Document:

EXHIBIT 10.05

 

 AMENDMENT TO
EMPLOYMENT AGREEMENT

 

The
agreement set forth herein (“this Agreement”), is made as of this 8th day of October, 2008, by and between MRG
Entertainment, Inc. (“the Company”), New Frontier Media, Inc. (“NFM”) and Marc
Laurence Greenberg (“Executive”) and is effective as of February 10, 2009.

 

Recitals

 

Whereas,
Executive has heretofore been employed by MRG, pursuant to an Employment
Agreement dated February 10, 2006, a copy of which is attached hereto as
Exhibit A and incorporated by reference (“the MRG Employment Agreement”); and

 

Whereas,
Executive has previously entered into the Non-Competition, Non-Solicitation and
Trade Secrecy Agreement between and among NFM, MRG, and Executive, dated
February 10, 2006, a copy of which is attached hereto as Exhibit B and
incorporated by reference (the Non-Competition Agreement”); and

 

Now
Therefore, all parties desire to extend the period of employment of Executive
under the terms and conditions set forth in this Agreement.

 

A.                                   Unless otherwise
defined in this Agreement, all defined terms used herein shall have the meaning
as set forth in the MRG Employment Agreement.

 

B.                                     Except as
expressly modified hereby, the terms and conditions of the MRG Employment
Agreement remain in full force and effect.

 

C.                                     This Agreement
shall not alter or amend any of the non-competition or non-solicitation terms
(nor any other terms) set forth in the Non-Competition Agreement.

 

D.                                    Company and
Executive agree to amend the MRG Employment Agreement as set forth below. The
following replaces Section 1 and Subsections (i), (ii) and (ix) of Section 2B
of the MRG Employment Agreement in their entirety, and adds Section 14 to the
MRG Employment Agreement:

 

Section
1. Employment Period

 

Executive
shall be employed by Company, in accordance with the terms and conditions of
this Agreement and the MRG Employment Agreement, commencing on the effective
date of the MRG Employment Agreement, and ending at midnight on March 31, 2011,
unless sooner terminated in accordance with the provisions of Sections 3 or 4,
of the MRG Employment Agreement (“the Employment Period”).

 

1

 

Section
2. Terms of Employment.

 

(B)
Compensation

 

(i)
Base Salary.  Executive shall
receive a base salary (“Base Salary”),
which shall be paid in equal installments on a bi-weekly basis, at the rate of:
Three Hundred, Seventy-Five Thousand Dollars ($375,000) per annum, less
standard deductions and withholdings, during the period commencing February 10,
2009 and ending February 9, 2010; and Four Hundred, Twenty-Five Thousand
Dollars ($425,000) per annum, less standard deductions and withholdings, during
the period commencing February 10, 2010 and ending March 31, 2011.

 

(ii)
Discretionary Bonus.  In addition
to Executive’s Base Salary, the Company may, in its sole discretion, award cash
bonuses annually to Executive, less standard deductions and withholdings.

 

(ix)
Stock Options.  Subject to the
approval of NFM’s Board of Directors, Executive shall be eligible to receive an
option to purchase 44,000 shares of New Frontier Media common stock with a
strike price of $5.00 per option.  (“Option”).  Unless the employment relationship has sooner
terminated, the Option will vest equally over a four (4) year period (25%
vested after year one, 25% vested after year two, 25% vested after year three
and 25% vested after year four).

 

Section
14.  Assignment of MRG’s Rights and
Obligations.

 

All
of Company’s rights and obligations under this Agreement may be assigned to
NFM, or to any subsidiary of NFM, in the sole discretion of NFM.  In such event, Executive shall report to the
Chief Executive Officer of NFM or its successor.

 

Agreed
and Accepted:

 

	
  NEW FRONTIER MEDIA, INC.

  	
   

  	
  Date:

  
	
   A Colorado
  Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Weiner

  	
   

  	
  10/8/2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MRG ENTERTAINMENT, INC.

  	
   

  	
  Date:

  
	
   A California
  Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Weiner

  	
   

  	
  10/8/2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Marc Greenberg

  	
   

  	
  10/8/2008

  
	
  Marc Laurence GreenbergEXHIBIT 10.06

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

The
agreement set forth herein (“Agreement”), is made and effective as of this 15th
day of December, 2009, by and between MRG Entertainment, Inc. (“the
Company”), New Frontier Media, Inc. (“NFM”) and Marc Laurence Greenberg (“Executive”).

 

Whereas,
Executive is employed by MRG, pursuant to an Employment Agreement dated February 10,
2006, as subsequently amended on October 8, 2008 (“the MRG Employment
Agreement”); and

 

Whereas,
Executive has entered into the Non-Competition, Non-Solicitation and Trade
Secrecy Agreement between and among NFM, MRG, and Executive, dated February 10,
2006 (the Non-Competition Agreement”); and

 

Now
Therefore, all parties desire to amend the terms of the MRG Employment Agreement
as specifically set forth herein.

 

A.                                   Unless
otherwise defined in this Agreement, all defined terms used herein shall have
the meaning as set forth in the MRG Employment Agreement.

 

B.                                     Except as
expressly modified hereby, the terms and conditions of the MRG Employment
Agreement remain in full force and effect.

 

C.                                     This Agreement
shall not alter or amend any of the non-competition or non-solicitation terms
(nor any other terms) set forth in the Non-Competition Agreement.

 

D.                                    The following
replaces Section 2B(ix) of the MRG Employment Agreement in its
entirety:

 

Section 2.
Terms of Employment, (B) Compensation, (ix) Stock
Options.  Executive shall receive an
option to purchase 22,000 shares of New Frontier Media common stock with a
strike price of $2.15 per option (“Option”). 
Unless the employment relationship has sooner terminated, the Option
will vest equally over a two (2) year period (50% vested after year one,
50% vested after year two).

 

Agreed
and Accepted:

 

	
  NEW FRONTIER
  MEDIA, INC.

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Weiner

  	
   

  	
  12-17-09

  
	
   

  	
   

  	
   

  
	
  MRG
  ENTERTAINMENT, INC.

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Rich Goldberg

  	
   

  	
  12-17-09

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Marc Greenberg

  	
   

  	
  Dec 17, 2009

  
	
  Marc Laurence GreenbergExhibit 10.07

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

 

TVN — CSB ADULT VOD SERVICES AGREEMENT

 

This
agreement (the “Agreement”), dated as of April 8,
2010 (the “Effective Date”), is entered into
by and between COLORADO SATELLITE BROADCASTING, INC.,
a Colorado corporation (“CSB”), with
offices located at 7007 Winchester Circle, Suite 200, Boulder, CO 80301,
and TVN ENTERTAINMENT CORPORATION, a
Delaware corporation doing business as Avail-TVN (“TVN”),
with offices located at 15301 Ventura Boulevard, Building E, Suite 3000,
Sherman Oaks, CA 91403 (each, a “Party” and
collectively, the “Parties”).

 

WHEREAS, CSB is the producer, owner, license holder
and/or distributor of entertainment programming, and wishes to distribute
certain programming to owners/operators of cable, telco, and DBS systems and
other systems which distribute video programming to subscribers/customers for
use on a video-on-demand basis;

 

WHEREAS, TVN is engaged in the business of, among other
things, acquisition, delivery and management (e.g., encoding, asset and
platform management, and digital file transport) of video grade digital files
for use in video distribution systems offering content on a VOD basis, as well
as sales and licensing of VOD programming offerings to Operators;

 

WHEREAS, the Parties are parties to that certain
LICENSING, ENCODING AND TRANSPORT AGREEMENT FOR VIDEO ON DEMAND (VOD) dated April 1,
2003, as amended by that certain AMENDMENT TO LICENSING, ENCODING AND TRANSPORT
AGREEMENT FOR VIDEO ON DEMAND dated June 29, 2007 (together with any other
existing agreements between TVN and CSB, and any  agreements between CSB and Avail Media, Inc.,
the “Prior Agreements”), and wish to enter
into a new agreement for the continued provision of services by TVN to CSB for
[***] Content (defined below) under the terms and conditions of this Agreement,
which, together with the [***] Content Agreement (defined below) shall
collectively supersede and replace the Prior Agreements as of the Effective
Date; and

 

NOW, THEREFORE, in consideration of the
premises and the mutual and several promises contained herein, TVN and CSB
hereby agree to the following terms and conditions:

 

1.              DEFINITIONS.  Capitalized terms used in this Agreement
shall have the meanings set forth below, unless otherwise defined in this
Agreement.

 

1.1                               “A La Carte” means the offering of a VOD
program to customers/subscribers on a [***] basis.

 

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for confidential
treatment.

 

1.2                               “[***] Content” and “[***] Programming” mean programming that consists of [***]
content commonly referred to or recognized 
as rated [***], including without limitation programming commonly
referred to or recognized  as [***], but
not including [***] Content.

 

1.3                               “Agreement” has the meaning set forth in the first paragraph
above.

