Document:

exv10w1

 

Exhibit 10.1

FORM OF

TRANSITION SERVICES AGREEMENT

          THIS TRANSITION SERVICES AGREEMENT is entered into as of [•], 2007, by and between EchoStar
Communications Corporation, a Nevada corporation (“DISH”), and Echostar Holding
Corporation, a Nevada corporation (the “Company”).

          WHEREAS, the Board of Directors of DISH has determined that it is appropriate and desirable to
separate DISH and the Company into two publicly-traded companies by separating from DISH and
transferring to the Company DISH’s non-consumer related businesses and related assets and
liabilities (the “Separation”);

          WHEREAS, DISH and the Company have entered into that certain Separation Agreement, dated as of
[•] (the “Separation Agreement”), in order to carry out, effect and consummate the
Separation; and

          WHEREAS, to facilitate the Separation, DISH and the Company deem it to be appropriate and in
the best interests of DISH and the Company that DISH provide certain services to the Company
pursuant to the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements,
representations and warranties contained herein, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree, intending
to be legally bound, as follows:

ARTICLE I

Definitions

          Section 1.1 Definitions. Unless otherwise defined herein, each capitalized term shall
have the meaning specified for such term in the Separation Agreement. As used in this Agreement:

     (a) “Agreement” means this Transition Services Agreement, the provisions of the
Separation Agreement referenced herein and all Schedules attached hereto and incorporated
herein by this reference and all amendments, modifications and changes hereto and thereto.

     (b) “Company Indemnified Parties” means the Company and its Affiliates and each
of their respective present and former directors, managers, or persons acting in a similar
capacity, officers, employees, agents, consultants, or other representatives and each of the
heirs, executors, successors and assigns of any of the foregoing.

     (c) “Company Systems” means any computer software program or routine or part
thereof owned, licensed or provided by or for the Company or any of its Subsidiaries which
is used by the Company or any of its Subsidiaries or their suppliers on behalf the Company
or any
of its Subsidiaries, each as modified, maintained or enhanced from time to time by the
Company or any of its Subsidiaries, DISH or any of its Subsidiaries or any Third Party.

 

 

     (d) “Cost” means the fully-burdened cost incurred by DISH and its Affiliates
to provide or procure the Services. For purposes of this definition, the fully-burdened
cost includes without limitation: (i) the costs of any materials
or fees paid to third party consultants or advisers used in the provision or
procurement of the Services; (ii) shipping costs; (iii) the salary, benefits (if any)
(including without limitation, medical plans and 401(k) or other retirement plans),
employment taxes (if any) of all DISH employees involved in the provision or procurement of
the Services; (iv) related overhead expenses (including without limitation cost of
facilities and utilities costs, insurance, and the cost of all general support, operational
and business services); (v) any and all licensing fees paid or payable to Third Parties for
any intellectual property incorporated into the Services; and (iv) depreciation on any
equipment or assets involved in the provision or procurement of the Services.

     (e) “DISH Indemnified Parties” means DISH and its Affiliates and each of their
respective present and former directors, managers, or persons acting in a similar capacity,
officers, employees, agents, consultants, or other representatives and each of the heirs,
executors, successors and assigns of any of the foregoing.

     (f) “DISH Systems” means any computer software program or routine or part
thereof owned, licensed or provided by or for DISH or any of its Subsidiaries which is used
by DISH or any of its Subsidiaries or their suppliers on behalf DISH or any of its
Subsidiaries, each as modified, maintained or enhanced from time to time by DISH or any of
its Subsidiaries or any Third Party.

     (g) “Expenses” means any and all expenses incurred in connection with
investigating, defending or asserting any claim, action, suit or proceeding incident to any
matter indemnified against hereunder (including court filing fees, court costs, arbitration
fees or costs, witness fees, and reasonable fees and disbursements of legal counsel,
investigators, expert witnesses, consultants, accountants and other professionals).

     (h) “Systems” means the DISH Systems or the Company Systems, individually, or
the DISH Systems and the Company Systems, collectively, as the context may indicate.

     (i) “Third Party” means a Person that is not an Affiliate of any party hereto.

          Section 1.2 Interpretation. (a) In this Agreement, unless the context clearly
indicates otherwise:

     (i) words used in the singular include the plural and words used in the plural include
the singular;

     (ii) references to any Person include such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by this Agreement, and a
reference to such Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates
following the Distribution;

     (iii) references to any gender includes the other gender;

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     (iv) the words “include,” “includes” and “including” shall be deemed to be followed by
the words “without limitation”;

     (v) references to any Article, Section or Schedule means such Article or Section of, or
such Schedule to, this Agreement, as the case may be, and references in any Section or
definition to any clause means such clause of such Section or definition;

     (vi) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import
shall be deemed references to this Agreement as a whole and not to any particular Section or
other provision hereof;

     (vii) references to any agreement, instrument or other document means such agreement,
instrument or other document as amended, supplemented and modified from time to time to the
extent permitted by the provisions thereof and by this Agreement;

     (viii) references to any Applicable Law (including statutes and ordinances) means such
law (including all rules and regulations promulgated thereunder) as amended, modified,
codified or reenacted, in whole or in part, and in effect at the time of determining
compliance or applicability;

     (ix) relative to the determination of any period of time, “from” means “from and
including,” “to” means “to but excluding” and “through” means “through and including”;

     (x) accounting terms used herein shall have the meanings historically ascribed to them
by DISH and its Subsidiaries, including the Company, in its and their internal accounting
and financial policies and procedures in effect prior to the date of this Agreement;

     (xi) if there is any conflict between the provisions of the Separation Agreement and
this Agreement, the provisions of this Agreement shall control with respect to the subject
matter hereof;

     (xii) the titles to Articles and headings of Sections contained in this Agreement have
been inserted for convenience of reference only and shall not be deemed to be a part of or
to affect the meaning or interpretation of this Agreement;

     (xiii) any portion of this Agreement obligating a party hereto to take any action or
refrain from taking any action, as the case may be, shall mean that such party shall also be
obligated to cause its relevant Affiliates to take such action or refrain from taking such
action, as the case may be (and, accordingly, if Services are provided by Affiliates of
DISH, references to “DISH” shall be deemed to be references to such Affiliate which shall
provide the Services under this Agreement; and

     (xiv) unless otherwise specified in this Agreement, all references to dollar amounts
herein shall be in respect of lawful currency of the United States.

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ARTICLE II

Performance of Services

          Section 2.1 Description of the Services. Following the Distribution Date, DISH shall
provide, or cause to be provided, the following services (collectively, the “Services”) to
the Company in support of the Separated Businesses:

     (a) Financial Services. DISH or its designee shall provide each of the financial
services specified in Schedule 2.1.1 (the “Financial Services”) to the Company or
its Subsidiaries, in accordance with the terms and conditions for such Financial Services listed on
Schedule 2.1.1.

     (b) IT Services. DISH or its designee shall provide each of the IT services specified
in Schedule 2.1.2 (the “IT Services”) to the Company or its Subsidiaries, in
accordance with the terms and conditions for such IT Services listed on Schedule 2.1.2.

     (c) Travel and Event Coordination Services. DISH or its designee shall provide each
of the travel and events coordination services specified in Schedule 2.1.3 (the “Travel
and Event Coordination Services”) to the Company or its Subsidiaries, in accordance with the
terms and conditions for such Travel and Event Coordination Services listed on Schedule
2.1.3.

     (d) Human Resources Services. DISH or its designee shall provide each of the human
resources services (including human resources development (training)) specified in Schedule
2.1.4 (the “Human Resources Services”) to the Company or its Subsidiaries, in
accordance with the terms and conditions for such Human Resources Services listed on Schedule
2.1.4.

     (e) Program Management Services. DISH or its designee shall provide each of the
program management services specified in Schedule 2.1.5 (the “Program Management
Services”) to the Company or its Subsidiaries, in accordance with the terms and conditions for
such Program Management Services listed on Schedule 2.1.5.

     (f) Internal Audit Services. DISH or its designee shall provide each of the internal
audit and corporate quality services specified in Schedule 2.1.6 (the “Internal Audit
Services”) to the Company or its Subsidiaries, in accordance with the terms and conditions for
such Internal Audit Services listed on Schedule 2.1.6.

     (g) Legal Services. DISH or its designee shall provide each of the legal services
specified in Schedule 2.1.7 (the “Legal Services”) to the Company or its
Subsidiaries, in accordance with the terms and conditions for such Legal Services listed on
Schedule 2.1.7.

     (h) Accounting and Tax Services. DISH or its designee shall provide each of the
accounting and tax services specified in Schedule 2.1.8 (the “Accounting and Tax
Services”) to the Company or its Subsidiaries, in accordance with the terms and conditions for
such Accounting and Tax Services listed on Schedule 2.1.8.

     (i) Other Services: To the extent fees for a specific Service are not provided in
Schedule 2.1.1 through Schedule 2.1.8, then DISH or its designee shall provide such
Service in accordance with the terms and conditions listed on Schedule 2.1.9.

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          Section 2.2 Schedules Update. To the extent any Services are mischaracterized in any
of Schedule 2.1.1 through Schedule 2.1.9 (collectively, the “Service
Schedules”), DISH and the Company shall negotiate in good faith to amend such Service Schedules
as appropriate.

          Section 2.3 Service Levels. With respect to Services that DISH provided, or caused to
be provided, to the Separated Businesses prior to the Distribution Date, DISH shall at all times
perform such Services (i) with at least the same degree of care, skill and diligence with which
DISH performs similar services for itself, consistent with past practices, including, with respect
to the type, quality and timeliness of such Services, subject to variation in the provision of such
Services agreed to by the parties hereto, but, in no case may such degree of care, skill and
diligence be less than the degree of care, skill and diligence with which DISH historically has
performed such Services for the benefit of the Separated Businesses prior to the Distribution Date,
(ii) with the use of reasonable care, (iii) in material compliance with Applicable Laws and (iv)
with substantially the same priority under comparable circumstances as it provides such services to
itself and its Subsidiaries.

