EXHIBIT 10.26

 

Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [*]. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.

 

FIFTH AMENDMENT TO DEVELOPMENT AGREEMENT

 

This FIFTH AMENDMENT TO THE DEVELOPMENT AGREEMENT (this “Fifth Amendment”) is
made and entered into as of December 19, 2003 (the “Fifth Amendment Effective
Date”) by and between DIRECTV, INC., a California corporation (“DIRECTV”), and
TIVO INC., a Delaware corporation (“TiVo”) (collectively, the “Parties”).

 

RECITALS

 

WHEREAS, the Parties entered into that certain Development Agreement having an
effective date of February 15, 2002 (the “Development Agreement”);

 

WHEREAS, the Parties have previously amended the Development Agreement via that
certain First Consolidated Amendment dated October 31, 2002, that certain Second
Amendment dated December 20, 2002, that certain Third Amendment dated January 8,
2003, and that certain Fourth Amendment dated April 17, 2003 (the “Fourth
Amendment”); and

 

WHEREAS, the Parties wish to further amend certain provisions in the Development
Agreement.

 

NOW, THEREFORE, the Parties agree as follows:

 

AGREEMENT

 

Unless stated otherwise, capitalized terms used herein shall have the meanings
set forth in the Development Agreement.

 

1.    TECHNOLOGY DEVELOPMENT PAYMENTS.  Section 3.6 of the Development Agreement
is hereby deleted and replaced in its entirety with the following:

 

“3.6 Technology Development Payments.  In consideration of TiVo’s development of
the Provo Receivers, the Version [*] Software, and the Version [*] Software,
DIRECTV shall pay to TiVo a technology development fee in the aggregate amount
of [*] (the “Technology Development Fee”), of which [*] shall be payable within
[*] days of the date of this Agreement and the remainder shall be payable in
accordance with Development Schedule attached hereto as Exhibit A and such
additional development schedules as mutually agreed upon by the parties, which
together shall include the remaining milestone payment amounts, the milestone
payment dates and the milestone deliverables; provided, however, [*] of the
Technology Development Fee shall be payable [*], with such payment credited
against upcoming TiVo milestone payments for Version [*] Software as such
milestone deliverables and dates are met. If DIRECTV elects to exercise its
option for a Two-Chip Receiver set forth in Section 2.5 (Two-Chip Option),
DIRECTV shall pay to TiVo an additional technology development fee in the amount
of [*] (the “Additional Development Fee”), of

--------------------------------------------------------------------------------

[*]   Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

--------------------------------------------------------------------------------

which [*] shall be payable within [*] days of the date of DIRECTV’s written
two-chip option exercise notice and the remainder shall be payable in accordance
with the milestone payments specified in a Two-Chip Receiver development
schedule to be mutually agreed to by the parties. In addition, if DIRECTV elects
to exercise its option for [*] of the Version [*] Software as set forth in
Section 3.2 of the Fifth Amendment, the Technology Development Fee shall be
increased by an additional amount of [*], payable in accordance with the
milestone payments with respect thereto specified in the Version [*] Software
development schedule mutually agreed to by the parties. DIRECTV agrees that the
Technology Development Fee, Additional Development Fee (if applicable) and [*]
Development Fee (if applicable) shall be paid without offset or deduction
against any amounts owing by TiVo pursuant to this Agreement.”

 

2.    PHOENIX DOCUMENTS.  Attachment 1, Attachment 2 and Attachment 3 to the
Fourth Amendment are hereby deleted and replaced in their entirety by Attachment
1, Attachment 2 and Attachment 3 to this Fifth Amendment. Any and all references
to Attachment 1, Attachment 2 and Attachment 3 to the Fourth Amendment that may
appear in the Development Agreement, the First Amendment, the Second Amendment,
the Third Amendment, the Fourth Amendment, and any attachments to any of the
foregoing are understood to mean, respectively, Attachment 1, Attachment 2 and
Attachment 3 to this Fifth Amendment. Attachment 1 to this Fifth Amendment sets
forth the product requirements document describing the agreed-upon requirements
of the Phoenix Hardware and the Phoenix Software. Attachment 2 to this Fifth
Amendment sets forth the development schedule, milestone payment schedule, and a
more detailed description of the Parties’ responsibilities and schedule
dependencies with respect to the Phoenix Hardware and Phoenix Software.
Attachment 3 to this Fifth Amendment sets forth the statement of work with
respect to the development of the Phoenix Hardware and Phoenix Software.