 

1.4                               “Authorized Systems” means those TVN Systems that are
authorized by CSB (or TVN, subject to Section 2.2 below) to receive
the VOD Titles that comprise a specified VOD Package.

 

1.5                               “[***]” or “[***]” is
defined in Section 5.2.1 below.

 

1.6                               “Carriage Agreement” means the agreement (whether between TVN
and an Operator, or CSB and an Operator) governing the terms for carriage of
the CSB VOD Service.

 

1.7                               “Content Provider Requirements” or “CPR”
means that set of specifications, processes and procedures published and
updated by TVN from time to time, which content providers must follow.

 

1.8                               “CSB Direct Licensee” means an Operator who licenses the CSB
VOD Service via a Carriage Agreement between that Operator and CSB.

 

1.9                               “CSB VOD Affiliate” means an
Operator who carries the CSB VOD Service either as a TVN Sublicensee or as a
CSB Direct Licensee.

 

1.10                         “CSB  VOD Service”
means the collection of all of CSB’s VOD [***] Programming services and
encompasses all [***] Programming distributed by CSB for use on a VOD basis.

 

1.11                         “Delivery
Carve-out Operators” is defined as [***].

 

1.12                         “Distribution System” means the plant, system, mechanism or
other means that is used to distribute multichannel video programming to
subscribers.

 

1.13                         “FOD” means the offering of a program to VOD Enabled
Subscribers on a free on demand basis (i.e., with no associated charges).

 

1.14                         “Gross
Revenues” is defined as [***].

 

1.15                         “Group
1 Operators” is defined as all Operators except for [***].

 

	
  CSB Adult VOD Services
  Agreement

  	
  TVN
  CONFIDENTIAL

  

 

2

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

1.16                         “Group
2 Operators” is defined as the following Operators: [***].

 

1.17                         “Law”, for purposes hereof, means all laws, statutes,
ordinances, codes, regulations, rules, orders, judgments, rulings, writs,
injunctions, court and administrative decrees and other requirements imposed by
any court, administrative agency or commission, governmental franchising or
licensing authority or other governmental authority or instrumentality, whether
local, state or federal and other pronouncements having the effect of law of
any such entity or any other laws or reported decisions of any court thereof,
including principles of common law.

 

1.18                         “[***] Content” or “[***] Programming”
means programming that depicts [***] which do not include [***].

 

1.19                         “Metadata” means descriptive data associated with a VOD
Title, which may vary in depth from merely identifying the associated Package,
title or information to populate an electronic program guide, to providing a
complete index of different scenes in a movie or providing terms detailing how
the VOD Title and/or associated VOD Package may be displayed, copied, or sold,
and, for the purposes of this Agreement, it shall conform to [***]
specifications (and updates thereto as specified by TVN).

 

1.20                         “Minimum Terms” is defined in Section 8.1
below.

 

1.21                         “[***]” is defined in Section 9.1.2 below.

 

1.22                         “Monthly Transmission Planner” or “MTP”
means the list of VOD Titles that CSB plans to distribute for a particular
month, the template for which is provided in the CPR.

 

1.23                         “Net Revenues” is defined as [***].

 

1.24                         “Operational Requirements” is defined in Section 3.4.5
below.

 

1.25                         “Operator” means the entity that, directly or indirectly,
owns or controls one or more Distribution System(s).

 

1.26                         “Party” or “Parties” is
defined in the first paragraph of this Agreement.

 

1.27                         “Pre-Existing TVN Sublicensees” means Operators who are TVN
Sublicensees as of [***], as identified in Schedule D.

 

1.28                         “Pre-Existing CSB Direct Licensees” means Operators who are
CSB Direct Licensees as of [***], as identified in Schedule D.

 

3

 

Portions of this Exhibit have been redacted
pursuant to a request for confidential treatment under Rule 24b-2 of the
General Rules and Regulations under the Securities Exchange Act.  Omitted information, marked “[***]” in this
Exhibit, has been filed with the Securities and Exchange Commission together
with such request for confidential treatment.

 

1.29                         “Provider Remote Interface” or “PRI”
is defined in Section 5.6 below.

 

1.30                         “Reserve Capacity” means transport capacity that TVN has
reserved for the CSB VOD Service, which TVN will make available for the VOD
Titles.

 

1.31                         “[***]” means the [***] of [***] payable by an Operator to
the entity (either TVN or CSB) licensing the CSB VOD Service to such Operator.

 

1.32                         “SVOD” means a package of programming offered to VOD Enabled
Subscribers where, [***], the subscriber can watch [***] with “on demand”
functionality over a set period of time as often as desired on a [***]
basis.  “SVOD
Subscriber” and “SVOD Subscription”
means a VOD-Enabled Subscriber who [***] for access to such [***] offered on
[***] basis, as the context may require.

 

1.33                         “Term”, “Initial Term”
and “Renewal Term” are defined in Section 13.1
below.

 

1.34                         “Territory” means the
United States, Bermuda, the various nations located in the Caribbean Sea, and
the territories and possessions of each.

 

1.35                         “TVN Affiliate Agreement” means the agreement between TVN and
an Operator pursuant to which TVN delivers VOD programming to the Operator, and
the Operator makes such VOD programming available to its VOD Enabled
Subscribers via its VOD Servers.

 

1.36                         “TVN Equipment” means the receiving and/or management
equipment (i.e., hardware and/or software) that is owned or otherwise configured
and managed remotely by TVN, including, without limitation revisions and
upgrades thereto, which is used by TVN in connection with the delivery and/or
management of VOD programming, and which is located in the facilities of
Operators.

 

1.37                         “TVN Sublicensee” means an Operator who sublicenses the CSB
VOD Service via a Carriage Agreement between such Operator and TVN.

 

1.38                         “TVN System” means a Distribution System which is (i) owned
or operated by  a cable,  local exchange carrier (LEC) or long distance
carrier of telephony and/or telecommunications services (including, without
limitation, [***]), a company providing video programming via internet
protocol, and/or a DBS Operator, (ii) located or operating in the
Territory, and (iii) served by a VOD receive site(s) where the TVN
Equipment is deployed.

 

1.39                         “[***] Systems” means the Distribution Systems owned and operated
by [***].

 

4

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

1.40                         “Video On Demand” or “VOD” means the
distribution of video programming on an “on demand” basis, such that a VOD
Enabled Subscriber can select a program, and begin viewing the program [***],
including on [***] basis, as applicable.

 

1.41                         “VOD Distribution Services” means the collection of services
offered by TVN for the acquisition, delivery and management (e.g.,
encoding, asset and platform management, and digital file transport) of [***]
files for use in Distribution Systems.

 

1.42                         “VOD Enabled Subscriber” means any person or entity who has
the capability to receive VOD programming through or from a Distribution
System.

 

1.43                         “VOD Package” refers to the mapping or routing structure
through which VOD programming is delivered [***] to Operators, where each VOD
Package is comprised of VOD Titles which have a common:  (i) Provider Content Tier, (ii) unique
distribution site list reachable via a common multicast pitch, and (iii) unique
package parameters (e.g., poster art format and codec); and where each new VOD
Package requires a setup process in order to set and coordinate the package
parameters with the local system configurations at the relevant Operators prior
to TVN delivering VOD programming as part of that VOD Package.

 

1.44                         “VOD  Program” means
each separate piece of [***] Content for which CSB owns, controls, manages, or
licenses the VOD rights, or is otherwise a part of the CSB VOD Service,
including without limitation ancillary or related content (e.g., promotional or
other supporting programming) which is otherwise a part of the CSB VOD Service.

 

1.45                         “VOD Server” means the hardware and software system(s) that
ingests VOD programming directly or indirectly from the TVN Equipment and
facilitates or enables playback of VOD programming, and which is/are located at
the VOD receive site(s) of Operators.

 

1.46                         “VOD Services Provider” or “VSP” means a company that provides digital
file transport of VOD programming to Operators, such as [***].

 

1.47                         “VOD Title” means each [***] version of a VOD Program.  A VOD Title has an associated [***].  Each [***] for the [***] VOD Program
constitutes a [***] VOD Title.  For example,
[***].  A VOD Title may also be referred
to in this Agreement as a “file”.

 

2.              GRANT OF
RIGHTS

 

2.1                               Authorized Systems.  CSB hereby grants to TVN the
non-transferable, non-assignable, limited license to deliver VOD Titles to the
Authorized Systems for 

 

5

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

the applicable VOD Package(s), as identified in Schedule A,
which Schedule is incorporated herein by reference and which may be expanded by
CSB (or by TVN under Section 2.2 below) from time to time to
include additional Authorized Systems. 
Notwithstanding the foregoing or any other provision set forth in this
Agreement, under no circumstances shall TVN designate a Delivery Carve-Out
Operator to be an Authorized System unless approved in advance by CSB.  With respect to adding Authorized Systems, in
order for a Distribution System to be
considered an Authorized System(s) for a particular VOD Package(s) (such Distribution Systems referred to herein
as “Authorized Systems”): (i) CSB
shall provide TVN with written notice that CSB has authorized such Distribution
System to receive the applicable VOD Package(s) (or if TVN is authorizing the Distribution System, then TVN shall
notify CSB of such in accordance with Section 2.2 below),
and (ii) the Operator of such Distribution System(s) shall provide
authorization to TVN for delivery of the VOD Titles comprising the applicable
VOD Package(s) to such Distribution System(s), at which time Schedule A
shall be deemed automatically amended to include such Distribution System as an
additional Authorized System(s).  TVN will add such Authorized Systems to its
multicast delivery for the applicable VOD Package(s) no later than ten (10) business
days from receipt of such authorizations.  A list of existing Authorized Systems and VOD
Packages as of the Effective Date can be found in the PRI toolset, which will
be updated throughout the Term to reflect the latest list of Authorized
Systems.