          Section 2.4 Additional Services. If the Company reasonably determines that additional
transition services of the type previously provided by the DISH or its designee to the Separated
Businesses are necessary to conduct the Separated Businesses and the Company or its Affiliates are
not able to provide such services to the Separated Businesses (each such service an “Additional
Service”), then the Company may provide written notice thereof to DISH. Upon receipt of such
notice by DISH, if DISH is willing, in its sole discretion, to provide such Additional Service, the
parties hereto will negotiate in good faith an amendment to the Services Schedules setting forth
the Additional Service, the terms and conditions for the provision of such Additional Service and
the Fees (as defined below) payable by the Company for such Additional Service, such Fees to be
determined on an arm’s-length basis and at fair market value.

          Section 2.5 Third Party Services. Each party hereto acknowledges and agrees that
certain of the Services to be provided under this Agreement have been, and will continue to be,
provided (in accordance with this Agreement) to the Company, as applicable, by Third Parties
designated by DISH responsible for providing such Services. To the extent so provided, DISH shall
use commercially reasonable efforts to (a) cause such Third Parties to provide such Services under
this Agreement and/or (b) enable the Company and its Affiliates to avail itself of such Services;
provided, however, that if any such Third Party is unable or unwilling to provide
any such Services, DISH shall use its commercially reasonable efforts to determine the manner in
which such Services can best be provided.

          Section 2.6 Cost of Providing the Services. Unless otherwise expressly set forth in this Agreement, DISH shall bear all costs of
providing the Services (including all out-of-pocket and third-party expenses incurred by DISH in
order to provide the Services).

ARTICLE III

Service Disruptions

          Section 3.1 Contingency Plans. DISH agrees to use commercially reasonable efforts,
consistent with its practices for itself and its divisions and Affiliates, to avoid any inability
to provide the Services. In the event of a disaster, DISH agrees to use the same degree of care to
restore the Services as DISH would use to restore similar services for itself and as provided in
Section 3.3, but in any event

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no less than commercially reasonable efforts. In the event
of scheduled downtime, DISH shall provide notice to the Company Contract Manager (as defined below)
with as much notice as is reasonably possible under the circumstances.

          Section 3.2 Non-Performance. (a) Except with respect to a Force Majeure Event (as
defined below) which shall be subject to Section 3.3, if DISH’s, any of its Affiliates’ or
any Third Party’s performance of any Service is interrupted in whole or in part for any reason for
more than two (2) consecutive Business Days (other than a Force Majeure Event), then the Company
shall have the right to make, at DISH’s sole cost and expense, commercially reasonable arrangements
to procure such interrupted Services from an alternative source at a cost no greater than the fair
market value of such interrupted Services for the period the Service is interrupted;
provided, that the Company shall provide prompt written notice to the DISH Contract Manager
setting forth in reasonable detail the terms and conditions of the arrangements to procure such
interrupted Services from an alternative source. For the avoidance of doubt, the Company shall not
be obligated to pay DISH for the interrupted Services during the period when DISH is not providing
such Services.

          Section 3.3 Force Majeure. (a) If DISH, any of its Affiliates or any Third Party
service provider is prevented from or delayed in complying, either totally or in part, with any of
the terms or provisions of this Agreement by reason of fire, flood, storm, strike, walkout, lockout
or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of
fuel, power, raw materials or components, any Applicable Law, order, proclamation, regulation,
ordinance, demand, seizure or requirement of any Governmental Authority, riot, civil commotion,
war, rebellion, acts of terrorism, nuclear accident or other acts of God, or acts, omissions or
delays in acting by any governmental or military authority (a “Force Majeure Event”), then
upon notice to the Company, the affected provisions and/or other requirements of this Agreement
shall be suspended during the period of such disability and, unless otherwise set forth herein to
the contrary, the Company shall have no liability to DISH, its Affiliates, any Third Party or any
other Person in connection therewith. DISH shall use commercially reasonable efforts to promptly
remove such disability as soon as possible, but in any event no later than 30 days after giving
notice of such disability; provided, however, that nothing in this Section
3.3 will be construed to require the settlement
of any strike, walkout, lockout or other labor dispute on terms which, in the reasonable
judgment of DISH, are contrary to its interest. It is understood that the settlement of a strike,
walkout, lockout or other labor dispute will be entirely within the discretion of DISH. If DISH is
unable to provide any of the Services due to such a disability, each party hereto shall use
commercially reasonable efforts to cooperatively seek a solution that is mutually satisfactory.

          (b) Notwithstanding anything herein to the contrary, the obligation of DISH to resume
performance of its obligations hereunder pursuant to this Section 3.3 shall terminate and
cease to be in effect to the extent and period that the Company has acquired such Services from an
alternate source pursuant to this Section 3.3. The Company shall be free to acquire such
Services from an alternate source, at the Company’s sole cost and expense, and without liability to
DISH, for the period and to the extent reasonably necessitated by such non-performance and during
the continuation of any agreement entered into with the provider of such Service, and for that
period that such Service is provided by an alternate source, DISH shall have no obligation to
provide such Service to the Company. For the avoidance of doubt, the Company shall not be
obligated to pay DISH for such Services during the period when DISH is not providing such Services.

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          (c) Notwithstanding anything hereunder to the contrary, the parties hereto agree that this
Section 3.3 shall not be construed so as to excuse a party hereto of its obligations to
perform in accordance with Article VII and Article VIII at all times during the
term of this Agreement.

          Section 3.4 Recovery of Data. If DISH loses or damages any of the Company’s data,
DISH shall use its best efforts to recover and re-process such data immediately after discovery of
such loss or damage. If DISH is unable to re-process such data immediately, DISH shall notify the
Company in writing of such loss or damage.

ARTICLE IV

Cooperation

          Section 4.1 Cooperation. During the term of this Agreement, DISH shall provide
commercially reasonable cooperation to the Company by responding to the Company’s reasonable
requests for information related to the functionality or operation of the Services;
provided, that such requested information is related to the Separated Businesses and does
not require disclosure of any proprietary or confidential information of DISH or any of its
Affiliates. Without limiting the foregoing, DISH shall provide the Company with (i) reasonable
access (during reasonable business hours) to records and DISH employees related to the provision of
the Services and (ii) reasonable access (during reasonable business hours) for the Company’s
employees and consultants to DISH’s employees and facilities for the purpose of training and
consulting with respect to the Services; provided, that such access shall not interfere
with the day-to-day operations of DISH and its Subsidiaries.

          Section 4.2 Consents. (a) DISH shall, and shall cause its Affiliates to, cooperate
to obtain (i) all Consents for any Third Party software or other Third Party intellectual property
related to the provision of the Services sufficient to enable DISH or its designee to perform the
Services in accordance with this Agreement and (ii) all other Consents to allow DISH to provide the
Services and to allow the Company to access and use the Services (collectively, the “Required
Consents”); provided, however, that DISH shall not be obligated under this
Agreement to pay any consideration, grant any concession or incur any Liability to any third Person
to obtain any such Required Consent. Schedule 4.2 sets forth a list of all Required
Consents and whether such Consents have been obtained as of the date hereof.

          (b) In the event that any Required Consent is not obtained, then, unless and until such
Required Consent is obtained, the parties hereto shall cooperate with each other in achieving a
reasonable alternative arrangement for the Company to continue to process its work and for DISH to
perform such Services and in a manner which does not increase the fees or costs payable by the
Company hereunder.

          Section 4.3 Primary Points of Contact for Agreement.

          (a) Appointment and Responsibilities. Each party hereto shall appoint an individual
to act as the primary point of operational contact for the administration and operation of this
Agreement, as follows:

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     (i) The individual appointed by the Company as the primary point of operational contact
pursuant to this Section 4.3(a) (the “Company Contract Manager”) shall have
overall responsibility for coordinating on behalf of the Company all activities of the
Company undertaken hereunder, for the performance of the Company’s obligations hereunder,
for coordinating the performance of the Services with DISH, for acting as a day-to-day
contact with the DISH Contract Manager and for making available to DISH the data,
facilities, resources and other support services from the Company required for DISH to be
able to perform the Services in accordance with the terms of this Agreement. The Company
may change the Company Contract Manager from time to time upon written notice to DISH.

     (ii) The individual appointed by DISH as the primary point of operational contact
pursuant to this Section 4.3(a) (the “DISH Contract Manager”) shall have
primary operational responsibility for coordinating on behalf of DISH its joint activities
with the Company under the Agreement and for DISH’s performance of the Services, including
all DISH personnel and other resources used by DISH, and will serve as the day-to-day
contact with the Company Contract Manager. DISH may change the DISH Contract Manager from
time to time upon written notice to the Company.

          (b) Review Meetings and Reports. The DISH Contract Manager and the Company Contract
Manager shall meet at least monthly to review DISH’s performance of the Services as required under
this Agreement. The DISH Contract Manager shall provide to the parties hereto reports on the
parties’ respective performance, identifying any significant problems that are unresolved and any
details concerning their expected resolution.

          Section 4.4 Steering Committee.

          (a) Size and Composition. DISH shall appoint two (2) members of its management staff
and the Company shall appoint two (2) members of its management staff to serve on a steering
committee (the “Steering Committee”). Either party hereto may change its Steering
Committee members from time to time upon written notice to the other party; provided,
however, that the DISH Contract Manager and the Company Contract Manager shall at all times
remain as members of the Steering Committee. In addition, the parties hereto may mutually agree to
increase or decrease the size, purpose or composition of the Steering Committee in an effort for
DISH to better provide, and for the Company to better utilize, the Services.

          (b) Responsibilities. The Steering Committee’s responsibilities include (i) generally
overseeing the performance of each party’s hereto obligations under this Agreement and (ii)
assisting in providing the Services by DISH and utilizing the Services by the Company.

