CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 24 b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. A COMPLETE COPY OF THIS EXHIBIT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT (the "MOA") is made as of September 15,1999 (the "Effective Date") by and between QUOKKA SPORTS, INC., a corporation organized under the laws of Delaware, with principal offices at 525 Brannan Street, San Francisco, CA. 94107 ("quokka") and INTEL CORPORATION, a corporation organized under the laws of the state of Delaware, with principal offices at 2200 Mission College Blvd., Santa Clara, California 95052 ("Intel").
RECITALS
quokka provides digital interactive media coverage of various sporting events through, among other channels, a site on the World Wide Web located currently at the URL "http: //www. quokka. com" (the "Site"). Intel is a manufacturer of microprocessors, software and systems, and internet services and solutions.
Intel desires to be a digital entertainment sponsor in connection with quokka. com and the event coverage therein, and to receive the rights and benefits as more fully described herein.
quokka desires to secure certain promotional consideration and exposure in connection with Intel promotional activities.
quokka wishes to purchase and Intel wishes to provide certain Internet data services as more fully set forth herein.
In accordance with that certain Software License and Development Agreement dated March 20, 1998 (as amended on August 10, 1998) between Intel and quokka (the "Original Development Agreement"), the parties (among other things) cooperatively participated in the development of an application and related software for the purposes of production and delivery of multiple high bandwidth media streams to allow end users to customize their viewing experience of a lives porting event (the "Application"). quokka wishes to acquire from Intel, and Intel wishes to provide to quokka, certain development services to further develop the Application, as well as other projects.
NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. TERM: The term of this MOA shall commence on September 15, 1999 and conclude December 31, 2002, unless terminated sooner in accordance with the terms of this MOA (the "Term").
2. OBLIGATIONS OF THE PARTIES
2.1 Development.
2.1.1 Development Resources. Intel will, upon Quokka's request, provide to quokka the services of appropriate engineering resources ("Engineers"), who will complete the Projects (as defined in Section 2.1.2 below).
[*] Engineers will be charged against Quokka's payments set forth in Section 2.1.4 at [*]
2.1.2 Identification of Projects and Development Process.
2.1.2.1 The parties agree that the first two development projects to be undertaken pursuant to this MOA ("Projects") will be [*]
2.1.2.2 For additional development projects, quokka may request certain development projects which will be undertaken by the parties, and Intel will reasonably consider such requests. The specific projects undertaken will be by mutual agreement of the parties. Prior to selection of a Project, Intel and quokka will consult regarding various projects already under development at Intel and/or quokka, and the parties' selection of Projects will take into account such projects under development in order to maximize the utility of the development efforts in connection with the Projects.
2.1.2.3 The Projects may include integration of existing third party products and technologies, as agreed by the parties.
2.1.2.4 As part of the mutual selection of the Projects, the parties develop an agreed Project Requirements Document ("PRD"), including technical specifications, staffing requirements, development milestones, budgets, licensing, and intellectual property ownership and related issues within a reasonable time after project selection. The Engineers' time in connection with preparing the PRD will be chargeable to quokka. If Intel and quokka are unable to agree on a PRD the parties will escalate the disagreement to their respective senior managements, who will attempt to resolve the disagreement in good faith. If, within a reasonable time of senior management discussion, the parties are unable to agree on a PRD, the parties are not obligated to go forward with that Project. Upon reaching agreement on the PRD, the parties will undertake to develop the Project in accordance with the PRD. All projects will be subject to a mutually agreed change control process.
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