 

2.2                               TVN’s Rights to
Sublicense the CSB VOD Service.  CSB hereby grants to TVN the rights to
sub-license the CSB VOD Service to Operators, subject to the terms set forth in
Section 8 below (Sublicensing and Standard Terms).  The applicable systems of the TVN
Sublicensees shall be deemed Authorized Systems under Schedule A, which
Schedule shall be automatically amended to include such systems upon the
commencement of the applicable sublicense. 
TVN will keep CSB apprised in writing (including e-mail) and reasonably
in advance of all TVN Sublicensees that TVN adds to Schedule A under
this section.

 

2.3                               Ownership of Program
Copyrights.  TVN
acknowledges that, as between TVN and CSB, the copyrighted material,
trademarks, service marks, and other intellectual property included in the VOD
Programs, including the names of the VOD Programs, are the property of CSB (or
its suppliers) and that TVN has not and shall not acquire any proprietary
rights therein by reason of this Agreement.

 

2.4                               Reservation of
Rights.  CSB reserves all rights in and
to the VOD Programs and other intellectual property of CSB for its own use,
except for the specific rights that are expressly granted to TVN under this
Agreement.

 

6

 

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

3.              CSB
OPERATIONAL REQUIREMENTS

 

3.1                               VOD Title Selection and VOD Packages.  CSB shall, in CSB’s
sole discretion, determine the VOD Programs and VOD Titles that it makes
available as part of the CSB VOD Service and each of the VOD Packages offered
thereunder. CSB may launch additional VOD Packages during the Term by providing
TVN with [***] written notice.

 

3.2                               Content
Provider Requirements.  CSB
acknowledges that TVN’s role as a VOD distributor requires programming
distributed by TVN to be compliant with TVN’s Content Provider Requirements
(the “CPR”) and applicable Operator
specifications. CSB shall comply with the CPR and any modifications made
thereto; provided that (i) CSB will not be required to comply with any new
or revised terms to the CPR until [***] receipt of such modifications to the
CPR, and (ii) any amended requirements in the CPR that are applicable to
CSB will be [***] applied to all other Adult Content VOD networks using TVN for
their VOD distribution.

 

3.3                               Monthly
Transmission Planner.  [***] prior
to the first day of each month during the Term, CSB shall provide to TVN a
Monthly Transmission Planner (the “MTP”), as
described in the CPR, setting forth CSB’s needs for the applicable month,
including, for each VOD Title to be distributed by TVN in such month:
[***].  In the event that CSB has not
provided an MTP to TVN [***] prior to the beginning of the applicable month,
unless waived in writing by TVN, CSB will pay TVN the MTP late fee described in
Subsection 2.3 of Section D of Schedule C.

 

3.4                               Delivery of
Titles to TVN.

 

3.4.1                      Delivery and
Timing.  CSB shall deliver to TVN [***] (i) the
VOD Programs and/or VOD Titles and (ii) all associated Metadata, each in
accordance with the then-current CableLabs specification and TVN’s CPR, at
least twenty-one (21) days in advance for pre-encoded VOD Titles, and thirty
(30) days in advance for VOD Titles requiring TVN encoding or transcoding, of
each applicable VOD Title’s exhibition start date as that date is set forth in
the applicable Metadata.

 

3.4.2                      Qualification.  CSB may deliver to TVN VOD Titles that have
been pre-encoded in-house by CSB or by a third party authorized by CSB (each
such third party encoding provider, a “Third Party Encoder”),
provided that CSB or such third party has successfully completed TVN’s
pre-qualification process (used to verify compliance with TVN and industry
standards, and is consistently applied) for each unique codec, bitrate, and
collection of encoder settings used in the encoding of the VOD Titles prior to
TVN providing the VOD Distribution Services with respect to such VOD
Titles.  It is acknowledged that as of
the Effective Date, CSB has 

 

7

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

been qualified as an encoder for [***]. 
CSB acknowledges that in the event it intends to distribute VOD Titles
encoded at other bitrates, in other codecs, or with alternative encoder
settings, CSB would need to be re-qualified prior to providing such VOD Titles.
For the qualification of any Third Party Encoder, CSB shall pay TVN a Third
Party Encoder Qualification Fee as set forth in Section C Subsection
1.3 of Schedule C.

 

3.4.3                      Delivery of
Pre-Encoded Content.  Any entity
delivering pre-encoded VOD Titles to TVN shall (i) deliver the pre-encoded
VOD Titles via a TVN-approved FTP site, and (ii) be responsible for
generating a verifiable date and timestamp for the complete transfer of all
pre-encoded VOD Titles to TVN.  CSB shall
also ensure that the encoding rate used for any pre-encoded HD VOD Titles
complies with the requirements of each applicable Authorized System.

 

3.4.4                      Closed
Captioning and Other Authorized System Requirements.  CSB shall ensure that each VOD Program and
VOD Title delivered to TVN hereunder is in compliance with the closed
captioning requirements and any other requirements (and any exceptions thereto)
of the applicable Authorized Systems.

 

3.4.5                      Delivery Errors.  In the event that VOD Programs or VOD Titles
are received by TVN out of compliance with the operational requirements
described in this Section 3.4 (the “Operational
Requirements”) on a frequent or repeated basis, it shall be
considered a “Delivery Error.”  In such case, TVN will promptly inform CSB,
and give CSB an opportunity to respond and address the issue.  If the Delivery Error(s) continue, or in
the event that TVN is compelled to perform quality control (“QC”) activities due to such prior repeated non-compliance,
TVN may charge and CSB will pay the applicable Delivery Error fee; it being
understood that QC activities will only be performed until TVN reasonably
ascertains that the applicable Delivery Errors have been satisfactorily
addressed.

 

4.              ADDITIONAL
ADULT CONTENT PROVIDER CONSIDERATIONS

 

4.1.                            Editing
Standards.  CSB shall
ensure that all VOD Titles delivered to TVN pursuant to this Agreement shall be
limited to [***] editing standards, as commonly understood in the cable
television industry, and appropriately classified, consistent with the
following editing standards:

 

4.1.1.                   With respect to the editing
standard currently known as “[***]”,  the
VOD Titles may depict [***]; however, [***] VOD Titles shall not depict [***].

 

8

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

4.1.2.                   With respect to the editing
standard currently known as “[***]”, the VOD Titles may depict [***]; however, “[***]”
VOD Titles shall not depict [***].

 

4.1.3.                   With respect to the editing
standard currently known as “[***]”, the VOD Titles may depict [***]; however, “[***]”
VOD Titles shall not depict [***].

 

4.1.4.                   With respect to the editing
standard currently known as “[***]”, the VOD Titles may depict [***].

 

4.2.                            Restricted
Content.  CSB shall
not deliver to TVN any VOD Title that depicts [***].  CSB assumes all responsibility for ensuring
that the VOD Titles comply with this Section 4.2 and Section 4.1
above.

 

4.3.                            Additional CSB
Responsibilities.  CSB shall be
responsible for all of the following:

 

4.3.1.                   Obtaining clearances of all
necessary rights and licenses with respect to the production, distribution, and
exhibition of all VOD Titles to be distributed under this Agreement; and

 

4.3.2.                   Ensuring that all VOD Titles
made available as part of the CSB VOD Service comply with the requirements of
each CSB VOD Affiliate(s), including compliance with all
ratings/classifications/editing standards and restrictions and all rules regarding
title naming and use of restricted words; and ensuring that the VOD Titles are
appropriately classified and comply with all Laws and government regulations
(including labeling, recordkeeping and other compliance with 18 U.S.C. Sections
2257 and 2257A, to the extent required thereunder), and obtaining approvals
from any applicable governing bodies and review boards.

