocs to include tax
on the original invoice.

               (d) Within thirty (30) days after the date of any deduction of any Taxes by or on behalf of
Clearwire from or in respect of any sum payable to Amdocs hereunder, Clearwire shall furnish to
Amdocs, at its address referred to herein, the original or a certified copy of a receipt evidencing
such deduction of Taxes.

               (e) Each Party shall upon the request of the other take reasonable action, including without
limitation the completion of forms, certificates and documents and the provision of information to
the relevant taxing authority, of the kind required under the applicable law, to secure the benefit
of any exemption from or relief with respect to the Taxes applicable to any amounts payable
hereunder.

               (f) Cooperation

                    The Parties agree to cooperate with each other to enable each to more accurately determine its
own tax liability and to minimize such liability to the extent legally permissible.

	 	5.3	 	Expenses

          As provided above, Clearwire shall reimburse Amdocs for reasonable out of pocket expenses,
incurred by Amdocs Personnel directly providing Services, in accordance with Schedule D
hereof.

	6	 	TERM AND TERMINATION

	 	6.1	 	Term

          The period during which Amdocs shall be obligated to provide the Services under this Agreement
shall commence on the Effective Date and end on the earliest of (i) seven (7) years as of the
Effective Date (provided that the Term will be further extended by the number of calendar months
by which the Final Conversion Milestone is delayed for reasons that are solely the responsibility
of Clearwire and not the responsibility of Amdocs, such that the Term will be concluded on the date
which is no less than six (6) years after the Final Conversion Milestone) and (ii) the termination of
this Agreement pursuant to its terms. Amdocs shall notify Clearwire of the expiration of the Term
no more than twelve (12) months, nor less than six (6) months, before the date on which the Term would expire. For
the avoidance of doubt, all Additional Services orders issued under this Agreement and intended to
be valid during the Term (e.g., where provided that an Additional Services Order shall be valid for
the duration of this Agreement or for the Term), shall expire (subject to applicable provisions of
this Agreement) upon expiration of the Term.

     6.2 Termination For Convenience; Termination For Force Majeure; Termination For Financial
Instability; Effect Of Termination

	 	6.2.1	 	Termination for Convenience

 

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               Starting thirty (30) months as of the Effective Date, Clearwire shall have the right to
terminate for its convenience (a) all of the Services (including the Additional Services) in the
aggregate; (b) only the Additional Services (in the aggregate or by Additional Services Order); or
(c) the entire Agreement, effective at [*****] (the “Termination Date”) by delivering to Amdocs a
written “Termination Notice” (which may be issued after the end of the thirty (30) months) at least
twelve (12) months before the Termination Date. In addition, in the event of termination for
convenience by Clearwire, Clearwire shall provide Amdocs with a written statement (the “Termination
Statement”) signed by Clearwire in the form of Exhibit B attached hereto and Amdocs may present
this statement to Third Parties and use it in any way it deems fit. The Parties agree that
Clearwire’s provision to Amdocs of a Termination Statement hereunder shall not be construed by any
trier of fact, judicial reviewer or arbitrator to imply that Clearwire does not believe that Amdocs
has committed any Default or breach hereunder, or to prohibit or restrict Clearwire’s right to make
any claim that Amdocs has committed any Default or breach hereunder. Notwithstanding the provision
of such Termination Statement, Clearwire shall have all remedies available to it in accordance with
Section 10.2 hereof with respect to any failure or breach by Amdocs in the performance of its
obligations hereunder and Amdocs hereby waives any right to use such Termination Statement as
evidence against Clearwire in any proceeding for any purpose.

               As a sole exception, Clearwire may terminate all [*****] related Services ordered pursuant to
the provisions of Schedules A and B herein for convenience upon a [*****] prior written notice and
subject to the applicable provisions of Schedule D herein.

	 	6.2.2	 	Termination for Force Majeure Event

               If there is a delay or interruption of performance by Amdocs resulting from its experiencing a
Force Majeure Event exceeds [*****] (the “Force Majeure Period”), then Clearwire may, at its
option, either: (i) terminate this Agreement, by delivering to Amdocs a Termination Notice
specifying a Termination Date not less than [*****] after the date of the Termination Notice; and
in the event of such a termination, Amdocs shall perform any mutually agreed upon Disentanglement
Obligations hereunder until they are fulfilled; provided that, during the pendency of the Force
Majeure Event, Amdocs shall perform any mutually agreed upon Disentanglement Obligations to the
extent such obligations can be performed despite the Force Majeure Event; or (ii) engage an
alternate provider (who shall be subject to the confidentiality requirements hereunder), on an
interim basis, to perform the Services that Amdocs is unable to perform as a result of the Force
Majeure Event until such time as Amdocs is able again to perform the Services in accordance with
the terms hereof. Clearwire shall not be required to pay Amdocs any exit fee or other termination
fees if Clearwire terminates this Agreement on the basis of a Force Majeure Event. If Clearwire
delivers a Termination Notice to Amdocs as described in clause (i) above, and Amdocs is able to
restore full performance of its obligations under this Agreement within [*****] after the date of
the Termination Notice, then Clearwire shall revoke such Termination Notice.

               For the avoidance of doubt, the Parties expressly agree that if as a result of a Force Majeure
Event, Amdocs activates its Disaster Recovery Plan, so long as Amdocs performs its obligations
under the Disaster Recovery Plan Clearwire may not terminate this Agreement under this Section
6.2.2.

	 	6.2.3	 	Termination for Financial Instability

      (a) If (i) Amdocs does not meet its undisputed material obligations, including judgments, to
third parties as those obligations become due after a final judgment, (ii) Amdocs’ stock is
involuntarily removed or delisted from a trading exchange due to the financial situation of Amdocs,
Clearwire may terminate this Agreement on thirty (30) days notice to Amdocs and pay Amdocs fifty
percent (50%) of any exit fee that would have applied if Clearwire elected to terminate this
Agreement pursuant to Section 6.2.1.

     (b) Alternatively, if the events described in clause (a) above occur, Clearwire may submit the
matter to the Steering Committee, which shall meet within ten (10) business days of the referral of
the matter to the Steering Committee by Clearwire to determine whether such events shall give rise
to the right for Clearwire to terminate this Agreement promptly on thirty (30) days notice without
any requirement to pay Amdocs any exit fee or other termination fees If the Steering Committee
determines that such events do give rise to a right to terminate pursuant to the alternative in
this subsection (b), Clearwire may elect to exercise such right any time after such decision of the
Steering Committee. If the Steering Committee determines that such events do not give rise to a
right to terminate pursuant to the alternative in this subsection (b), then the matter shall be
submitted to arbitration pursuant to Section 13.6. If the arbitration determines that such events
do give rise to a right to terminate pursuant to the alternative in this subsection (b), Clearwire
may elect to exercise such right any time after such decision of the arbitration. For avoidance of
doubt, Clearwire may exercise its right to terminate pursuant to the provisions of subsection (a)
above at any time during or after the commencement of the processes described in this Section
related to the determination of whether there exists a right to terminate pursuant to the
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	 	6.2.4	 	Effect of Termination

               For the avoidance of doubt, any termination under this Section 66.2 shall be effective with
regard to Clearwire and any Subsidiary and/or Affiliate of Clearwire receiving Services under this
Agreement, but shall not be effective with regard to any Subsidiary and/or Affiliate of Clearwire
that has entered into its own agreement with Amdocs.

	 	6.3	 	Termination for Cause

	 	6.3.1	 	Critical Defaults

               Section 4.3.5 hereof notwithstanding, this Agreement may be terminated by either Party at any
time, by delivering a Termination Notice specifying a Termination Date to the other Party if the
other Party commits a Critical Default, provided that such Termination Date stated in any
Termination Notice issued pursuant to this Section 6.3.1 shall
be fifteen (15) days or more subsequent to
the date of such Termination Notice. Termination shall be effective at 11:59 p.m. on the
Termination Date; in the event of such a termination by Clearwire, Amdocs shall perform its
Disentanglement Obligations hereunder until they are fulfilled. Termination shall not constitute a
Party’s exclusive remedy for such a Critical Default, and such Party shall not be deemed to have
waived any of its rights accruing hereunder prior to such Critical Default. Clearwire shall not be required to pay Amdocs any exit fee or other termination fees if Clearwire
terminates this Agreement for Critical Default. If Clearwire
ends the Term as a result of a claimed Critical Default by Amdocs, and Amdocs disputes the
termination and refers the matter to arbitration as provided in Section 13.6 of this Agreement, and
it is determined by the Arbitrator that no Critical Default was committed, then the termination
shall be deemed a termination for convenience, pursuant to Section 6.2.1, and Amdocs shall have all
remedies available to it, in accordance with Section 10.2 hereof, in connection with such
determination that no Critical Default was committed. For purposes of this Section 6.3, a
“Critical Default” of Amdocs shall mean each of the defaults described in clauses (a), (d), (e) and
(g) of Section 12.1.52 hereunder only; and a “Critical Default” of Clearwire shall mean the default
described in clause (f) of Section 12.1.52 hereunder.

	 	6.3.2	 	Material Defaults

                    In the event that Clearwire believes Amdocs has committed a Default described in clause (f) of
Section 12.1.52 hereunder or either Party believes the other Party has committed a Default
described in clause (c) of Section 12.1.52 hereunder (each referred to hereinafter as a “Material
Default”), the Party asserting such Material Default shall provide the other Party with written
notice of such claim, and within five (5) calendar days of the date of such notification the matter shall be
submitted to arbitration in accordance with Section 13.6. The purpose of such arbitration shall be
to determine, assuming the truth of all claims of the Party asserting that such Material Default
has been committed, whether the other Party’s failure or breach is “material” for purposes of
clause (c) or (f) of Section 12.1.52, as the case may be. The Arbitrators shall make its initial
determination of materiality, and if the Arbitrator confirms that the asserted failure or breach is
“material,” then the Arbitrators must determine whether the asserted Material Default was in fact
committed and was not cured within the applicable cure period therefore, if any (i.e., that the
conditions of a Default under clause (f) or clause (c), as the case may be, of Section 12.1.52 were
met). If the Arbitrators rule in favor of the Party asserting a Material Default, or the
Arbitrators fail to render a determination on the question of whether the asserted Material Defect
was in fact committed within six (6) months of submission for a ruling, then the Party asserting a
Material Default shall

 

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have the right to terminate this Agreement by sending the other Party a Termination Notice
specifying a Termination Date, provided that such Termination Date
shall be fifteen (15) days or more
subsequent to the date of such Termination Notice. Termination shall be effective at 11:59 p.m. on
the Termination Date, and, in the event of such a termination, Amdocs shall perform any mutually
agreed upon Disentanglement Obligations until they are fulfilled. If this Agreement is terminated
by Clearwire pursuant to this Section 6.2.2, Amdocs shall refund
all amounts paid by Clearwire subsequent to the expiration of any cure
period contained in clause (c) or clause (f), as the case may be, of Section 12.1.52. Termination
shall not constitute a Party’s exclusive remedy for a Material Default of the other Party.
Notwithstanding the foregoing sentence, if the Arbitrator fails to issue a determination of damages
within six (6) months after it makes a determination there was a Material Default, the Party asserting a
Material Default may (a) terminate this Agreement by sending the other Party a Termination Notice
specifying a Termination Date, provided that such Termination Date
shall be fifteen (15) days or more
subsequent to the date of such Termination Notice, and (b) immediately commence and maintain an
action in any court of competent jurisdiction for the purpose of determining and recovering damages
against the other Party. Further, a Party shall not be deemed to have waived any of its rights
accruing hereunder prior to submitting the original notice of default, and Clearwire shall not be
required to pay Amdocs any exit fee or other termination fees if Clearwire terminates the Term
pursuant to this Section 6.3.2. The non-prevailing Party in any arbitration conducted pursuant to
this Section 6.3.2 shall be required to pay the arbitration costs, including reasonable attorney’s
fees, of the other Party.

	 	6.3.3	 	Other Defaults

               In the event that a Party commits an Other Default, the Party asserting the Other Default may,
after providing written notice of such Other Default, submit the matter to the escalation
procedures set forth in Section 4.3.5. If, as a result of such procedure, the Arbitrator rules in
favor of the Party asserting an Other Default, then the Party asserting the Other Default shall
have the right to terminate this Agreement by sending a Termination Notice specifying a Termination
Date, provided that such Termination Date shall be fifteen (15) days or more subsequent to the date of such
Termination Notice. Termination shall be effective at 11:59 p.m. on the Termination Date; in the
event of such a termination by Clearwire, Amdocs shall perform its Disentanglement Obligations
hereunder until they are fulfilled. Termination under this Section 6.2.3 shall not constitute a
Party’s exclusive remedy for such an Other Default, and a Party shall not be deemed to have waived
any of its rights accruing hereunder prior to such Other Default. Clearwire shall not be required to pay Amdocs any exit fee or other termination fees if Clearwire
terminates this Agreement for Other Default.

	 	6.4	 	Extension of Services

          Any time prior to expiration of the Term, or if Clearwire has delivered to Amdocs a Notice of
Termination, any time prior to the applicable Termination Date, Clearwire may elect to extend the
effective date of any such expiration or termination for up to [*****] periods of up to [*****]
each. In order for such election to be valid, Clearwire must deliver written notice to Amdocs at
least [*****] prior to expiration of the Term or the Termination Date, as applicable. During any
extension period under this Section 6.4 all terms and conditions of this Agreement shall continue
to apply.

	 	6.5	 	Transfer Assistance

               The Parties may agree, prior to expiration or termination of this Agreement for any reason, on
the provision by Amdocs of certain services related to the transition of any terminated Services
to Clearwire or Clearwire’s designee, including but not limited to, after the Termination Date,

 

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certain continuation of the Services or any component thereof. If applicable, Amdocs’
obligations with respect to such services shall be agreed in a dedicated Additional Services Order
(“Disentanglement Obligations”). For the avoidance of doubt, without such dedicated Additional
Services Order Amdocs shall not be considered to have any Disentanglement Obligations. Except as
otherwise explicitly provided in this Agreement, all terms and conditions of this Agreement shall
continue to apply to such disentanglement Services, if any.

               Irrespective of the passing of the Termination Date, Amdocs shall continue to perform, until
their respective completion (or until Clearwire earlier directs Amdocs to cease performing), any
Services relating to a subsequent Release Amdocs is performing as of the Termination Date, in
accordance with the established schedule for such Release and at the Amdocs Rate. Amdocs shall use
commercially reasonable efforts to complete any and all such Releases as soon after the Termination
Date as possible. For a period of [*****] following the completion of any Release, Amdocs shall
provide Services to Clearwire to facilitate the transition of such Release from Amdocs to Clearwire
or Clearwire’s designee.

	7	 	CONFIDENTIAL INFORMATION AND SECURITY

	 	7.1	 	Generally

               (a) To the extent that either Party (the “Discloser”) discloses Confidential Information to
the other (the “Recipient”) the Recipient shall protect the Confidential Information of the
Discloser.

               (b) The Recipient shall:

                    (i) use the same care and discretion to avoid disclosure, publication, or dissemination of the
Discloser’s Confidential Information as the Recipient uses with its own similar information that it
does not wish to disclose, publish, or disseminate;

                    (ii) use the Discloser’s Confidential Information solely for the purpose for which it was
disclosed or otherwise for the benefit of the Discloser;

                    (iii) take steps to minimize the dissemination or copying of the Discloser’s Confidential
Information except to the extent necessary to perform its obligations under this Agreement;

                    (iv) not acquire any express or implied right or license under any patent, copyright, trade
secret, or other right or assert any lien against Confidential Information of the other Party; and

                    (v) use its best efforts to inform its employees, agents, and subcontractors who perform
duties with respect to this Agreement about these restrictions.

               (c) The Recipient may disclose Confidential Information to the Recipient’s employees, agents,
Affiliates, and Subcontractors who have: (i) a need to know such Confidential Information in order
to perform their duties; and (ii) a legal duty to protect the Confidential Information.

 

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The Recipient assumes full responsibility for the acts or omissions of its Subcontractors,
Affiliates, agents, and employees with respect to such Confidential Information.

	 	7.2	 	Exclusions

               (a) Confidential Information shall not include specific information to the extent that the
Recipient can demonstrate such information was:

                    (i) after disclosure to Recipient, published or otherwise a part of the public domain through
no fault of the Recipient;

                    (ii) in the possession of such Recipient at the time of disclosure to it, if such Party was
not then under an obligation of confidentiality with respect thereto;

                    (iii) obtained from a source other than the Discloser who had a lawful right to disclose such
Confidential Information to it;

                    (iv) independently developed by the Recipient, as demonstrated by credible evidence, without
reference to Confidential Information of the Discloser;

                    (v) at the time of disclosure to the Recipient, generally available to the public as evidenced
by generally available documents or publications through no fault of the Recipient; or

                    (vi) disclosed by the Discloser to another entity without obligation of confidentiality.

     For the purpose hereof, disclosures which are specific (e.g., as to engineering and
design practices and techniques, equipment, products, or operating conditions), shall not be deemed
to be within the foregoing exceptions merely because they are embraced by general disclosures in
the public domain or in the possession of the Recipient. In addition, any combination of features
shall not be deemed to be within the foregoing exceptions merely because individual features are in
the public domain or in the possession of the Recipient, but only if the combination itself and its
principle of operation are in the public domain or in the possession of such Recipient.

	 	7.3	 	Required Disclosure

          The Recipient may disclose Confidential Information to the extent disclosure is required by
law or by a court or governmental agency or any other entity authorized by applicable law to
require such disclosure; provided, however, that the Recipient shall use its commercially
reasonable efforts to maintain the confidentiality of the Confidential Information by means of a
protective order or other similar protection and shall give the owner of such Confidential
Information prompt notice in order that it have every opportunity to intercede in such process to
contest such disclosure and shall use commercially reasonable efforts to cooperate with the owner
of such Confidential Information to protect the confidentiality of such Confidential Information.
The owner of such Confidential Information reserves the right to obtain a protective order or
otherwise protect the confidentiality of such Confidential Information.

	 	7.4	 	Notification

 

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          In the event of any disclosure or loss of Confidential Information, the Recipient shall notify
the Discloser as soon as possible.

	 	7.5	 	Return of Confidential Information

          Unless it is expressly authorized by this Agreement to retain the other Party’s Confidential
Information, a Party shall promptly return or destroy, at the other Party’s option, the other
Party’s Confidential Information, including materials prepared in whole or in part based on such
Confidential Information, and all copies thereof (except for one copy, which may be retained in the
Party’s confidential files, unless such retention would be prohibited by law or by contract), and
at the other Party’s request, an officer of such Party shall certify to the other Party that it no
longer has in its possession or under its control any Confidential Information in any form
whatsoever, or any copy thereof.

	 	7.6	 	Confidentiality Agreements

          Each Party shall require each of its employees, agents, and Subcontractors participating in
the performance of the Services hereunder to execute an agreement (unless already executed) in a
form reasonably acceptable to the other Party containing obligations of confidentiality with
respect to the other Party’s Confidential information substantially similar to those of the Parties
hereunder. Each Party, upon the other Party’s request, shall provide to the other Party a copy of
such form of confidentiality agreement.

	 	7.7	 	Security

          In performance of its obligations hereunder, Amdocs shall comply with the security and other
requirements set forth in Schedule P (Privacy and Security Attachment).

	 	7.8	 	Off shore [*****]

          [*****]:

	 	•	 	[*****].
	 
	 	•	 	[*****].
	 
	 	•	 	[*****].
	 
	 	•	 	User accounts with access to the production environment at Amdocs’ facility
are limited to users who are current employees with the proper job title and job
description.
	 
	 	•	 	A process is in place relating to obtaining (and documenting) management’s
authorization for the access provided to new users.
	 
	 	•	 	[*****].
	 
	 	•	 	[*****].
	 
	 	•	 	[*****].
	 
	 	•	 	[*****].
	 
	 	•	 	[*****].

 

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	 	•	 	Distribution of key cards with access to the Amdocs’ facility is limited to
users who are current employees with the proper job title and job description.
	 
	 	•	 	[*****].

[*****].

	8	 	INTELLECTUAL PROPERTY RIGHTS

	 	8.1	 	Ownership of Customized Materials; License to Use Customized Materials

	 	8.1.1	 	Allocation of Rights

               (a) The Parties shall use commercially reasonable efforts to mutually agree upon in each
Services Order (i) the description of the Customized Materials to be developed under such Services
Order and (ii) subject to payment of the applicable fees pursuant to the provisions of the
applicable Services Orders, the allocation of the rights in such Customized Materials by
identifying such Customized Materials as being either Category A, B, C, D or E Customized Materials
in accordance with the definitions set forth below, or as otherwise set forth in the applicable
Services Order. Customized Materials will be deemed to be Category [*****] Customized Materials
subject to the provisions of subsection 8.1.1(b) herein below and unless (i) otherwise set forth in
the applicable Services Order or (ii) the Customized Materials are part of the [*****] in which
case they shall be deemed to be Category E Customized Materials. In furtherance of alternative (i)
above, it is agreed that Clearwire may request that a Services Order for new Customized Materials
be deemed a Category A Customized Materials and upon such request the Parties will engage in good
faith negotiations to determine the terms and conditions of such ownership allocation, provided
however nothing herein shall obligate either Party to enter into any agreement allocating rights
pursuant to such request.