          Section 4.5 Meetings. The Steering Committee shall meet once a month or at such
other frequency as mutually agreed by the parties hereto or the members of the Steering Committee.
Each Steering Committee meeting shall be at a mutually acceptable location determined by the
members of the Steering Committee.

          Section 4.6 Dispute Resolution. The procedures for discussion and negotiation set
forth in this Section 4.6 shall apply to all disputes, controversies or claims (whether
arising in contract, tort or

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otherwise) that may arise out of or relate to, or arise under or in
connection with this Agreement or the transactions contemplated hereby.

          (a) Primary Points of Contact. It is the intent of the parties hereto to use their
respective reasonable best efforts to resolve expeditiously any dispute, controversy or claim
between them with respect to the matters covered hereby that may arise from time to time on a
mutually acceptable negotiated basis. In furtherance of the foregoing, if a dispute arises, the
Company Contract Manager and the DISH Contract Manager shall consider the dispute for up to seven
(7) Business Days following receipt of a notice from either party hereto specifying the nature of
the dispute, during which time the Company Contract Manager and the DISH Contract Manager shall
meet in person at least once, and attempt to resolve the dispute.

          (b) Senior Management. If the dispute is not resolved by the end of the seven (7) day
period referred to in Section 4.6(a), or if the Company Contract Manager and the DISH
Contract Manager agree that the dispute shall not be resolved by them, either party hereto may
deliver a notice (an “Escalation Notice”) demanding an in person meeting involving
appropriate representatives of the parties hereto at a senior level of management of the parties
hereto (or if the parties agree, of the appropriate strategic business unit or division within such
entity) (collectively, “Senior Executives”). Thereupon, each of the Company Contract
Manager and the DISH Contract Manager shall promptly prepare a memorandum stating (i) the issues in
dispute and each party’s position thereon, (ii) a summary of the evidence and arguments supporting
each party’s positions (attaching all relevant documents), (iii) a summary of the negotiations that
have taken place to date, and (iv) the name and title of the Senior Executive who shall represent
each party. The Company Contract Manager and the DISH Contract Manager shall deliver such
memorandum to its respective Senior Executive promptly upon receipt of
such memorandum from the DISH Contract Manager and the Company Contract Manager, respectively.
The Senior Executives shall meet for negotiations (which may be held telephonically) at a mutually
agreed time and place within 10 days of the Escalation Notice, and thereafter as often as the
Senior Executives deem reasonably necessary to resolve the dispute.

          (c) Court Actions. In the event that any party, after complying with the provisions
set forth in Sections 4.6(a) and 4.6(b) and desires to commence an action, such
party may submit the dispute, controversy or claim (or such series of related disputes,
controversies or claims), subject to Section 12.2, to any court of competent jurisdiction.
Unless otherwise agreed in writing, the parties hereto shall continue to provide service and honor
all other commitments under this Agreement during the course of dispute resolution pursuant to the
provisions of this Section 4.6 with respect to all matters not subject to such dispute,
controversy or claim.

ARTICLE V

Fees

          Section 5.1 Fees. The fees for any of the Services are set forth in the “Cost
Details” column in the respective Service Schedule (the “Fees”).

          Section 5.2 Taxes. To the extent required or permitted by Applicable Law, there shall
be added to any Fees due under this Agreement, and the Company agrees to pay to DISH, amounts equal
to any taxes, however designated or levied, based upon such Fees, or upon this Agreement or the
Systems,

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Services or materials provided under this Agreement, or their use, including state and
local privilege or excise taxes based on gross revenue and any taxes or amounts in lieu thereof
paid or payable by the Company. In the event taxes are not added to an invoice from DISH, the
Company shall be responsible to remit to the appropriate tax jurisdiction any additional amounts
due including tax, interest and penalty. If additional amounts are determined to be due on the
Services provided hereunder as a result of an audit by a tax jurisdiction, the Company agrees to
reimburse DISH for the additional amounts due including tax, interest and penalty. DISH will be
responsible for penalty or interest associated with its failure to remit invoiced taxes. The
parties hereto further agree that no party hereto shall be required to pay any franchise taxes,
taxes based on the net income of the other party hereto or personal property taxes on property
owned or leased by a party hereto.

ARTICLE VI

Invoice and Payment; Audit

          Section 6.1 Invoices and Payment. Within 20 days following the end of each month
during the term of this Agreement (or within 20 days after receipt of a Third Party supplier’s
invoice in the case of Services that are provided by a Third Party supplier), DISH will submit to
the Company for payment a written statement of amounts due under this Agreement for such month.
DISH shall include with each invoice a reasonably detailed description of the Services performed and the fees charged and, if requested by the
Company, will contain reasonably satisfactory documentation in support of such amounts as specified
therein and such other supporting detail as the Company may reasonably require to validate such
amounts due.

          Section 6.2 Timing of Payment; No Offsets. The Company will pay all undisputed
amounts due pursuant to this Agreement within 60 days after the date upon which each such statement
that is required to be provided hereunder is received by the Company. The Company shall not offset
any amounts owing to it by DISH or any of its Affiliates against amounts payable by the Company
hereunder or any other agreement or arrangement.

          Section 6.3 Fees Dispute. (a) In the event that the Company has a good faith dispute
with regard to any Fees invoiced by DISH (the “Disputed Fee”), the Company shall provide
DISH with written notice of such dispute (the “Fee Dispute Notice”), together with a
reasonably detailed explanation of such dispute, at the time payment would have otherwise been due,
and the Company may withhold payment of any Disputed Fee pending resolution of the dispute. For
the avoidance of doubt, the Company’s failure to pay the Disputed Fee in accordance with this
Section 6.3 shall not be grounds for a claim of breach or suspension of work by DISH.

          (a) In the event that the parties hereto are unable to agree after reasonable negotiation, in
accordance with Sections 4.6(a) and 4.6(b), upon the Disputed Fee, the parties
hereto shall jointly select a qualified unaffiliated independent third party to determine the fair
value (the “Arbitrator”). If the parties hereto are unable to agree on an Arbitrator
within 10 days of the receipt of a Fee Dispute Notice by DISH, then there shall be an arbitral
tribunal consisting of 3 neutral arbitrators of (the “Tribunal”) whom each party hereto
shall select one within 10 days of the receipt of a Fee Dispute Notice by DISH. The two
party-appointed arbitrators shall select the third arbitrator within 10 days of the nomination of
the second arbitrator. The determination of the Arbitrator or Tribunal, as applicable, with
respect to such disagreement shall be completed within 30 days after the appointment of the

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Arbitrator or Tribunal, as applicable, and such determination shall be final and binding upon the
parties hereto. The Arbitrator or Tribunal, as applicable, shall adopt the position of either the
Company or DISH with respect to the Disputed Fees. The fees, costs and expenses of the Arbitrator
or Tribunal, as applicable, selected in the event of a dispute shall be paid by the party hereto
who the Arbitrator or Tribunal, as applicable, did not side with in its decision.

          Section 6.4 Audit Rights. (a) The Company may audit (or cause an independent Third
Party auditor to audit) the books, records and facilities of DISH to the extent necessary to
determine DISH’s compliance with this Agreement with respect to Fees paid or payable pursuant to
this Article VI, or the performance of its other obligations set forth in this Agreement.
For any given Service, the Company shall have the right to audit the books, records and facilities
of DISH once for each twelve month period during which payment obligations are due (and at such
other times as may be required by Applicable Law). The Company shall also have the right to audit
(or cause an independent Third Party auditor to audit) the books, records and facilities of DISH
pertaining to a particular Service within six months after the termination of such Service.

          (b) Any audit shall be conducted during regular business hours and in a manner that complies
with the building and security requirements of DISH. Such audits shall not interfere unreasonably
with the operations of DISH. The Company shall provide notice to DISH not less than 30 days prior
to the commencement of the audit and shall specify the date on which the audit will commence. The
Company conducting an audit shall pay the costs of conducting such audit, unless the results of an
audit reasonably indicate an overpayment by the Company of 10% or more (such percentage to be
determined by reference to the Services which are subject to the specific audit), in which case
DISH shall pay the reasonable out-of-pocket costs of the Company.

ARTICLE VII

Independence; Ownership of Assets

          Section 7.1 Independence. All employees and representatives of a party hereto and any
of its Affiliates will be deemed for purposes of all compensation and employee benefits to be
employees or representatives of such party or its Affiliates (or its subcontractors) and not
employees or representatives of the other party hereto or any of the other party’s Affiliates. In
providing the Services, DISH’s employees and representatives will be under the direction, control
and supervision of DISH or its Affiliates (or its subcontractors), and not of the Company. DISH or
its Affiliates (or its subcontractors) will have the sole right to exercise all authority with
respect to the employment (including termination of employment), assignment and compensation of its
employees and representatives.

          Section 7.2 Ownership of Assets.

          (a) DISH Systems. The DISH Systems and any and all enhancements thereof or
improvements thereto are and shall remain the sole exclusive property of DISH, its Subsidiaries and
their suppliers, as the case may be. From and after the creation of any and all such DISH Systems
or enhancements thereof or improvements thereto by the Company or by any contractor, Affiliate or
other Third Party on the Company’s behalf, in each case, pursuant to this Agreement, the Company
shall cause to be assigned and hereby assigns to DISH or the applicable Subsidiary, any and all
right, title and

11

 

interest that the Company or such contractor, Affiliate or Third Party may have in
such DISH Systems or enhancements thereof or improvements thereto.

          (b) Company Systems. The Company Systems and any and all enhancements thereof or
improvements thereto are and shall remain the sole exclusive property of the Company, its
Subsidiaries and their suppliers, as the case may be. From and after the creation of any and all
such Company Systems or enhancements thereof or improvements thereto by DISH or by any contractor,
Affiliate or other Third Party on DISH’s behalf, in each case, pursuant to this Agreement, DISH
shall cause to be assigned and hereby assigns to the Company or the applicable Subsidiary, any and
all right, title and interest that DISH or such contractor, Affiliate or Third Party may have in
such Company Systems or enhancements thereof or improvements thereto.

