Dish Network 2015 Annual Report Download - page 180

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-76
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.
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. 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.
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.
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, 2017. 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 initial term of the
XiP Encryption Agreement was for a period until December 31, 2014. Under the XiP Encryption Agreement, we
had 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. On November 4, 2015, we and EchoStar
extended the term of the XiP Encryption Agreement for one additional year until December 31, 2016. 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 trademarks,
domain names and other intellectual property related to the “Sling” trademark for a period ending on December 31,
2016.