               (b) Notwithstanding, the provisions of this Section 8.1.1 and of Section 8.1.2 herein below do
not apply to Customized Materials included in the Initial Release (i.e. this Section 8.1.1 and
Section 8.1.2 herein below solely apply to Customized Materials ordered pursuant to the provisions
of Chapter B to Schedule A to this Agreement and after the Effective Date). With respect to
Customized Materials forming part of the Initial Release, the Parties recognize that on the
Effective Date Clearwire is a [*****] Affiliate and as such, pursuant to the provisions of [*****]
is granted the right to use such Customized Materials as stipulated in subsection 8.1.1(b)(i)
herein below:

                    (i) Amdocs confirms that as long as Amdocs provides to Clearwire Services similar in scope to
the Services ordered hereunder as of the Effective Date of this Agreement (including natural
growth), Amdocs affirms that Clearwire possess, and otherwise hereby grants to Clearwire, and
Clearwire hereby accepts, a royalty-free, fully-paid, non-transferable (except as permitted in this
Agreement) license for Clearwire to [*****] solely with respect to [*****] or [*****] from [*****]
the benefit of the use of Customized Materials forming part of the Initial Release, and all
derivatives thereof (subject to the provisions of Section [*****] hereof), in connection with the
conduct of [*****]. Notwithstanding, if a Person who is not a Clearwire Affiliate as of the
Effective Date of this Agreement thereafter becomes a Clearwire Affiliate the Parties hereto shall
negotiate in good faith the applicable license fees for the Customized Materials forming part of
the Initial Release prior to such Person’s use of the Customized Materials forming part of the
Initial Release as an Affiliate of Clearwire in accordance

 

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with the provisions of this Section 5.1.3(a)(i)8.1.1(b)(i), such agreement to be reached
[*****] of the Person becoming a Clearwire Affiliate.

	 	8.1.2	 	Categories of Customized Materials

               The categories of Customized Materials shall be as follows:

               (a) Category A Customized Materials. Category A Customized Materials are those Customized
Materials in which Clearwire shall be the sole and exclusive owner of such Customized Materials and
Amdocs hereby assigns and agrees to assign to Clearwire, exclusively, all right, title and interest
therein. Ownership of Category A Customized Materials shall inure to the benefit of Clearwire from
the date of conception, of creation, or of fixation in a tangible medium of expression (whichever
occurs first), of such Customized Materials. Amdocs also acknowledges that the Parties do not
intend Amdocs to be a joint author of the Category A Customized Materials within the meaning of the
Copyright Act of 1976, as amended, and that in no event shall Amdocs be deemed the joint author of
any Category A Customized Materials.

               (b) Category B Customized Materials. Category B Customized Materials are those Customized
Materials in which Amdocs, subject to the license grant to Clearwire described herein, shall be the
sole and exclusive owner of such Customized Materials and Clearwire hereby assigns and agrees to
assign to Amdocs, exclusively, all right, title, and interest therein. Ownership of Category B
Customized Materials shall inure to the benefit of Amdocs from the date of conception, of creation,
or of fixation in a tangible medium of expression (whichever occurs first), of such Customized
Materials. Clearwire also acknowledges that the Parties do not intend Clearwire to be a joint
author of the Category B Customized Materials within the meaning of the Copyright Act of 1976, as
amended, and that in no event shall Clearwire be deemed the joint author of any Category B
Customized Materials. For the avoidance of doubt, Amdocs’ ownership of the Customized Materials
shall not derogate from Amdocs’ obligations hereunder with regard to Clearwire’s Confidential
Information or from Clearwire’s rights in the Clearwire Owned Property. Amdocs hereby grants: a
royalty-free, fully-paid, perpetual (provided however that such license may be terminated by Amdocs
for a Material Default as determined by the Arbitrator pursuant to the provisions of Section 6.3.2)
non-transferable (except as permitted in this Agreement) license to Clearwire (or its designee) to
[*****] with respect to [*****] the benefit of the use of, the Category B Customized Materials
[*****] (subject to the provisions of Section [*****] hereof), in connection with the conduct of
Clearwire’s [*****].

               (c) Category C Customized Materials. Category C Customized Materials are those Customized
Materials in which Amdocs, subject to the license grant to Clearwire and the Exclusivity Period
described herein, shall be the sole and exclusive owner of such Customized Materials and Clearwire
hereby assigns and agrees to assign to Amdocs, exclusively, all right, title, and interest therein.
Ownership of Category C Customized Materials shall inure to the benefit of Amdocs from the date of
conception, of creation, or of fixation in a tangible medium of expression (whichever occurs
first), of such Customized Materials. Clearwire also acknowledges that the Parties do not intend
Clearwire to be a joint author of the Category C Customized Materials within the meaning of the
Copyright Act of 1976, as amended, and that in no event shall Clearwire be deemed the joint author
of any Category C Customized Materials. For the avoidance of doubt, Amdocs’ ownership of the
Customized Materials shall not derogate from Amdocs’ obligations hereunder with regard to
Clearwire’s Confidential Information or from Clearwire’s rights in the Clearwire Owned Property.
Amdocs hereby grants: (i) an

 

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exclusive (for the duration of the Exclusivity Period described below) royalty-free,
fully-paid, perpetual (provided however that such license may be terminated by Amdocs for a
Material Default as determined by the Arbitrator pursuant to the provisions of Section 6.3.2) ,
non-transferable (except as permitted in this Agreement) license to Clearwire (or its designee) to
[*****] with respect to [*****] the benefit of the use of, the Category C Customized Materials
[*****] (subject to the provisions of Section [*****] hereof), in connection with the conduct of
Clearwire’s [*****].

               (d) Category D Customized Materials. Category D Customized Materials are those Customized
Materials in which Clearwire shall be the sole and exclusive owner of such Customized Materials and
Amdocs hereby assigns and agrees to assign to Clearwire, exclusively, all right, title and interest
therein. Ownership of Category D Customized Materials shall inure to the benefit of Clearwire from
the date of conception, of creation, or of fixation in a tangible medium of expression (whichever
occurs first), of such Customized Materials. Amdocs also acknowledges that the Parties do not
intend Amdocs to be a joint author of the Category D Customized Materials within the meaning of the
Copyright Act of 1976, as amended, and that in no event shall Amdocs be deemed the joint author of
any Category D Customized Materials. Clearwire hereby grants a royalty-free, fully-paid, perpetual
(provided however that such license may be terminated by Clearwire for a Material Default as
determined by the Arbitrator pursuant to the provisions of Section 6.3.2) non-transferable license
to Amdocs to (i) use worldwide the Category D Customized Materials, in connection with Amdocs’
performance of this Agreement and internal use only, and (ii) use any patent rights Clearwire might
have in the Category D Customized Materials in connection with Amdocs’ development, subject to the
next sentence of this paragraph, of software code for Amdocs’ other customers and Amdocs’ licensing
of such software code to such Amdocs’ other customers, [*****]. Nothing within this paragraph
shall preclude Amdocs from providing to Amdocs’ other customers similar functionality as that
contained in the Category D Customized Materials (e.g., development by Amdocs for other customers
new software code with similar functionality as that contained in the Category D Customized
Materials), provided that in doing so Amdocs shall in no event make use of the Category D
Customized Materials or any Clearwire Confidential Information.

               (e) Category E Customized Materials. Notwithstanding the process described in Section 8.1.1
or the categories of Customized Materials described in clauses (a), (b), (c) and (d) above in this
Section 8.1.2, Clearwire and Amdocs agree that any portion of the Customized Materials that are
part of the [*****] shall be deemed to be Category E Customized Materials. The allocation between
the Parties of ownership rights and licenses to the Category E Customized Materials is as follows:

                    (i) Subject to the license grant to Clearwire and the Category E Exclusivity Period described
below, and the ownership interests of Clearwire described below, Amdocs shall otherwise be the sole
and exclusive owner of the Customized E Materials and Clearwire hereby assigns and agrees to assign
to Amdocs, exclusively, all right, title and interest therein, except as specifically noted below.
Ownership of Category E Customized Materials shall inure to the benefit of Amdocs from the date of
conception, of creation, or of fixation in a tangible medium of expression (whichever occurs
first), of such Customized Materials. Clearwire also acknowledges that the Parties do not intend
Clearwire to be a joint author of the Category E Customized Materials within the meaning of the
Copyright Act of 1976, as amended, and that in no event shall Clearwire be deemed the joint author
of any Category E Customized Materials. For the avoidance of doubt, Amdocs’ ownership of such
portions of the Category E Customized Materials shall not derogate from Amdocs’ obligations
hereunder with regard to Clearwire’s Confidential Information or Clearwire-Owned Property.

 

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                    (ii) Clearwire will own any patents embedded and enabled in any Category E Customized Material
subject to such patent conceived, invented or reduced to practice in connection with the
development of any Category E Customized Material, for which a Clearwire employee should be a named
inventor. For avoidance of doubt, if both a Clearwire employee and an Amdocs Personnel are the
joint inventors of such a patent, then Amdocs hereby assigns and agrees to assign (and shall cause
all Amdocs employees and other personnel to assign) to Clearwire all right, title and interest to
such patents. Clearwire will be responsible for securing such patent rights at Clearwire’s expense.
Amdocs will provide reasonable assistance to Clearwire to secure such patent protection, including,
without limitation, assistance in the preparation and filing of any patent applications and the
execution of all applications, assignments or other instruments for perfection or protection of
title.

                    With respect to patents covered by this Section 8.1.2(e) in which only a Clearwire employee is
named as an inventor: Amdocs is hereby granted by Clearwire a worldwide, royalty free, revocable,
non-transferable, non-sublicenseable (except for Amdocs’ subcontractors for Clearwire),
nonexclusive license to practice any invention covered by such patents during the Term of this
Agreement solely to the extent necessary for Amdocs to fulfill its performance obligations to
Clearwire under this Agreement. Amdocs shall not make any other use of such patents whatsoever,
including any use on behalf of or for the benefit of third parties.

                    With respect to patents covered by this Section 8.1.2(e) in which both a Clearwire employee
and an Amdocs Personnel are joint inventors: Amdocs is hereby granted by Clearwire a worldwide,
perpetual, royalty free, licensable, irrevocable, nonexclusive license to sell, use, make or have
made any invention covered by such patents. Amdocs’ use or sublicensing of any such Clearwire
owned patent is subject to the following conditions: (i) Clearwire’s receipt of a prompt written
notice from Amdocs that Amdocs has reached and signed a binding agreement with a customer or
potential customer to use such Clearwire owned patent, with such notice identifying the date the
agreement was signed; and (ii) any such use or sublicensing occurs as part of a project to be
performed by Amdocs for such customer or potential customer based upon Amdocs’ products and/or
services, and Amdocs is not acting primarily as a seller or sublicensor of only the IP rights of
such Clearwire owned patent.

                    (iii) Amdocs hereby grants a royalty free, fully paid, perpetual, non-transferable and
non-sublicenseable (without prior written consent from Amdocs, not to be unreasonably withheld)
license to Clearwire (or its designee) to [*****] the benefit of the use of Category E Customized
Materials and all derivatives thereof, [*****] solely in connection with the conduct of [*****]
related business [*****].

                    Nothing within this paragraph or Category E Customized Materials in general shall preclude
Amdocs from providing to Amdocs’ other customers [*****] similar functionality as that contained in
the Category E Customized Materials (e.g., development by Amdocs for other customers new software
code with similar functionality as that contained in the Category E Customized Materials), provided
that in doing so during the Category E Exclusivity Period Amdocs shall in no event make use of the
Category E Customized Materials or any Clearwire Confidential Information.

                    (iv) In addition to any other Deliverables expected as part of any Category E Customized
Materials, and notwithstanding anything to the contrary in this Agreement,

 

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Amdocs will deliver [*****] to Clearwire whenever software-related Deliverables that are
Category E Customized Materials are due.

                    Amdocs shall not be responsible toward Clearwire or any third party for any use of the [*****]
outside of the Clearwire production environment.

                    With regard to any such use within the Clearwire production environment, Amdocs shall not be
responsible for any [*****] made by Clearwire or on behalf of Clearwire or by or any third party,
unless (i) modifications are made by Amdocs under an Additional Services Order or following Amdocs’
express written consent; or (ii) [*****] defects are unrelated to any modifications made by
Clearwire or on behalf of Clearwire.

                    Amdocs will be responsible for its [*****] as long as Amdocs has the day-to-day operational
responsibility for the [*****]. Should Clearwire assume operational control over the [*****] as a
result of a [*****] Operations Event then the scope and nature of Amdocs’ continuous support and
responsibility for the [*****] software after Clearwire obtains such operational control over the
[*****] (subject to such Additional Services being separately ordered by Clearwire) will be
negotiated in good faith between the Parties.

                    (v) The [*****] user interface design will remain Clearwire-Owned Property. Clearwire retains
exclusive ownership of the XOHM trademark and logo, as well as related trade dress elements from
the [*****] (together, the “Trade Dress”). Clearwire grants Amdocs a non-exclusive revocable
license to use and display the Trade Dress solely in connection with the [*****], and all goodwill
from Amdocs’ use and display of the Trade Dress will inure to Clearwire’s benefit. Amdocs will
promptly correct any misuse of the Trade Dress identified by Clearwire. Amdocs will not incorporate
confusingly similar Trade Dress into related work product for third parties; however Amdocs may
re-use generic layout and functional elements of the [*****] in other projects.

	 	8.1.3	 	Escrow

               (a) Escrow Deposit

               If and to the extent that Amdocs does not deliver complete source and object code for all the
deliverables that constitute software under this Agreement (in this Section 8.1.3 “Software”) to
Clearwire, then, Amdocs shall establish and maintain an escrow with Iron Mountain Intellectual
Property, Inc. or another escrow agent satisfactory to Clearwire (the “Escrow Agent”). The escrow
agreement with the Escrow Agent shall be consistent with the requirements of this Section 8.1.3
(including, without limitation, the release conditions and procedures related to the release of the
Escrow Deposit) and shall not add any procedures or requirements to the release of the Escrow
Deposit unless Clearwire expressly agrees in writing to such additional procedures or requirements.
Amdocs shall deposit in such escrow, a copy of all source and object code [*****], together with
all Software documentation reasonably necessary for Clearwire to fully maintain, modify and utilize
the Software (collectively, the “Escrow Deposit”), all in a form that is machine readable and
useable, and, if any portion of the Escrow Deposit is encrypted, Amdocs shall also include in the
Escrow Deposit or deliver to Clearwire the decryption tools and decryption keys necessary to access
the source code. The Escrow Deposit shall be updated (i) at least [*****] each [*****] during the
Term, and (ii) in addition, [*****], such request to be made no more frequently than [*****] per
each [*****] during the Term; provided that to the extent the Escrow Deposit

 

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already contains the most current version of the portions of the Generic Product, then such
updates to the Escrow Deposit may include no update to such portions of the Generic Product.
Amdocs shall be responsible for the [*****] and all [*****] the Escrow Deposit to the Escrow Agent,
except for the annual enrollment fees shall be borne by Clearwire). Clearwire shall have the right
to verify, or to have the Escrow Agent verify, [*****] the Escrow Deposit, at any time, upon
reasonable notice, for its accuracy and completeness. Escrow Agent shall, at Clearwire’s cost,
provide Clearwire a quarterly update regarding the version and release of any source code held in
escrow. Amdocs warrants and represents that Amdocs maintains a current and accurate repository of
the source code for the Customized Product in a [*****], which includes, without limitation, all
associated [*****] for [*****] the Customized Product, any hotfixes that Amdocs applies to the
production environment of the Customized Product and the [*****] of the Customized Product
(collectively, the “Repository”). Without limiting the foregoing, Amdocs shall deliver to the
Escrow Agent, as part of the Escrow Deposit, a complete and accurate copy of the Repository and
will provide the Escrow Agent with the last [*****] performed on the Customized Product source code
prior to the creation and delivery of such copy of the Repository to the Escrow Agent.

               (b) Release Conditions

               The Escrow Deposit [*****] shall be released to Clearwire in the event: (a) [*****] of this
Agreement; (b) of the occurrence of any event that would give rise to [*****] this Agreement (i)
[*****] in accordance with the provisions of Sections
[*****] herein above, (ii) due to [*****] in
accordance with the provisions of Section [*****] herein above, (iii) due to Amdocs’ Financial
Instability in accordance with the provisions of Section [*****] herein above, or (iv) pursuant to
[*****]; (c) this Agreement is [*****] by Clearwire [*****] in accordance with the provisions of
Section [*****] herein above; or (d) Amdocs [*****] the items comprising the Escrow Deposit to
[*****].

               In addition, the [*****] Escrow Deposit [*****] shall be released to Clearwire in the event
that: (a) Amdocs is [*****]; (b) Amdocs’ [*****] of Amdocs; (c) Amdocs [*****] subject to [*****],
which [*****] will likely cause [*****] and provided such [*****] after [*****]; or (d) Amdocs
[*****].

               (c) License to Deposit Materials.

               The scope of license and use of the Escrow Deposit by Clearwire and its Affiliates shall be in
accordance with the provisions of this Agreement. Clearwire may have its third-party service
providers use, copy, and modify the Escrow Deposit, for Clearwire subject to the provisions of this
Agreement relating to Clearwire’s subcontractors. Such license to be exercisable by Clearwire
solely in the event that Clearwire obtains the Escrow Deposit as provided hereunder.

               (d) Training.

               If Clearwire obtains the Software by release from the Escrow Deposit, Amdocs will use all
reasonable efforts to provide to Clearwire a practical and participatory on-site training program
at Clearwire’s facilities sufficient to reasonably train other personnel of Clearwire (i.e., train
them to be trainers) with respect to use, maintenance and operation of the Software, subject to all
applicable provisions of this Agreement.

               (e) Terms and conditions.

 

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               Any such escrow shall be documented in an escrow agreement fully incorporating the terms of
this Section 8.1.3 and including such other terms and conditions required by Amdocs or the Escrow
Agent as are reasonably satisfactory to Clearwire.

	 	8.1.4	 	In-Sourcing

               In the event of the occurrence of any event that would give rise to the release of the Escrow
Deposit as described in Section 8.1.3 above, Clearwire may elect to perform a portion of the
Services for itself (which may include use of the Customized Materials and Amdocs Standard
Materials in accordance with the licenses granted to Clearwire under this Agreement in Clearwire’s
or (in accordance with the confidentiality provisions of this Agreement) Clearwire’s designee’s
data center). If Clearwire so elects, (a) the Parties shall meet to discuss and agree upon a
written amendment to this Agreement reflecting the changes to the Services resulting from
Clearwire’s election to perform such portion of the Services for itself, and (b) Amdocs shall
deliver to Clearwire copies of the relevant Customized Materials and Amdocs Standard Materials (as
determined by Clearwire) and Amdocs shall offer to Clearwire the right to receive maintenance
(including all enhancements and upgrades) and support with respect to such Customized Materials and
Amdocs Standard Materials, for so long as Clearwire requires it (provided Amdocs continues the
provision of such services to its customers), at the same rates and terms Amdocs generally offers
to other customers for services of a similar nature and scope.

	 	8.1.5	 	Intellectual Property Protection

               Amdocs shall have the full and sole power to protect its ownership rights in the Category B
Customized Materials and Category C Customized Materials and to take all other action concerning
such Customized Materials, and Clearwire shall cooperate fully and in a lawful manner, at the
expense of Amdocs, in the preparation and prosecution of all legal actions and proceedings
concerning such Customized Materials. Clearwire shall have the full and sole power to protect its
ownership rights in the Category A Customized Materials and Category D Customized Materials, and to
take all other action concerning such Customized Materials, and Amdocs shall cooperate fully and in
a lawful manner, at the expense of Clearwire, in the preparation and prosecution of all legal
actions and proceedings concerning such Customized Materials.

	 	8.2	 	Ownership of Standard Materials; License to Use Standard Materials

	 	8.2.1	 	Ownership by Amdocs

          Subject to the license granted in this Section 8.2, Amdocs shall be the sole and exclusive
owner of all intellectual property provided by Amdocs under this Agreement that Amdocs can
demonstrate constitutes Amdocs Standard Materials.

	 	8.2.2	 	License to Standard Materials

               (a) The Parties recognize that on the Effective Date Clearwire is a [*****] Affiliate and as
such, pursuant to the provisions of [*****], is granted the rights to use the Standard Materials as
these relate to Group A Generic Products as set forth in Section 8.2.2(d)(i) below:

 

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                    (i) So long as Amdocs provides to Clearwire Services similar in scope to the Services ordered
hereunder as of the Effective Date of this Agreement (including natural growth) Amdocs affirms
that Clearwire possesses, and otherwise hereby grants to Clearwire, and Clearwire hereby accepts, a
royalty-free, fully-paid, non-transferable (except as permitted in this Agreement) license for
Clearwire to [*****] solely with respect to [*****]

               (b) The Parties further recognize that with respect to Standard Materials
which relate to Group B Generic Products:

          Subject to payment of the applicable license fees pursuant to the provisions of Schedule D to
this Agreement, Amdocs hereby grants: a royalty-free, fully-paid, perpetual (provided however that
such license may be terminated by Amdocs for a Material Default as determined by the Arbitrator
pursuant to the provisions of Section 6.3.2) non-exclusive license to Clearwire (or its designee),
to [*****] the benefit of the use of, any Amdocs Standard Materials which relate to Group B Generic
Products, and all derivatives thereof, in connection with the conduct of Clearwire’s [*****].
Amdocs shall provide Clearwire with a copy of all Amdocs Standard Materials in such media as
requested by Clearwire, together with object code, source code (if a condition for release of the
Escrow Deposit has occurred), and Documentation.

	 	8.3	 	Copyright Notice

          Clearwire and Amdocs each agree to reproduce the copyright notice and any other legend of
ownership and/or confidentiality on the original and any copies made of any materials of the other
Party or any material containing Confidential Information of the other Party.

