Dish Network 2010 Annual Report Download - page 143

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-58
“General and administrative expenses – EchoStar”
Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement
pursuant to which we have the right, but not the obligation, to receive product support from EchoStar
(including certain engineering and technical support services) for all set-top boxes and related accessories
that EchoStar has previously sold and in the future may sell to us. The fees for the services provided under
the product support agreement are calculated at cost plus a fixed margin, which varies depending on the
nature of the services provided. The term of the product support agreement is the economic life of such
receivers and related accessories, unless terminated earlier. We may terminate the product support
agreement for any reason upon at least 60 days notice. In the event of an early termination of this
agreement, we are entitled to a refund of any unearned fees paid to EchoStar for the services.
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 of the leases is set forth below:
• Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood,
Colorado expires on January 1, 2012.
• Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado
is for a period ending on January 1, 2012 with a renewal option for one additional year.
• Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for
a period ending on January 1, 2012 with a renewal option for one additional year.
• EDN 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. The lease for certain space at 801 N. DISH Dr. in Gilbert, Arizona
expired on January 1, 2010.
Services Agreement. In connection with the Spin-off, we entered into a services agreement pursuant to
which we had the right, but not the obligation, to receive logistics, procurement and quality assurance
services from EchoStar. This agreement expired on January 1, 2010. However, we and EchoStar have
agreed that following January 1, 2010, we shall continue to have the right, but not the obligation, to receive
from EchoStar certain of the services previously provided under the services agreement pursuant to the
Professional Services Agreement as discussed above.
DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two-year agreement
with EchoStar pursuant to which we will 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.
DISH Remote Access Services Agreement. Effective February 23, 2010, we entered into an agreement with
EchoStar pursuant to which we will 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 and may be terminated for any reason upon at least 120 days notice
to EchoStar.