Dish Network 2011 Annual Report Download - page 159

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-65
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. Effective January 1, 2012, we and EchoStar entered into a lease for certain
space at 530 EchoStar Drive in Cheyenne, Wyoming 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 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. In November 2011, we exercised our
right to renew this agreement for a one-year period ending on December 31, 2012.
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.
SlingService Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar
pursuant to which we will receive certain place-shifting 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.
Blockbuster. On April 26, 2011, we completed the Blockbuster Acquisition. During the second quarter 2011,
EchoStar acquired Hughes Communications, Inc. (“Hughes”), which provides broadband products and services.
During the year ended December 31, 2011, Blockbuster purchased $2 million of broadband products and services
from Hughes. As of December 31, 2011, we had $1 million payable to EchoStar for Hughes providing these
broadband products and services to Blockbuster.
Additionally, on August 5, 2011, we entered into a letter agreement with EchoStar pursuant to which certain assets
used to support Blockbuster’s website were transferred to EchoStar and they agreed to provide certain technical and
infrastructure support for the Blockbuster website to us. The fees for the services provided under the letter
agreement are calculated at cost plus a fixed margin, which varies depending upon the nature of the services
provided. The letter agreement provides that it shall continue in effect until the completion of a definitive
agreement between EchoStar and us setting forth the terms of the support of the Blockbuster website.
Move Networks Services Agreement. In the fourth quarter 2011, EchoStar granted us the right to use Move
Network’s software and video publishing systems, which facilitate the streaming, downloading and distribution of
audio and video content to set-top boxes via the Internet. The fees for the services provided under this agreement
are based upon a fixed fee which varies based upon the number of set-top boxes in a given month that access Move
Network’s software. 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 180 days notice to EchoStar.
Other Agreements – EchoStar
Tax Sharing Agreement. In connection with the Spin-off, we entered into a tax sharing agreement with EchoStar
which governs our respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the
periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as
a result of restructuring activities undertaken to implement the Spin-off, are borne by us, and we will indemnify
EchoStar for such taxes. However, we are not liable for and will not indemnify EchoStar for any taxes that are