Exhibit 10.4

 

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.

 

 

SECOND AMENDMENT TO VENDOR AGREEMENT

 

This SECOND AMENDMENT TO THE VENDOR AGREEMENT (this “Second Amendment”) is
effective as of April 1, 2003 (the “Second Amendment Effective Date”) by and
between BEST BUY PURCHASING LLC and TIVO INC.

 

RECITALS

 

WHEREAS, Best Buy Co., Inc. and TiVo Inc. entered into that certain Vendor
Agreement having an effective date of March 3, 2002, as amended (the “Vendor
Agreement”); and

 

WHEREAS, Best Buy Purchasing LLC and TiVo Inc. wish to modify certain provisions
in the Vendor Agreement as explicitly set forth in this Second Amendment.

 

NOW, THEREFORE, Best Buy Purchasing LLC and TiVo Inc. agree as follows:

 

AGREEMENT

 

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

 

1.    VENDOR PROGRAM AGREEMENT.    Section 1 of the Vendor Program Agreement
attached to the Vendor Agreement is delete and replaced in its entirety with the
following:

 

“1.    Residuals.

 

1.1    Generally.    Vendor shall deliver Digital Video Recorder or Recording
(“DVR”) devices ready for activation. Dealer shall be entitled to a residual for
each DVR purchased from Vendor pursuant to the Vendor Agreement and sold by
Dealer to a customer who subsequently subscribes to the TiVo Service and does
not cancel [*] (“Subscriber”). The amount of such residual shall be [*] (the
“[*] Per Box Residual”). Vendor’s entitlement to [*] Per Box Residuals (a)
begins upon activation of the TiVo Service by a Subscriber so long as, in the
case of a Subscriber with a monthly subscription, such Subscriber does not
cancel within [*] of initial activation of the TiVo Service, (b) continues after
expiration of this Vendor Agreement (if applicable), and (c) terminates as
provided in this Section 1. Vendor shall make payment of [*] Per Box Residuals
on a [*] basis, and such payment will be delivered to Vendor within thirty (30)
days after the end of the applicable [*]. Accompanying such payment will be an
electronic file in a format agreed upon by the parties containing information
sufficient to substantiate the Residual amounts. The [*] Per

 

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[*]   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.

 

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Box Residuals for a Subscriber shall continue for: (a) with respect to monthly
subscribers to the TiVo Service, for each [*] such Subscriber remains subscribed
to the TiVo Service but in any event for no longer than [*]; and (b) with
respect to DVR lifetime subscribers to the TiVo Service, for [*]. In no event
shall Vendor be obligated to pay more than [*] of [*] Per Box Residuals per DVR.
The [*] Per Box Residuals may be altered based upon a good faith negotiation
occurring on each six month anniversary of the signing of this Agreement.

 

1.2    Understanding Regarding DVRs Sold Prior to Second Amendment.    All DVRs
sold prior to the Second Amendment Effective Date shall be subject to the [*]
Per Box Residual and shall be considered to be initially activated, for purposes
of calculating the Per Box [*] Residual, as of the Second Amendment Effective
Date.”

 

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

 

IN WITNESS WHEREOF, Best Buy Purchasing LLC’s and TiVo Inc.’s respective duly
authorized officers have executed this Second Amendment. This Second 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.       BEST BUY PURCHASING LLC By:  

/s/    JOE MILLER

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      By:  

/s/    RON BOIRE

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Printed Name:  

Joe Miller

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      Printed Name:  

Ron Boire

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Title:  

VP, Sales

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      Title:  

EVP

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[*]   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.

 

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