          (c) License. During the term of this Agreement, each party hereto grants to the other
party and such party’s respective suppliers a non-exclusive, royalty-free right and license to use
the
DISH Systems or the Company Systems, as applicable, solely to provide the Services or use the
Services contemplated hereunder. Notwithstanding anything to the contrary hereunder, each party
hereto agrees to cooperate with the other (and shall cause its suppliers to so cooperate) to cause
the orderly return of the other party’s Systems and property upon the termination of this Agreement
or upon written request, whichever is earlier.

          (d) Data Ownership. As between DISH and its Subsidiaries, on the one hand, and the
Company and its Subsidiaries, on the other hand, all right, title and interest in and to all data
processed hereunder shall be owned exclusively by DISH or its applicable Subsidiary or the Company
or its applicable Subsidiary that originally supplied it to the other. DISH and the Company hereby
assign to the other, and shall cause any of its or their contractors, Affiliates or suppliers to
assign to the other, as applicable, all right, title and interest that DISH or the Company, as
applicable, may have in the other’s data.

          (e) Third Party Suppliers. DISH shall have written agreements with its employees
consistent with past practices, and shall cause any contractor, Affiliate or Third Party performing
Services on its behalf pursuant to this Agreement to also have written agreements with its
employees that are consistent with its obligations hereunder, including the obligations to disclose
and assign all right, title and interest in intellectual property rights as contemplated in this
Section 7.2. DISH agrees not to voluntarily terminate or to amend or modify such
agreements with respect to the provisions described above without providing at least 30 days prior
written notice thereof and further agrees that any such amendments or modifications to such
agreements shall be prospective only.

          Section 7.3 Other Assets. Except as otherwise noted in Sections 7.1 and
7.2, all procedures, methods, systems, strategies, tools, equipment, facilities and other
resources used by a party hereto, any of its Affiliates or any Third Party service provider shall
remain the property of such party, its Affiliates or such service providers and, except as
otherwise provided herein, shall at all times be under the sole direction and control of such
party, its Affiliates or such Third Party service provider.

12

 

ARTICLE VIII

Confidentiality

          Section 8.1 Confidentiality. Each party hereto agrees that the specific terms and
conditions of this Agreement and any information conveyed or otherwise received by or on behalf of
a party hereto in conjunction herewith are confidential and are subject to the terms of the
confidentiality provisions set forth in Section 4.5 of the Separation Agreement.

ARTICLE IX

No Agency Relationship

          Section 9.1 No Agency Relationship. DISH, in performance of this Agreement, is acting as an independent contractor to the
Company, and not as a partner, joint venturer or agent, nor do the parties hereto intend to create
by this Agreement an employer-employee relationship. Neither party hereto shall be bound by any
representation, act or omission of the other party hereto. Neither party hereto has any right,
power or authority to create any obligation, express or implied, on behalf of the other party
hereto.

ARTICLE X

Term and Termination

          Section 10.1 Term.

          (a) Term of Agreement. This Agreement shall commence on the Distribution Date and
shall end on the earliest of: (i) the date all Services have expired in accordance with the terms
of this Agreement; (ii) the date all Services have been terminated in accordance with the terms of
this Agreement; or (iii) the secondary anniversary of the Distribution Date.

          (b) Term of Services. DISH shall provide each Service beginning on the Distribution
Date, or as otherwise set forth in the Service Schedules or agreed to by the parties hereto in
writing and continuing for a period equal to the service term set forth in the “Service Term”
column of the Service Schedules, or as otherwise agreed to by the parties hereto in writing, unless
renewed or sooner terminated in accordance with the provisions of the Agreement. To the extent the
term for a specific Service is not provided in this Agreement or the Service Schedules, the term
for such Service shall be no longer than 2 years following the Distribution Date.

          Section 10.2 Termination.

          (a) Termination of Services. The Company may terminate its right to receive any
particular Service for any or no reason by providing DISH not less than 30 days prior written
notice (the “Termination Notice”) setting forth in reasonable detail the Services to be
terminated (the “Terminated Services”) and the termination date (the “Termination
Date”) for each Terminated Service that shall not be less than 30 days from the receipt of the
Termination Notice by DISH. Beginning on such Termination Date, the Company shall not be obligated
to pay any Fees in connection with such

13

 

Terminated Services other than Fees owed by the Company to
DISH for such Terminated Services prior to the Termination Date. The Company shall, as soon as
practicable but no later than 10 Business Days after the Company realizes that a Service is no
longer required by the Company and to be provided pursuant to the Agreement, deliver a Termination
Notice with respect to such Service in accordance with Section 10.2(a).

          (b) Termination for Convenience. The Company may terminate this Agreement for any or
no reason by providing DISH not less than 60 days prior written notice setting forth the
termination date for this Agreement.

          (c) Termination for Breach. If a party hereto materially breaches any of its
obligations under this Agreement, and does not cure such default within 30 days after receiving
written notice thereof from the non-breaching party, then the non-breaching party may, at its
option, terminate any Service affected by such breach or this Agreement in its entirety by
providing written notice of termination to the breaching party, which termination shall be
effective immediately upon receipt of such termination notice.

          (d) Bankruptcy Termination. This Agreement may be terminated by either party hereto
upon at least 30 days prior written notice if the other party hereto is declared insolvent or
bankrupt, or makes an assignment for the benefit of creditors, or a receiver is appointed or any
proceeding is demanded by, for or against the other under any provision of the Federal Bankruptcy
Act. Any termination of this Agreement shall be without prejudice to any rights or obligations of
the parties hereto accruing prior to such termination including the right to payment of unpaid
amounts owing for services performed prior to termination.

          (e) Termination for Illegal Agreement. If there shall be any Applicable Law that
makes any or all of the transactions contemplated by this Agreement, illegal or otherwise
prohibited or if any order of any competent authority prohibiting such transactions is entered and
such order shall become final and non-appealable, then either party hereto may terminate any
Service affected by such Applicable Law or order by providing written notice of termination to the
other party hereto, which termination shall be effective immediately upon receipt of such
termination notice.

          Section 10.3 Procedures on Termination. Following any termination of this Agreement
in whole or in part, each party hereto will cooperate with the other party as reasonably necessary
to avoid disruption of the ordinary course of the other party’s and its Affiliates’ businesses.
Termination shall not affect any right to payment for Services provided prior to termination.

          Section 10.4 Effect of Termination. Sections 4.3 and Articles V and
VI (with respect to Fees and Taxes attributable to periods prior to termination),
7.2(a), 7.2(b), 7.2(d), 10.3, this Section 10.4 and
Articles VII, VIII, XI and XII shall survive any termination of
this Agreement. For the avoidance of doubt, termination of a particular Service hereunder shall be
a termination of this Agreement.

ARTICLE XI

Indemnification

          Section 11.1 Indemnification by the Company. The Company shall indemnify, defend and
hold harmless the DISH Indemnified Parties for any Losses and Expenses incurred by them in

14

 

connection with or arising out of any (i) breach of this Agreement by the Company, its Affiliates
or employees and (ii) Third Party claims arising out of the provision of the DISH Services, except
to the extent that such third Person claims for Losses and Expenses are finally determined by a
final non-appealable decision of a court having jurisdiction over the Company and DISH to have
arisen out of the material breach of this Agreement, gross negligence,
bad faith or willful misconduct of DISH, its Affiliates, employees, suppliers or contractors
in providing the DISH Services.

          Section 11.2 Indemnification by DISH. DISH shall indemnify, defend and hold harmless
the Company Indemnified Parties for any Losses and Expenses incurred by them in connection with or
arising out of (i) any breach of this Agreement by DISH, its Affiliates, employees, suppliers or
contractors, (ii) any bodily injury or damage to property occasioned by the acts or omissions of
DISH, its Affiliates, employees, suppliers or contractors, (iii) DISH’s, its Affiliates’,
employees’, suppliers’ or contractors’ gross negligence, willful misconduct or bad faith in the
provision of the DISH Services by DISH, its Affiliates, employees, suppliers or contractors
pursuant to this Agreement, (iv) any Action that determines that the provision by DISH and/or the
receipt by the Company Indemnified Parties of any DISH Services infringes upon or misappropriates
the intellectual property of any Third Party to the extent that any such Losses and Expenses are
determined to have resulted from DISH’s, its Affiliates’, employees’, suppliers’ or contractors’
gross negligence, willful misconduct or bad faith, and (v) Third Party claims arising out of the
provision of the Company Services, except to the extent that such Losses and Expenses are finally
determined by a final non-appealable decision of a court having jurisdiction over DISH and the
Company to have arisen out of the material breach of this Agreement, gross negligence, bad faith or
willful misconduct of the Company, its Affiliates, employees, suppliers or contractors in providing
the Company Services.

          Section 11.3 Limitations and Liability. Each party hereto shall have a duty to
mitigate the Losses and Expenses for which the other is responsible hereunder. EXCEPT FOR CLAIMS
ARISING OUT OF OR RELATING TO ARTICLE VIII, IN NO EVENT SHALL ANY PARTY BE LIABLE FOR ANY
SPECIAL, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS), EXEMPLARY OR PUNITIVE
DAMAGES OR THE LIKE ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION
WITH THIS AGREEMENT (OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY
AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT ANY PARTY TO THIS AGREEMENT HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES.

          Section 11.4 Indemnification is Exclusive Remedy. The indemnification provisions of
this Article XI shall be the exclusive remedy for breach of this Agreement.

          Section 11.5 Risk Allocation. Each party hereto agrees that the Fees charged under
this Agreement reflect the allocation of risk between the parties hereto, including the limitations
on liability in Section 11.3. Modifying the allocation of risk from what is stated here
would affect the Fees that each party hereto charges, and in consideration of those Fees, each
party hereto agrees to the stated allocation of risk.