 

4.4.                            Operator Guidelines and Right to Reject.  Operators may reject (and therefore not offer
to their subscribers) any VOD Title(s), and nothing herein may be interpreted
to require such offering of any VOD Title(s). 
CSB may provide, in its sole discretion, alternative VOD Titles for any
rejected ones.  In addition, CSB shall
ensure that its standards and practices guidelines (the “Guidelines”), used in association with production and distribution of the VOD
Titles comprising the CSB VOD Service, include, at a minimum, guidelines that
ensure compliance with (i) all applicable Laws, rules and regulations
and the editing standards described in Sections 4.1, 4.2 and 4.3 above,
and (ii) the naming
convention and any other rules enacted by each applicable Operator with
respect to [***] Content.  CSB shall provide TVN with a copy of the
Guidelines prior to the Effective Date and within [***] of any material updates or modifications
thereto.  Should any 

 

9

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

VOD Title materially fail to conform to the
Guidelines, or this Agreement, in TVN’s reasonable judgment, TVN may refuse to
deliver the non-conforming VOD Title. 
Should a determination be made by either TVN and/or an Operator that a
delivered VOD Title is materially non-conforming or an Operator does not want
to distribute a VOD Title because of its concerns about community standards,
either TVN and/or the affected Operator may delete the VOD Title(s) at
issue from the applicable Equipment and/or VOD Server(s).  Any failure to delete or not distribute the
non-conforming or other applicable VOD Title(s) shall not relieve CSB of
its obligations under this Agreement.

 

5.              TVN’S
VOD DISTRIBUTION SERVICES

 

5.1                               VOD
Distribution Services.  TVN
shall provide the VOD Distribution Services set forth on the attached Schedule
B.

 

5.2                               Encoding
Services.  Should CSB
require encoding services in the future, TVN provides encoding services as
follows:

 

5.2.1                      For [***].

 

5.2.2                      For [***].

 

5.2.3                      For [***].  For any [***]; provided that TVN will support
applicable Operator encoding rate requirements which may differ from this rate,
provided that any such alternative rates are (i) agreed to in writing
between CSB and the applicable Operator and (ii) communicated by CSB to
TVN prior to TVN performing encoding; provided further that TVN shall not be
required to encode [***] VOD Programs at more than [***] encoding rates across
the CSB VOD Titles in any given [***] (for example, [***], TVN will not be
required to accommodate CSB’s request to encode at any additional [***]
encoding rates in that [***]).  CSB shall
be responsible for ensuring that any alternative [***] encoding rate complies
with the requirements of each applicable Authorized System.

 

5.2.4                      For other VOD
encoding specifications, the Parties will negotiate in good faith the terms
under which TVN may provide such other encoding services.

 

5.3                               TVN Delivery of
Titles.

 

5.3.1                      For all VOD
Programs and/or VOD Titles delivered to TVN in accordance with the Operational
Requirements, TVN will deliver the applicable VOD Titles and the associated
Metadata to the TVN Equipment at the applicable Authorized Systems, pursuant to
the terms and conditions of 

 

10

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

this
Agreement and in accordance with TVN’s multicast delivery, in advance of each
applicable VOD Title’s exhibition start date.

 

5.3.2                      TVN will ensure
the VOD Titles are delivered to the TVN Equipment and made ready for hand-off
to the VOD Server at the Authorized Systems; provided, however, that TVN shall
not be responsible for delivery to any Authorized System which is unwilling or
unable to accept the VOD Titles or has disabled the TVN Equipment, due to
reasons outside the immediate control of TVN.

 

5.3.3                      TVN shall
perform a Metadata quality control (“QC”) review against the XML files provided
by CSB to verify that the Metadata is compliant with [***] and the CPR and will
communicate any errors to CSB in a timely manner.  TVN shall make no editorial changes to any
CSB Metadata.

 

5.3.4                      In the event
that TVN does not, in all material respects, 
meet all of the requirements of Sections 3.5.1 and 3.5.2 on a
[***] basis and fails to cure the same [***] after notice of such failure to
TVN, and such performance issues are not due to the acts or omissions of CSB or
the Authorized Systems or due to an un-communicated or mutually agreed upon
change in formats or standards or other reasons outside of the immediate
control of TVN, it shall be considered a material breach of this Agreement.

 

5.4                               Operator
Instructions.  If TVN is
notified by an Operator to not deliver one or more VOD Titles to one or more of
its systems, TVN shall notify CSB of such instructions promptly, and will
comply with such instructions until such time that Operator notifies TVN
otherwise.  Nothing herein shall require
TVN to violate its obligations set forth in a TVN Affiliate Agreement.

 

5.5                               Requests
Outside of Normal Operational Processes.  Should CSB request TVN to encode and/or
deliver a VOD Title other than as outlined in the Operational Requirements, TVN
will, in its sole discretion, determine if it can meet CSB’s request.

 

5.6                               Provider Remote
Interface.  During the
Term, TVN will provide CSB access to TVN’s web-based asset management toolset,
the Provider Remote Interface (“PRI”), through
which CSB will be able to view asset states and delivery confirmations.

 

5.7                               Centralized
Storage.  As an optional service, TVN
will provide near-line centralized storage of VOD Titles at TVN’s facility at
the rate set forth in Section 1 of Section C of Schedule C.  CSB shall notify TVN in writing of its desire
to utilize this option on a [***] basis.

 

11

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

6.                                      RESERVE
CAPACITY

 

6.1                                 Reserve
Capacity.  TVN will
initially reserve [***] transport capacity each [***] for the CSB VOD Titles
(the “Reserve Capacity”).  CSB may increase (or decrease) the Reserve
Capacity by providing [***] written notice to TVN, in which case the [***] (as
set forth in Section 9.1.2) shall [***].  TVN shall not refuse any Reserve Capacity
requests made by CSB during the Term, provided that CSB has provided [***]
written notice of any such increase to the Reserve Capacity.

 

7.                                      CSB’S USE OF TVN’S VOD DISTRIBUTION SERVICES

 

7.1                                 Encoding Services.  It is acknowledged that as of the Effective
Date CSB encodes its VOD Titles itself “in-house”.  In the event that CSB decides to outsource
some or all of its encoding/transcoding work in the future, it may, in its sole
election, use TVN; or a Third Party Encoder in accordance with Section 3.4,
provided that such Third Party Encoder is able to meet the Operational
Requirements.

 

7.2                                 Transport Services.  CSB shall use TVN’s transport services for
all delivery of VOD Titles to TVN Systems in the Territory (including the [***]
Systems at such time as all VOD systems comprising the [***] Systems become TVN
Systems), subject to the following permitted exceptions:

 

7.2.1                        Carve-Out Operators:  [***].

 

7.2.2                        [***] Systems:  [***].

 

7.2.3                        Hospitality Network:  [***].

 

7.3                                 Scope.  This Agreement contemplates that the VOD
Titles will be offered on [***] basis only with [***].  In the event that the Parties agree to
include [***] content in the VOD Titles or otherwise within the CSB VOD Service
offered to Group 1 Operators only, the Parties will negotiate how the Parties
will share the [***] attributable to such [***],  with it being understood that any such [***]
between CSB and TVN will be based upon [***] received by CSB from such [***],
[***].  In the event that CSB wishes to
offer the VOD Titles to Group 1 Operators (i) under a different business
model, such as on [***] basis, with [***], or (ii) as part of a broader
relationship with one or more Operator(s) whereby CSB gains carriage of
its VOD Titles in exchange for [***], the Parties hereto shall negotiate in
good faith with respect to such additional or revised terms to this Agreement
with respect to such VOD Titles as may be mutually agreed upon in writing
(including by confirmed email) in order for TVN to provide distribution for
such VOD Titles under such new business model. 
Notwithstanding anything to the contrary contained in this Agreement,
the Parties acknowledge that this 

 

12

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

Agreement
does not apply to content other than [***] Content or ancillary or supporting
programming which is [***] and otherwise a part of the CSB VOD Service (e.g.,
trailers or other content promoting the VOD Titles).

 

8                                         LICENSING, STANDARD TERMS, AND AFFILIATE SALES

 

8.1.                              TVN Sublicensing
Rights.  TVN shall have the right to
sublicense the CSB VOD Service (including each of the VOD Packages offered by
CSB) to (i) Pre-existing TVN Sublicensees and (ii) any Operator who
at the commencement of such sublicense is not licensing the CSB VOD Service
directly from CSB; provided that, unless otherwise mutually agreed, TVN will
not sublicense the CSB VOD Service to an Operator for a [***] of less than
[***] (the “Minimum Terms”).

 

8.2.                              Pre-existing
Licensing Relationships.  It is
acknowledged by the Parties that, as of the Effective Date, TVN sublicenses the
CSB VOD Service to certain Operators, and CSB licenses the CSB VOD Service
directly to other Operators.  A list of
Pre-existing TVN Sublicensees and Pre-existing CSB Direct Licensees is shown on
Schedule D.  The Parties agree
that neither Party will actively pursue direct licensing agreements for the CSB
VOD Service with Operators who at such time license the CSB VOD Service from
the other Party, unless otherwise mutually agreed.

 

8.3.                              Sales Coordination.  TVN and CSB will use [***] efforts to conduct
[***] sales calls or meetings to provide status updates, share market feedback,
and coordinate efforts.  In addition to
the foregoing, TVN shall, subject to confidentiality obligations with Operators,
content providers, and/or other business partners/customers, confer in person,
by e-mail  or by telephone at such time
as it is notified by  an Operator, other
than a Group 2 Operator or a Delivery Carve-out Operator, that such Operator: (i) intends
to drop CSB or intends to reduce the [***] Programming it receives from CSB; or
(ii) is creating or changing category menu structures or pricing, in a
manner which affects CSB.

