Dish Network 2008 Annual Report Download - page 140

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-58
Under the terms of the Transponder Agreement, EchoStar will make certain up-front payments to Bell
ExpressVu through the service commencement date on the Nimiq 5 satellite and thereafter will make
certain monthly payments to Bell ExpressVu for the remainder of the service term. Unless earlier
terminated under the terms and conditions of the Transponder Agreement, the service term will expire
fifteen years following the actual service commencement date of the Nimiq 5 satellite. Upon expiration of
this initial term, EchoStar has the option to continue to receive service on the Nimiq 5 satellite on a month-
to-month basis. Upon a launch failure, in-orbit failure or end-of-life of the Nimiq 5 satellite, and in certain
other circumstances, EchoStar has certain rights to receive service from Bell ExpressVu on a replacement
satellite.
Under the terms of the DISH Agreement, DISH L.L.C. will make certain monthly payments to EchoStar
commencing when the Nimiq 5 satellite is placed into service (the “In-Service Date”) and continuing
through the service term. Unless earlier terminated under the terms and conditions of the DISH
Agreement, the service term will expire ten years following the In-Service Date. Upon expiration of the
initial term, DISH L.L.C. has the option to renew the DISH Agreement on a year-to-year basis through the
end-of-life of the Nimiq 5 satellite. Upon a launch failure, in-orbit failure or end-of-life of the Nimiq 5
satellite, and in certain other circumstances, DISH L.L.C. has certain rights to receive service from
EchoStar on a replacement satellite.
QuetzSat-1 Lease Agreement. On November 24, 2008, EchoStar entered into a satellite service agreement
with SES, which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS
transponders on the new QuetzSat-1 satellite expected to be placed in service at the 77 degree orbital
location. SES will start the procurement process for the QuetzSat-1 satellite immediately. On November
24, 2008, EchoStar also entered into a transponder service agreement with us pursuant to which we will
receive service from EchoStar on 24 of the DBS transponders.
Under the terms of the transponder service agreement, we will make certain monthly payments to EchoStar
commencing when the QuetzSat-1 satellite is placed into service and continuing through the service term.
Unless earlier terminated under the terms and conditions of the transponder service agreement, the service
term will expire ten years following the actual service commencement date. Upon expiration of the initial
term, we have the option to renew the transponder service agreement on a year-to-year basis through the
end-of-life of the QuetzSat-1 satellite. Upon a launch failure, in-orbit failure or end-of-life of the
QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from
EchoStar on a replacement satellite.