15

 

          Section 11.6 Indemnification Procedures. All claims for indemnification pursuant to
this Article XI shall be made in accordance with the provisions set forth in Sections 5.3
and 5.4 of the Separation Agreement.

ARTICLE XII

Miscellaneous

          Section 12.1 Entire Agreement. This Agreement, including the Schedules hereto and the
sections of the Separation Agreement referenced herein, constitutes the entire agreement between
the parties hereto with respect to the subject matter contained herein, and supersedes all prior
agreements, negotiations, discussions, understandings, writings and commitments between the parties
hereto with respect to such subject matter.

          Section 12.2 Governing Law; Service of Process; Jurisdiction. This Agreement and the
legal relations between the parties hereto shall be governed by and construed in accordance with
the laws of the State of New York, without regard to the conflict of laws rules thereof to the
extent such rules would require the application of the law of another jurisdiction. The state or
federal courts located within the City of New York shall have exclusive jurisdiction over any and
all disputes between the parties hereto, whether in law or equity, arising out of or relating to
this Agreement and the agreements, instruments and documents contemplated hereby and the parties
hereto consent to and agree to submit to the exclusive jurisdiction of such courts. Each of the
parties hereto hereby waives and agrees not to assert in any such dispute, to the fullest extent
permitted by Applicable Law, any claim that (i) such party is not personally subject to the
jurisdiction of such courts, (ii) such party and such party’s property is immune from any legal
process issued by such courts or (iii) any litigation or other proceeding commenced in such courts
is brought in an inconvenient forum. The parties hereto hereby agree that mailing of process or
other papers in connection with any such action or proceeding in the manner provided in Section
12.10, or in such other manner as may be permitted by Applicable Law, shall be valid and
sufficient service thereof and hereby waive any objections to service accomplished in the manner
herein provided.

          Section 12.3 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED IN THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT.

          Section 12.4 Amendment. This Agreement shall not be amended, modified or supplemented
except by a written instrument signed by an authorized representative of each of DISH and the
Company.

16

 

          Section 12.5 Waiver. Any term or provision of this Agreement may be waived, or the
time for its performance may be extended, by the party or the parties hereto entitled to the
benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this
Agreement if, as to any party hereto, it is in writing signed by an authorized representative of
such party. The failure of any party hereto to enforce at any time any provision of this Agreement
shall not be construed to be a waiver of such provision, or in any way to affect the validity of
this Agreement or any part hereof or the right of any party hereto thereafter to enforce each and
every such provision. No waiver of any breach of this Agreement shall be held to constitute a
waiver of any other or subsequent breach.

          Section 12.6 Severability. If any provision of this Agreement or the application
thereof to any Person or circumstance is determined by a court of competent jurisdiction to be
invalid, void or unenforceable, the remaining provisions hereof or thereof, or the application of
such provision to Persons or circumstances or in jurisdictions other than those as to which it has
been held invalid or unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby or thereby, as the case may be, is not affected in any manner
adverse to any party hereto or thereto. Upon such determination, the parties hereto shall negotiate
in good faith in an effort to agree upon such a suitable and equitable provision to effect the
original intent of the parties hereto.

          Section 12.7 Execution in Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original instrument, but all of which shall be
considered one and the same agreement, and shall become binding when one or more counterparts have
been signed by and delivered to each of the parties hereto.

          Section 12.8 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their successors and permitted assigns; provided,
however, that the rights and obligations of either party hereto under this Agreement shall
not be assignable by such party without the prior written consent of the other party. The
successors and permitted assigns hereunder shall include any permitted assignee as well as the
successors in interest to such permitted assignee (whether by merger, liquidation (including
successive mergers or liquidations) or otherwise).

          Section 12.9 Third Party Beneficiaries. Except to the extent otherwise provided in
Article XI, the provisions of this Agreement are solely for the benefit of the parties
hereto and their respective Affiliates, successors and permitted
assigns and shall not confer upon any third Person any remedy, claim, liability, reimbursement
or other right in excess of those existing without reference to this Agreement.

          Section 12.10 Notices. All notices or other communications under this Agreement shall
be in writing and shall be deemed to be duly given when delivered or mailed in accordance with the
terms of Section 9.12 of the Separation Agreement.

          Section 12.11 No Public Announcement. Neither DISH nor the Company shall, without the
approval of the other, make any press release or other public announcement concerning the
transactions contemplated by this Agreement, except as and to the extent that either party hereto
shall be so obligated by Applicable Law or the rules of any regulatory body, stock exchange or
quotation system, in which case the other party hereto shall be advised and the parties hereto
shall use commercially reasonable efforts to cause a mutually agreeable release or announcement to
be issued; provided,

17

 

however, that the foregoing shall not preclude communications
or disclosures necessary to implement the provisions of this Agreement or to comply with Applicable
Law, accounting and SEC disclosure obligations or the rules of any stock exchange.

          Section 12.12 Limited Liability. Notwithstanding any other provision of this
Agreement, no individual who is a stockholder, director, employee, officer, agent or representative
of the Company or DISH, in its capacity as such, shall have any liability in respect of or relating
to the covenants or obligations of such party under this Agreement and, to the fullest extent
legally permissible, each of the Company and DISH, for itself and its respective stockholders,
directors, employees, officers and Affiliates, waives and agrees not to seek to assert or enforce
any such liability that any such Person otherwise might have pursuant to Applicable Law.

          Section 12.13 Divestiture. If the Company divests or sells all or a part of the
company during the term of this Agreement, DISH shall continue to provide the Services to the
divested or sold entity or part thereof until the termination or expiration of the provision of
Services hereunder, as long as the Seller’s obligations hereunder are not materially increased
thereby.

          Section 12.14 Mutual Drafting. This Agreement shall be deemed to be the joint work
product of DISH and the Company and any rule of construction that a document shall be interpreted
or construed against a drafter of such document shall not be applicable.

18

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their
authorized representatives as of the date first above written.

	 	 	 	 	 	 	 
	 	 	EchoStar Communications Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Echostar Holding Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Signature Page to Transition Services Agreement

19exv10w2

 

Exhibit 10.2

 

[Form of]

TAX SHARING AGREEMENT

BY AND AMONG

ECHOSTAR COMMUNICATION CORPORATION

AND

ECHOSTAR HOLDING CORPORATION

DATED AS OF [________ , 2007]

 

 

 

FORM OF

TAX SHARING AGREEMENT

     This Tax Sharing Agreement (the “Agreement”) is entered into as of the ___day of [    ],
2007, between EchoStar Communications Corporation (“ECC”), a Nevada corporation, and EchoStar
Holding Corporation (the “Company”), a Nevada corporation.

R E C I T A L S

     WHEREAS, ECC and the Company have entered into a Separation Agreement dated [    ] (the
“Separation Agreement”); and

     WHEREAS, pursuant to the Separation Agreement the issued and outstanding common stock of the
Company owned by ECC will be distributed by ECC (pro rata) to the holders of its common stock with
respect to such stock in the Distribution; and

     WHEREAS, the parties hereto desire to provide for the payment of tax liabilities and
entitlement to tax refunds for the taxable periods ending before, on or after the date of the
Distribution, to allocate responsibility and provide for cooperation in the preparation and filing
of tax returns with respect to such taxable periods, and to provide for certain other related
matters;

     NOW, THEREFORE, ECC, on behalf of itself and the ECC Group (as hereinafter defined), and the
Company, on behalf of itself and the Company Group (as hereinafter defined), in consideration of
the mutual covenants contained herein, agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

     Section 1.1    General. Capitalized terms used but not otherwise defined herein shall
have the respective meanings assigned to them in the Separation Agreement or, to the extent the
context requires, have the meaning assigned to them in the Code or the applicable Treasury
Regulations promulgated thereunder (as interpreted in administrative pronouncements and judicial
decisions) or in comparable provisions of applicable law. As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable to both the
singular and the plural forms of the terms defined):

     “Affiliate” shall mean any entity that is directly or indirectly under the control of the
Person or entity in question, where “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of management and policies of a Person, whether through
ownership of voting securities, by contract or otherwise.

     “Ancillary Agreement” shall have the meaning set forth in the Separation Agreement.

     “Big Four Public Accounting Firms” shall mean each of Deloitte & Touche LLP, Ernst & Young
LLP, KPMG LLP, and PricewaterhouseCoopers LLP.

 

 

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Combined Tax Return” shall mean a consolidated, combined or unitary Income Tax Return that
actually includes, by election or otherwise, one or more members of the ECC Group and one or more
members of the Company Group.

     “Company Group” shall mean the Company and all direct and indirect Subsidiaries or Affiliates
of the Company at the time of the Distribution.

     “Contribution” shall have the meaning set forth in the Separation Agreement.

     “Contributions” shall have the meaning set forth in the Separation Agreement.

     “Distribution” shall have the meaning set forth in the Separation Agreement.

     “Distribution Liability” shall mean any liability for which the Company has provided an
indemnity pursuant to Sections 3.1(b)(ii) or (iii) of this Agreement.

     “Distribution Date” shall mean the date on which the Distribution is effected.

     “Distributions” shall have the meaning set forth in the Separation Agreement.

     “ECC Consolidated Group” shall mean ECC and each direct and indirect Subsidiary, including a
member of the Company Group, that is eligible to join with ECC in the filing of a consolidated
federal income tax return.

     “ECC Group” shall mean ECC and all direct and indirect Subsidiaries or Affiliates of ECC other
than a member of the Company Group.

     “Effective Date” shall have the meaning set forth in Section 10.3.

     “Estimated Tax Return” shall mean any Tax Return filed in respect of any estimated Tax payment
that is due on or before the Distribution Date.

     “First Contribution” shall have the meaning set forth in the Separation Agreement.

     “First Internal Distribution” shall have the meaning set forth in the Separation Agreement.