 

8.4.                              Additions to
the CSB VOD Service and Additional Packages.  In the event that CSB launches any new VOD
Packages or otherwise expands the CSB VOD Service, CSB shall communicate such
modifications/additions, and provide any marketing materials and related
details, to TVN’s affiliate sales team [***] prior to launch, so TVN can
support such new VOD Packages at TVN Sublicensees.

 

8.5.                              Additional
Affiliate Sales Considerations.

 

8.5.1.                     Subject to Section 8.5.2
and also to the notification requirements of Section 8.3, TVN will use
[***] efforts to promote CSB’s [***] Content to cable Operators to a similar
extent that it promotes competitive [***] Content.

 

13

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

8.5.2.                     TVN will not encourage
Operators to cease carrying or reduce the volume of CSB VOD Titles they carry
on their Distribution Systems and shall use reasonable efforts to discourage
Operators from doing so.  To the extent
that TVN is notified by an Operator that such Operator is seeking to increase
the amount of [***] Programming they make available, TVN will ensure that such
Operator has been made aware of the various VOD offerings available through
CSB, and CSB agrees to make available enough [***] Programming on an ongoing
basis to fill any carriage opportunities that arise from such activities.  In addition, at Operators where TVN (as
opposed to the Operator) controls what [***] content is carried, TVN will not
remove or reduce the volume of CSB VOD Titles carried by such Operator(s).

 

8.6.                              Linear Channel
Opportunities.  For Operator
systems in which TVN secures carriage of a local playback linear PPV [***]
channel (i.e., the Operators receives VOD Titles via the TVN platform, then
plays back a linear channel comprised of those Titles, such channel a “Local Playback Channel”), the first such Local Playback
Channel offered and licensed to an Operator by TVN will be comprised [***] of
CSB VOD Titles, unless the  CSB Local
Playback Channel or the terms which CSB is willing to accept are rejected by
such Operator (a “CSB Channel”).  CSB will grant TVN all rights associated with
this opportunity, and the Parties will share [***], received by TVN with
respect to such CSB Channel.  The Parties
agree to negotiate in good faith for additional such Local Playback Channel
opportunities beyond the initial “channel”.

 

9                                         ECONOMICS

 

Each month, TVN shall earn both (i) [***] and (ii) [***],
as each is set forth below:

 

9.1                                 [***].

 

9.1.1                        [***].  [***].

 

9.1.2                        [***].  [***].

 

9.1.3                        [***].  [***].

 

9.1.4                        Acknowledgement.  It is acknowledged that the [***] described
in this Section 9.1 and in Schedule C are provided as
consideration in part for CSB’s commitments and the overall terms of this
Agreement.  [***].

 

9.2                                 [***].  [***].

 

14

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

9.3                                 [***].  [***].

 

9.4                                 Taxes.  All charges are exclusive of applicable
federal, state, and local sales, use, excise, gross receipts, and other taxes (“Taxes”) that may apply. 
Taxes due by Law must be properly invoiced at the same time as the fees
or charges on which such Taxes are based. 
In no event will Taxes include any taxes or tax-like surcharges
determined by TVN’s income, net worth, franchise or property. If CSB provides
TVN with a duly authorized exemption certificate, TVN will exempt CSB in
accordance with Law.

 

10                                  PAYMENTS AND REPORTING

 

10.1                           Fees.  TVN shall invoice CSB [***] for the
applicable [***] owed to TVN for services rendered by TVN and other fees
incurred by CSB [***].  CSB shall remit
to TVN the invoiced fees on or before [***] following the date of the invoice
from TVN.  TVN may charge CSB and CSB
shall pay interest at the lesser of (i) [***] or (ii) the maximum
percentage allowable under applicable Law, on fees not paid, unless such
invoice is subject to a valid payment dispute.

 

10.2                           [***].

 

10.2.1                  CSB Payments to TVN.  For all applicable Net Revenues payable to
CSB, CSB shall pay [***], on a [***] basis, the appropriate [***], along with a
complete report (the “[***] Report”)
detailing the calculation of [***] for such [***], within [***] following CSB’s
actual receipt of the applicable revenue and/or the applicable reporting
information.  The [***] Report shall
include, unless not provided to CSB by an Operator (it being understood that
CSB shall require the Operator provide such information in all Carriage
Agreements with Operators), [***], during the applicable period.  The [***] Report shall be provided in TVN’s
standard reporting format (the “Affiliate Revenue Report”
or “ARR,” as updated from time to
time).  TVN may charge CSB and CSB shall
pay interest at the lesser of (i) [***] or (ii) the maximum
percentage allowable under applicable Law, on [***] not paid on time, unless
such invoice is subject to a valid payment dispute.

 

10.2.2                  TVN Payments to CSB.  For all applicable revenues payable to TVN,
TVN shall pay CSB, on a [***] basis, CSB’s applicable share of such revenues
along with a [***] Report (consistent with the format of the ARR) within [***]
following receipt of the applicable revenue and reporting information. CSB may
charge TVN and TVN shall pay interest at the lesser of (i) [***] or (ii) the
maximum percentage allowable under 

 

15

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

applicable
Law, on [***] not paid on time, unless such invoice is subject to a valid
payment dispute.

 

10.3                           Audit Rights.  Each Party shall keep and maintain, and
require its Operators to keep and maintain, complete and accurate books and
records for determining the [***] owed to each respective Party, as
applicable.  For a period of [***]
following each [***] Report, as applicable, each Party’s books and records
specific to the determination of amounts due to the other Party for that
particular month shall be available for inspection and audit by an independent,
nationally recognized, certified accounting firm at the auditing Party’s
expense and at the audited Party’s offices. 
Such audit shall be conducted in accordance with generally accepted
accounting principles without any unusual cost or expense. Any inspection or
audit will be conducted no more than [***] with at least [***] prior written
notice to the audited Party, the scope of which audit shall be specifically
limited to items materially relevant to the economic terms of this
Agreement.  Should the audit reveal a
discrepancy of more than [***] of a shortfall in payment by the audited Party
to the auditing Party, then the audited Party shall pay, in addition to paying
any amounts owed to the auditing Party as a result of the discrepancy, the
reasonable expenses associated with such audit. 
Notwithstanding the foregoing, if a Party hereto intends to conduct an
examination of the books and records of an Operator of such Party as the same
pertains to the amounts due to the Parties hereunder, the auditing Party shall
give the other Party notice of the auditing Party’s intention to do so and the
other Party shall have the right to participate in said examination, if
permitted by the Operator, provided that the other Party shall share the costs
of such examination with the auditing Party in proportion to the Parties’
respective recoveries resulting therefrom. 
Once a period has been audited, the auditing Party shall not have the
right to audit the same period again.

 

11                                  PUBLIC ANNOUNCEMENTS

 

The
Parties agree to issue a joint press release announcing this Agreement.  Thereafter, neither Party shall issue a news
release concerning this Agreement without the prior written approval of the
other, such approval not to be unreasonably withheld, conditioned or
delayed.  The aforementioned prohibition
shall not be construed as limiting CSB’s right to make public disclosure as may
be required by the United States Securities and Exchange Commission or as
otherwise may be required by applicable Law.

 

12                                  REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

 

12.2                           Each Party
represents and warrants to the other Party that (i) such Party has the
right to enter into this Agreement and to perform fully all of its obligations
under the Agreement; (ii) there are no claims, litigation or other
proceedings pending or threatened that would adversely affect the other Party’s
rights or interests 

 

16

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act.  Omitted information, marked “[***]” in this
Exhibit, has been filed with the Securities and Exchange Commission together
with such request for confidential treatment.

 

hereunder; and (iii) it is under no contractual or other legal
obligation that in any way interferes with its ability to fully, promptly and
completely perform hereunder.

 

12.3                           CSB represents
and warrants that it is a corporation duly organized and validly existing under
the Laws of the State of Colorado.  CSB
further represents and warrants that: (i) CSB has the right to grant the
rights hereunder free and clear of any and all claims by any third party, (ii) it
will have obtained at the time of production appropriate releases from all
persons appearing in or providing services in connection with each VOD Title; (iii) all
performers in each VOD Title appearing nude and/or engaging in any form of
sexual conduct will have been older than eighteen (18) years of age; (iv) each
VOD Title will have been produced and records are kept in accordance with, and
each VOD Title contains the appropriate notice required by, The Child
Protection Restoration and Penalties Enhancement Act of 1990, and hereby
certifies that each VOD Title will be in compliance with the labeling
requirements of Sections 2257 and 2257A of Title 18, United States Code and any
amendments thereto; and (v) none of the VOD Titles provided by CSB to TVN
under this Agreement will: (a) be libelous, slanderous, obscene, or
defamatory or illegally indecent; or (b) violate or infringe any civil or
property rights, copyrights (including, without limitation, music
synchronization, master recording, and music performance rights through to the
viewer, and dramatic and non-dramatic music rights), trademark rights, patent
rights, rights of privacy, or other rights of any person or entity; or (c) violate
any Law or the closed captioning requirements of the Authorized Systems.