	 	8.4	 	Rights and Licenses

	 	8.4.1	 	Amdocs Third Party Materials

          Amdocs shall obtain from Third Parties all rights and licenses required to enable it to
perform the Services without violating or infringing the rights of others. Amdocs’ obligation in
this regard shall, as to rights and licenses obtained from, through, or as a result of prior
activity with Clearwire, commence upon Amdocs having knowledge of the need for such right or
license either through a Schedule to this Agreement, notice from Clearwire, or as otherwise known
by Amdocs. With respect to all technology used and to be used by Amdocs to perform the Services
hereunder, whether proprietary to Amdocs or to any other person, Amdocs hereby grants and agrees to
grant to Clearwire, or cause to be granted by the licensor thereof, as the case may be, [*****],
such licenses and sublicenses as may be necessary in order for Clearwire, and its authorized
representatives, including Third Party service providers of Clearwire, to use, or receive the
benefit of the use by Amdocs of, such technology in connection with the Services or in connection
with any other services that are related to, or come into contact with, the Services. In addition
to the foregoing, Amdocs shall use commercially reasonable efforts to obtain advance written
consents from Amdocs’ licensors and lessors, to the extent possible, to the conveyance or
assignment of all licenses and leases related to the Services to Clearwire upon disentanglement
(and subject to the procedure as set forth in Section 6.5). If such advance consents cannot be
obtained, Amdocs shall promptly notify Clearwire’s Project Manager and Clearwire shall have the
option to enter into the applicable license or lease in its own name. Amdocs further agrees that
any licenses granted or obtained, or to be granted or obtained, by Amdocs under this Section 8
(Intellectual

 

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Property Rights) and subject to its provisions, shall extend to any assignee of substantially
all of the assets or business of Clearwire.

	 	8.4.2	 	Clearwire Third Party Materials

          Schedule L attached hereto contains a list of all hardware and software that
Clearwire will need to install, or have installed, in Clearwire’s facilities in order for Clearwire
to use those components of the Customized Product that need to be located in Clearwire’s facilities
in order for Clearwire to receive the Services (the “Clearwire Third Party Materials). Not in
limitation of the requirements provided in Section [*****] hereof, Amdocs shall provide Clearwire
with a written notice at least [*****] prior to implementing any change or upgrade to the
Customized Product or any other software in the Data Center that would require Clearwire to update,
modify, or replace any of the Clearwire Third Party Materials.

	9	 	INDEMNIFICATION AND INSURANCE

	 	9.1	 	Indemnity by Amdocs and Clearwire

               (a) By Amdocs. Amdocs shall defend, indemnify and hold Clearwire, its Affiliates, and their
respective employees, officers, directors, agents, successors and assigns (“Clearwire Indemnitees”)
harmless from and against any and all liabilities, losses, costs,
damages, and expenses, including reasonable attorney's fees,
arising out of any claim by any Third Party against a Clearwire Indemnitee for actual or alleged
infringement of any patent, trademark, copyright, or similar property right including
misappropriation of trade secrets, (x) based upon the Amdocs Standard Materials, the Documentation,
the Customized Materials, or any Third Party technology used by Amdocs in providing the Services
(collectively, the “Services Technology”) or (y) to the extent that it is an Amdocs-Generated
Claim. Also, notwithstanding the foregoing, Amdocs shall indemnify the Clearwire Indemnitees
to the extent an infringement or claim of infringement could have been avoided by moving to a new
release or version of the Third Party component of the Services Technology and Amdocs was offered
the new release or version and did not move to same. Amdocs may, in its reasonable discretion,
either procure a license to enable Clearwire to continue to use, or receive the benefit of, such
Services Technology, develop or obtain a non infringing substitute reasonably acceptable to
Clearwire or if the right to continue using the affected Services Technology cannot be procured
using reasonable commercial efforts, or the affected Services Technology cannot be replaced or
modified using reasonable commercial efforts, Amdocs shall grant Clearwire a credit based on the
License Fee paid for the affected Services Technology as depreciated on a straight-line basis over
a period of five (5) years and the license to use the Services Technology shall be terminated. Amdocs’ duty to indemnify Clearwire shall be mitigated and reduced (i.e. shall not exist
for the specific claim(s) meeting one or more of the following criteria) but only to the extent
that a claim or action is based upon:  (i) unauthorized modification of the Services Technology by Clearwire, any Third Party contractor
to Clearwire, or any agent of Clearwire, but only to the extent that the claim or action would not
have arisen but for the unauthorized modification, unless such modification (whether made by
Clearwire or any such contractor or agent) has been authorized in advance by Amdocs; (ii)
Clearwire’s combination, operation or use (including as part of a larger business method or
process) of the Services Technology with other apparatus, data or programs, not provided by Amdocs,
but only to the extent that the claim or action would not have arisen but for such combination,
operation or use; (iii) the use by Clearwire of any software provided to Clearwire by any Third
Party other than in accordance with relevant software licenses whether or not such license
agreements are provided to Amdocs; (iv) the use by Amdocs, in accordance with the applicable
license agreement, of software owned by or licensed to Clearwire by a party other than Amdocs and
supplied by Clearwire to Amdocs but only to the extent that the claim or action would not have
arisen but for the use of such Third Party software; (v) any exact specifications, instructions,
requirements, procedure, style, or graphic that Clearwire requires Amdocs to follow or use in
developing the Customized Product but only to the extent that the claim or action would not have
arisen but for Amdocs using such Clearwire required specifications, instructions, requirements,
procedure, style or graphic (such requirements, the “Clearwire Requirements”) (the occurrences set
forth in clauses (i) through (v) above, the “Clearwire-Generated Claims”). For the avoidance of
doubt, the exception from Amdocs’ indemnification obligation described in clause (v) shall not
apply, and such occurrence shall not constitute a Clearwire-Generated Claim, with respect to claims
or actions (i) based upon the manner or methodology selected by Amdocs to execute the Clearwire
Requirements or (ii) for which Amdocs has not provided Clearwire with written notice documenting
the exact procedure, style or graphic that Amdocs is alleging meets the requirements of clause (v)
and is the basis for Amdocs’ claim that its indemnification obligations under this clause (a) do
not extend to a particular action or claim for which a Clearwire Indemnitee is seeking
indemnification under this clause (a).

               (b) By Clearwire. Clearwire shall defend, indemnify, and hold Amdocs, its Affiliate, and
their respective officers, directors, employees, agents, successors, and assigns (“Amdocs
Indemnitees”), harmless from and against any and all liabilities, losses, costs, damages, and
expenses, including reasonable attorney's fees, arising out of, any claim by any Third Party against an Amdocs Indemnitee for
actual or alleged infringement of any patent, trademark, copyright, or similar property right
including misappropriation of trade secrets: (x) based upon software that is proprietary or
non-proprietary to Clearwire that Clearwire requires Amdocs to use in performing the Services
(“Clearwire Software”) (if any); or (y) to the extent that it is a Clearwire-Generated Claim. Also
notwithstanding the foregoing, Clearwire shall indemnify the Amdocs Indemnitees to the extent an infringement or claim of infringement could have been avoided by moving to a new
release or version of the infringing Clearwire Software and Clearwire was offered the new release
or version and did not move to same. Clearwire may, in its reasonable discretion, either procure a
license to enable Amdocs to continue to use any such infringing Clearwire Software or any Clearwire
Requirements or develop or obtain a non infringing substitute or modify Clearwire’s requirements so
as to no longer require Amdocs to use the Clearwire Software or any Clearwire Requirements in
performing the Services.
Clearwire’s duty to indemnify shall be mitigated and reduced (i.e. shall not exist for the specific
claim(s) meeting one or more of the following criteria) but only to the extent that a claim or
action is based upon:  (i) unauthorized modification of any software, program or machine by Amdocs, any Third Party
contractor to Amdocs, or any agent of Amdocs (other than pursuant to the Clearwire Requirements,
but including the manner or methodology selected by Amdocs to execute the Clearwire Requirements)
but only to the extent that the claim or action would not have arisen but for the unauthorized
modification; (ii) Amdocs’ combination, operation, or use of any Clearwire supplied software with
apparatus, data, or programs not provided by Clearwire but only to the extent that the claim or
action would not have arisen but for the combination, operation or use; (iii) the use by Amdocs of
any software provided to Amdocs by any Third Party other than in accordance with relevant software
licenses whether or not such licenses are provided to Clearwire; or (iv) the use, in accordance
with the applicable license agreement, of software owned by or licensed to Amdocs by a party other
than Clearwire and supplied by Amdocs to Clearwire but only to the extent that the claim or action
would not have arisen but for the use of such software by Clearwire (the occurrences set forth in
clauses (i) through (iv) above, the “Amdocs-Generated Claims”).

	 	9.2	 	Tax Indemnity by Amdocs

          Amdocs shall defend, indemnify, and hold the Clearwire Indemnitees harmless from and against
any and all liabilities, losses, costs, damages, and expenses, including reasonable attorneys’ fees
and including any assessment for tax, interest or penalty, arising out of any claim by any federal,
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local taxing authority relating to federal, state, or local sales or transaction taxes that
Clearwire has failed, or allegedly failed, to collect, if such failure or alleged failure is due to
a mistake in billing caused by Amdocs in the course of its performance hereunder; provided,
however, that in no event shall Amdocs be required to indemnify Clearwire if such failure or
alleged failure is due to errors inherent in the coding of the Vertex software program or an error
by Clearwire and not due to an act or failure to act of Amdocs. The Parties hereby acknowledge
that the indemnity described in this Section 9.2 is being provided on the basis of Amdocs’ use of
the Vertex software program in performing the Services. If Amdocs, upon the mutual agreement of
the Parties, at any time during the Term uses a different tax-related software program, in lieu of
Vertex, Amdocs shall provide an equivalent tax indemnity to that contained herein with respect to
mistakes in billing.

	 	9.3	 	Third Party Matters

               (a) Injury or Property Damages

                    Without limiting Amdocs’ obligations with respect to insurance as provided in Section 9.6
hereof, Amdocs and Clearwire shall indemnify, defend, and hold the Clearwire Indemnitees and Amdocs
Indemnitees, respectively, harmless with respect to any Third Party claim alleging bodily injury,
including death, or damage to tangible personal or real property, in the event that such injury or
damage arises from acts or omissions that constitute negligence, willful misconduct, or violations
of law by the indemnifying Party or its personnel, agents, or Subcontractors.

               (b) Mutual Indemnities

                    Each Party shall defend, indemnify, and hold the other Party’s Indemnitees harmless from and
against claims by Third Parties that may be brought against any such Indemnitee as a result of the
commercial relationship existing between the Parties and that are based upon an alleged breach of
any agreement by the indemnifying Party with such Third Party.

	 	9.4	 	Indemnification Procedures

          The indemnified Party shall follow the procedures set forth in this Section 9.4:

               (a) The indemnified Party shall promptly notify the Indemnifying Party in writing of a claim
covered by this Section.

               (b) The indemnified Party shall not admit any liability whatsoever.

               (c) The indemnifying Party shall be entitled to take sole control of the defense and
investigation of the claim (the “Defense”) at its own expense, and to use attorneys of its choice,
by providing prompt written notice to the indemnified Party. The indemnifying Party shall not be
liable to the indemnified Party for any Defense Costs incurred after such notice, except for
Defense Costs incurred at the indemnifying Party’s request.

               (d) The indemnified Party shall cooperate in all reasonable respects with the indemnifying
Party and its attorneys in the Defense of such claim, and may reasonably participate at its

 

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own expense, through its attorneys or otherwise, in such Defense; provided that such
participation does not interfere with the indemnifying Party’s Defense.

               (e) If the indemnifying Party does not take sole control of the Defense of a claim as
provided in this subsection 9.4:

                    (i) the indemnifying Party may participate in such Defense, at its sole cost and expense;

                    (ii) the indemnified Party shall have the right to defend the claim in such manner as it may
deem appropriate; and

                    (iii) the indemnifying Party shall pay the indemnified Party’s Defense Costs.

               (f) All settlements of claims subject to indemnification under this Section shall:

                    (i) if requiring any admission of guilt by the indemnified Party, be entered into only with
the consent of the indemnified Party, which consent shall not be unreasonably withheld; and

                    (ii) include an appropriate confidentiality agreement prohibiting disclosure of the terms of
such settlement.

	 	9.5	 	Subrogation

          The indemnifying Party shall be subrogated to the rights and defenses of the indemnified Party
to the extent of, and with respect to, the indemnifying Party’s obligation to indemnify the
indemnified Party under this Section 9.

	 	9.6	 	Insurance

               (a) Without limiting and separate from Amdocs’ undertaking to defend, hold harmless, and
indemnify the Clearwire Indemnities as provided in Section 9, Amdocs, at its own cost, shall
procure, maintain, and keep in force and effect insurance under insurance policies issued by
companies in good standing and licensed to do business in all locations where the Services are to
be performed, with coverage written on an occurrence (rather than claims-made) basis besides Error
& Omission and [*****] which are claims-made, as follows:

                    (i) Workers’ compensation insurance as provided for under any workers’ compensation or
similar law in the jurisdiction where work is performed with an employer’s liability limit of not
less than $[*****] for bodily injury by accident or disease. Amdocs’ Workers’ Compensation
insurance policy will not be primary to any other insurance of Clearwire. The undertaking in this
subsection (i) does not apply to workers in India;

                    (ii) Commercial general liability, including bodily injury, property damage, personal and
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independent contractor
and products/completed operations hazards, with limits of not less than $[*****] combined single limit per occurrence and $[*****] annual aggregate, naming Clearwire, its
officers, directors and employees as additional insureds;

                    (iii) Business auto liability covering ownership, maintenance or use of all owned, hired and
non-owned autos with limits of not less than $[*****] combined single limit per accident for bodily
injury and property damage liability, The undertaking in this subsection (iii) does not apply to
workers in India;

                    (iv) Umbrella/excess liability with limits of not less than $[*****] combined single limit per
occurrence and annual aggregate in excess of the commercial general liability, business auto
liability and employer’s liability;

                    (v) Property insurance covering not less than the full replacement cost of Amdocs’ personal
property, with a waiver of subrogation in favor of Clearwire as it is agreed that Clearwire will
not be held liable for loss or damage to any such property, except in cases of gross negligence or
willful misconduct by Clearwire or any entity or person on its behalf. Clearwire will be named as
a loss payee as its interest may appear;

                    (vi) Crime insurance including coverage for employee dishonesty, extended by endorsement, if
necessary, for loss to Clearwire property related to the performance of services under this
Agreement in an amount not less than $[*****] naming Clearwire as a loss payee;

                    (vii) Errors and omissions or Professional Liability Insurance with limits of $[*****] per
claim and in the aggregate; and

                    (viii) [*****].

               (b) Except as specifically stated, the insurance policies listed above shall not be restricted
by the country or state in which the Services are being performed. In the case of Services
performed outside the United States and when required by law, the insurance must be placed with a
company admitted to do business in that country.

               (c) Amdocs shall obtain and maintain the required coverage with insurers with [*****] ratings
of not less than [*****] and are licensed to do business in all jurisdictions where work is
performed under this Agreement. Amdocs shall provide Clearwire a certificate of Insurance,
evidencing that all the required coverages are in force and provide that no policy will be
cancelled without first giving Clearwire [*****] notice. Amdocs shall endeavor to provide such
notice in writing. All policies named above besides Workers’ compensation will be primary to any
insurance or self-insurance Clearwire may maintain for acts or omissions of Amdocs or anyone for
whom Amdocs is responsible.

               (d) If Amdocs utilizes subcontractors in performance of this Agreement, the subcontractors
must meet the same insurance requirements as Amdocs. If a subcontractor does not meet the coverage
requirements of this Section, the subcontractor must either supplement the deficient areas of
coverage or Amdocs must certify that it has acquired sufficient coverage to supplement any
deficiency of subcontractor.

	10	 	LIMITATION OF LIABILITY; REMEDIES

 

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	 	10.1	 	Limitation of Liability and Disclaimers

          The liabilities of the Parties to one another in respect of matters relating to this Agreement
are subject to the following provisions and limitations of this Section 9:

               (a) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED BELOW, CLEARWIRE’S AGGREGATE CUMULATIVE MONETARY
LIABILITY FOR ANY AND ALL CLAIMS ARISING UNDER OR RELATING TO THIS AGREEMENT NOTWITHSTANDING THE
FORM (E.G., CONTRACT, TORT, NEGLIGENCE, OR OTHERWISE) SHALL BE LIMITED TO THE AMOUNT OF
MONEY SHOWN TO BE OWED FOR SERVICES RENDERED AND UNPAID AND ANY AMOUNTS DUE UNDER SECTION 6.1.1 (IF
ANY). THE LIMITATIONS CONTAINED IN THIS SUBSECTION 10.1
(a) SHALL NOT APPLY TO: (i) CLAIMS BY AMDOCS FOR
INDEMNIFICATION BY CLEARWIRE (SECTION 9.1); (ii) CLAIMS WITH RESPECT TO A
BREACH OF CONFIDENTIALITY (SUBSECTIONS 7.1-7.6); (iii) CLAIMS WITH RESPECT TO A WILLFUL BREACH OF
INTELLECTUAL PROPERTY RIGHTS (SECTION 8); AND (iv) LOSSES ARISING OUT OF THE FRAUD, WILLFUL
MISCONDUCT, OR GROSS NEGLIGENCE OF CLEARWIRE.

EXCEPT AS OTHERWISE EXPRESSLY PROVIDED BELOW, AMDOCS’ AGGREGATE CUMULATIVE MONETARY LIABILITY FOR
ANY AND ALL CLAIMS ARISING UNDER OR RELATING TO THIS AGREEMENT NOTWITHSTANDING THE FORM
(E.G., CONTRACT, TORT, NEGLIGENCE, OR OTHERWISE) IN WHICH ANY ACTION IS BROUGHT, SHALL BE
LIMITED TO THE LOWER OF FORTY MILLION DOLLARS ($40,000,000 OR THE
AMOUNTS PAID TO AMDOCS UNDER THIS AGREEMENT. THE LIMITATIONS CONTAINED IN THIS SUBSECTION 10.10 UPON THE AMOUNTS OF
AMDOCS’ LIABILITY IN THE AGGREGATE SHALL NOT APPLY TO: (A) CLAIMS FOR INDEMNIFICATION BY AMDOCS (SECTION 9) OTHER THAN THE TAX INDEMNITY PROVIDED UNDER
SECTION 9.2 ; (B) CLAIMS WITH RESPECT TO A BREACH OF CONFIDENTIALITY (SUBSECTION 7.1-7.6); (C)
CLAIMS WITH RESPECT TO A WILLFUL BREACH OF INTELLECTUAL PROPERTY RIGHTS (SECTION 8); (D) LOSSES
ARISING OUT OF THE FRAUD, WILLFUL MISCONDUCT, OR GROSS NEGLIGENCE OF AMDOCS; AND (E) CLAIMS BASED
UPON AN INTENTIONAL BREACH OF SECTION 4.4.3 OR UPON REPUDIATION OF THIS AGREEMENT BY AMDOCS OR
AMDOCS’ INTENTIONAL REFUSAL TO PERFORM ITS DUTIES AND OBLIGATIONS HEREUNDER.

               (b) AMDOCS ACKNOWLEDGES AND AGREES THAT IN ADDITION TO ANY OTHER DAMAGES TO WHICH CLEARWIRE IS
ENTITLED TO SUBJECT TO THE PROVISIONS OF THIS AGREEMENT THE FOLLOWING TYPES OF DAMAGES SHALL BE
DEEMED RECOVERABLE BY CLEARWIRE HEREUNDER: (I) ANY COMPUTABLE AMOUNTS (AS DEFINED IN SECTION 12 ; AND (II) ALL ADDITIONAL COSTS AND EXPENSES
PAID OR INCURRED BY CLEARWIRE; IN EITHER CASE AS A DIRECT RESULT OF ANY FAILURE BY AMDOCS TO
PERFORM ITS OBLIGATIONS HEREUNDER, INCLUDING, IF CLEARWIRE TERMINATES FOR DEFAULT HEREUNDER, ANY
ADDITIONAL COSTS INCURRED BY CLEARWIRE TO OBTAIN REPLACEMENT SERVICES COMPLYING WITH THE TERMS
HEREOF.

               (c) NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY
OR PUNITIVE DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF THE FORM
IN WHICH ANY ACTION IS BROUGHT (E.G., CONTRACT, TORT, NEGLIGENCE, OR OTHERWISE) EXCEPT IN THE CASE OF LIABILITIES BASED UPON: (1) CLAIMS FOR INDEMNIFICATION OR OTHER AMOUNTS DUE
UNDER SECTION 9 (OTHER THAN THE TAX INDEMNITY PROVIDED UNDER SECTION
9.29.2  ; ; (2) CLAIMS WITH
RESPECT TO A BREACH OF CONFIDENTIALITY (SUBSECTIONS 7.1-7.6); (3) CLAIMS WITH RESPECT TO A WILLFUL
BREACH OF INTELLECTUAL PROPERTY RIGHTS (SECTION 8); (4) LOSSES ARISING OUT OF FRAUD, WILLFUL
MISCONDUCT, OR GROSS NEGLIGENCE; OR (5) CLAIMS BASED UPON AN INTENTIONAL BREACH OF SECTION 4.4.3
BY AMDOCS OR UPON A REPUDIATION OF THIS AGREEMENT BY AMDOCS OR AMDOCS’ INTENTIONAL REFUSAL TO
PERFORM ITS DUTIES AND OBLIGATIONS HEREUNDER.

	 	10.2	 	Remedies

	 	10.2.1	 	Remedies

               If a Party commits a Default under this Agreement, the other Party shall be entitled to
terminate of this Agreement in accordance with the provisions of Section 6.3 and shall have all
the remedies that may be available to it under law or in equity. Except to the extent specifically
stated in this Agreement, no remedy set forth in this Agreement is intended to be exclusive of any
other remedy, and each remedy will be in addition to every other remedy given hereunder, or now or
hereafter existing at law, in equity, by statute, or otherwise, provided that a Party’s recovery of
damages pursuant to such remedies shall be subject to this Agreement, including any limitations on
liability and exclusions on recoverable damages and remedies stated in this Agreement.