     “Income Tax” shall mean federal income tax and any other tax imposed on or measured by net
income.

     “Income Tax Return” shall mean any Tax Return in respect of Income Taxes.

     “IRS” shall mean the Internal Revenue Service.

3

 

     “Out-of-Pocket Expenses” shall include, but not be limited to, reasonable attorneys’ fees,
accountant fees and other related professional fees and disbursements.

     “Party” shall mean each of ECC and the Company.

     “Person” shall mean any individual, partnership, joint venture, limited liability company,
corporation, association, joint stock company, trust, unincorporated organization or similar entity
or a governmental authority or any department or agency or other unit thereof.

     “Post-Distribution Taxes” shall mean all Taxes incurred by, imposed on or asserted against any
member of the ECC Group or the Company Group that is attributable to income or operations in a
Post-Distribution Tax Period and shall include any Taxes (including Taxes related to a Straddle
Period) incurred by any member of the Company Group as a result of any transaction undertaken by
such member that is not specifically set forth in the Separation Agreements and that is outside of
the ordinary course of business on the Distribution Date after the Distribution.

     “Post-Distribution Tax Period” shall mean (i) any tax year or period beginning after the
Distribution Date, and (ii) with respect to a Straddle Period, the portion of the Straddle Period
that commences on the day immediately after the Distribution Date.

     “Pre-Distribution Taxes” shall mean all Taxes incurred by, imposed on or asserted against any
member of the ECC Group or the Company Group that is attributable to income or operations in a
Pre-Distribution Tax Period (including any Taxes arising as a result of the Contributions,
Distributions or Separation Transactions failing to qualify for Tax-Free Status) but shall not
include any Taxes (including Taxes related to a Straddle Period) incurred by any member of the
Company Group as a result of any transaction undertaken by such member that is not specifically set
forth in the Separation Agreements and that is outside of the ordinary course of business on the
Distribution Date after the Distribution.

     “Pre-Distribution Tax Period” shall mean (i) any tax year or period ending on or before the
Distribution Date, and (ii) with respect to a Straddle Period, the portion of the Straddle Period
ending on and including the Distribution Date.

     “Pre-Distribution Tax Return” shall mean any Tax Return that includes Taxes allocable to the
Pre-Distribution Tax Period but excluding any Tax Return related to a Straddle Period.

     “Prepaid Taxes” shall mean all payments of Taxes made in respect of the Tax liability of the
Company or any member of the Company Group (whether by reason of an estimated Tax payment or
otherwise) on or prior to the Distribution Date, including any refunds or credits attributable to a
Pre-Distribution Tax Period, and which is in respect of the Straddle Period.

     “Prime” shall mean, the rate announced from time to time as “prime” as reported in the Wall
Street Journal’s Money Rates table as the prime rate with respect to the applicable currency.

     “Private Letter Ruling” shall have the meaning set forth in the Separation Agreement.

4

 

     “Ruling Request” shall mean the request submitted to the IRS on September 14, 2007, for the
Private Letter Ruling (including the exhibits attached thereto and all related supplements) and any
other ruling in connection with the Contributions and Distributions that ECC deems to be
appropriate.

     “Second Contribution” shall have the meaning set forth in the Separation Agreement.

     “Second Internal Distribution” shall have the meaning set forth in the Separation Agreement.

     “Separation Agreement” shall have the meaning set forth in the recitals.

     “Separation Transactions” shall have the meaning set forth in the Separation Agreement.

     “Short Year” shall mean the short taxable year beginning on the first day of the Company’s
first taxable period in the year of the Distribution and ending on and including the Distribution
Date.

     “Straddle Period” shall mean any taxable year or period that begins on or before the
Distribution Date and ends after the Distribution Date.

     “Straddle Period Tax Return” shall mean any Tax Return that includes Taxes allocable to the
Straddle Period other than a Combined Tax Return.

     “Subsidiary” shall mean any entity in which a Party, directly or indirectly, possesses fifty
percent (50%) or more of the total (i) combined voting power of all classes of its stock or (ii)
interests in the capital or profits.

     “Taxes” shall mean all taxes, assessments, charges, duties, fees, levies or other governmental
charges, including, without limitation, all Federal, state, local, foreign and other income,
franchise, profits, capital gains, capital stock, transfer, sales, use, occupation, property,
excise, severance, windfall profits, stamp, license, payroll, withholding and other taxes,
assessments, charges, duties, fees, levies or other governmental charges of any kind whatsoever
(whether payable directly or by withholding and whether or not requiring the filing of a return),
all estimated taxes, deficiency assessments, additions to tax, penalties and interest and shall
include any liability for such amounts as a result of being a member of a combined, consolidated,
unitary or affiliated group.

     “Tax Attribute” shall mean any net operating loss, net capital loss, investment tax credit,
foreign tax credit, deduction or any loss, credit or tax attribute that could be carried forward or
back to reduce taxes (including without limitation deductions and credits related to alternative
minimum taxes).

     “Tax-Free Status” shall mean the qualification of each of the Contribution and Distribution,
the Second Contribution and Second Internal Distribution, and the First Contribution and First
Internal Distribution, respectively, as a reorganization described in Section 368(a)(1)(D) of the
Code and a distribution under Section 355 of the Code.

5

 

     “Tax Materials” shall mean all Pre-Distribution Tax Returns involving another Party (or its
Subsidiaries) and all Straddle Period Tax Returns involving another Party (or its Subsidiaries), or
other books, records and files relating to such Tax Returns

     “Tax Matter” shall mean any inquiry, claim, assessment, audit or similar event with respect to
Taxes.

     “Tax Refund” shall mean any refund of Taxes (and any interest attributable thereto), including
any reduction in Taxes otherwise payable by means of a credit, offset or otherwise.

     “Tax Return” shall mean any tax return, statement, report or form (including estimated tax
returns and reports, extension requests and forms, and information returns and reports) required to
be filed with any taxing authority and any amended return (including any claims for refunds) with
respect to the foregoing.

ARTICLE II

PREPARATION AND FILING OF RETURNS AND PAYMENT OF TAXES

     Section 2.1   Tax Returns.

     ECC shall have the exclusive authority to prepare and file or cause to be prepared and filed
(i) all Tax Returns for all members of the Company Group for all taxable years or periods ending on
or before the Distribution Date, including any Estimated Tax Returns due on or prior to the
Distribution Date, (ii) all consolidated federal Income Tax Returns of the ECC Consolidated Group,
(iii) any other Combined Tax Return, and (iv) any Tax Return of any member of the ECC Group.

     Section 2.2   Straddle Period Tax Returns.

     (a)  (i)  The Company shall prepare (in accordance with past practices of ECC) the initial
draft of all Straddle Period Tax Returns (other than Estimated Tax Returns due on or prior to the
Distribution Date) and shall submit such Tax Returns, along with a calculation of ECC’s portion of
any Pre-Distribution Taxes (reduced by any Prepaid Taxes) set forth on such Tax Returns, to ECC for
approval no later than thirty (30) days prior to the due date thereof. No later than fifteen (15)
days after the receipt of such Tax Return from the Company, ECC shall notify the Company of any
reasonable objections ECC may have to items set forth in such draft Tax Returns and/or the
calculation of such Taxes for which ECC is responsible. The Company and ECC agree to consult and
resolve in good faith any such objection, it being understood and agreed that in the absence of any
such resolution, any and all such objections shall be resolved in a manner consistent with the past
practices with respect to such items unless otherwise required by law. If ECC and the Company
cannot resolve such matter, then the Parties shall submit the disagreement to an independent public
accounting firm following the procedure set forth in Section 8.3. The Company shall not file such
Tax Returns without the prior written consent of ECC, such consent not to be unreasonably withheld
or delayed.

     (ii)   For purposes of this Agreement, Taxes related to a Straddle Period shall be apportioned
between the Pre-Distribution Tax Period and the Post-Distribution Tax Period as

6

 

follows: (A) in the case of Taxes other than income, sales and use and withholding Taxes, on a
per-diem basis, and (B) in the case of income, sales and use and withholding Taxes, as determined
from the books and records of ECC, the Company and/or the relevant Subsidiary as though the taxable
year of ECC, the Company and/or the relevant Subsidiary terminated at the close of business on the
Distribution Date.

     (b)   ECC will pay to the Company ECC’s portion of the Pre-Distribution Taxes related to a
Straddle Period Tax Return (as determined pursuant to Section 2.2(a)) no later than the later of:
one (1) day prior to the due date of the Tax Return for which such Taxes relate to the extent ECC
and the Company have reached an agreement on the amount of such Taxes by that date or the only
dispute relates solely to the total amount of Tax shown on the Tax Return, and in the case of a
dispute between ECC and the Company that solely relates to the percentage of the total amount of
Tax shown on the Straddle Period Tax Return allocated to ECC, ECC shall pay (i) the amount it
believes, in good faith, is its allocable portion of such Taxes within one (1) day prior to the due
date of the Tax Return for which such Taxes relate, and (ii) the remainder, if any, determined to
be owed by ECC by the independent accounting firm described in paragraph (a) above within two (2)
days after such accounting firm has determined ECC’s liability with respect to such amounts. In
the event a payment is made pursuant to this paragraph (b) with respect to amounts that are in
dispute, such payment will be adjusted following the resolution of the dispute.

     (c)   To the extent the Prepaid Taxes exceed the Taxes owed by ECC for such Straddle Period
(as determined pursuant to Section 2.2(a)), the Company shall pay ECC such excess.

     Section 2.3   Other Tax Returns.

     The Company shall have the exclusive authority to prepare and file or cause to be prepared and
filed all Tax Returns for all members of the Company Group for Taxable years or periods beginning
after the Distribution Date.

     Section 2.4   Distribution.

     (a)   Except as required by applicable law, the Company shall not, and shall cause the members
of the Company Group not to, take any position that is inconsistent with the treatment of the
Contributions or Distributions as having Tax-Free Status (or analogous status under state, local or
foreign law).