 

12.4                           CSB hereby
agrees to indemnify, defend, and forever hold harmless TVN, its parents,
subsidiaries and related entities, and the CSB VOD Affiliates, and each of
their respective present and former members, partners, directors, officers,
employees, shareholders, agents, successors and assigns (collectively, the “TVN Indemnitees”) from and against any and all losses,
liabilities, claims, costs, damages and reasonable expenses, including fines,
forfeitures, penalties, reasonable attorneys’ fees, disbursements and court or
administrative costs (collectively, “Liabilities”),
incurred as a result of a third party claim that arises out of (i) any
breach by CSB of any term of this Agreement, including its Schedules, or any
warranty, covenant or representation contained herein by CSB; (ii) the
content of the CSB VOD Service, the CSB Packages, VOD Programs and/or VOD
Titles (including music performance rights through to the viewer), including,
without limitation, a third party claim that the programming content contained
in any VOD Program or VOD Title constitutes an infringement of any copyright or
trademark or a violation of a right of publicity, privacy, or other right of
any third party; (iii) CSB’s failure to comply with all applicable Laws to
which it is subject or any other failure on CSB’s part that causes TVN and any
TVN Indemnitee to violate any Law; (iv) CSB’s failure to have acquired at
the pertinent time when all or part of the VOD Title is made available to TVN
or to any CSB VOD Affiliate or to any 

 

17

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for confidential
treatment.

 

subscriber/customer, good title to, and/or each and every property
right or other right necessary for it to satisfy the obligations imposed on it
pursuant to the Agreement; (v) any civil or criminal violations of Law
occurring as a result of the acts or omissions of CSB, and/or (vi) the use
of intellectual property pertaining to encoding or digital video standards,
formats, processes or technology used with respect to the VOD Titles, including
without limitation the exhibition thereof and the end-user transactions for
same; and shall reimburse the TVN Indemnitees for any and all legal, accounting
and other fees, costs and expenses (collectively, “Expenses”)
reasonably incurred by any of them in connection with investigating, mitigating
or defending any such Liabilities, and will pay all damages and costs finally
awarded against TVN or any TVN Indemnitee in any such suit or proceeding or
settlement thereof, provided that TVN (a) promptly notifies CSB in writing
of any such suit or proceeding; provided, however, that any failure to promptly
provide such notice shall not relieve CSB of its obligations hereunder, except
to the extent that such delay has materially prejudiced CSB’s ability to defend
such suit or proceeding; (b) provides CSB with control over the defense or
settlement of any such claim or action (except that CSB shall not, without TVN’s
prior written consent, settle any claim that imposes any (1) equitable
remedy against any TVN Indemnitee, (2) financial obligation for which a
TVN Indemnitee is not otherwise indemnified hereunder, or (3) any other
liability or obligation upon any TVN Indemnitee (including any admission of
wrongdoing by any TVN Indemnitee) which could be reasonably expected to have an
adverse effect upon the TVN Indemnitee’s business, reputation or prospects; and
(c) provides reasonable information and assistance, at CSB’s cost and
expense, in the defense or settlement of any such claim or action.  TVN may participate in any such suit or
proceeding through counsel of its choice at TVN’s own expense, provided that
the costs associated with TVN’s counsel shall not be deemed damages or costs
for purposes of CSB’s indemnity hereunder. 
[***].

 

12.5                           TVN represents
and warrants that it is not party to any agreements for transport services for
Adult Content VOD titles with any third party Adult Content providers which
contain a “most favored nations” clause.

 

12.6                           TVN hereby
agrees to indemnify, defend, and forever hold harmless CSB, its parents,
subsidiaries and related entities, and each of their respective present and
former members, partners, directors, officers, employees, shareholders, agents,
successors and assigns (collectively, the “CSB Indemnitees”)
from and against any Liabilities incurred as a result of a third party claim
that arises out of any breach by TVN of any term of this Agreement, including
its Schedules, or any warranty, covenant or representation contained herein by
TVN; and shall reimburse the CSB Indemnitees for any and all Expenses
reasonably incurred by any of them in connection with investigating, mitigating
or defending any such Liabilities, and will pay all damages and costs finally
awarded against CSB  or any CSB
Indemnitee in any such suit or proceeding or settlement thereof, provided that
CSB (a) promptly notifies TVN in writing of any such suit or proceeding;
provided, however, that any 

 

18

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

failure to promptly provide such notice shall not relieve TVN of its
obligations hereunder, except to the extent that such delay has materially
prejudiced TVN’s ability to defend such suit or proceeding; (b) provides
TVN with control over the defense or settlement of any such claim or action
(except that TVN shall not, without CSB’s prior written consent, settle any
claim that imposes any (1) equitable remedy against any CSB Indemnitee, (2) financial
obligation for which a CSB Indemnitee is not otherwise indemnified hereunder,
or (3) any other liability or obligation upon any CSB Indemnitee
(including any admission of wrongdoing by any CSB  Indemnitee) which could be reasonably
expected to have an adverse effect upon the CSB 
Indemnitee’s business, reputation or prospects; and (c) provides
reasonable information and assistance, at TVN’s cost and expense, in the
defense or settlement of any such claim or action.  CSB may participate in any such suit or
proceeding through counsel of its choice at CSB’s own expense, provided that
the costs associated with CSB’s counsel shall not be deemed damages or costs
for purposes of TVN’s indemnity hereunder. 
[***].

 

12.7                           EXCEPT WITH
RESPECT TO THE INDEMNIFICATION AND CONFIDENTIALITY PROVISIONS SET FORTH IN THIS
AGREEMENT, NEITHER PARTY SHALL, FOR ANY REASON OR UNDER ANY LEGAL THEORY, BE
LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR
CONSEQUENTIAL DAMAGES OR FOR LOSS OF PROFITS, REVENUES, DATA OR SERVICES,
REGARDLESS OF WHETHER SUCH DAMAGES OR LOSS WAS FORESEEABLE AND REGARDLESS OF
WHETHER SUCH PARTY WAS INFORMED OR HAD DIRECT OR IMPUTED KNOWLEDGE OF THE
POSSIBILITY OF SUCH DAMAGES OR LOSS IN ADVANCE.

 

13                                  INSURANCE REQUIREMENT

 

CSB
shall procure and maintain [***], at CSB’s sole expense, the following
insurance coverage from a nationally-recognized insurance carrier and in
accordance with industry standards: 
(i) Commercial General Liability insurance that, at a minimum,
covers Premises and Operations, Products and Completed Operations, Blanket
Contractual Liability for both Oral and Written Contracts and Broad Form Property
Damage at liability limits of [***] each occurrence for Bodily Injury and
Property Damage, [***] each occurrence and [***] in the aggregate for Products
and Completed Operations, and [***] policy General Aggregate; and
(ii) Media Perils Liability insurance (Broadcasters’ Liability/Errors and
Omissions) that, at a minimum, covers CSB’s media activities, including
production of programming, the VOD Programs and VOD Titles and all elements
thereof and all programming licensed to TVN by CSB pursuant to this Agreement
(including original programming, marketing activities, sales promotions and
other activities), with coverage for, at a minimum, the offenses of defamation
of character or reputation, invasion of privacy, infringement of trademark,
title, slogan, trade name or service mark, infringement of copyright or
misappropriation of ideas, and at a liability limit of [***] in any [***]
policy 

 

19

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

period
and a maximum self-insured retention of [***]. 
Each insurance policy required by this Section 13 shall be
endorsed to provide that (a) TVN and the CSB VOD Affiliates are named as
additional insureds, that the proceeds thereof are payable to TVN and the CSB
VOD Affiliates, as the case may be, and that the policy provides primary and
non-contributory coverage to TVN and the CSB VOD Affiliates, irrespective of
any other insurance carried by TVN or any CSB VOD Affiliate, whether it be
primary, excess, contingent or on any other basis; (b) the insurer waives
any rights of subrogation it may have against TVN and/or any CSB VOD Affiliate;
and (c) the policy provides coverage on an “occurrence,” and not a “claims-made”
basis for the Commercial General Liability insurance, and on a “claims-made”
basis for the Media Perils Liability insurance. 
CSB shall provide to TVN standard ACORD certificates of insurance as
evidence of maintenance of all insurance policies required by this Section 13
upon the execution of the Agreement by CSB. 
Such certificates shall indicate that the pertinent insurance policy
shall not be canceled or modified except upon delivery of [***] prior written
notice to TVN and CSB; provided, however, that CSB shall not make any revisions
to any policy that could adversely affect TVN’s or any CSB VOD Affiliate’s
rights pursuant to this Section 13 without TVN’s prior written
consent.  In addition, such certificates
shall indicate coverage for the [***], or CSB shall provide to TVN, [***] prior
to the expiration of any policy, a subsequent certificate of insurance as
evidence that the pertinent insurance continues in full force and effect.