	 	10.2.2	 	Attorney’s Fees

     In the event of a Default by either Party, the prevailing Party shall be entitled to recover
from the non prevailing Party reasonable attorney’s fees and costs in connection with any action by
the prevailing Party in pursuing enforcement of the terms of this Agreement or any other remedies.
For the avoidance of doubt, the attorney’s fees and costs are not to be considered to be within the
monetary limitations of liability specified in Section 10.1 above and are hereby expressly
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	 	10.3	 	Breach

          The Parties acknowledge that the failure of a Default to constitute a basis for termination of
this Agreement pursuant to Section 6.3 shall not preclude the aggrieved Party from seeking other
remedies available to it under law or in equity for such Default, none of which is exclusive and
any or all of which may be pursued, except as otherwise provided herein; provided that a Party’s
recovery of damages pursuant to such remedies shall be subject to this Agreement, including any
limitations on liability and exclusions on recoverable damages and remedies stated in this
Agreement.

	 	10.4	 	Delay

          In the event of any Delay, Amdocs will, as soon as practicable after the occurrence of the
Delay, notify Clearwire in writing. The notice will include specific details of the Delay,
including without limitation, the estimated impact on the applicable timetable under this Agreement
and the estimated amount, if any, of additional Services required. If Clearwire disputes any of
the matters set forth in Amdocs’ notice, the matter will be resolved through the dispute resolution
process of this Agreement. If Clearwire does not cure the Delay and it directly causes a
cumulative increase of at least [*****] to complete the Services set forth in the applicable
Additional Services Order or otherwise directly causes a failure by Amdocs to comply with the
requirements of an Additional Services Order, then Amdocs will be granted an extension of the
project schedule for a period not longer than the length of the corresponding Delay, but only to
the extent set forth in (i) Amdocs’ notice, if Clearwire does not dispute the notice and subsequent
Delays (if the Delay is continuous), or (ii) in a written agreement resulting from the dispute
resolution process and solely with respect to the matters described therein. Except for payments
for actual efforts and expenses incurred by Amdocs as a result of a Delay for which Amdocs has
complied with the requirements of this Section, to the extent such efforts and expenses are
described in written notices required under this Section and Clearwire agrees that such efforts and
expenses were incurred by Amdocs as a result of a Delay and the amounts set forth in such written
notices (in which case Clearwire shall issue a valid and applicable Clearwire purchase order
therefor based on the above Amdocs’ notices), Amdocs shall not be entitled to any relief with
respect to any Delay other than in compliance with the timely notice and other requirements of this
Section. For avoidance of doubt, if Clearwire disputes that such efforts and expenses were
incurred by Amdocs as a result of a Delay or the amounts set forth in such written notices,
Clearwire shall pay to Amdocs the undisputed portion of such amounts. Clearwire’s failure to give
Acceptance of a deliverable under this Agreement will not constitute a Delay if and to the extent
that such deliverable did not meet the requirements of this Agreement.

	11	 	WARRANTY

	 	11.1	 	Authorization and Enforceability

          Each Party represents and warrants that:

               (a) it has all requisite corporate power and authority to execute, deliver, and perform its
obligations under this Agreement;

               (b) its signing of and agreement to this Agreement have been duly authorized by all requisite
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               (c) it has signed and agreed to this Agreement; and

               (d) this Agreement is a valid and binding obligation, enforceable against it in accordance
with its terms (assuming the due authorization, execution, and delivery by the other Party).

	 	11.2	 	Compliance with Laws and Obligations

               (a) Amdocs represents, warrants, and covenants that it shall comply with the Amdocs Legal
Requirements to the extent that such Amdocs Legal Requirements relate to the performance of its
obligations under this Agreement.

               (b) Clearwire represents, warrants, and covenants that it shall comply with the Clearwire
Legal Requirements to the extent that such Clearwire Legal Requirements relate to the performance
of its obligations under this Agreement.

	 	11.3	 	Additional Amdocs’ Representations, Warranties and Covenants

          Amdocs represents, warrants, and covenants that:

               (a) It shall provide all Services in accordance with this Agreement, and that all Services
provided under this Agreement shall be provided in a timely, professional, and workmanlike manner
consistent with standards of quality and integrity customary in the industry, and shall meet the
performance standards required under this Agreement.

               (b) [*****].

               (c) [*****].

               (d) [*****]. Amdocs will use industry best practices regularly to identify, screen, and
prevent any Disabling Device in the Services and Deliverables and will not itself intentionally or
negligently install or suffer the installation of any Disabling Device in the same. Amdocs will
assist Clearwire in reducing the effects of any Disabling Device discovered in any of the Services
or Deliverables.

               (e) [*****].

               (f) It shall maintain in effect, all licenses and permits necessary for it to provide the
Services contemplated by this Agreement.

               (g) The Services and Deliverables provided by Amdocs under this Agreement, and Clearwire’s
exercise of any intellectual property rights granted under this Agreement, will not infringe or
otherwise violate any statutory or other rights of any third party in or to any intellectual
property rights in accordance with any applicable law of any applicable jurisdiction, including
without limitation, copyrights, patent, trade secrets trademarks or moral rights, and no third
party has, to Amdocs’ knowledge, asserted or has threatened or has or will have any reasonable
basis to assert such a claim (other than claims for which Amdocs has reasonably concluded that
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               (h) It owns or leases and will at all times own or lease, or have a right to use, free and
clear of all liens and encumbrances, other than lessors’ interests, or security interests of
Amdocs’ lenders, appropriate right, title, or interest in and to the tangible property and
technology and the like that Amdocs intends to use or uses to provide such Services and in and to
any related patent, copyright, trademark, and other proprietary rights, or has received or will
receive appropriate licenses, leases, or other rights from Third Parties to permit such use.

               (i) The Amdocs’ Key Personnel, Amdocs’ Program Manager and all other Amdocs’ Personnel
assigned by Amdocs or its Subcontractors to perform Amdocs’ obligations under this Agreement shall
have experience, training and expertise at least customary in the industry for their
responsibilities in the business in which Amdocs is engaged and shall have sufficient knowledge of
the relevant aspects of the Services and shall have or promptly obtain sufficient knowledge of
Clearwire’s practices and areas of expertise to enable them to properly perform the duties and
responsibilities assigned to them in connection with this Agreement. In addition to meeting all
requirements for the Services set forth herein, the Services shall conform to commercial standards
customary in the industry applicable to such Services in the business in which each of Clearwire
and Amdocs is engaged.

               (j) Amdocs’ Personnel are legally able and authorized to work [*****]. At Clearwire’s
request, Amdocs shall audit its compliance with this Section and deliver to Clearwire a written
certification, [*****].

               (k) The Documentation is, and will continue to be, complete and will accurately describe the
Customized Product and the Services so as to enable a reasonable data-processing professional with
skills and experience customary in the industry to utilize the Customized Product and the Services
for all purposes hereunder, and the Documentation will be promptly and accurately updated to
reflect all Additional Releases and the Services and any and all other modifications, enhancements,
updates, error corrections, improvements, and the like to the Customized Product and the Services,
and all such updates will be of a quality equal to or better than that of the initial Documentation
provided to Clearwire.

EXCEPT AS PROVIDED BY THIS AGREEMENT, THERE ARE NO EXPRESS WARRANTIES, REPRESENTATIONS,
UNDERTAKINGS, OR CONDITIONS (STATUTORY OR OTHERWISE) BY EITHER PARTY, AND THERE ARE NO IMPLIED
WARRANTIES, REPRESENTATIONS, UNDERTAKINGS, OR CONDITIONS (STATUTORY OR OTHERWISE) BY EITHER PARTY,
INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, IN THIS
AGREEMENT OR ANY AGREEMENT. EACH PARTY’S SOLE REMEDY FOR BREACH OF WARRANTIES BY THE OTHER PARTY
SHALL BE THE CORRECTION OF SUCH BREACH BY THE OTHER PARTY AS SOON AS PRACTICABLE; PROVIDED,
HOWEVER, THAT THIS SENTENCE SHALL NOT AFFECT OR DIMINISH EITHER PARTY’S RIGHTS UNDER ANY OTHER
SECTION OF THIS AGREEMENT, OR EITHER PARTY’S RIGHTS TO RECOVER ALL DAMAGES, TO THE EXTENT AVAILABLE
UNDER THIS AGREEMENT, WITH RESPECT TO ANY ACT OR FAILURE TO ACT BY THE OTHER PARTY.

	12	 	DEFINITIONS; INTERPRETATION

	 	12.1	 	Defined Terms

 

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     Capitalized terms used herein without definition shall have the meanings ascribed to them
below:

	 	12.1.1	 	Acceptance Testing

               “Acceptance Testing” shall mean the end to end business scenario testing in a “near
production” environment, in which Amdocs and Clearwire verify that the requested functionality
defined in the applicable Impact Assessment Documents and API DFS is supported by the Customized
Product as well as ensuring that the end to end business flows function as required.

	 	12.1.2	 	Account

               “Account” means the financial entity which carries a balance and the responsibility for paying
all charges associated with it.

	 	12.1.3	 	Additional Licenses

               “Additional Licenses” means any license, purchased by Clearwire under this Agreement, to use
Amdocs’ software products other than those for which licenses have been purchased by Clearwire at
the time of execution of this Agreement or granted pursuant to Clearwire’s ownership of [*****].

	 	12.1.4	 	Additional Licenses Fees

               “Additional Licenses Fees” means the license fees to be paid by Clearwire for the Additional
Licenses.

	 	12.1.5	 	Additional Release

               “Additional Release” has the meaning set forth in Section 2.1.3.

	 	12.1.6	 	Additional Services

               “Additional Services” means the services, and, if applicable, hardware and third-party
software, described in the Additional Services Orders.

	 	12.1.7	 	Additional Services Fees

               “Additional Services Fee” means the fees to be paid by Clearwire to Amdocs for the Additional
Services as provided for in the Additional Services Orders.

	 	12.1.8	 	Additional Services Order or ASO

               “Additional Services Order” or “ASO” means a Clearwire document issued under Section 2.5 of
this Agreement, executed, confirmed or acknowledged in writing by both parties, ordering Additional
Services from Amdocs.

 

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	 	12.1.9	 	Affiliate

               “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly,
controls, is controlled by, or is under common control with, such Person, whether through ownership
of voting securities or otherwise. For this purpose, and without limiting the foregoing, any
Person that has the power to vote [*****]% or more of the voting interests of any other Person or
owns [*****]% or more of the beneficial interests in income or capital shall be deemed to control
such other Person.

	 	12.1.10	 	Agreement

               “Agreement” shall mean this Agreement between Clearwire and Amdocs, including all attachments,
Exhibits, and Schedules hereto, as amended from time to time.

	 	12.1.11	 	Amdocs

               “Amdocs” has the meaning set forth in the Preamble hereto.

	 	12.1.12	 	Amdocs Competitor

               “Amdocs Competitor” means (i) any of the Persons listed on Schedule K (Party
Competitors) as revised by mutual agreement of the Parties; and (ii) any Subsidiary of the entities
referred to in clause (i).

	 	12.1.13	 	Amdocs Indemnitees

               “Amdocs Indemnitees” has the meaning set forth in Section 9 (Indemnification and Insurance).

	 	12.1.14	 	Amdocs Integration Testing

               “Amdocs Integration Testing” shall mean the testing of the integration between the main
systems.

	 	12.1.15	 	Amdocs Legal Requirements

               “Amdocs Legal Requirements” means the laws and regulations applicable to Amdocs.

	 	12.1.16	 	Amdocs Program Manager

               “Amdocs Program Manager” means the individual who is so designated in Schedule G and
any subsequent holder of that position designated and approved under the terms and conditions of
Section 4.2.

	 	12.1.17	 	Amdocs Rate

 

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               “Amdocs Rate” means the Labor Rate for Additional Services as defined in Schedule D.

     12.1.18 Amdocs Testing Activities

               “Amdocs Testing Activities” has the meaning set forth in Section 4.3.1 (Software Component
Testing).

	 	12.1.19	 	API DFS

               “API DFS” or “Application Programming Interface Detailed Functional Specifications” shall mean
the detailed functional changes regarding the Amdocs APIs, which allows client development teams to
modify applications utilizing any APIs.

	 	12.1.20	 	Arbitrator

               “Arbitrator” means each arbitrator defined in Section 13.6.

	 	12.1.21	 	[*****]

               [*****] has the meaning set forth in the preamble to this Agreement.

	 	12.1.22	 	[*****]

               [*****].

	 	12.1.23	 	Audits

               “Audits” has the meaning set forth in Section 13.2 (Audits, Records).

	 	12.1.24	 	Change Requests or CRs

               “Change Requests” or “CRs” mean modifications to the Customization and/or related
documentation (including but not limited to software developments) to be performed by Amdocs for
Clearwire. CRs shall be included and implemented as part of Additional Releases.”

	 	12.1.25	 	Change Requests Charges or CRs Charges

               “Change Requests Charges” or “CRs Charges” means the charges to be paid by Clearwire to Amdocs
for CRs that have been agreed upon in the applicable Additional Services Orders.

	 	12.1.26	 	Change Requests Form or CR Request Form

               “Change Requests Form” or “CR Request Form” means a Clearwire document describing its
requirements for CRs substantially in the form of Annex A to Schedule O of this Agreement.

	 	12.1.27	 	Clearwire

 

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               “Clearwire” has the meaning set forth in the Preamble hereto.

	 	12.1.28	 	Clearwire 4G Portal

               “Clearwire 4G Portal” means Clearwire’s web portal for Clearwire’s 4G customer offerings as
more specifically defined in the applicable Services Order(s). For the avoidance of doubt, the
Clearwire 4G Portal does not include BSS development and customization. Clearwire 4G Portal does
not include the [*****].

	 	12.1.29	 	Clearwire 4G

               “Clearwire 4G” (which may also be referenced as “4G” or “XOHM”) means the high-speed, mobile
broadband network under development by Clearwire to be deployed nationwide (and any technical
advancements, evolutions, modifications and/or enhancements in any portion thereto), including,
but not limited to, a network infrastructure using WiMAX (Worldwide Interoperability Microwave
Access as defined by the IEEE 802.16 standard) technology (or any replacement technology).

	 	12.1.30	 	Clearwire Business Initiative

               “Clearwire Business Initiative” means a Clearwire business partnership with third parties
(including but not limited to customer relationships), which uses the Xohm brand (or its
replacement brand) for the purpose of primarily offering (among other) Clearwire’s 4G products or
network services and provided that such business partnership’s use of the [*****] shall not be the
license or sale of the right to use the [*****] software with or without related professional
services.

	 	12.1.31	 	Clearwire Competitor

               “Clearwire Competitor” means (i) the Persons listed in Schedule K (Party Competitors),
as revised by mutual agreement of the Parties from time to time; and (ii) any Subsidiary of the
entities referred to in clause (i).

	 	12.1.32	 	Clearwire Data

               “Clearwire Data” means, in or on any medium or form of any kind: (a) data and summarized data
related to Clearwire, Clearwire’s Subscribers or the Services that is in the possession of
Clearwire and data concerning or indexing such data (regardless of whether or not owned by
Clearwire, generated or compiled by Clearwire), including data that is in Clearwire’s databases or
otherwise in Clearwire’s possession on the Effective Date or at any time during the Term; and (b)
other Clearwire records, data, file, input materials, reports, forms, and other such items that may
be received by Amdocs, or by any of its Subcontractors, in the performance of Amdocs’ duties under
this Agreement. Clearwire’s Data excludes personal data relating to employees of Amdocs, its
Affiliates, and their Subcontractors.

	 	12.1.33	 	Clearwire-Owned Property

               “Clearwire-Owned Property” means all tangible and intangible items or information that Amdocs
receives from Clearwire or from a third party on Clearwire’s behalf, or that the Parties agree to
be owned by Clearwire and, including, without limitation, Category A Customized

 

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Materials and the patents related to Category E Customized Materials (with the exception of
patents for which a Clearwire employee should not be named a inventor or co-inventor).

	 	12.1.34	 	Clearwire Entity

               “Clearwire Entity” means any entity providing products and/or services on or ancillary to
Clearwire’s or a Clearwire Affiliate’s networks.

	 	12.1.35	 	Clearwire Indemnitees

               “Clearwire Indemnitees” has the meaning set forth in Section 9.

	 	12.1.36	 	Clearwire Legal Requirements

               “Clearwire Legal Requirements” means the laws and regulations applicable to Clearwire.

	 	12.1.37	 	Clearwire’s Program Manager

               “Clearwire’s Program Manager” means the individual so designated in Schedule G hereto
and any subsequent holder of that position designated by Clearwire.

	 	12.1.38	 	Clearwire Restricted Data

               “Clearwire Restricted Data” means [*****].

	 	12.1.39	 	Clearwire Testing Activities

               “Clearwire Testing Activities” has the meaning set forth in Section 4.3.1.

	 	12.1.40	 	Committed Operation Services

               “Committed Operation Services” has the meaning set forth in Section 2.3.

	 	12.1.41	 	Computable Amounts

               “Computable Amounts” means any amount that was not billed to a customer of Clearwire in
accordance with Clearwire’s routine billing cycle process with respect to which Clearwire
reasonably determines it would not be able to bill such customer on, or prior to, the monthly bill
sent out to such customer during Clearwire’s next routine billing cycle for such customer; provided
that the failure to bill such amount in Clearwire’s routine billing cycle was due to an error
(unless caused by Clearwire or any of its Affiliates, employees, agents or representatives): (i)
in Amdocs’ performance of the Services or (ii) in the Customized Product; and provided, further,
that Clearwire shall be required to use reasonable commercial efforts to bill such customer on, or
prior to, the monthly bill sent out to such customer during Clearwire’s next routine billing cycle
for such customer (with a correction bill, if any, being sent prior to such subsequent bill being
prepared and sent at Amdocs’ expense).

 

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	 	12.1.42	 	Confidential Information

               “Confidential Information” means (a) as to either Party, all technical information, materials,
data, reports, programs, documentation, diagrams, concepts, techniques, processes, inventions,
knowledge, know-how, and trade secrets, whether in tangible or intangible form, whether disclosed
or conveyed by visits to a Party’s or a Party Affiliate’s facilities, whether or not marked or
otherwise identified as confidential, and whether in written form or readable by machine, or
disclosed orally, developed or acquired by such Party or any Affiliate thereof; (b) as to either
Party, all information and data relating to such Party’s practices, customer information, account
information, information regarding business planning and business operations, management
information services, costs, or margins that is not generally known by others in the same line of
business; (c) as to either Party, any information that such Party identified to the other as
confidential by a stamp or other similar notice; (d) as to either Party, this Agreement (subject to
Section 13.11); (e) as to either Party, all other information relating to such Party or Affiliate
thereof that a reasonably prudent technician would expect not to be made available to Third Parties
without restriction or payment; and (f) as to Clearwire, all Clearwire Data (including any
Clearwire Data contained in any Customized Materials), and any Customized Materials (subject to
Section 8.1.2).

	 	12.1.43	 	Conversion Testing

               “Conversion Testing” means testing to ensure that data from the legacy Clearwire platform and
any other existing Clearwire data source from which the Customized Product will receive data is
properly extracted, converted, and uploaded to the Customized Product database and functions
properly with the Customized Product.

	 	12.1.44	 	CPSs

               “CPSs” means, in relation to the Services, the Creditable Performance Specifications regarding
the performance, availability, capacity, response times or other levels or standards in respect of
the Services specified in Schedule C.

	 	12.1.45	 	Critical Defaults

               “Critical Defaults” has the meaning set forth in Section 6.3.1.

	 	12.1.46	 	Customized Product

               “Customized Product” means the integrated product containing the Generic Product and the
Customization.

	 	12.1.47	 	Customized Materials

               “Customized Materials” means all tangible and intangible information and developments, and all
intermediate and/or partial versions thereof, including all source code and object code with
respect thereto, and all designs, specifications, inventions, discoveries, improvements, know-how,
techniques, materials, program materials, software, flow charts, notes, outlines, lists,
compilations, manuscripts, writings, pictorial materials, schematics, other creations, and the
like, whether

 

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or not patented or patentable or otherwise protectable by law, created, invented or conceived
for Clearwire’s use or benefit in connection with this Agreement and that are the result of
Customization Services hereunder. Customized Materials shall not include the Generic Product but
shall include the modifications produced hereunder to the Generic Product. Customized Materials
includes all copyright, patent, trademark, trade secret, and other proprietary and intellectual
property rights, if any, in the Customized Materials.

	 	12.1.48	 	Customization

          “Customization” means the required modifications to the Generic Product or the previously
customized version of the Generic Product (as the case may be) to be developed in accordance with
the applicable Specifications in order to develop the resultant Customized Product.

	 	12.1.49	 	Customization Services

               “Customization Services” means the services to be provided by Amdocs in order to develop the
Customized Product in accordance with the applicable Specifications.

	 	12.1.50	 	Data Center

               “Data Center” means the premises from which Amdocs or any of its Subcontractors will operate
the Customized Product. The location of each Data Center is set forth on Schedule E.

	 	12.1.51	 	Data and Modified Data

               “Data and Modified Data” has the meaning set forth in Section 13.3.

	 	12.1.52	 	Default

               “Default” shall mean the occurrence of any of the following:

               (a) Clearwire’s determination, with respect to all CPSs listed in Schedule C, Section
I (Scope) (unless otherwise stated), that [*****].