     Section 2.5   Allocation.

     Immediately after the Distribution, the Company Group will close its books utilizing a “cut
off” method, and the provisions of Treasury Regulations Section 1.1502-76(b)(1)(ii)(A), End of Day
Rule, shall be applied to the Short Year.

     Section 2.6   Short Year State, Local and Foreign Returns.

     ECC and the Company agree that Combined Tax Returns and Income Tax Returns filed for tax
periods that begin prior to the Distribution Date will reflect a short taxable year for the Company
ending on the Distribution Date in any state, local or foreign taxing jurisdiction in which such
tax year is allowed by administrative practice, whether or not required by law.

7

 

     Section 2.7   Tax Return Preparation Costs.

     Each Party shall bear all costs incurred by it in preparing and filing the Tax Returns it is
responsible for under this Agreement.

ARTICLE III

ALLOCATION OF TAXES

     Section 3.1   Taxes.

     (a)   ECC shall be liable for and shall indemnify, defend and hold harmless the Company and
members of the Company Group on an after-tax basis against (i) all Pre-Distribution Taxes, (ii) all
Income Taxes incurred by or imposed on the Company or the Company Group solely as a result of the
provisions of Treasury Regulations Section 1.1502-6 or the similar or analogous provisions of any
state, local or foreign law with respect to any period during which ECC and the Company filed a
Combined Tax Return, and (iii) all Post-Distribution Taxes of the ECC Group; provided,
however, that ECC shall not be liable for, and shall not indemnify, defend and hold
harmless the Company and members of the Company Group against any Taxes under this Section 3.1(a)
that are a Distribution Liability.

     (b)   The Company shall be liable for and shall indemnify, defend and hold harmless ECC and
members of the ECC Group on an after-tax basis against (i) all Post-Distribution Taxes that are
attributable to the business or operations of, or incurred by or imposed on, the Company or the
Company Group, (ii) any Taxes, losses, claims and expenses (including losses, claims and expenses
arising out of claims by ECC’s stockholders against ECC and ECC’s Affiliates (and any successors to
the foregoing)) resulting from the Contributions and/or Distributions failing to qualify as
tax-free transactions pursuant to any provision of Section 355, Section 361, or Section
368(a)(1)(D) of the Code (A) to the extent that such Taxes, losses, claims and expenses are caused
by any action that the Company takes or fails to take, or (B) as a result of (in whole or in part)
the direct or indirect acquisition (including a transfer of assets) by one or more persons of any
of the capital stock, stock options or assets of the Company, and (iii) any Taxes, losses, claims
and expenses (including losses, claims and expenses arising out of claims by ECC’s stockholders
against ECC and ECC’s Affiliates (and any successors to the foregoing)) resulting from a breach by
the Company or any member of the Company Group of the covenants made by the Company in Section 9.1
hereof.

     Section 3.2   Carrybacks.

     No member of the Company Group shall carry back losses, credits or other Tax Attributes
attributable to a Post-Distribution Tax Period to offset Taxes attributable to any Pre-Distribution
Tax Period.

ARTICLE IV

TAX ATTRIBUTES AND REFUNDS OF PRE-DISTRIBUTION TAXES 

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     Section 4.1   Tax Refunds.

     (a)   Any Tax Refund attributable to (i) any member of the Company Group for any tax period
that ends on or prior to the Distribution Date and (ii) any member of the ECC Group for any taxable
period shall be, in each case, for the account of ECC. Therefore, ECC shall retain any such Tax
Refund received by ECC or a member of the ECC Group and the Company shall pay to ECC any such Tax
Refund received by a member of the Company Group within ten (10) days after receipt thereof or
entitlement thereto.

     (b)   Any Tax Refund attributable to any member of the Company Group for any Straddle Period
shall be allocated between ECC and the Company in the same manner as the Tax to which such refund
relates was allocated between ECC and the Company. The recipient of any such Tax Refund shall pay
such refund over to the other party to the extent such refund is allocated to such other party
pursuant to the preceding sentence within ten (10) days after receipt thereof or entitlement
thereto.

     Section 4.2   Tax Attributes.

     ECC shall in good faith determine the apportionment of Tax Attributes between the ECC Group
and the Company Group in accordance with applicable laws.

     Section 4.3   Third Party Indemnities.

     (a)   If a member of the Company Group has the right to receive (or actually receives) a
payment from a Person that is not a member of the Company Group (whether by reason of indemnity,
reimbursement agreement or otherwise) with respect to (or items related to) (i) Pre-Distribution
Taxes of a member of the Company Group or (ii) Taxes of a member of the ECC Group in each case,
other than such Taxes for which the Company is liable under this Agreement, such payment shall be
for the account of ECC and the Company shall pay to ECC the amount of any such payment within ten
(10) days after a member of the Company group receives such payment. The Company shall use all
reasonable efforts to obtain any payment described in the preceding sentence; provided,
however, that ECC shall pay or promptly reimburse the Company for all Out-of-Pocket
Expenses incurred in such attempt. To the extent it is legally permitted to do so, the Company
shall assign (or caused to be assigned) to ECC all rights to receive such payment, including any
rights to enforce such payment (and shall take all actions to facilitate such assignment, such as
providing any required notice to any Person and executing any documents) so long as ECC pays or
promptly reimburses the Company for all Out-of-Pocket Expenses related thereto. If the Company is
unable to assign all of its rights to such payment, the Company shall permit ECC to control all
aspects of the enforcement of such rights and shall cooperate with ECC consistent with the
principles set forth in Section 7.1 hereof so long as ECC pays or promptly reimburses the Company
for all Out-of-Pocket Expenses related thereto.

     (b)   If a member of the ECC Group has the right to receive (or actually receives) a payment
from a Person that is not a member of the ECC Group (whether by reason of indemnity, reimbursement
agreement or otherwise) with respect to (or items related to) Taxes of a member of the Company
Group for any Post-Distribution Tax Period other than such Taxes for which ECC is liable under this
Agreement, such payment shall be for the account of the Company and

9

 

ECC shall pay to the Company the amount of any such payment within ten (10) days after a
member of the ECC Group receives such payment. ECC shall use all reasonable efforts to obtain any
payment described in the preceding sentence; provided, however, that the Company
shall pay or promptly reimburse ECC for all Out-of-Pocket Expenses incurred in such attempt. To the
extent it is legally permitted to do so, ECC shall assign (or caused to be assigned) to the Company
all rights to receive such payment, including any rights to enforce such payment (and shall take
all actions to facilitate such assignment, such as providing any required notice to any Person and
executing any documents) so long as the Company pays or promptly reimburses ECC for all
Out-of-Pocket Expenses related thereto. If ECC is unable to assign all of its rights to such
payment, ECC shall permit the Company to control all aspects of the enforcement of such rights and
shall cooperate with the Company consistent with the principles set forth in Section 7.1 hereof so
long as the Company pays or promptly reimburses ECC for all Out-of-Pocket Expenses related thereto.

ARTICLE V

PAYMENTS BETWEEN PARTIES

     Section 5.1   Notice and Time of Payment.

     To the extent that one Party (the “Paying Party”) owes an amount to another Party (the
“Recipient Party”) pursuant to this Agreement, the Recipient Party shall notify the Paying Party
and shall provide the Paying Party with its calculations of such amounts owed. The Paying Party
shall pay the amount shown in such notice no later than ten (10) days after receiving the notice,
unless the Paying Party disagrees with such amount, in which case the Parties agree to negotiate in
good faith to resolve any difference. If such difference cannot be resolved within thirty (30)
days after the Recipient Party indicates its disagreement, then the Parties shall submit the
disagreement to an independent public accounting firm following the procedure set forth in Section
8.3. Any amount owing to another Party pursuant to this Agreement shall be deemed made when
received by such other party. Any payment that is not made when due shall bear interest at a rate
equal to Prime for each day until paid. Where there is a provision in this Agreement that provides
for a different and specific payment schedule than the payment schedule provided in this Section
5.1, the more specific payment schedule shall apply.

     Section 5.2   Netting of Payments.

     If, on the day payment is due under this Agreement, each of the Company and ECC owes an amount
to the other Party pursuant to this Agreement and any other agreement between the Parties,
including, without limitation, the Separation Agreement and any Ancillary Agreement, the Parties
shall satisfy their respective obligations to each other by netting the aggregate amounts due to
one Party against the aggregate amounts due to the other Party, with the Party, if any, owing the
greater aggregate amount paying the other Party the difference between the amounts owed. Such net
payment shall be made pursuant to the provision of Section 5.1.

     Section 5.3   Treatment of Payments.

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     To the extent permitted by law, all amounts payable under this Agreement, shall be deemed to
be made immediately before the Distribution, and shall be treated as a distribution or contribution
to capital, as appropriate.

ARTICLE VI

AUDITS AND CONTESTS

     Section 6.1   Notification.

     The Company shall promptly notify ECC in writing upon receipt by the Company or any member of
the Company Group of any communication with respect to any Tax Matter (or pending or threatened Tax
Matter) relating to any Tax period beginning on or before the Distribution Date. The Company shall
include with such notification a complete copy of any written communication received by the Company
or any member of the Company Group in respect of such Tax Matter. The failure of the Company to
promptly forward such notification in accordance with the immediately preceding sentence shall not
relieve ECC of any obligation under this Agreement, except to the extent that the failure to
promptly forward such notification actually prejudices the ability of ECC to contest such Tax
Matter.

     Section 6.2   Representation with Respect to Tax Disputes.