 

14                                  TERM; TERMINATION

 

14.2                           Initial Term.  The initial term of this Agreement shall be
for four (4) years beginning with the Effective Date of this Agreement
(the “Initial Term”).  Further, the Term shall automatically be
extended for additional one (1) year periods (each one year period a “Renewal Term”), unless written notice of termination is
given by either Party at least ninety (90) days prior to the end of the then
current Initial Term or Renewal Term. 
The Initial Term and each Renewal Term are collectively referred to
herein as the “Term”.

 

14.3                           Termination and
Additional Remedies for Breach.  Either Party shall have the right to
terminate this Agreement by giving written notice to the other Party if the
other Party has materially breached this Agreement and has failed to cure such
breach within [***] of receipt of written notice thereof specifying the breach
(it being understood that cure of a breach by TVN for failure to timely deliver
a VOD Title to an Operator shall be to effect delivery of such VOD Title as
soon as practicable following notice and to use reasonable efforts to cause the
Operator to make available to its Subscribers such VOD Title for the time
period originally contemplated), , including pursing its other available rights
and remedies at law, in equity or otherwise.  In the event of termination,
TVN shall retain and distribute to the Authorized Systems, and the Authorized
Systems will have the right to continue to exhibit, any and all VOD Titles
in TVN’s possession until the end of each such VOD Title’s license end date.  Each and all of each Party’s 

 

20

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

respective legal rights and remedies provided for in this Agreement
shall be construed as being cumulative, and no one of them shall be deemed to
be exclusive of the others or of any right or remedy allowed by law.  The exercise by either Party of such rights
or remedies hereunder shall not release or relieve the breaching Party from its
performance obligations or liabilities hereunder.

 

14.4                           Termination for
Financial Impairment.  If a Party (i) makes
a general assignment for the benefit of creditors, (ii) has appointed,
voluntarily or involuntarily, any trustee, receiver, to it or a substantial
part of its property, (iii) files, or has filed against it, a voluntary or
involuntary petition in bankruptcy, or (iv) makes any arrangement or
otherwise becomes subject to any proceedings under the bankruptcy, insolvency,
reorganization or similar Laws of the United States or any state, and the Party
fails to have any involuntary proceeding dismissed within ninety (90) days of
service on the Party of notice of such involuntary proceeding, then the other
Party shall have the right at any time thereafter to terminate this Agreement
by giving written notice to such Party.

 

14.5                           Surviving
Clauses.  [***], and all provisions of
this Agreement which may reasonably be interpreted or construed as surviving
the expiration or termination of this Agreement, shall survive the expiration
or earlier termination of this Agreement for any reason.

 

14.6                           Obligations
Upon Termination.  Upon the
termination of this Agreement, any amounts then due hereunder shall become
immediately due and payable. Upon the expiration or earlier termination of this
Agreement, TVN shall immediately discontinue the delivery of the VOD
Titles.  Not later than [***] after the
expiration or earlier termination of this Agreement, any copies of the VOD
Titles in TVN’s possession shall be destroyed or erased.

 

15                                  CHOICE OF LAW / DISPUTES

 

15.2                           Governing Law.  This Agreement shall be construed in
accordance with applicable federal Laws of the United States of America, and
the Laws of the State of California applicable to contracts entered into and to
be performed therein without regard to principles of conflict of Laws, and
excluding the 1980 United Nations Convention on Contracts for the International
Sale of Goods and any amendments or updates thereto.

 

15.3                           Disputes.  The Parties hereto agree that any dispute
relating to this Agreement will be submitted in writing to a panel of two
persons, one representing TVN and one representing CSB, who shall promptly meet
and confer in an effort to resolve such dispute.  Each representative shall be identified by
notice to the other side and may be changed at any time thereafter also by
notice to the other.  Any unanimous
decisions of the representatives will be final and binding on TVN and 

 

21

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

CSB.  In the event the
representatives are unable to resolve any dispute within [***] after submission
to them, then either TVN or CSB may then refer such dispute to arbitration in
accordance with Section 15.4 below.

 

15.4                           Arbitration.  Except for an action pursuant to the
provisions of Section 15.7 below, the Parties agree that all
disputes that are not resolved pursuant to the procedure set forth in Section 15.2
above and which relate to or arise out of this Agreement shall be submitted to
arbitration before a single arbitrator in Los Angeles County in the State of
California.  The arbitration shall be
conducted through ADR Services, Inc. (“ADR Services”)
or JAMS in accordance with the applicable ADR Services or JAMS arbitration
rules.  The arbitration shall be heard
before a retired federal court judge or an experienced attorney with experience
in or knowledge of the business in which the Parties are primarily
engaged.  The Parties shall select an
arbitrator by mutual agreement through ADR Services or JAMS within thirty (30)
days of the date the demand for arbitration is filed.  If the Parties are unable to agree on the
selection of an arbitrator within such time, the administrator of ADR Services
or JAMS, as the case may be, shall select an independent arbitrator.  The Parties agree that (a) they shall be
entitled to conduct such reasonable discovery as the arbitrator may allow; (b) except
as provided to the contrary in this Agreement to which this arbitration
provision is a part, the arbitrator shall be entitled to award the full range
of relief as would be available to the prevailing Party in a court of law; (c) the
arbitrator shall not have the power to commit errors of Law or legal reasoning,
and the award may be vacated or corrected on appeal to a court of competent
jurisdiction for any such error; (d) the prevailing Party in any
proceeding brought under this paragraph or in any proceeding brought to enforce
an arbitration award hereunder shall be entitled to its costs and to its
reasonable attorneys fees incurred in connection with the preparation and
conduct of any such arbitration and/or any other proceeding hereunder, and (e) the
arbitration shall be final and binding on all Parties and their respective
heirs, executors, administrators, successors and assigns. Any action to secure
judicial confirmation of the arbitration award may be brought in any state or
federal court of competent jurisdiction.

 

15.5                           Court Action.  If any Party to this Agreement brings an
action in a state or federal court to enforce rights hereunder (other than
pursuant to Section 15.7 below), such action shall be barred as a
result of the exclusive remedy provided in Section 15.4 above, and
the prevailing Party in any such action shall be entitled to recover its costs
and expenses, including reasonable attorneys’ fees, incurred in connection with
such lawsuit.

 

15.6                           WAIVER
OF CERTAIN RIGHTS.  THE
PARTIES EACH ACKNOWLEDGE AND AGREE THAT BY SELECTING ARBITRATION AS THE SOLE
AND EXCLUSIVE REMEDY FOR RESOLVING ALL DISPUTES AMONG THEM, THEY ARE WAIVING
THEIR RIGHT TO A JURY TRIAL TO WHICH THEY MAY OTHERWISE BE ENTITLED.

 

22

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

THE PARTIES HERETO ALSO WAIVE THE RIGHT TO ASSERT THE DOCTRINE OF FORUM
NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS AGREEMENT.  SERVICE
OF PROCESS, SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION, MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE
ADDRESSES FOR THE PARTIES SET FORTH IN SECTION 19 BELOW.

 

15.7                         Prearbitral or
Related Awards.  By this
Agreement, the Parties do not intend to deprive any court of its jurisdiction
to issue a prearbitral injunction, prearbitral attachment or other order in aid
of arbitration proceedings and enforcement of the award, including without limitation,
injunctive relief for the protection of intellectual property, enforcement of Section 16
(Confidentiality) below,  enjoining any
other Party in any action brought by or against a third party with respect to
the subject matter of the arbitration, or filing legal action to compel
arbitration or selection of a neutral arbitrator under the arbitration
provisions hereof.

 

16                                  CONFIDENTIALITY

 

The
terms and conditions of this Agreement, other than the existence of this
Agreement, shall be kept confidential by the parties hereto and shall not be
disclosed by either Party to any third party except:  (i) as may be required by any court of
competent jurisdiction, governmental agency, Law or regulation (in such event,
the disclosing Party shall notify the other Party and redact to the extent
possible before disclosing the Agreement); (ii) as part of the normal
reporting or review procedure to a Party’s accountants, auditors, agents, legal
counsel, and employees of partners, parent and subsidiary companies or lenders,
potential financing entities or purchasers so long as all such entities and
persons are bound by confidentiality obligations that are no less restrictive
than those contained in this Section 16; (iii) in connection
with a sale, acquisition, merger, joint venture or takeover; provided such
third parties involved in such events are bound by confidentiality obligations
that are no less restrictive than those contained in this Section 16;
and (iv) to enforce any of a Party’s rights pursuant to this Agreement.  The parties recognize and agree that the
nature of the services that TVN provides to CSB hereunder require TVN to share
information and to maintain full and strong communications with Operators,
other [***] Content providers and other participants in the industry.   To the extent that CSB desires to provide
confidential information to TVN which it does not want TVN to communicate to
CSB competitors, CSB shall clearly indicate which information it wishes to keep
confidential by confirmed email communication or other written means to TVN, in
which case TVN shall not share such confidential information with CSB
competitors (and TVN may refuse to accept such information if it believes that
it should not have such information).  
As used herein, “confidential information” shall not include information
which (1) is or becomes generally available to the public other than  in violation of this confidentiality
provision, or (2) is or becomes available to TVN on a 

 

23

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

non-confidential
basis from a source which, to the knowledge of TVN, is entitled to disclose it,
or (3) was known to TVN prior to disclosure of such information by CSB, or
(4) is developed by TVN without the benefit of the information provided by
CSB.