 

3.    VERSION [*] SOFTWARE

 

3.1 VERSION [*] DOCUMENTS.  Attachment 4, Attachment 5 and Attachment 6 to the
Second Amendment are hereby deleted and replaced in their entirety by Attachment
4, Attachment 5 and Attachment 6 to this Fifth Amendment. Any and all references
to Attachment 4, Attachment 5 and Attachment 6 to the Second Amendment that may
appear in the Development Agreement, the First Amendment, the Second Amendment,
the Third Amendment, the Fourth Amendment and any attachments to any of the
foregoing are understood to mean, respectively, Attachment 4, Attachment 5 and
Attachment 6 to this Fifth Amendment. Attachment 4 to this Fifth Amendment sets
forth the product requirements document describing the agreed-upon requirements
of the Version [*] Software. Attachment 5 to this Fifth Amendment sets forth the
development schedule, milestone payment schedule, and a more detailed
description of the Parties’ responsibilities and schedule dependencies with
respect to the Version [*] Software. Attachment 6 to this Fifth Amendment sets
forth the DIRECTV Service Data Types enabled in the Version [*] Software.

--------------------------------------------------------------------------------

[*]   Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

--------------------------------------------------------------------------------

3.2 VERSION [*], OPTION.  The Parties agree that [*] of Version [*] Software [*]
No later than [*], TiVo shall provide DIRECTV with its good-faith estimate of
[*]. [*] shall be undertaken, and the parties respective rights and obligations
shall apply with respect thereto, if DIRECTV [*] by providing written notice
thereof to TiVo on or prior to [*].

 

4.    TOOLS.  A new Section 4.11 is hereby added to the Development Agreement to
read as follows:

 

“4.11 [*]. DIRECTV shall purchase the rights to the Allocated Use (as defined
below) by DIRECTV’s designated CE Manufacturer of the “[*]” (defined as [*]. The
“Allocated Cost” shall be [*]. TiVo hereby confirms and represents that the
Allocated Cost equals no more than [*] percent ([*]%) of TiVo’s [*] costs to
obtain the [*], as set forth in supporting documentation provided to DIRECTV.
The Allocated Cost shall be paid to TiVo upon [*]. “Allocated Use” shall mean
access to and use of [*] percent ([*]%) of both the [*] of the [*], as well as
the [*] of each [*], but in any event, no less than use for [*] per [*] and [*]
total, per [*].

 

In addition, TiVo shall, upon request by DIRECTV and for [*] consideration, make
available to DIRECTV’s designated CE Manufacturer, access to and use of the [*]
from TiVo’s [*], for up to [*] per [*], during the first [*] months from the
start of [*] by such CE Manufacturer. TiVo shall manage the [*] and the [*], and
in such capacity shall work with the [*] in the [*] of such [*] and [*] to [*]
and [*] are met, including, without limitation, undertaking [*] as necessary to
[*] the [*] requirements set forth in this Section 4.11.”

 

5.    EFFECT OF AMENDMENT.  Except as expressly modified herein, all other terms
and conditions of the Development Agreement shall remain in full force and
effect.

 

IN WITNESS WHEREOF, TiVo and DIRECTV have duly executed this Fifth Amendment by
their respective duly authorized officers. This Fifth Amendment may be executed
in counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same original.

 

TIVo INC.       DIRECTV, INC.

By:

 

/s/    Edward Lichty        

--------------------------------------------------------------------------------

      By:  

/s/    Eddy W. Hartenstein        

--------------------------------------------------------------------------------

Printed Name:

 

Edward Lichty

--------------------------------------------------------------------------------

      Printed Name:  

Eddy W. Hartenstein

--------------------------------------------------------------------------------

Title:

 

VP, Business Development

--------------------------------------------------------------------------------

      Title:  

Chairman and CEO

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

[*]   Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.