Dish Network 2014 Annual Report Download - page 178

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:
 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.
 Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a
period ending on December 31, 2016.
 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.
 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.
 Gilbert Lease Agreement. Effective August 1, 2014, we began leasing certain space from EchoStar at 801
N. DISH Dr. in Gilbert, Arizona for a period ending on July 31, 2016. We also have renewal options for
three additional one-year terms.
 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 successive one year terms and the agreement may be
terminated for any reason upon at least 120 days notice to EchoStar. In October 2014, we exercised our right to
renew this agreement for a one-year period ending on December 31, 2015.
Application Development Agreement. During the fourth quarter 2012, we and EchoStar entered into a set-top box
application development agreement (the “Application Development Agreement”) pursuant to which EchoStar
provides us with certain services relating to the development of web-based applications for set-top boxes for a
period ending on February 1, 2016. The Application Development Agreement renews automatically for successive
one-year periods thereafter, unless terminated earlier by us or EchoStar at any time upon at least 90 days notice.
The fees for services provided under the Application Development Agreement are calculated at EchoStar’s cost of
providing the relevant service plus a fixed margin, which will depend on the nature of the services provided.
XiP Encryption Agreement. During the third quarter 2012, we entered into an encryption agreement with EchoStar
for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which EchoStar
provides certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content
delivered to the set-top box via a smart card and secure the content between set-top boxes. The term of the XiP
Encryption Agreement is for a period until December 31, 2014. Under the XiP Encryption Agreement, we have the
option, but not the obligation, to extend the XiP Encryption Agreement for one additional year upon 180 days notice
prior to the end of the term. On May 5, 2014, we provided EchoStar notice to extend the XiP Encryption
Agreement for one additional year until December 31, 2015. We and EchoStar each have the right to terminate the
XiP Encryption Agreement for any reason upon at least 30 days notice and 180 days notice, respectively. The fees
for the services provided under the XiP Encryption Agreement are calculated on a monthly basis based on the
number of receivers utilizing such security measures each month.
Sling Trademark License Agreement. On December 31, 2014, Sling TV L.L.C. entered into an agreement with
Sling Media, Inc., a subsidiary of EchoStar, pursuant to which we have the right for a fixed fee to use certain