 

17                                  INDEPENDENT CONTRACTOR

 

The
Parties hereto are independent contractors. 
Nothing in this Agreement may be construed to make the Parties partners
or joint venturers,  agents or
fiduciaries of the other, or to make either Party liable for the obligations,
acts or activities of the other.

 

18                                  ASSIGNMENT

 

This
Agreement, including both its obligations and benefits, shall inure to the
benefit of and be binding upon the Parties and their respective successors,
transferees and assigns, except that neither this Agreement nor either Party’s
rights or obligations hereunder shall be assigned or transferred by either
Party without the prior written consent of the other Party, such consent not to
be unreasonably withheld, conditioned or delayed; provided, however, no consent
shall be necessary in the event of an assignment to a successor or transferee
entity resulting from a merger, acquisition, consolidation or sale of
substantially all assets by CSB or assignment to an entity under common control
with, controlled by or in control of CSB, unless such successor or transferee
is a material, direct competitor of TVN, in which case TVN’s prior written
consent shall be required.

 

19                                  NOTICES

 

For all administrative and operational matters under
this Agreement, notices shall be given to (i) Josh Rosenblatt on behalf of
TVN, and (ii) Bill Mossa on behalf of CSB, (or such other designee as TVN
or CSB may provide, as applicable).   For
all matters intended to have a legal effect with respect to this Agreement, or
to provide financial information, unless otherwise stated
herein, written notices shall be delivered by hand, postage pre-paid mail or
national overnight private mail delivery or by fax or email (with
contemporaneous delivery by one of the foregoing means) to the persons and at
the addresses as set forth below and shall be deemed given upon transmission in
the case of fax or email or otherwise upon delivery.  Either Party may change its address for
receipt of notice to the other Party by delivering written notice of such
change pursuant to this Section.

 

24

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

	
   

  	
  If
  to TVN:

  	
  If
  to CSB:

  
	
   

  	
   

  	
   

  
	
   

  	
  James
  P. Riley

  	
  Ken
  Boenish

  
	
   

  	
  Chief
  Revenue Officer

  	
  President

  
	
   

  	
  TVN
  Entertainment Corp.

  	
  Colorado
  Satellite Broadcasting, Inc.

  
	
   

  	
  15301
  Ventura Blvd.

  	
  7007
  Winchester Circle, Suite 200

  
	
   

  	
  Building
  E, Suite 3000

  	
  Boulder,
  CO 80301

  
	
   

  	
  Sherman
  Oaks, CA 91403

  	
  Fax:
  303-444-0848

  
	
   

  	
   

  	
  ken@noof.com

  
	
   

  	
  Fax:
  818-526-5001

  	
   

  
	
   

  	
  jriley@tvn.com

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  With
  a copy to:

  	
  With
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
  General
  Counsel

  	
  General
  Counsel

  
	
   

  	
  TVN
  Entertainment Corp.

  	
  Colorado
  Satellite Broadcasting, Inc.

  
	
   

  	
  15301
  Ventura Blvd.

  	
  7007
  Winchester Circle, Suite 200

  
	
   

  	
  Building
  E, Suite 3000

  	
  Boulder,
  CO 80301

  
	
   

  	
  Sherman
  Oaks, CA 91403

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:
  818-526-5003

  	
  Fax:
  303-381-2369

  
	
   

  	
  legal@tvn.com

  	
  legal@noof.com

  
	
   

  	
   

  	
   

  
	
  With respect to financial matters:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  to TVN:

  	
  If
  to CSB:

  
	
   

  	
   

  	
   

  
	
   

  	
  Controller

  	
  Chief
  Financial Officer

  
	
   

  	
  TVN
  Entertainment Corp.

  	
  Colorado
  Satellite Broadcasting, Inc.

  
	
   

  	
  15301
  Ventura Blvd.

  	
  7007
  Winchester Circle, Suite 200

  
	
   

  	
  Building
  E, Suite 3000

  	
  Boulder,
  CO 80301

  
	
   

  	
  Sherman
  Oaks, CA 91403

  	
   

  
	
   

  	
   

  	
  Fax:
  303-444-0734

  
	
   

  	
  Fax:
  818-526-5007

  	
  gwilliams@noof.com

  
	
   

  	
  finance@tvn.com

  	
   

  

 

20                                  AMENDMENTS; WAIVER

 

This
Agreement may be amended or modified and any term hereof may be waived only be
a written instrument executed by all of the Parties hereto or, in the case of a
waiver, by the Party waiving compliance.  Any waiver by any Party of any
condition, or of the breach of any provision, term, covenant, representation or
warranty contained herein, in any one or more instances, shall not be deemed to
be nor be construed as a further or 

 

25

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

continuing
waiver of any such condition or of the breach of any other provision, term,
covenant, representation or warranty.

 

21                                  SEVERABILITY

 

The
invalidity under applicable Law of any provision of this Agreement shall not
affect the validity of any other provision of this Agreement, and in the event
that any provision hereof would be determined to be invalid or otherwise
illegal, this Agreement shall remain effective and shall be construed in
accordance with its terms as if the invalid, illegal or unenforceable provision
were not contained herein.

 

22                                  FORCE MAJEURE

 

In
the event that either Party is unable to perform any of its obligations under
this Agreement (other than each Party’s payment and reporting obligations as
set forth in Sections 9 and 10 above and/or elsewhere as part of this
Agreement) or to enjoy any of its benefits because of the non-operation of
facilities (including any satellite or transponder not owned or controlled by
the affected Party) due to any force majeure event beyond the reasonable
control of the affected Party, such as natural disaster, acts of God,
inevitable accident, fire, lockout, strike or other labor dispute, riot or
civil commotion, acts of terrorism, actions or decrees of governmental bodies,
failure of communication or electrical lines, or any other event beyond such
Party’s reasonable control (a “Force Majeure Event”),
the Party who has been so affected shall promptly give written notice to the
other Party and shall use its commercially reasonable best efforts to resume
performance.  Upon receipt of such
notice, all obligations under this Agreement shall be immediately suspended for
the duration of such Force Majeure Event, excluding the obligation to make
payment when due.

 

23                                  CAPTIONS; HEADINGS; SCHEDULES

 

The
captions and headings are inserted in this Agreement for convenience only, and
shall in no event be deemed to define, limit or describe the scope or intent of
this Agreement, or of any provision hereof, nor in any way affect the
interpretation of this Agreement.  All
references to Schedules contained in this Agreement refer to the Schedules
attached to this Agreement, which Schedules are incorporated into this
Agreement where referenced in this Agreement.

 

24                                  NO INFERENCE AGAINST AUTHOR

 

TVN
and CSB each acknowledge and agree that this Agreement was fully negotiated by
the Parties and, therefore, no provision of this Agreement shall be interpreted
against any Party because such Party or its legal representative drafted such
provision.

 

26

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

25                             ENTIRE AGREEMENT

 

	
   

  	
  This
  Agreement contains the entire understanding of the Parties relating to the
  subject matter hereof and  supersedes
  all Prior Agreements, which Prior Agreements shall be deemed terminated as of
  the Effective Date of this Agreement.

   

  This
  Agreement is duly executed as of the date first written above when signed by
  the authorized representatives of CSB and TVN, respectively.

  
	
   

  	
   

  
	
   

  	
  Agreed
  to and Accepted  by:

  	
   

  	
  Agreed
  to and Accepted by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COLORADO
  SATELLITE 

  BROADCASTING, INC.

  	
   

  	
  TVN
  ENTERTAINMENT 

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Ken Boenish

  	
   

  	
  /s/
  James P. Riley

  
	
   

  	
  Name:
  Ken Boenish 

  Title: President

  	
   

  	
  James
  P. Riley 

  Chief Revenue Officer

  

 

27

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

SCHEDULE A

Authorized Systems

 

[Full list available via PRI]

 

28

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for confidential
treatment.

 

SCHEDULE B

Standard Services

 

TVN’s
Standard VOD Distribution Services include the following:

 

[***].

 

29

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for confidential
treatment.

 

SCHEDULE C

OTHER SERVICE FEES

 

[***].

 

30

 

Portions of this Exhibit have been redacted pursuant to a request
for confidential treatment under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act. 
Omitted information, marked “[***]” in this Exhibit, has been filed with
the Securities and Exchange Commission together with such request for
confidential treatment.

 

SCHEDULE D

Pre-Existing Licensing Relationships

 

[***].

 

31

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