               (b) a failure by Amdocs to use all reasonable efforts to avert, prevent, or avoid any
threatened or actual interruption or shutdown (of any material duration) of any Data Centers or
Additional Data Centers to the extent that a material deficiency with respect to the Services
directly or indirectly is caused by such interruption or shutdown;

               (c) a commission by a Party of a material breach of any obligation to the other Party under
Section 7 hereof (including but not limited to such breach by Amdocs relating to Clearwire Data)
or Section 8 hereof, provided that such breach, if curable, is not cured within [*****] after
notification by the other Party of such breach;

               (d) insolvency of Amdocs; general failure of Amdocs to pay its debts as they become due;
entrance of Amdocs into receivership or any arrangement or composition with creditors generally;
filing of a voluntary or involuntary petition or other action or proceeding for bankruptcy or
reorganization or dissolution or winding-up of Amdocs; a general assignment for the benefit of
creditors

 

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of Amdocs; or a seizure or a sale of a material part of Amdocs’ property by or for the benefit
of any creditor or governmental agency;

               (e) an assignment or attempted assignment in violation of Section 13.1 hereof; provided,
however, that an attempted assignment, made in the good faith belief that it is valid under such
Section 13.1, shall not represent a Default of a Party, if such Party promptly notifies the other
Party of the attempted assignment and promptly ceases to attempt the assignment after notification
from the other Party that such attempted assignment is in violation of such Section 13.1;

               (f) a failure by a Party (i) to observe and perform any other material obligation, covenant,
or condition under this Agreement and the failure by the breaching Party to cure such material
default within [*****] after the breaching Party has received notice of such default (including but
not limited to, with respect to Amdocs, a material breach of Amdocs’ obligations under paragraphs
(a) and (b) of Section 4.5 hereinabove; provided, however, that with respect to Clearwire, the
only failure that may constitute a Default by the terms of this clause (f) (and such Default shall
be deemed a Critical Default) is Clearwire’s failure to pay Amdocs in accordance with the
provisions of this Agreement [*****].

	 	12.1.53	 	Defense

               “Defense” has the meaning set forth in Section 8.

	 	12.1.54	 	Delay

               “Delay” means a delay in a project schedule or the failure of any assumption stated in an
Additional Services Order that (i) Amdocs reasonably believes Clearwire caused by an act or
omission, and (ii) directly causes a material delay in Amdocs’ performance.

	 	12.1.55	 	Deliverables

               “Deliverables” means any item delivered or produced by Amdocs or required to be delivered or
produced by Amdocs as the result of Services rendered under this Agreement. Deliverables may
include, but are not limited to, tangible and intangible work product, information, data, reports,
designs, memoranda, lists, diagrams, schedules, analyses, procedures, specifications, programs,
computer systems, technology, materials, documentation and like items, whether in hard copy or
electronic media, incidental to, and containing and embodying the results of, the Services
performed under this Agreement.

	 	12.1.56	 	Device

               “Device” means physical equipment utilized by a Subscriber to access the Clearwire network
(e.g. PC-Card, Modem, embedded laptop, Mobile handset or other mobile internet device).

	 	12.1.57	 	Disabling Device

               “Disabling Device” means any timer, clock, counter, or other limiting design or routine or
uncorrected known vulnerability that may cause software or any data generated or used by it to

 

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be erased, become inoperable or inaccessible, or that may otherwise cause such software to become
temporarily or permanently incapable of performing in accordance with this Agreement,
including without limitation, (i) any Disabling Device that is triggered after use or copying of
such software or a component thereof a certain number of times, or after the lapse o a period of
time, or in the absence of a hardware device or after the occurrence or lapse of any other
triggering factor or event or due to external input, including across a computer network and (ii)
any Disabling Device that communicates with external resources without Clearwire’s knowledge or
express authorization. Disabling Device includes software commonly referred to as a virus, worm,
Trojan horse, spyware, adware or backdoor.

	 	12.1.58	 	Disentanglement Obligations

               “Disentanglement Obligations” has the meaning set forth in Section 6.5.

	 	12.1.59	 	Dispute Resolution Process

               “Dispute Resolution Process” means the process described in Section 4.3.5.

	 	12.1.60	 	Documentation

               “Documentation” means, collectively, (a) all of the written, printed, electronic or other
format materials published or otherwise made available by Amdocs that Amdocs uses to perform the
Services; (b) all user, operator, system administration, technical, support and other manuals and
all other written, printed, electronic or other format materials to be provided by Amdocs under
this Agreement, or to be provided by Amdocs pursuant to agreement of the Parties.

	 	12.1.61	 	Due Date

               “Due Date” has the meaning set forth in Section 5.2.2.

	 	12.1.62	 	Effective Date

               “Effective Date” has the meaning set forth in the Preamble hereto.

	 	12.1.63	 	Feature

               “Feature” means a unit of service provided by Clearwire forming the basic building block of an
Offer which can include one or more features packaged together and marketed as one (e.g. QoS, LBS,
Mail). Not all features are available for all Offers.

	 	12.1.64	 	Final Acceptance

               “Final Acceptance” has the meaning set forth in Section 4.3.1.

	 	12.1.65	 	Final Conversion Date

               “Final Conversion Date” shall mean the date that the Final Conversion Milestone is achieved.

 

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	 	12.1.66	 	Final Conversion Milestone

               “Final Conversion Milestone” shall mean when each of the following have been received and
Accepted by Clearwire: [*****] of all legacy Clearwire subscribers have been successfully
converted to the Customized Product and have successfully completed at least one bill cycle.

	 	12.1.67	 	Force Majeure Event

               “Force Majeure Event” has the meaning set forth in Section 13.4.

	 	12.1.68	 	GAAP

               “GAAP” has the meaning set forth in Section 13.2.

	 	12.1.69	 	Generic Product

               “Generic Product” means the modules of the Amdocs customer care and billing platform, as well
as any other software products offered by Amdocs relating to the scope of products and services
provided by Amdocs hereunder on the Effective Date or to be provided hereunder at any time during
the Term in accordance with the terms of this Agreement on the Effective Date, including but not
limited to, those specified in Annex 1 to Schedule D, but not including any of the
Customized Materials. Generic Products are divided to Group A Generic Products and Group B Generic
Products as detailed in Annex 1 to Schedule D and explained in Section 5.1.3.

	 	12.1.70	 	Impact Assessment Document

               “Impact Assessment Document” or “IA” means the detailed requirements for the CR of the
Customized Product developed by Amdocs and reviewed by Clearwire during sessions as agreed to by
the Parties.

	 	12.1.71	 	Implementation Fees

               “Implementation Fees” has the meaning set forth in Section 5.

	 	12.1.72	 	Implementation Contact and Escalation List

               “Implementation Contact and Escalation List” shall mean names and contact information for all
key resources involved in the resolution of any implementation issues.

	 	12.1.73	 	[*****]

               [*****].

	 	12.1.74	 	Infringement Claims

               “Infringement Claims” has the meaning set forth in Section 9.

 

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	 	12.1.75	 	Initial Release

               “Initial Release” or “Initial Release of the Customized Product” means the version of the
Customized Product as of the Effective Date for Subscribers in Baltimore, MD (since September 2008)
and its respective components (i.e. Generic Product and Customization components) developed by
Amdocs as ordered, delivered, implemented and accepted pursuant to the provisions of [*****] via a
hosted solution as part of the Services hereunder for Clearwire. Reference to Customized Product in
this Agreement shall be limited to the Initial Release until Additional Releases are ordered and
implemented. Initial Release includes the [*****].

	 	12.1.76	 	Interest

               “Interest” means interest accruing at the daily equivalent of an annual rate equal to [*****]
basis points plus the “Prime Rate” published on the first business day of each month in the “Money
Rates” or similar column of The Wall Street Journal (but no more than [*****] ([*****]%) per
annum), or at the maximum rate allowed by law, if less, as such rate may change from time to time,
with any change in said rate becoming effective for purposes herein upon publication of the Prime
Rate change that caused it.

	 	12.1.77	 	Interconnectivity Testing

               “Interconnectivity Testing” means testing of a software module’s interfaces with other modules
of the same software system and with other software systems, including testing of the API’s used to
implement such interfaces.

	 	12.1.78	 	International Affiliate

               “International Affiliate” means any Affiliate of Clearwire that has been organized outside of
the United States.

	 	12.1.79	 	Issues

               “Issues” means “Issues” as defined in the CPSs.

	 	12.1.80	 	Key Personnel

               “Key Personnel” means those personnel of Amdocs and Clearwire, respectively, who are so
designated on Schedule G and their respective replacement personnel designated and approved
under the terms and conditions of Section 4.2.

	 	12.1.81	 	License Fees

               “License Fees” has the meaning set forth in Section 5.

	 	12.1.82	 	Maintenance Services

               “Maintenance Services” has the meaning set forth in Section 2.2.

 

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	 	12.1.83	 	Major Additional Release

               “Major Additional Release” means any Additional Release budgeted by Amdocs to require
[*****] or more hours to complete.

	 	12.1.84	 	Materials

               “Materials” has the meaning set forth in Section 8.

	 	12.1.85	 	Milestones

               “Milestones” means those actions and projects identified as “Milestones” in Schedule
D.

	 	12.1.86	 	Monthly Subscriber Fees

               “Monthly Subscriber Fees” has the meaning set forth in Section 5 (Charges, Credits and
Payments) and Schedule D.

	 	12.1.87	 	Offer

               “Offer” means a combination of products and Features (e.g. Home, On-the-Go, Daily On-the-Go)
offered to Persons for a specific fee (whether Clearwire waives the fee or not).

	 	12.1.88	 	Other Default

               “Other Default” of Amdocs shall mean the Default described in clause (b) of Section 12.1.52
and an “Other Default” of Clearwire shall mean the Default described in clause (e) of Section
12.1.52.

	 	12.1.89	 	Overall CPS Score

               “Overall CPS Score” shall have the meaning set forth in Schedule C.

	 	12.1.90	 	Overall Timeline

               “Overall Timeline has the meaning set forth in Section 2.1.1.

	 	12.1.91	 	Party

               “Party” shall mean Clearwire or Amdocs; “Parties” shall mean both of them.

	 	12.1.92	 	Payment Method

               “Payment Method” means a mechanism by which a Subscriber uses to pay his charges (e.g. Credit
Card, ACH, etc)

 

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	 	12.1.93	 	Performance Credits

               “Performance Credits” has the meaning set forth in Schedule C.

	 	12.1.94	 	Performance Testing

               “Performance Testing” shall mean volume (throughput) and stress (benchmarking) testing in
order to determine if the Customized Product can accommodate Clearwire volume projections using
specific criteria (established pursuant to this Agreement) and if the system can perform required
processing loads within the specified timeframes (established pursuant to this Agreement).

	 	12.1.95	 	Person

               “Person” shall mean any natural person, corporation, limited liability company, limited
liability partnership, general partnership, limited partnership, trust, association, governmental
organization or agency, or other legal person or legally constituted entity of any kind.

	 	12.1.96	 	Personnel

               “Personnel” of a party means the direct and indirect employees, subcontractors, and agents of
such party.

	 	12.1.97	 	Privacy Restricted Data

               “Privacy Restricted Data” is a subset of Clearwire Restricted Data and includes specific
information that Clearwire deems needs additional security beyond the provisions included in
Clearwire Restricted Data, such as: Credit card information, Social Security information, passcode
and other data elements agreed upon by the parties as needed.

	 	12.1.98	 	Project Plan

               “Project Plan” has the meaning set forth in Section 2.1.1.

	 	12.1.99	 	Release

               “Release” has the meaning set forth in Section 2.1.3.

	 	12.1.100	 	Root-Cause Analysis

               “Root-Cause Analysis” has the meaning set forth in Section 2.6.

	 	12.1.101	 	Sales and Use Taxes

               “Sales and Use Taxes” means state and local sales and use taxes, including Arizona transaction
privilege tax, Arkansas gross receipts tax, Hawaii general excise tax, Illinois retailer’s
occupation tax, and New Mexico gross receipts tax.

 

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	 	12.1.102	 	SAS Document

               “SAS Document” shall mean the changes to queries for the Strategic Account outputs.

	 	12.1.103	 	Services

               “Services” means (i) all of the tasks and services of Amdocs described in this Agreement or a
Services Order, including without limitation, (a) the provision of a hosted solution version of the
Customized Product operated and maintained by Amdocs for Clearwire in accordance with the
requirements of this Agreement and (b) Sections 1, 2, 4, 5 , 6, 8, and 13 of this Agreement and
(ii) all other services that are consistent with, and reasonably inferable to be within the scope
of the foregoing or ancillary to, incidental to, or necessary for, the performance of any part of
the services and functions described by the foregoing. The provisions of this Agreement relating to
Services shall apply to Additional Services; provided, however, where a provision makes specific
reference to applying to Additional Services only, such provision shall apply only to the
Additional Services.

	 	12.1.104	 	Software Components

               “Software Components” has the meaning set forth in Section 4.3.

	 	12.1.105	 	Software/Hardware Environments

               “Software/Hardware Environments” means all necessary Third Party hardware and software
environments relating to the Customized Product and the Services, including, without limitation,
separate and distinct Third Party hardware and software environments for each of development,
testing, training and production, of the Customized Product and the Services, in each case, as
applicable, including customer/usage servers and user connectivity (i.e., Metaframe
servers). Software/Hardware Environments do not include or form part of the Customized Product.

	 	12.1.106	 	Specifications

               “Specifications” means (i) with respect to the Initial Release, the specifications contained
in Schedule A; and (ii) with respect to any Additional Release, the specifications contained in any
final applicable Impact Assessment Document for such Additional Release.

	 	12.1.107	 	Standard Materials

               “Standard Materials” means, with regard to the modules specified in Annex 1 to Schedule
D as amended by the Parties from time to time in accordance with the provisions of this
Agreement, all tangible and intangible information and developments, and all intermediate and/or
partial versions thereof, including all source code and object code with respect thereto, and all
designs, specifications, inventions, discoveries, improvements, materials, program materials,
software, flow charts, notes, outlines, lists, compilations, manuscripts, writings, pictorial
materials, schematics, other creations, and the like, whether or not patented or patentable or
otherwise protectable by law: (a) already conceived, invented, created, or acquired by Amdocs or
Third Parties prior to the Effective Date and not

 

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the result of Customization Services hereunder or
the Original Agreement, or (b) conceived, invented, created, or acquired, by Amdocs or Third
Parties after the Effective Date, but only to the extent such information and developments do not
constitute Customized Materials hereunder and do not include
Clearwire Confidential Information. Standard Materials shall include but not be limited to
the Generic Product.

	 	12.1.108	 	Steering Committee

               “Steering Committee” has the meaning set forth in Section 4.1.

	 	12.1.109	 	Sub System Testing

               “Sub System Testing” shall mean the testing of the individual software application for
functionality, independent of interactions with other applications or other software systems.

	 	12.1.110	 	Subcontractor

               
“Subcontractor” means contractors, vendors, agents and consultants retained by either Party to
perform services hereunder and in relation to this Agreement.

	 	12.1.111	 	Subscriber

               
“Subscriber” means any and all of the following (unless the defined subcategory is
specifically used in which case only the specific definition shall apply):

               (a) [*****];

               (b) [*****];

               (c) [*****];

               (d) [*****]; and

               (e) [*****].

               The Parties agree that as new Clearwire services are made available to Clearwire customers
there may be a need for creating a new category for billing (i.e. different fees), based on various
criteria, including but not limited to the services being provided by Clearwire and required of the
Customized Product.

               The Parties further agree to re-evaluate the definition of a Subscriber before the end of
2010.

	 	12.1.112	 	Subsidiary

               “Subsidiary” shall mean, as to any Person, any other Person that, directly or indirectly,
controls, is controlled by, or is under common control with, such Person, whether through ownership
of voting securities or otherwise. For this purpose, and without limiting the foregoing, any
Person that has the power to vote [*****]% or more of the voting interests of any other Person or
owns [*****]% or more of the beneficial interests in income or capital shall be deemed to control
such other Person.

 

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	 	12.1.113	 	Suspension

               “Suspension” shall have the meaning set forth in Section 4.4.3.

	 	12.1.114	 	System Test Results

               “System Test Results” shall mean a daily report of system test progress.

	 	12.1.115	 	System Testing

               “System Testing” shall mean the testing of (i) the entire software system (i.e., any
or all of the Customized Products, as applicable) for functionality and interaction among modules
and (ii) testing of interface functionality between the software system and other required
Clearwire and/or Third Party systems using mock data inputs/outputs.

	 	12.1.116	 	Term

               “Term” means the period during which Amdocs shall be obligated to provide the Services, as
specified in Section 6.1.

	 	12.1.117	 	Termination Date

               “Termination Date” means the date for termination set forth in a Termination Notice, as
further described in Section 6. The issuance of Termination Notice and the respective Termination
Date may vary between the causes.

	 	12.1.118	 	Termination Notice

               “Termination Notice” means the written notice that must be given before termination in
accordance with the termination process described in Section 6. The issuance of Termination Notice
and the respective Termination Date may vary between the causes.

	 	12.1.119	 	Termination Statement

               “Termination Statement” has the meaning set forth in Section 6.2.1.

	 	12.1.120	 	Testing Activities

               “Testing Activities” has the meaning set forth in Section 4.3.1.

	 	12.1.121	 	Testing Environment

               “Testing Environment” means the software and hardware environment (i.e., computers and
software applications) necessary for the performance of the Testing Activities.

	 	12.1.122	 	Third Party

 

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               “Third Party” means a Person other than Clearwire and Amdocs and their respective
Subsidiaries, Affiliates, directors, officers and employees.

	 	12.1.123	 	Unfavorable CPS Points

               “Unfavorable CPS Points” means the points assigned to the [*****].

	 	12.1.124	 	Unit Testing

               “Unit Testing” shall mean the testing of the individual software modules for functionality,
independent of interactions with other modules or other software systems.

	 	12.1.125	 	United States

               “United States” means the United States of America.

	 	12.2	 	Interpretation

          The table of contents and the headings of the Articles, Sections and Schedules in this
Agreement are provided for convenience of reference only and shall not be deemed to constitute a
part hereof. They do not define, limit, construe or describe the scope or intent of the provisions
of this Agreement. References herein to numbered Articles and Sections and lettered Schedules
refer to the Articles, Sections and Schedules hereof, unless otherwise specified. A term defined
in the singular shall include the plural and vice versa when the context so indicates.

	13	 	GENERAL

	 	13.1	 	Assignment and Binding Nature

               (a) Subject to the provisions of paragraph (b) of Subsection 13.12 hereof, Amdocs may not
delegate its obligations without the prior written consent of Clearwire, which may be withheld in
its sole discretion.

               (b) Clearwire may assign its rights hereunder to any Clearwire Subsidiary and/or Affiliate or
successor of Clearwire who receives or agrees to receive the Services, on the condition that such
assignee agrees in a written undertaking to assume all of Clearwire’s obligations hereunder and
that Clearwire delivers a copy of such written undertaking to Amdocs; provided, however, that if
any such successor is an Amdocs Competitor, Clearwire shall be required to obtain the consent of
Amdocs prior to such assignment; provided, further, however, that in the event that Amdocs does not
give such consent to the assignment within ten (10) days of the date of any Clearwire request for
such consent, Clearwire shall have the right to terminate this Agreement in accordance with the
provisions of Section 6.2.1 hereof, but without the payment of any exit fee. For the avoidance of
doubt, any assignment hereunder to a successor of Clearwire who has a Subsidiary or Affiliate that
is an Amdocs Competitor shall not be deemed an assignment to an Amdocs Competitor requiring the
consent of Amdocs hereunder. In addition, in the event that Clearwire assigns this Agreement to any Person having a
Credit Rating of “B” or above as of the date of assignment, Clearwire shall be released from, and
be relieved of, all of its financial obligations to Amdocs hereunder, upon the assumption of such
obligations by the assignee. For the purpose of this subsection, “Credit Rating” shall mean the
rating category provided by Moody’s Investors Services, Inc., or its successor, with respect to
any short-term obligations issued by the person who is the subject of the Credit Rating.

               (c) Amdocs’ and Clearwire’s respective permitted successors and assigns shall be bound by
this Agreement.

 

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               (d) Any attempted assignment or delegation of all or any part of this Agreement that does not
comply with this Section 13.1 is void.

	 	13.2	 	Audits, Records

               (a) Amdocs shall maintain complete and accurate records and books of account with respect to
this Agreement utilizing United States generally accepted accounting principles (“GAAP”),
consistently applied and complying in all respect with all applicable laws. Such records and
books, and the accounting controls related thereto, shall be sufficient to provide reasonable
assurance that: (i) transactions are recorded so as to permit the preparation of Amdocs’
financial statements in accordance with GAAP and to maintain accountability for its assets; and
(ii) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

               (b) Amdocs shall retain [*****], from the end of each calendar year during the Term, or such
longer period as may be required by law, all records and information required to verify amounts
invoiced by Amdocs under this Agreement for such calendar year.

               (c) Amdocs will provide Clearwire with information and reports reasonably sufficient for
Clearwire to confirm that Amdocs’ systems, processes and controls employed in providing the
Services meet and comply with standards that minimize operational and financial risk at a level
and to an extent consistent with [*****]. Amdocs shall, [*****] provide Clearwire with two copies
of all reports prepared by Amdocs relevant to Amdocs’ enterprise-wide financial or operational
controls or risk management practices, or such controls and practices, including Amdocs’
third-party audit report, when such reports pertain to the Services. Amdocs will make available
[*****] to Clearwire, [*****] the results of any audit conducted pursuant to [*****] (or any
applicable successor thereto) for Amdocs, any of Amdocs’ Affiliates or their contractors, agents
or representatives relating to Amdocs’ operating practices and procedures to the extent related to
the Services or Clearwire. Clearwire and Amdocs will mutually agree upon the scope and degree of
the controls to be tested prior to the commencement of any audit under this paragraph.

