Dish Network 2013 Annual Report Download - page 182

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-72
Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real
estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot
rental rates of similar commercial property in the same geographic area, and EchoStar is responsible for its portion
of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below:
x Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood,
Colorado is for a period ending on December 31, 2016. This agreement can be terminated by either party
upon six months prior notice.
x Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a
period ending on December 31, 2016.
x Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period
ending on December 31, 2016, with a renewal option for one additional year.
x EchoStar Data Networks Sublease Agreement. The sublease for certain space at 211 Perimeter Center in
Atlanta, Georgia is for a period ending on October 31, 2016.
x Gilbert Lease Agreement. The lease for certain space at 801 N. DISH Dr. in Gilbert, Arizona is a month-
to-month lease and can be terminated by either party upon 30 days prior notice.
x Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is
for a period ending on December 31, 2031.
DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two-year agreement with
EchoStar pursuant to which we receive certain services associated with an online video portal. The fees for the
services provided under this services agreement depend, among other things, upon the cost to develop and operate
such services. We have the option to renew this agreement for three successive one year terms and the agreement
may be terminated for any reason upon at least 120 days notice to EchoStar. In November 2013, we exercised our
right to renew this agreement for a one-year period ending on December 31, 2014.
DISH Remote Access Services Agreement. Effective February 23, 2010, we entered into an agreement with
EchoStar pursuant to which we receive, among other things, certain remote DVR management services. The fees
for the services provided under this services agreement depend, among other things, upon the cost to develop and
operate such services. This agreement has a term of five years with automatic renewal for successive one year
terms. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar.
SlingService Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar
pursuant to which we receive certain services related to placeshifting. The fees for the services provided under this
services agreement depend, among other things, upon the cost to develop and operate such services. This
agreement has a term of five years with automatic renewal for successive one year terms. This agreement may be
terminated for any reason upon at least 120 days notice to EchoStar.
DISH Digital Holding L.L.C. Effective July 1, 2012, we and EchoStar formed DISH Digital Holding L.L.C.
(“DISH Digital”), which is owned two-thirds by us and one-third by EchoStar and is consolidated into our financial
statements beginning July 1, 2012. DISH Digital was formed to develop and commercialize certain advanced
technologies. We, EchoStar and DISH Digital entered into the following agreements with respect to DISH Digital:
(i) a contribution agreement pursuant to which we and EchoStar contributed certain assets in exchange for our
respective ownership interests in DISH Digital; (ii) a limited liability company operating agreement, which provides
for the governance of DISH Digital; and (iii) a commercial agreement pursuant to which, among other things, DISH
Digital has: (a) certain rights and corresponding obligations with respect to DISH Digital’s business; and (b) the
right, but not the obligation, to receive certain services from us and EchoStar, respectively. Since this was a
formation of an entity under common control and a step-up in basis was not allowed, each party’s contributions
were recorded at historical book value for accounting purposes. We consolidated DISH Digital with EchoStar’s
ownership position recorded as non-controlling interest.