               (d) In addition, Amdocs will cause independent auditors to conduct [*****], and make
available promptly to Clearwire the results of, an audit conducted under [*****] (or any
applicable successor thereto) of Amdocs, its Affiliates or their contractors, agents or
representatives relating to Amdocs’ operating practices and procedures to the extent related to
the Services or Clearwire. The report prepared shall be a [*****] report under such standard and
the auditors preparing it shall be a firm of certified public accountants that is registered with
the Public Company Accounting Oversight Board [*****]. Clearwire and Amdocs will mutually
establish the criteria for and timing of such annual audits, but if Clearwire does not specify the
timing of any such audits then Amdocs will deliver or arrange for delivery of the results of the
audits for the period ending [*****], to be delivered to Clearwire prior to [*****], including any
renewal period and the term of any post termination transition services.

               (e) If the auditor determines that Amdocs’ systems, processes and controls employed in
providing the Services contain [*****] material weaknesses or significant deficiencies, or
otherwise fail to meet and comply in any material respect (that would prohibit Clearwire from
fulfilling certification obligations required by any law or regulation) with standards that
minimize operational and

 

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financial risk, Clearwire may request and Amdocs will implement [*****].
Clearwire will cause its independent auditors to confirm, [*****] that such matters [*****]. To
the extent that Clearwire desires that an independent auditor conduct additional [*****] audits
other than in accordance with the preceding provisions of this Section it may do so, but such
audits will be conducted [*****]. Clearwire will have the right to share [*****] audit reports,
and the certifications provided for under paragraph (d) with Clearwire Affiliates and Clearwire
Entities, including resellers (i.e., those partners of Clearwire who
purchase service from Clearwire and resell it on a wholesale basis), provided that such
resellers are bound by confidentiality obligations consistent with those set forth in this
Agreement and Clearwire obtains Amdocs’ consent to such sharing of the [*****] audit reports
[*****].

               (f) Amdocs will provide, [*****] an annual year-end representation letter, in form and
substance reasonably satisfactory to Clearwire, that confirms that no material changes have
occurred in Amdocs’ processes between the period of the delivered [*****] report and Clearwire’s
fiscal year end. If significant changes have occurred, Amdocs will be responsible for any
additional audit work required in order to provide comfort with the controls around the new or
changed process. Such annual representation letter will be delivered within [*****] of the end of
Clearwire’s fiscal year.

               (g) Amdocs shall provide Clearwire with commercially reasonable assistance enabling Clearwire
to meet its audit requirements as set forth in this Section 13.2 (Audits, Records).

               (h) Amdocs shall provide to Clearwire and its authorized representatives who agree to be
bound by obligations of confidentiality similar to those set forth in Section 7 (Confidential
Information and Security) (and in the case of Third-Party consultants other than Clearwire’s
independent auditors, who sign a confidentiality agreement with Amdocs containing substantially
similar obligations of confidentiality) access to the Data Centers and Amdocs’ operations so as to
enable Clearwire to validate Amdocs’ operations relating to the performance of the Services
hereunder. Amdocs shall further provide to Clearwire’s independent auditors, who agree to be
bound by obligations of confidentiality similar to those set forth in Section 7 (Confidential
Information and Security) access to the pertinent portions of its records and books of accounts to
enable Clearwire (through such independent auditors) to conduct appropriate validations (“Audits”)
of Amdocs’ invoices to Clearwire relating to the performance of Services. Such records and
reports shall be maintained by Amdocs at a principal business office and Clearwire, upon prior
written notice, may examine and make extracts of information and copy parts thereof to the extent
necessary for Clearwire to validate the accuracy of Amdocs’ invoices, at any reasonable time
during normal business hours. The Audits shall be for the purpose of validating that:

                    (i) [*****];

                    (ii) [*****];

                    (iii) [*****];

                    (iv) [*****];

                    (v) [*****].

               (i) Audits shall:

 

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                    (i) occur no more than [*****], unless required to meet Clearwire Legal Requirements;

                    (ii) not be permitted if it materially impact on Amdocs’ ability to perform the Services in
accordance with the CPSs, unless Clearwire relieves Amdocs from meeting the applicable CPSs;

                    (iii) be conducted expeditiously, efficiently, and at mutually agreed upon business hours; and

                    (iv) be conducted upon reasonable prior written notice, which normally shall be at least
[*****], but may be less if Amdocs and Clearwire agree that certain Audits, such as security
Audits, may be conducted upon shorter notice.

               (j) Clearwire and its auditors shall have access to Amdocs locations to the extent reasonably
necessary to Audit Amdocs’ performance of the Services, including without limitation, compliance
with the security requirements set forth in this Agreement and the Parties will cooperate in good
faith to protect the interests and privacy of other Amdocs customers served from such locations.

               (k) Clearwire shall be permitted to designate a Third Party auditor (who is not an Amdocs
Competitor) to perform the Audit, [*****] on a non-contingent basis, provided such Third Party
auditor agrees to be bound by confidentiality obligations similar to those set forth in Section 7
(Confidential Information and Security).

               (l) If an Audit demonstrates that Amdocs’ invoices for the Services for the audited period
were not correct, Amdocs shall promptly credit Clearwire for the amount of any paid overcharges,
or Clearwire shall promptly pay Amdocs for the amount of any undercharges. In the event that any
Audit reveals an overcharge greater than [*****] for the audited period, [*****] shall pay the
direct expenses associated with such Audit.

               (m) Amdocs shall incorporate this paragraph verbatim into any agreement it enters into with
any Subcontractor providing Services under this Agreement, changing it only to substitute the name
of the Subcontractor for that of Amdocs.

	 	13.3	 	Data Privacy

          In performing their obligations hereunder, the Parties agree to comply with the data privacy
requirements set forth in Schedule P.

	 	13.4	 	Force Majeure

               (a) As used herein, “Force Majeure Event” shall mean a cause beyond the reasonable control of
a non-performing Party, including but not limited to acts of God, act of governmental body or
military authority, fire, explosion, power failure, flood, epidemic, riot or civil disturbance,
war, sabotage, , insurrections, blockades, embargoes, storms, earthquakes, elements of nature,
terrorism, rebellions or revolutions in the United States, or similar event; provided, however,
that “Force Majeure Event” expressly excludes the following: any event that Amdocs could
reasonably

 

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have prevented by testing, work-around, or other exercise of diligence, including (but
not limited to) any failure to provide Services in accordance with the provisions of this
Agreement as a result of any power failure that could have been prevented by access to redundant
power supplies; any strike, walkout, or other labor shortage that could have been prevented by
automation of functions necessary to provide the Services or negotiations; any failure of any
system, facilities, or hardware that could have
been prevented by testing, and any cause or event caused by the negligence of a Party or a
breach by a Party of this Agreement.

               (b) Neither Party will be liable for any default or delay in the performance of its
obligations (including but not limited to Default), to the extent that such default or delay is
caused, directly or indirectly, by a Force Majeure Event. However, the Party suffering the Force
Majeure Event shall have a duty to mitigate the effects of the Force Majeure Event (to the extent
such Force Majeure Event does not prevent such mitigation) and, except as otherwise expressly
provided in this Agreement, shall not be entitled to damages or reimbursement for its losses or
additional costs suffered as a result of the Force Majeure Event.

               (c) If a Force Majeure Event is the material contributing cause of a Party’s failure to
perform any of its obligations hereunder, such obligations, after notification by such Party to
the other Party, shall be deemed suspended to the extent such obligations are directly affected by
such Force Majeure Event, until the Force Majeure Event has ended and a reasonable period of time
for overcoming the effects thereof has passed; provided, however, that if a Force Majeure Event
results in Amdocs being unable to perform during any period any or all of the Services in
accordance with the terms hereof, Clearwire shall: (i) not be required to pay for any such
Services which Amdocs is unable to perform; (ii) be entitled, without the payment of the fees
described in Section 6.2.1, to engage an alternate provider, on an interim basis, to perform the
Services that Amdocs is unable to perform as a result of the Force Majeure Event until such time
as Amdocs is able again to perform the Services in accordance with the terms hereof; (iii) be
entitled to benefit from a share of Amdocs’ resources devoted to returning Amdocs to full
performance of all Services hereunder, that is equal to or greater than the share of such
resources that Amdocs allocates to other of its customers with whom it has agreements that are
similar to this Agreement; and (iv) have the right to terminate this Agreement in accordance with
the terms of Section 6.2.2. Both Parties shall use their best efforts to minimize delays that
occur due to a Force Majeure Event; provided, however, that this Section shall not be construed so
as to require Amdocs to provide disaster recovery services beyond those described in the in the
Disaster Recovery Plan as such Disaster Recovery Plan may be revised from time to time by
agreement of the Parties.

               (d) This Section does not affect Amdocs’ obligation to provide the disaster recovery services
to the extent set forth in the Disaster Recovery Plan, provided that the Force Majeure Event does
not prevent the provision of such disaster recovery services by Amdocs.

	 	13.5	 	Freedom of Action

               (a) Amdocs may enter into similar agreements with others and develop and provide hardware,
software, or services that are similar to or competitive with the hardware, software, and Services
provided under this Agreement, except to the extent that such hardware, software, or services
infringe Clearwire’s patent rights or copyrights, misappropriate or use in any manner Clearwire’s
Confidential Information.

 

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               (b) Amdocs personnel providing Services to Clearwire under this Agreement may perform similar
services for others, and may use the Customized Materials to the extent permitted under Section 8
(Intellectual Property Rights), but only so long as those Amdocs personnel shall not use
or convey any of Clearwire’s Confidential Information (including any such Confidential
Information contained, if any, in the Customized Materials).

	 	13.6	 	Governing Law and Jurisdiction

               (a) The laws of the State of New York will govern the construction and enforcement of all of
the rights, duties, and obligations arising under, or relating in any manner to, the subject matter
of this Agreement, notwithstanding any conflicts of law principles.

               (b) Except as specifically otherwise provided under this Agreement, any dispute under this
Agreement that cannot be resolved amicably through the escalation procedure described in Section
4.3.5, shall be referred to and resolved by arbitration, [*****]. Each arbitrator shall have at
least five years of experience in international business. The arbitration shall be conducted in
New York City by three Arbitrators and the language of the arbitration shall be English. The
Arbitrator shall be appointed by agreement of the Parties; in the event that the Parties fail to
agree upon the appointment of the Arbitrator within [*****] after a notice of arbitration is given
by either Party to the other, then the Arbitrator shall be selected and appointed at the request of
either Party [*****]. The Arbitrators’ decisions shall be based upon the provisions of this
Agreement, including, but not limited to, the provisions of Section 6, Section 10, and Section 11.
The Arbitrators shall have no power or authority to make or issue orders of any kind except as
permitted by this Agreement. The Arbitrators will be required to furnish, promptly upon conclusion
of the arbitration, a written decision, setting out the reasons for the decision. The decision of
the Arbitrator shall be final and binding on the Parties, shall not be subject to appeal, and shall
be enforceable by either party in any court of competent jurisdiction. Judgment on the award or
any other final or interim decision rendered by the tribunal may be entered, registered or filed
for enforcement purposes in any court having jurisdiction thereof. [*****].

               (c) The Parties waive the right to a jury trial of any issue that is properly the subject of
arbitration under this Agreement.

               (d) Nothing in this Agreement affects any statutory rights that cannot be waived or limited by
contract under applicable law.

	 	13.7	 	Risk of Loss

          Clearwire is responsible for risk of loss of and damage to equipment owned, leased, or rented
by Amdocs that is located on Clearwire’s premises and any loss of and damage to software owned by
or licensed to Amdocs that is in Clearwire’s possession at the time of such loss or damage. Amdocs
is responsible for risk of loss of and damage to equipment owned, leased, or rented by Clearwire
that is located on Amdocs’ premises and any loss of and damage to software owned by or licensed to
Clearwire that is in Amdocs’ possession at the time of such loss or damage.

	 	13.8	 	Interpretation

 

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          Amdocs and Clearwire drafted and negotiated this Agreement jointly, and such Agreement shall
be construed neither against nor in favor of either, but rather in accordance with its fair
meaning. Time is of the essence in the performance of Amdocs obligations hereunder.

	 	13.9	 	Modifications

               (a) Modifications to this Agreement may be made only by a written amendment signed by
authorized representatives for each of the Parties.

               (b) Any terms on any order or written understanding that are not signed by Amdocs and
Clearwire are void. Any pre-printed terms that may appear on Amdocs’ invoices or any of
Clearwire’s documents which add to, vary from or conflict with the provisions of this Agreement
shall be void.

               (c) Modifications in any other form are void.

	 	13.10	 	Notifications and Approvals

               (a) Any notification, demand or communication which under the terms of this Agreement or
otherwise must or may be given or made by Amdocs or Clearwire shall be in writing and shall be:
(i) given in person, (ii) made by any delivery (courier) services requiring signature of receipt
or by fax, addressed or transmitted as the case may be, to the respective Parties’ addresses
specified below, or (iii) sent by local postal services as provided below.

               (b) Amdocs and Clearwire may also communicate with each other for their day-to-day project
activities and management to be performed under this Agreement by electronic means. An
identification code (called a user ID) contained in an electronic document will be deemed
sufficient to verify the sender’s identity and the document’s authenticity.

               (c) Unless specified otherwise in this Agreement, when either Party is required to provide
notice to the other, such notice shall be deemed given upon the earlier of:

                    (i) when delivered within the same country, upon the earlier of:

                         (1) the day of receipt, if delivered in person or electronically;

                         (2) the first business day after being given to an express courier with a reliable system for
tracking delivery or the transmission by fax and receipt by the sender of a confirmation of
transmission showing successful completion of the transmission; or

                         (3) the third business day after the date of mailing, when using local postal services,
registered or certified mail (airmail or first class mail), return receipt requested, postage
prepaid; and

                    (ii) when delivered to Amdocs or Clearwire in a different country:

                         (1) in person, electronically or by fax, the same as above; or

 

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                         (2) by express courier or postal services, as provided above within the time frames for
delivery generally stated by the courier service or the local postal service, respectively, but no
greater than ten (10) business days.

     Amdocs and Clearwire shall provide notifications under this Agreement to the following:

If to Amdocs:

AMDOCS SOFTWARE SYSTEMS LIMITED

1ST Floor, Block S

East Point Business Park Dublin 3, Ireland

Telephone: +353 1 4393661

Fax: +353 1 8230970

Attention: Division President; Managed Services

With copies to:

Amdocs

Harborside Financial Center

Plaza 5, Suite 2700

Jersey City, NJ 07311

Attention: General Counsel

Telephone: (201) 631-3200

Fax: (201) 631-3269

If to Clearwire:

4400 Carillon Point

Kirkland, WA 98033

Attention: Chief Financial Officer

Telephone: (425) 216-7794

Facsimile: (425) 216-7195

With a copy to the attention of Chief Customer Care Officer addressed as follows:

4400 Carillon Point

Kirkland, WA 98033

Attention: Chief Customer Care Officer

Telephone: (702) 965-1440

And an additional copy to the attention of Clearwire’s counsel addressed as follows:

4400 Carillon Point

Kirkland, WA 98033

Attention: General Counsel

Telephone: (425) 216-7859

Fax: (425) 216-7776

 

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               (d) Either Party may change its address, phone, and facsimile numbers for notification
purposes by giving the other prior written notice of the new information and its effective date.

	 	13.11	 	Publicity

               (a) Each Party must obtain the other’s prior written consent before publicly using any
advertising, written sales promotion, press releases, or other publicity matters relating to this
Agreement or in which the other’s name is used or may reasonably be inferred which consent shall
not be unreasonably withheld; provided, however, that the Parties agree that Amdocs during the
Term may publicly refer to Clearwire as its customer, and refer to the existence of this Agreement
(but not disclose any of the contents hereof).

               (b) Notwithstanding paragraph (a) above, each of the Parties may include the names of the
Parties, the existence of this Agreement, and a factual description of the work performed under
this Agreement:

                    (i) on employee bulletin boards;

                    (ii) in internal business planning documents;

                    (iii) in its annual report to stockholders; and

                    (iv) whenever necessary to comply with generally accepted accounting principles or applicable
laws.

               (c) The Parties agree that, upon the execution of this Agreement, Clearwire and Amdocs will
issue a joint press release regarding the scope of this Agreement, provided that the content of
the press release and the timing of its distribution are agreed to by both Parties and the press
release has received the prior written approval and consent of Clearwire and Amdocs.

	 	13.12	 	Relationship, Subcontractors

               (a) This Agreement shall not be construed as:

                    (i) constituting either Party to be a partner of the other;

                    (ii) creating any form of legal association between Clearwire and Amdocs that would impose
liability upon one for the act or failure to act of the other, or any form of a fiduciary
relationship or duty between Amdocs and Clearwire; or

                    (iii) granting Clearwire or Amdocs the right, power, or authority (express or implied) to
create any duty or obligation for the other.

               (b) Amdocs may perform its obligations hereunder as follows: (i) through any Subsidiaries of
Amdocs’ ultimate parent corporation, without the need to request Clearwire’s consent; (ii) through
Amdocs ultimate parent corporation without the need to request Clearwire’s consent; or (iii)
through the use of Amdocs-selected independent contractors, including hardware and

 

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software
vendors; provided, however, that Amdocs shall not perform in excess of [*****] of the Services
(determined on the basis of actual hours worked and actual headcount during any month of the Term)
using such Amdocs-selected contractors without the prior written consent of Clearwire, which
consent shall not be unreasonably withheld, and in all events, subject to such entities being
bound by confidentiality obligations similar to those set forth in Section 7 hereof. Amdocs
shall not be relieved of its obligations under this Agreement by use of any Subcontractors,
including its obligations herein with
respect to performance standards service levels and quality. All Amdocs Subcontracts
(including purchase orders) shall specify that the Subcontractor is, to the extent applicable,
subject to, and bound by, all of the duties and obligations of Amdocs under this Agreement.
Amdocs shall be responsible for supervising the activities and performance of each Subcontractor
and shall be jointly and severally responsible with each Subcontractor for any act or failure to
act of such Subcontractor. If Clearwire determines in good faith that the performance or conduct
of any Amdocs Subcontractor is unsatisfactory, Clearwire may notify Amdocs of its determination in
writing, indicating the reasons therefor, in which event Amdocs shall promptly take all necessary
actions to remedy promptly the performance or conduct of such Subcontractor or to replace such
Subcontractor by another Third Party or by Amdocs personnel. Upon Clearwire’s request, Amdocs
shall promptly provide to Clearwire, for Clearwire’s review, a copy of any material contract
between Amdocs and a Subcontractor of Amdocs that relates to the performance of the Services
hereunder provided that any such contracts shall be considered “Confidential Information”
hereunder; and provided, further, that except with respect to the Print Vendor Pass Through
Agreement, Amdocs shall be permitted to redact any pricing information contained in such contracts
prior to providing them to Clearwire. Amdocs covenants that its arrangements with Subcontractors
shall not prohibit or restrict such Subcontractors from entering into direct agreements with
Clearwire.

	 	13.13	 	Severability

          If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
remaining provisions of this Agreement shall not in any way be affected or impaired, and the
invalid, illegal, or unenforceable provision shall be restated to reflect the original intentions
of Clearwire and Amdocs under this Agreement as nearly as possible in accordance with applicable
laws.

	 	13.14	 	Survival

          Any terms of this Agreement that by their nature extend beyond its expiration or termination
shall remain in effect until fulfilled, including Section 1; Section 7, Section 13.6, Section 9,
Section 8, Section 10, Section 5.2, Section 13.14, Section 13.15, and Section 11, as well as any
specific limitations period.

	 	13.15	 	Third Party Beneficiaries

          This Agreement does not create any benefits, rights, claims, obligations, or causes of action
in, to, or on behalf of, any person or entity (including Affiliates, Third Parties, or
Subcontractors) other than to Clearwire and Amdocs under this Agreement, except as set forth in
Section 9 and Section 10.

	 	13.16	 	Waiver

 

- 75 -

			
	Customer Care and Billing Services Agreement
	 	Confidential

 

 

          The exercise or waiver, in whole or in part, of any right, remedy, or duty provided for in
this Agreement shall not constitute the waiver of any prior, concurrent, or subsequent right,
remedy, or duty within this Agreement.

	 	13.17	 	Captions; Section Numbers

          Captions, Tables of Contents, Indices of Definitions, and Schedule and Exhibit titles are used
herein for convenience only and may not be used in the construction or interpretation of this
Agreement. Any reference herein to a particular Section number (e.g., “Section [___]”),
shall be deemed a reference to all Sections of this Agreement that bear sub-numbers to the number
of the referenced Section (e.g., Sections [___], [___], etc.).

	 	13.18	 	Counterparts

          This Agreement may be executed in duplicate counterparts. Each such counterpart shall be an
original and both together shall constitute but one and the same document. This Agreement shall
not be deemed executed unless nor until at least one counterpart bears the signatures of both
parties’ designated signatories.

	 	13.19	 	Entire Agreement

          The terms and conditions contained in this Agreement constitute the entire Agreement between
Clearwire and Amdocs with respect to the subject matter hereof and supersede all prior oral and
written quotations, communications, representations, agreements and understandings of the Parties
with respect to the subject matter hereof (including but not limited to the Letter of Agreement
between the Parties dated December 15, 2008).

	 	13.20	 	Order of Precedence

          In the event of conflict in substance or impact between this Agreement and any Schedule,
Attachment, or Exhibit, this Agreement controls, subject to the right of Clearwire and Amdocs to
mutually amend this Agreement and Attachments, Exhibits, and Schedules as set forth herein.

(signature page follows)

 

- 76 -

			
	Customer Care and Billing Services Agreement
	 	Confidential

 

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth
above.

	 	 	 	 	 	 	 	 	 	 	 
	CLEARWIRE US LLC	 	 	 	AMDOCS SOFTWARE SYSTEMS LIMITED	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ William Morrow
	 	 
	 	By:
	 	/s/ Neville Walker
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	William Morrow
	 	 	 	Name:
	 	Neville Walker	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	Deputy General Manager	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

- 77 -

			
	Customer Care and Billing Services Agreement
	 	ConfidentialEX-10.1

Exhibit 10.1

September 11, 2003

As amended on August 11, 2005

As amended and restated as of December 31, 2008

As amended and restated as of May 11, 2009

Mr. Lawrence Rutkowski

9 Stallion Trails

Greenwich, CT 06831

Dear Larry,

     This amended and restated letter agreement is made and entered into between The Warnaco Group,
Inc. (together with its subsidiaries, divisions and affiliates, the “Company”) and you to be
effective as of the close of business on May 11, 2009 and reflects our best efforts to comply
with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended from time to
time (the “Code”), and its implementing regulations and guidance (“Section 409A”). As such, as of
the close of business on May 11, 2009, this letter agreement amends and restates the letter
agreement between us dated as of September 11, 2003, as amended on August 11, 2005 and as amended and restated as of December 31, 2008. Except as
otherwise provided in this agreement, the terms of your employment with the Company shall be
governed by the Warnaco Job Application and current Employee Handbook.

	 	1.	 	The Company agrees to employ you and you agree to serve as Senior Vice
President and Chief Financial Officer of the Company, and you shall have such
authorities, duties and responsibilities commensurate with the position of Chief
Financial Officer. In carrying out your duties, you shall report to the Chief Executive
Officer of the Company. You agree to devote your full time and best efforts to the
satisfactory performance of such services and duties as the position requires, and you
shall be entitled to (i) serve on the boards of directors of trade associations and
charitable organizations, subject to the good faith approval of the Chief Executive
Officer of the Company and the Company’s Board of Directors which approval shall not be
unreasonably withheld, (ii) engage in charitable activities and community affairs and
(iii) manage your personal investments and affairs, provided that such activities do
not interfere with the proper performance of your duties and responsibilities for the
Company. The Company acknowledges that as of the Effective Date, the Executive is
employed by the Company as Executive Vice President and Chief Financial Officer.
	 
	 	2.	 	The term (the “Term”) of your employment under this letter agreement began as
of September 11, 2003 (the “Commencement Date”) and shall end at the close of business
on the second anniversary of the Commencement Date; provided, however, that the Term
shall thereafter be automatically extended for additional one-year periods unless
either you or the Company gives the other written notice at least 120 days prior to the
then-scheduled expiration of the Term that such party is electing not to so extend the
Term. Notwithstanding the foregoing, the Term shall end on the date on which your
employment is terminated by either party in accordance with the provisions herein.

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 2

	 	3.	 	Your compensation shall be as follows:

	 	a.	 	During the Term, you shall be paid an annual base salary of
$550,000 (“Base Salary”), payable in semi-monthly payments of $22,916.66. Your
Base Salary may be reviewed annually by the Chief Executive Officer and may be
increased based on such performance review within the Company’s discretion. You
shall not be entitled to any additional compensation for service as an officer
or member of any board of directors of any affiliate of the Company. The
Company acknowledges that as of the Effective Date, Base Salary is $600,000,
payable in semi-monthly payments of $25,000.
	 
	 	b.	 	During the Term, you shall be eligible to receive an annual
cash incentive award with a target of 70% of Base Salary (“Target Bonus”),
based on your achievement of annual performance and other targets established
by the Chief Executive Officer of the Company and the Company’s Board of
Directors in consultation with you. The amount and payment of any such award
shall be determined in accordance with the Company’s annual incentive program
for senior executives. The Company acknowledges that as of the Effective Date,
Target Bonus is 85% of Base Salary.

	 	i.	 	For fiscal year 2003, you shall receive a
guaranteed pro-rata annual incentive award, which shall be calculated
by multiplying the annual incentive award you would have been entitled
to receive if you had been employed for a full fiscal year based on the
Target Bonus and the Company’s achievement of the applicable
performance targets by a fraction, the numerator of which is the number
of days you were employed during fiscal year 2003 and the denominator
of which is 365. Any annual incentive award, including any annual
incentive award for fiscal year 2003, shall be payable to you when
bonuses for the applicable performance period are paid to other senior
executives of the Company, but in all events no later than the
60th day following the end of the fiscal year for which the
annual incentive award has been earned.

	 	c.	 	Pursuant to the Warnaco 2003 Stock Incentive Plan (the “Plan”),
on your start date, you were granted 50,000 shares of restricted stock
(“restricted stock”) and an option to purchase 200,000 shares of the Company’s
outstanding common stock (the “option”), subject to the terms and conditions of
such awards as set out in the Plan. You may also be eligible to receive future
grants of restricted stock and/or options or other forms of equity compensation
at the sole discretion of the Compensation Committee of the Board of Directors.

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 3

	 	i.	 	Except as otherwise provided herein, the
restricted stock as described herein and the option as described herein
shall vest 25% on February 29, 2004 and shall vest 25% on each of
February 28, 2005, February 28, 2006 and February 28, 2007, provided
that you are employed by the Company on such vesting date and have not
given notice to the Company that you are voluntarily resigning, without
Good Reason (as defined in Exhibit A) prior to such vesting
date. The form of the Restricted Stock Award Agreement for the
restricted stock was attached as Exhibit B to the form of this
letter agreement dated as of September 11, 2003. The form of the
Non-Qualified Stock Option Agreement for the option was attached as
Exhibit C to the form of this letter agreement dated as of
September 11, 2003.
	 
	 	ii.	 	You shall be subject to the equity ownership,
retention and other requirements applicable to senior executives of the
Company. Except as otherwise expressly provided herein, all equity
grants shall be governed by the applicable plan and award agreement, as
in effect on the date hereof and as may be hereafter changed in
accordance with such plan and agreement.

	 	d.	 	During the Term beginning with fiscal year 2005, provided you
are employed by the Company, you shall be entitled to an annual award with an
aggregate grant date value equal to 8% of the sum of Base Salary plus Annual
Bonus as defined in this paragraph 3(d) if you will be less than age 50 by the
end of the applicable fiscal year, 10% of such amount if you will be age 50 and
over and less than age 60 at the end of the applicable fiscal year and 13% of
such amount if you will be age 60 or older by the end of the applicable fiscal
year (“Supplemental Award”), with the first such award being made no later than
60 days after the Effective Date. For this purpose, Base Salary shall be the
Base Salary paid to you for the fiscal year prior to the award year and Annual
Bonus shall be the annual bonus awarded to you by the Board for such fiscal
year. The Supplemental Award shall not be awarded to you until after the
determination by the Board of your annual bonus for the prior fiscal year (but
in no event later than 60 days thereafter for any award made after fiscal year
2005) and 50% of the value of the Supplemental Award shall be awarded in the
form of restricted shares pursuant to the applicable Stock Incentive Plan
(“Career Shares”) and 50% shall be awarded in the form of a credit to a
bookkeeping account maintained by the Company for your account (the “Notional
Account”). Any Career Shares awarded hereunder shall be governed by the
applicable Stock Incentive Plan and, if applicable, any award agreement. For
purposes of this paragraph 3(d), each Career Share

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 4

shall be valued at the closing price of a share of the Company’s common
stock (“Share”) on the date that the Supplemental Award is made. For the
Notional Account, the Company shall select the investment alternatives
available to you under the Company’s 401(k) plan. The balance in the
Notional Account shall periodically be credited (or debited) with the deemed
positive (or negative) return based on returns of the permissible investment
alternative or alternatives under the Company’s 401(k) plan as selected in
advance by you (and in accordance with the applicable rules of such plan or
investment alternative) to apply to such Notional Account, with such deemed
returns calculated in the same manner and at the same times as the return on
such investment alternative(s). The Company’s obligation to pay the amount
credited to the Notional Account, including any return thereon provided for
in this paragraph 3(d), shall be an unfunded obligation to be satisfied from
the general funds of the Company. Except as otherwise provided in
paragraphs 6 or 8 below or the applicable Stock Incentive Plan and provided
that you are employed by the Company on such vesting date, any Supplemental
Award granted in the form of Career Shares will vest as follows: 50% of the
Career Shares will vest on the earlier of your 62nd birthday or
upon your obtaining 15 years of “Vesting Service” and 100% of the Career
Shares will vest on the earliest of (i) your 65th birthday, (ii)
upon your obtaining 20 years of “Vesting Service” or (iii) 10th
anniversary of the date of grant. Except as otherwise provided in
paragraphs 6 or 8 below, and provided that you are employed by the Company
on such vesting date, any Supplemental Award granted as a credit to the
Notional Account (as adjusted for any returns thereon) (“Adjusted Notional
Account”)) shall vest as follows: 50% on the earlier of your
62nd birthday or upon your obtaining 5 years of “Vesting Service”
and 100% on the earlier of the your 65th birthday and upon your
obtaining 10 years of “Vesting Service”. For purposes of this paragraph
3(d), “Vesting Service” shall mean the period of time that you are employed
by the Company as an executive officer. Subject to paragraph 27 hereof,
upon vesting the Career Shares will be delivered to you in the form of
Shares. In addition, any unvested Adjusted Notional Account shall vest upon
a Change in Control as defined in clauses (i) or (ii) of the definition of
“Change in Control” on Exhibit A attached hereto if such event qualifies as
a “change in control event” under Section 409A (“409A CIC Event”). The
vested balance in the Adjusted Notional Account, if any, shall not be
distributed to you until there has been a Separation From Service (as
defined in Exhibit A attached hereto) or, if earlier, there has been a 409A
CIC Event and, at such time, shall only be distributed at the earliest time
that satisfies the requirements of this paragraph 3(d). Upon a 409A CIC
Event, the vested Adjusted Notional Account shall be paid to you in a
lump-sum cash payment. In addition, if

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 5

your employment is terminated for any reason, after taking into account
paragraph 6 or paragraph 8 hereof, any unvested Supplemental Awards (whether
in the form of Career Shares or the Adjusted Notional Account) shall be
forfeited and any vested balance in the Adjusted Notional Account, subject
to paragraph 27 hereof, shall be paid to you in a cash lump-sum payment
immediately following your Separation From Service; provided, however, that
if you are a “specified employee” as determined pursuant to Section 409A as
of the date of your Separation From Service, such distribution shall not be
made until the earlier of your death or the first business day of the
seventh calendar month following the month in which your Separation From
Service occurs; provided, further, that if your employment is terminated due
to Disability and such Disability satisfies the requirements of Section
409A(a)(2)(C) of the Code or the Treasury Regulations implementing such
section, then such distribution may be made upon your Separation From
Service without regard to whether you were a “specified employee” at such
time. You can elect to delay the time and/or form of payment of the
Adjusted Notional Account under this paragraph 3(d), provided such election
is delivered to the Company in writing at least 12 months before the
scheduled payment date for such payment and the new payment date for such
payment is not earlier than (i) your death, (ii) your “disability” which
satisfies the requirements of Section 409A(a)(2)(C) and its implementing
regulations, or (iii) five (5) years from the originally scheduled payment
date. Upon the expiration or termination of the Term, the vesting and
payment dates in this paragraph 3(d) (without regard to paragraphs 6 or 8,
except as otherwise expressly provided in paragraph 8 of this Agreement) and
the election right in this paragraph 3(d) shall continue to apply to any
outstanding Supplemental Award.

	 	4.	 	While you are employed by the Company, and subject, of course, to the Company’s
right to amend, modify or terminate any benefit plan or program, you shall be entitled
to participate in all Company employee benefit plans applicable to senior executives,
including the following benefits/perquisites:

	 	a.	 	Reimbursement of reasonable business expenses incurred in
carrying out your duties and responsibilities under this agreement, subject to
documentation in accordance with Company policy.
	 
	 	b.	 	Perquisites provided to other senior executives, including a
monthly car allowance of up to $700.
	 
	 	c.	 	Vacation — four weeks paid vacation per calendar year.

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 6

Notwithstanding anything elsewhere to the contrary, except to the extent any
reimbursement, payment or entitlement pursuant to this paragraph 4 does not
constitute a “deferral of compensation” within the meaning of Section 409A, (i) the
amount of expenses eligible for reimbursement or the provision of any in-kind
benefit (as defined in Section 409A) to you during any calendar year will not affect
the amount of expenses eligible for reimbursement or provided as in-kind benefits to
you in any other calendar year, (ii) the reimbursements for expenses for which you
are entitled shall be made on or before the last day of the calendar year following
the calendar year in which the applicable expense is incurred and (iii) the right to
payment or reimbursement or in-kind benefits may not be liquidated or exchanged for
any other benefit.

	 	5.	 	In the event your employment is terminated without Cause (as defined in
Exhibit A) by the Company (other than upon death or due to Disability (as
defined in Exhibit A)) or you resign for Good Reason (as defined in Exhibit
A) (other than due to Disability) during the Term, you shall be entitled to:

	 	a.	 	Base Salary through the Date of Termination (as defined in
Exhibit A), payable on the first regularly scheduled payroll date
following the Date of Termination.
	 
	 	b.	 	Payment of an amount equal to the Base Salary that would have
been payable to you from the Date of Termination through the expiration date
for the original Term, but in no event less than one times Base Salary, payable
in a cash lump sum to you as soon as practicable following the Date of
Termination (but in no event later than 60 days following such date).
	 
	 	c.	 	A pro-rata bonus for the fiscal year in which the Date of
Termination occurs, based on the Company’s performance for such year
(determined by multiplying the amount you would have received had your
employment continued through the end of such fiscal year by a fraction, the
numerator of which is the number of days during such fiscal year that you are
employed by the Company and the denominator of which is 365), payable when
bonuses for such fiscal year are paid to other Company executives (which
payment date shall be no earlier than January 1st and no later than
March 15th of the year following the year in which the Date of
Termination occurs).
	 
	 	d.	 	Immediate vesting of that portion of the restricted stock
described in paragraph 3(c) above that would have vested if you had been
employed on the vesting date immediately following the Date of Termination.

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 7

	 	e.	 	That portion of the option described in paragraph 3(c) above
that has vested as of the Date of Termination remaining exercisable for two
years following the Date of Termination.
	 
	 	f.	 	Continued participation on the same terms as immediately prior
to the Date of Termination (including costs of premiums) for you and your
eligible dependents in the Company’s medical and dental plans in which you and
your eligible dependents were participating immediately prior to the Date of
Termination until the earlier of (a) the end of the applicable Term (without
regard to its earlier termination hereunder), but in no event less than 12
months, or (b) the date, or dates, you receive equivalent coverage under the
plans and programs of a subsequent employer.
	 
	 	g.	 	Outplacement counseling and use of an office during the period
Base Salary is paid as salary continuation under paragraph 5(b) above.
	 
	 	h.	 	Any amounts earned, accrued or owing to you but not yet paid.
	 
	 	i.	 	As a condition to receiving severance compensation pursuant to
this paragraph 5, you hereby agree to execute and deliver to the Company a
general release of claims in a form acceptable to the Company no later than 45
days following the Date of Termination and not revoke such release within the
applicable revocation period.

	 	6.	 	In the event your employment is terminated upon death or due to Disability
during the Term, you (or your estate or legal representative, as the case may be) shall
be entitled to:

	 	a.	 	Base Salary through the Date of Termination, payable on the
first regularly scheduled payroll date following the Date of Termination.

	 	b.	 	A pro-rata bonus for the fiscal year in which the Date of
Termination occurs, based on the Company’s performance for such year
(determined by multiplying the amount you would have received had your
employment continued through the end of such fiscal year by a fraction, the
numerator of which is the number of days during such fiscal year that you are
employed by the Company and the denominator of which is 365), payable when
bonuses for such fiscal year are paid to other Company executives (which
payment date shall be no earlier than January 1st and no later than
March 15th of the year following the year in which the Date of
Termination occurs).

	 	c.	 	Immediate vesting of 50% of the restricted stock described in
paragraph 3(c) above that remains unvested as of the Date of Termination and
100%

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 8

of that portion of the option described in paragraph 3(c) above that remains
unvested as of the Date of Termination, with any vested portion of such
option remaining exercisable for 12 months following the Date of
Termination.

	 	d.	 	Any amounts earned, accrued or owing to you but not yet paid.
	 
	 	e.	 	Immediate vesting as of the Date of Termination of 50% of any
previously granted Supplemental Award that remains unvested as of the Date of
Termination, payable in accordance with paragraph 3(d) above.

	 	7.	 	In the event the Company terminates your employment for Cause or you
voluntarily resign, you shall be entitled to Base Salary through the Date of
Termination. In the event of your termination for Cause, the unvested restricted stock
described in paragraph 3(c) above and that portion of the option described in paragraph
3(c) above that remains unvested as of the Date of Termination shall be forfeited. In
the event of your voluntary resignation, the unvested restricted stock described in
paragraph 3(c) above and that portion of the option described in paragraph 3(c) above
that remains unvested as of the date on which you provide written notice to the Company
that you are voluntarily resigning shall be forfeited. A voluntary resignation shall be
effective on 60 days prior written notice, subject to early termination by the Company,
and, provided that such notice is given, shall not be deemed to be a breach of this
agreement.
	 
	 	8.	 	In the event your employment is terminated without Cause by the Company (other
than upon death or due to Disability) or you resign for Good Reason (other than due to
Disability), in both cases within one year following a Change in Control (as defined on
Exhibit A) (provided the Term is still in effect or has expired during the
one-year period), you shall be entitled to:

	 	a.	 	Base Salary through the Date of Termination, payable on the
first regularly scheduled payroll date following the Date of Termination.
	 
	 	b.	 	Payment of an amount equal to 2 times the sum of (a) Base
Salary plus (b) Target Bonus, payable in a lump sum as soon as practicable
following the Date of Termination (but in no event later than 60 days following
such date).
	 
	 	c.	 	A pro-rata Target Bonus for the year of termination, determined
by multiplying the Target Bonus by a fraction, the numerator of which is the
number of days that you were employed by the Company during the year in which
the Date of Termination occurs and the denominator of which is 365, payable in
a lump sum as soon as practicable following the Date of Termination (but in no
event later than 60 days following such date).

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 9

	 	d.	 	Immediate vesting of 100% of any of the restricted stock
described in paragraph 3(c) above that remains unvested as of the Date of
Termination and 100% of that portion of the option described in paragraph 3(c)
above that remains unvested as of the Date of Termination, with any vested
portion of such option remaining exercisable for six months following the Date
of Termination and immediate vesting as of the Date of Termination of all other
outstanding equity awards (other than Career Shares), with any stock options
granted on or after August 11, 2005 remaining exercisable for 24 months
following the Date of Termination or the remainder of the option term, if
shorter.
	 
	 	e.	 	Immediate vesting as of the Date of Termination of any
previously granted Supplemental Award, payable in accordance with paragraph
3(d) above.
	 
	 	f.	 	Continued participation on the same terms as immediately prior
to the Date of Termination (including costs of premiums) for you and your
eligible dependents in the Company’s medical and dental plans in which you and
your eligible dependents were participating immediately prior to the Date of
Termination until the earlier of (a) the end of the applicable Term (without
regard to its earlier termination hereunder), but in no event less than 24
months, or (b) the date, or dates, you receive equivalent coverage under the
plans and programs of a subsequent employer.
	 
	 	g.	 	Any amounts earned, accrued or owing to you but not yet paid.
	 
	 	h.	 	As a condition to receiving severance compensation pursuant to
this paragraph 8, you hereby agree to execute and deliver to the Company a
general release of claims in a form acceptable to the Company no later than 45
days following the Date of Termination and not revoke such release within the
applicable revocation period.

	 	9.	 	In the event the Company provides written notice to you in accordance with
paragraph 2 above that the Term shall not renew and upon or at any time after such
expiration of the Term the Company terminates your employment under circumstances that
during the Term would constitute a termination of employment without Cause, you shall
be entitled to:

	 	a.	 	Base Salary through the Date of Termination, payable on the
first regularly scheduled payroll date following the Date of Termination.
	 
	 	b.	 	Payment of an amount equal to one times Base Salary, payable in
a cash lump sum as soon as practicable following the Date of Termination (but
in no event later than 60 days following such date).

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 10

	 	c.	 	That portion of the option described in paragraph 3(c) above
that has vested as of the Date of Termination remaining exercisable for nine
months following the Date of Termination.
	 
	 	d.	 	Continued participation on the same terms as immediately prior
to the Date of Termination (including costs of premiums) for you and your
eligible dependents in the Company’s medical and dental plans in which you and
your eligible dependents were participating immediately prior to the Date of
Termination for six months following the Date of Termination.
	 
	 	e.	 	Any amounts earned, accrued or owing to you but not yet paid.
	 
	 	f.	 	Notwithstanding the foregoing, in the event that (i) the
Company provides written notice to you in accordance with paragraph 2 above
that the Term shall not renew, (ii) upon or after such expiration of the Term
the Company terminates your employment under circumstances that during the Term
would constitute a termination of employment without Cause, and (iii) such
notice of non-renewal of the Term and such termination both occur on or within
one year following a Change in Control, then you shall be entitled to the
payments, benefits and entitlements under paragraph 8 hereof instead of this
paragraph 9.
	 
	 	g.	 	As a condition to receiving severance compensation pursuant to
this paragraph 9, you hereby agree to execute and deliver to the Company a
general release of claims in a form acceptable to the Company no later than 45
days following the Date of Termination and not revoke such release within the
applicable revocation period.

	 	10.	 	Any amounts due to you under paragraphs 5, 6, 8 or 9 are in the nature of
severance payments considered to be reasonable by the Company and are not in the nature
of a penalty. Any payments provided pursuant to paragraph 5, paragraph 8 or paragraph 9
shall be in lieu of any salary continuation arrangements under any other severance
program of the Company.
	 
	 	11.	 	a. Notwithstanding any other provision of this Agreement, upon the termination
of your employment for any reason, unless otherwise requested by the Board, you shall
immediately resign from all boards of directors of any affiliate of the Company, if
any, of which you may be a member, and as a trustee of, or fiduciary to, any employee
benefit plans of the Company or any affiliate of the Company. You agree to execute any
and all documentation of such resignations upon request by the Company, but you shall
be treated for all purposes as having so resigned upon termination of your employment,
regardless of when or whether you execute any such documentation.

 

 

Mr. Lawrence Rutkowski

May 11, 2009

Page 11

	 		 	b. Section 409A. Notwithstanding anything to the contrary in this Agreement
or elsewhere (except for paragraph 3(d) of this Agreement), if you are a “specified
employee” as determined pursuant to Section 409A as of the date of your Separation
From Service and if any payment, benefit or entitlement provided for in this
Agreement or otherwise both (x) constitutes a “deferral of compensation” within the
meaning of Section 409A and (y) cannot be paid or provided in a manner otherwise
provided herein or otherwise without subjecting you to additional tax, interest or
penalties under Section 409A, then any such payment, benefit or entitlement that is
payable during the first six months following your Separation From Service shall be
paid or provided to you in a cash lump-sum on the earlier of your death or the first
business day of the seventh calendar month following the month in which your
Separation From Service occurs. In addition, any payment, benefit or entitlement
due upon a termination of your employment that represents a “deferral of
compensation” within the meaning of Section 409A (other than any payments due
pursuant to paragraph 3(d) of this Agreement) shall only be paid or provided to you
upon a Separation From Service, in which case any reference to “Date of Termination”
in connection with such payment, benefit or entitlement shall be deemed to be a
reference to “Separation From Service” and the actual payment date within the time
specified in the applicable provision of paragraphs 5, 6, 7, 8 or 9 shall be within
the Company’s sole discretion. Notwithstanding anything to the contrary in this
Agreement or otherwise, any payment or benefit under this Agreement or otherwise
which is exempt from Section 409A pursuant to Treasury Regulation Section
1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to you only to the extent the
expenses are not incurred or the benefits are not provided beyond the last day of
your second taxable year following your taxable year in which your Separation From
Service occurs; and provided further that the Company reimburses such expenses no
later than the last day of your third taxable year following your taxable year in
which your Separation From Service occurs. Finally, to the extent that the
provision of any benefit pursuant to paragraph 5(f), paragraph 8(f) or paragraph
9(d) hereof is taxable to you, any such reimbursement shall be paid to you on or
before the last day of your taxable year following your taxable year in which the
expense is incurred and such reimbursement shall not be subject to liquidation or
exchange for any other benefit.
	 
	 	12.	 	You acknowledge that in your capacity in management you have had or will have a
great deal of exposure and access of the Company’s trade secrets and confidential and
proprietary information. Therefore, during the Term and thereafter (provided you are
employed by the Company) and for 12 months following the termination of your employment
with the Company, to protect the Company’s trade secrets and other confidential and
proprietary information, you agree that you will not, other than in the ordinary course
of performing your duties hereunder or as agreed by the Company in writing, engage in a

 

 

Mr. Lawrence Rutkowski

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	 	 	 	“Competitive Business,” directly or indirectly, as an individual, partner,
shareholder, director, officer, principal, agent, employee, trustee, consultant, or
in any relationship or capacity, in any geographic location in which the Company or
any of its affiliates is engaged in business. You shall not be deemed to be in
violation of this paragraph 12 by reason of the fact that you own or acquire, solely
as an investment, up to two percent (2%) of the outstanding equity securities
(measured by value) of any entity. “Competitive Business” shall mean a business
primarily engaged in apparel design, apparel wholesaling or apparel retailing.
	 
	 	13.	 	Upon any termination of employment, you agree to refrain from directly or
indirectly soliciting any employee of the Company or an affiliate of the Company to
terminate his/her employment (excluding, only, your personal assistant) on your own
behalf or on behalf of any other person or entity or from directly or indirectly hiring
any key employee (e.g., any management-level employee or any designer) of the Company
for a period of eighteen (18) months thereafter. In addition, you agree that for a
period of eighteen (18) months following the termination of your employment with the
Company, you will not, without the prior written consent of the Company, directly or
indirectly, solicit or encourage any customer of the Company or any affiliate of the
Company to reduce or cease its business with the Company or any such affiliate of the
Company or otherwise interfere with the relationship of the Company or any affiliate of
the Company with its customers. You and the Company each agree to refrain from making
any statements or comments of a defamatory or disparaging nature to third parties
regarding each other (including, in the case of the Company, an affiliate of the
Company or the Company’s officers, directors, personnel or products). You and the
Company each understand that either party should be entitled to respond truthfully and
accurately to statements about such party made publicly by you or the Company, as the
case may be, provided that such response is consistent with your or the Company’s
obligations not to make any statements or comments of a defamatory or disparaging
nature as set forth herein above.
	 
	 	14.	 	During the Term and thereafter, other than in the ordinary course of performing
your duties for the Company or as required in connection with providing any cooperation
to the Company pursuant to paragraph 20 below, you agree that you will not disclose to
anyone or make use of any trade secret or proprietary or confidential information of
the Company or any affiliate of the Company, including such trade secret or proprietary
or confidential information of any customer or other entity to which the Company owes
an obligation not to disclose such information, which you acquire during the course of
your employment, including, but not limited to, records kept in the ordinary course of
business, except when required to do so by a court of law, by any governmental agency
having supervisory authority over the business of the Company or by any administrative
or legislative body (including a committee thereof) with apparent

 

 

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Page 13

	 	 	 	or actual jurisdiction to order you to divulge, disclose or make accessible such
information. The foregoing shall not apply to information that (i) was known to the
public prior to its disclosure by you or (ii) becomes known to the public through no
wrongful disclosure by or act of you or any of your representatives. In the event
you are requested by subpoena, court order, investigative demand, search warrant or
other legal process to disclose any information regarding the Company, you agree,
unless prohibited by law or Securities and Exchange Commission regulation, to give
the Company’s General Counsel prompt written notice of any request for disclosure in
advance of your making such disclosure and you shall not disclose such information
regarding the Company unless and until the Company has expressly authorized you to
do so in writing or the Company has had a reasonable opportunity to object to such a
request or to litigate the matter (of which the Company agrees to keep you
reasonably informed) and has failed to do so.
	 
	 	15.	 	You hereby sell, assign and transfer to the Company all of your right, title
and interest in and to all inventions, discoveries, improvements and copyrightable
subject matter (the “Rights”) which during the period of your employment are made or
conceived by you, alone or with others, and which are within or arise out of any
general field of the Company’s business or arise out of any work you perform, or
information you receive regarding the business of the Company, while employed by the
Company. You shall fully disclose to the Company as promptly as available all
information known or possessed by you concerning any Rights, and upon request by the
Company and without any further remuneration in any form to you by the Company, execute
all applications for patents and for copyright registration, assignments thereof and
other instruments and do all things which the Company may deem necessary to vest and
maintain in it the entire right, title and interest in and to all such Rights.
	 
	 	16.	 	You agree that at the time of the termination of employment, whether at your
instance or the Company, and regardless of the reasons therefore, you will promptly
deliver to the Company’s General Counsel, and not keep or deliver to anyone else, any
and all of the following which is in your possession or control: (i) Company property
(including, without limitation, credit cards, computers, communication devices, home
office equipment and other Company tangible property) and (ii) notes, files, memoranda,
papers and, in general, any and all physical matter and computer files containing
confidential or proprietary information of the Company or any of the Company’s
affiliates, including any and all documents relating to the conduct of the business of
the Company or any of the Company’s affiliates and any and all documents containing
confidential or proprietary information of the customers of the Company or any of the
Company’s affiliates, except for (x) any documents for which the Company’s General
Counsel has given written consent to removal at the time of termination,

 

 

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	 		 	(y) any documents on your personal computer if you destroy such documents and give
a notarized written affidavit of such destruction and (z) any information necessary
for you to retain for tax purposes (provided you maintain the confidentiality of
such information in accordance with paragraph 14 above).
	 
	 	17.	 	Any failure by you to comply with the provisions of paragraphs 12, 13, 14, 15
or 16 shall relieve the Company of any of its obligations pursuant to this agreement,
including pursuant to paragraphs 5, 6, 8 and 9.
	 
	 	18.	 	From and after the date hereof, should any disagreement, claim or controversy
arise between you and the Company with respect to this agreement, the same may be
enforced at the option of either party by confidential, binding and final arbitration
in New York, New York before a single arbitrator in accordance with the Commercial
Arbitration Rules of the American Arbitration Association. The award of the arbitrator
with respect to such disagreement, claim or controversy shall be enforceable in any
court of competent jurisdiction and shall be binding upon the parties hereto. You
consent to the personal jurisdiction of the Courts of the State of New York (including
the United States District Court for the Southern District of New York) in any
proceedings for equitable relief. You further agree not to interpose any objection or
improper venue in any such proceeding or interpose any defense that the Company has an
adequate remedy at law or that the injury suffered by the Company is not irreparable.
You and the Company agree that each party shall be responsible for its own costs and
expenses, including attorneys’ fees, provided, however, that if you substantially
prevail with respect to all claims that are the subject matter of the dispute, your
costs, including reasonable attorneys’ fees, shall be borne by the Company; provided
that if such costs are not reimbursed in connection with a dispute exempt from Section
409A pursuant to Treasury Regulation Section 1.409A-1(b)(11) then such payment shall be
made by the Company to you in the year following the year in which the dispute is
resolved.
	 
	 	19.	 	You expressly agree and acknowledge that any breach or threatened breach of any
obligation set forth in paragraphs 12, 13, 14, 15 or 16 above will cause the Company
irreparable harm for which there is no adequate remedy at law, and as a result of this
the Company shall be entitled to seek the issuance by a court of competent jurisdiction
of an injunction, restraining order or other equitable relief in favor of itself,
without the necessity of posting a bond and without proving actual damages, restraining
you from committing or continuing to commit any such violation.
	 
	 	20.	 	Following the Date of Termination, upon reasonable request by the Company, you
shall cooperate with the Company or any of its affiliates with respect to any legal or
investigatory proceeding, including any government or regulatory investigation, or any
litigation or other dispute relating to any matter in which you

 

 

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	 	 	 	were involved or had knowledge during your employment with the Company, subject to
your reasonable personal and business schedules. The Company shall reimburse you for
all reasonable out-of-pocket costs, such as travel, hotel and meal expenses and
reasonable attorneys’ fees, incurred by you in providing any cooperation pursuant to
this paragraph 20; provided such expenses shall be paid to you as soon as
practicable but in no event later than the end of the calendar year following the
calendar year in which the expenses are incurred, subject in all cases to your
providing appropriate documentation to the Company. The Company shall also pay you
a reasonable per diem amount for your time (other than for time spent preparing for
or providing testimony) which shall be based upon your Base Salary at the Date of
Termination, with such per diem paid to you in the calendar month following the
month in which you provide such assistance. Any reimbursement or payment under this
paragraph 20 shall not affect the amount of the reimbursement or payment to you in
any other taxable year. The right to payment or reimbursement pursuant to this
paragraph 20 shall not be liquidated or exchanged for any other benefit.
	 
	 	21.	 	You represent and warrant that you have the free and unfettered right to enter
into this agreement and to perform your obligations under it and that you know of no
agreement between you and any other person, firm or organization, or any law or
regulation, that would be violated by the performance of your obligations under this
agreement. You agree that you will not use or disclose any confidential or proprietary
information of any prior employer in the course of performing your duties for the
Company or any of its affiliates.
	 
	 	22.	 	The invalidity or unenforceability of any particular provision or provisions of
this agreement (as determined by an arbitrator or a court of competent jurisdiction)
shall not affect the other provisions hereof and this agreement shall be construed in
all respects as if such invalid or unenforceable provisions had been omitted.
	 
	 	23.	 	This agreement (including its Exhibits) and the documents referred to herein
constitute the full and complete understanding and agreement of the parties concerning
the subject matter hereof and, as of the close of business on May 11, 2009, shall
supersede all prior representations, understandings and agreements with respect thereto
(other than any agreements governing any equity awards outstanding as of May 11, 2009), and cannot be amended, changed, modified in any respect, without the written
consent of the parties, except that the Company reserves the right in its sole
discretion to make changes at any time to the other documents referenced in this letter
agreement. No waiver by
either party of any breach by the other party of any condition or provision contained
in this

 

 

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	 	 	 	agreement shall be deemed to be a waiver of a similar or dissimilar condition or
provision.
	 
	 	24.	 	This agreement shall be binding upon and shall inure to the benefit of
successors and assigns of the Company.
	 
	 	25.	 	This agreement shall be governed by and construed in accordance with the laws
of the State of New York, without regard to its provisions as to choice of laws. The
respective rights and obligations of the parties hereunder, including without
limitation paragraphs 12 through 16, shall survive any expiration of the Term,
including expiration thereof upon your termination of employment for whatever reason,
to the extent necessary to the intended preservation of such rights and obligations.
	 
	 	26.	 	Any notice given to either you or the Company under this agreement shall be in
writing and shall be deemed to have been given upon actual receipt or refusal to accept
receipt, with any such notice duly addressed to you or the Company, as the case may be,
at the address indicated below or to such other address as such Party may subsequently
designate by written notice in accordance with this paragraph 26: If to the Company:
The Warnaco Group, Inc., 501 Seventh Avenue, New York, New York 10018, Attention:
General Counsel; If to you: at your home address as indicated on the Company’s records.
	 
	 	27.	 	The Company may withhold from any amounts payable under this agreement such
Federal, state, local or other taxes as shall be required to be withheld pursuant to
any applicable law or regulation.
	 
	 	28.	 	The Company hereby agrees during, and after termination of, your employment to
indemnify you and hold you harmless, both during the Term and thereafter, to the
fullest extent permitted by law and under the certificate of incorporation and by-laws
of the Company against and in respect of any and all actions, suits, proceedings,
claims, demands, judgments, costs, expenses (including reasonable attorneys’ fees),
losses, amounts paid in settlement to the extent approved by the Company, and damages
resulting from your good faith performance of your duties as an officer or director of
the Company or any affiliate of the Company. The Company shall reimburse you for
expenses incurred by you in connection with any proceeding hereunder upon your written
request for such reimbursement and your submission of the appropriate documentation
associated with these expenses. Such request shall include an undertaking by you to
repay the amount of such advance or reimbursement if it shall ultimately be determined
that you are not entitled to be indemnified hereunder against such costs and expenses.
The Company shall use commercially reasonable efforts to obtain and maintain directors’
and officers’ liability insurance covering you to the same extent as the Company covers
its other officers and directors.

 

 

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	 	29.	 	a. If any amount, entitlement, or benefit paid or payable to you or provided
for your benefit under this agreement and under any other agreement, plan or program of
the Company (such payments, entitlements and benefits referred to as a “Payment”) is
subject to the excise tax imposed under Section 4999 of the Code or any similar federal
or state law (an “Excise Tax”), then notwithstanding anything contained in this
agreement to the contrary, to the extent that any or all Payments would be subject to
the imposition of an Excise Tax, the Payments shall be reduced (but not below zero) if
and to the extent that such reduction would result in your retaining a larger amount,
on an after-tax basis (taking into account federal, state and local income taxes and
the imposition of the Excise Tax), than if you received all of the Payments (such
reduced amount is hereinafter referred to as the “Limited Payment Amount”). The
Company shall reduce or eliminate the Payments, by first reducing or eliminating those
payments or benefits which are payable in cash and then by reducing or eliminating
non-cash payments, in each case in reverse order beginning with payments or benefits
which are to be paid the farthest in time from the Determination (as defined below).
	 
	 		 	b. All calculations under this paragraph 29 shall be made by a nationally
recognized accounting firm designated by the Company and reasonably
acceptable to you (other than the accounting firm that is regularly engaged
by any party who has effectuated a Change in Control) (the “Accounting
Firm”). The Company shall pay all fees and expenses of such Accounting
Firm. The Accounting Firm shall provide its calculations, together with
detailed supporting documentation, both to the Company and you within 45
days after the Change in Control or the Date of Termination, whichever is
later (or such earlier time as is requested by the Company) and, with
respect to the Limited Payment Amount, shall deliver its opinion to you that
you are not required to report any Excise Tax on your federal income tax
return with respect to the Limited Payment Amount (collectively, the
“Determination”). Within 5 days of your receipt of the Determination, you
shall have the right to dispute the Determination (the “Dispute”). The
existence of the Dispute shall not in any way affect your right to receive
the Payments in accordance with the Determination. If there is no Dispute,
the Determination by the Accounting Firm shall be final binding and
conclusive upon the Company and you (except as provided in clause (c)
below).
	 
	 		 	c. If, after the Payments have been made to you, it is established that the
Payments made to you, or provided for your benefit, exceed the limitations
provided in clause (a) above (an “Excess Payment”) or are less than such
limitations (an “Underpayment”), as the case may be, then the

 

 

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May 11, 2009

Page 18

provisions of this clause (c) shall apply. If it is established pursuant to
a final determination of a court or an Internal Revenue Service (the “IRS”)
proceeding which has been finally and conclusively resolved, that an Excess
Payment has been made, you shall repay the Excess Payment to the Company
within 20 days following the determination of such Excess Payment. In the
event that it is determined by (i) the Accounting Firm, the Company (which
shall include the position taken by the Company, or together with its
consolidated group, on its federal income tax return) or the IRS, (ii)
pursuant to a determination by a court, or (iii) upon the resolution to your
satisfaction of the Dispute, that an Underpayment has occurred, the Company
shall pay an amount equal to the Underpayment to you within 10 days of such
determination or resolution together with interest on such amount at the
applicable federal short-term rate, as defined under Section 1274(d) of the
Code and as in effect on the first date that such amount should have been
paid to you under this agreement, from such date until the date that such
Underpayment is made to you.

 

 

Mr. Lawrence Rutkowski

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     IN WITNESS WHEREOF, the Company and you have voluntarily executed this letter agreement to be
effective as of the close of business on May 11, 2009.

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 	 	 	 
	 

	 	THE WARNACO GROUP, INC.	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	/s/ Joseph Gromek	 	 
	 

	 	 

	 	 

Agreed to and accepted

/s/ Lawrence Rutkowski                                                            

Lawrence Rutkowski

 

 

Exhibit A

Definitions

“Cause” shall mean:

	(i)	 	willful misconduct by you which is injurious to the Company’s interests;
	 
	(ii)	 	willful breach of duty by you in the course of your employment, which, if curable, is not
cured within 10 days after your receipt of written notice from the Company;
	 
	(iii)	 	willful failure by you after having been given written notice from the Company to perform
your duties other than a failure resulting from your incapacity due to physical or mental
illness; or
	 
	(iv)	 	indictment of you for the commission of a felony, or your engagement in other willful
misconduct which is injurious to the business or reputation of the Company.

“Change in Control” shall mean any of the following:

	(i)	 	any “person” (as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange
Act of 1934) or group of persons acting jointly or in concert, but excluding a person who owns
more than 5% of the outstanding shares of the Company as of the date of the Commencement Date,
becomes a “beneficial owner” (as such term is used in Rule 13d-3 promulgated under that Act),
of 50% or more of the Voting Stock of the Company;
	 
	(ii)	 	all or substantially all of the assets of the Company are disposed of pursuant to a merger,
consolidation or other transaction (unless the shareholders of the Company immediately prior
to such merger, consolidation or other transaction beneficially own, directly or indirectly,
in substantially the same proportion as they owned the Voting Stock of the Company, all of the
Voting Stock or other ownership interests of the entity or entities, if any, that succeed to
the business of the Company); or
	 
	(iii)	 	approval by the shareholders of the Company of a complete liquidation or dissolution of all
or substantially all of the assets of the Company.

     For purposes of this Change in Control definition, “Voting Stock” shall mean the capital stock
of any class or classes having general voting power, in the absence of specified contingencies, to
elect the directors of the Company.

“Date of Termination” shall mean:

	(i)	 	if your employment is terminated by the Company, the date specified in the notice by the
Company to you that your employment is so terminated;

 

 

	(ii)	 	if you voluntarily resign your employment, 60 days after receipt by the Company of written
notice that you are terminating your employment (provided, that the Company may
accelerate the Date of Termination to an earlier date by providing you with written notice of
such action, or, alternatively, the Company may place you on paid leave (covering only Base
Salary) during such period);
	 
	(iii)	 	if your employment is terminated by reason of death, the date of death; or
	 
	(iv)	 	if you resign your employment for Good Reason, 30 days after receipt by the Company of timely
written notice from you in accordance with paragraph 26 of the letter agreement effective as
of December 31, 2008 between you and the Company, unless the Company cures the event or events
giving rise to Good Reason within 30 days after receipt of such written notice.

“Disability” shall mean your inability, due to physical or mental incapacity, to substantially
perform your duties and responsibilities for a period of 120 consecutive days as determined by
a medical doctor selected by the Company and reasonably acceptable to you.

“Good Reason” shall mean the occurrence of any of the following without your consent:

	(i)	 	a material diminution in your authority, duties or responsibilities as Chief Financial
Officer of the Company;
	 
	(ii)	 	a reduction in your Base Salary or Target Bonus;
	 
	(iii)	 	a change in reporting structure so that you report to someone other than the Chief Executive
Officer of the Company;
	 
	(iv)	 	the removal by the Company of you as Chief Financial Officer of the Company;
	 
	(v)	 	the failure of a successor to all or substantially all of the assets of the Company to assume
the Company’s obligations under the letter agreement either in writing or as a matter of law;
or
	 
	(vi)	 	requiring you to be principally based at any office or location other than Manhattan or
Westchester County, New York, provided that you will be required to spend time at the
Company’s Milford, Connecticut office where the Company’s finance and accounting departments
are located.

     Anything herein to the contrary notwithstanding, you shall not be entitled to resign for Good
Reason unless you give the Company written notice of the event constituting “Good Reason” within 60
days of the occurrence of such event and the Company fails to cure such event within 30 days after
receipt of such notice.

 

 

“Separation From Service” shall mean a termination of your employment in a manner consistent with
Treasury Regulation Section 1.409A-1(h).

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