     (a)   ECC (or such member of the ECC Group as ECC shall designate) shall have the sole right to
represent the interests of the members of the ECC Group and the members of the Company Group, to
employ counsel of its choice at its expense and to make decisions with respect to settlements in
any Tax Matter relating to (A) any consolidated federal Income Tax Returns of the ECC Consolidated
Group, (B) any Combined Tax Return, (C) any Tax Return of any member of the ECC Group, and (D) any
Tax Returns for all members of the Company Group for all taxable years or periods ending on or
before the Distribution Date; provided, however, that, to the extent that such Tax
Matter involves any issue that could materially affect the amount of Taxes for which any member of
the Company Group is liable in a Post-Distribution Tax Period, ECC shall (i) keep the Company
informed of all material developments relating to such Tax Matter; (ii) act in a reasonable manner
and in good faith in discussing such issue with the relevant tax authority and contesting such Tax
Matter; and (iii) contest, and shall not settle or compromise such Tax Matter unless ECC reasonably
determines in good faith that (x) based on discussions with tax counsel, such settlement or
compromise is an appropriate resolution of such Tax Matter taking into account only the applicable
facts, applicable law and hazards and costs of controversy in respect of such Tax Matter standing
alone, and (y) ECC would find such settlement acceptable if ECC (and not any member of the Company
Group) were required to bear the tax consequences of the settlement of such Tax Matter for all
relevant Tax periods.

     (b)   The Company (or such member of the Company Group as the Company shall designate) shall
have the sole right to represent the interests of the members of the Company Group, to employ
counsel of its choice at its expense and to make decisions with respect to settlements in any Tax
Matter relating to any Tax Returns in respect of Post-Distribution Taxable Periods;
provided, however, that, to the extent that such Tax Matter involves any issue that
could materially affect the amount of Taxes for which any member of the ECC Group is liable in a

11

 

Pre-Distribution Tax Period (or for other Taxes with respect to which ECC is required to indemnify
the members of the Company Group pursuant to Section 3.1(a)), the Company shall (i) keep ECC
informed of all material developments relating to such Tax Matter; (ii) act in a reasonable manner
and in good faith in discussing such issue with the relevant tax authority and contesting such Tax
Matter; and (iii) contest, and shall not settle or compromise such Tax Matter unless the Company
reasonably determines in good faith that (x) based on discussions with tax counsel, such settlement
or compromise is an appropriate resolution of such Tax Matter taking into account only the
applicable facts, applicable law and hazards and costs of controversy in respect of such Tax Matter
standing alone and (y) the Company would find such settlement acceptable if the Company (and not
any member of the ECC Group) were required to bear the tax consequences of the settlement of such
Tax Matter for all relevant Tax periods.

     Section 6.3   Straddle Period Taxes.

     ECC (or such member of the ECC Group as ECC shall designate) shall have the sole right to
represent the interests of the members of the ECC Group and the members of the Company Group and to
employ counsel of its choice in any Tax Matter related to any Straddle Period Tax Return. ECC
shall have absolute discretion with respect to any decisions to be made, or the nature of any
action to be taken, with respect to any Tax Matter related to a Straddle Period Tax Return
described in the preceding sentence; provided, however, with respect to Tax Matters
that affect the Company’s Tax liability, (i) ECC shall keep the Company informed of all material
developments and events relating to such matters to the extent they affect the Company’s Tax
liability, (ii) at its own cost and expense, the Company shall have the right to participate in the
defense of any such tax claim, and (iii) neither ECC nor the Company shall take any action in
respect of such claim without the consent of the other Party, such consent not to be unreasonably
withheld, conditioned or delayed.

ARTICLE VII

COMMUNICATION AND COOPERATION

     Section 7.1   Cooperation.

     (a)   Beginning on the Distribution Date, each of ECC and the Company, on behalf of itself and
each member of the ECC Group and the Company Group, respectively, agrees to use good faith efforts
to provide the other Party with such cooperation or information as such other Party reasonably
shall request in connection with the determination of any payment or any calculations described in
this Agreement, the preparation or filing of any Pre-Distribution Tax Return, Straddle Period Tax
Return, Tax Return related to any Tax period beginning after the Distribution Date or claim for
refund, or the conduct of any Tax Matter. Such cooperation and information shall include, without
limitation:

     (i)   promptly forwarding copies of appropriate notices and forms or other communications
(including, without limitation, information document requests, revenue agent’s reports and
similar reports, notices of proposed adjustments and notices of deficiency) received from or
sent to any Tax authority or any other administrative, judicial or governmental authority,

12

 

     (ii)   providing copies of all relevant Tax Returns or portions thereof, together with
accompanying schedules and related workpapers, documents relating to rulings or other
determinations by any Tax authority, and such other records concerning the ownership and Tax
basis of property, or other relevant information,

     (iii)   the provision of such additional information and explanations of documents and
information provided under this Agreement (including statements, certificates, forms,
returns and schedules delivered by either Party) as shall be reasonably requested by ECC or
the Company, as the case may be,

     (iv)   the execution of any document that may be necessary or appropriate in connection
with the filing of a Tax Return, a claim for a refund, or in connection with any Tax Matter,
including such waivers, consents or powers of attorney as may be necessary for ECC or the
Company, as the case may be, to exercise its rights under this Agreement,

     (v)   the use of ECC’s or the Company’s, as the case may be, reasonable efforts to obtain
any documentation from a governmental authority or a third party that may be necessary or
reasonably helpful in connection with any of the foregoing, and

     (vi)   preparing and submitting to ECC (in a time frame consistent with past practice),
at the Company’s expense, all information within the Company’s possession and not otherwise
reasonably available to ECC that ECC shall reasonably request, in such form as ECC shall
reasonably request, to enable ECC to prepare any Tax Returns required to be filed by ECC
pursuant to Section 2.1.

     (b)   Any request for information or documents pursuant to Section 7.1 shall be made by the
requesting Party in writing. The other Party shall promptly (and in no event later than thirty (30)
days after receipt of the request) provide the requested information. Except as otherwise provided
in (a)(vi), the requesting party shall indemnify the other party for any Out-of-Pocket Expenses
incurred by such party in connection with providing any information or documentation pursuant to
Section 7.1. Upon reasonable notice, each of ECC and the Company shall make its, or shall cause the
members of the ECC Group or the Company Group, as applicable, to make their, employees and
facilities available on a mutually convenient basis to provide explanation of any documents or
information provided hereunder. Any information obtained under Section 7.1 shall be kept
confidential, except as otherwise reasonably may be necessary in connection with the filing of Tax
Returns or claims for refund or in conducting any Tax Matter.

     Section 7.2    Retention of Records and Returns.

     (a)    For at least seven (7) years following the Distribution, each Party will retain such
records, documents, accounting data and other information (including computer data) in its
possession in the ordinary course of business reasonably necessary for (i) the preparation and
filing of all Pre-Distribution Tax Returns and Straddle Period Tax Returns required to be filed by,
on behalf of, or with respect to another Party, and (ii) any Tax Matters relating to such
Pre-Distribution Tax Returns, Straddle Period Tax Returns, or to any Pre-Distribution Taxes payable
by, on behalf of, or with respect to, another Party.

13

 

     (b)    The Parties shall, from and after the Distribution Date, preserve all Tax Materials for
such seven (7) year period, and, thereafter, not destroy or dispose of or allow the destruction or
disposition of such Tax Materials without first having offered in writing to deliver such Tax
Materials to the other Party at such other Party’s expense. If such Party fails to request such
Tax Materials within ninety (90) days after receipt of the notice described in the preceding
sentence, the other Party may dispose of such Tax Materials.

ARTICLE VIII

ADMINISTRATIVE AND COMPLIANCE MATTERS

     Section 8.1    Sole Tax Sharing Agreement.

     Any and all existing tax sharing agreements or arrangements, written or unwritten, between any
member of the ECC Group and any member of the Company Group shall be terminated as of the Effective
Date or shall be amended so as to exclude all members of the Company Group from continuing as a
party to such agreements or arrangements. As of the Effective Date, this Agreement shall be the
sole tax sharing agreement, and there shall be no further rights, obligation or liabilities under
any preexisting tax sharing agreement, between the members of the Company Group and the members of
the ECC Group.

     Section 8.2    Designation of Agent.

     The Company and each member of the Company Group hereby irrevocably authorizes and designates
ECC as its agent, coordinator, and administrator, for the purpose of taking any and all actions
(including the execution of waivers of applicable statutes of limitation) necessary or incidental
to the filing of any Tax Return, and for the purpose of making payments to, or collecting Tax
Refunds from, any taxing authority, in each case if such Tax Return relates only to any
Pre-Distribution Tax Period.

     Section 8.3   Disputes.

     If ECC or the Company fails to give its agreement, approval or consent in a situation
described in Section 2.2, or the Parties cannot agree on an amount owed under Section 5.1, or any
other dispute or disagreement arises under this Agreement that cannot be resolved among the
Parties, the issue involved shall be submitted to an independent public accounting firm acceptable
to both ECC and the Company; provided, however, that if the dispute or disagreement
involves a matter of legal interpretation, then upon the written consent of both Parties such
dispute shall be resolved by such independent public accounting firm, otherwise such independent
accounting firm shall select an outside attorney (1) experienced in federal income tax law and (2)
mutually acceptable to ECC and the Company (which acceptance shall not be unreasonably withheld) to
resolve such dispute or disagreement. If ECC and the Company cannot agree on an independent public
accounting firm, the first Big Four Public Accounting Firm (on an alphabetical basis) that is not
currently serving as the auditor of either Party shall be selected to resolve the dispute. The
decision of the independent public accounting firm (and any outside attorney selected by such
accounting firm) in resolving the dispute shall be final and binding. The fees and expenses
incurred with respect to the independent public accounting firm resolving the dispute shall be
allocated fifty percent (50%) to ECC and fifty percent (50%) to the

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Company. All other fees and expenses incurred in resolving the dispute shall be borne by the
Party that incurs such fees and expenses.

ARTICLE IX

CERTAIN COVENANTS

     Section 9.1    Company Covenants.

     (a)   The Company will not, nor will it permit any member of the Company Group to, take any
action inconsistent with the information and representations furnished to the IRS in connection
with the Ruling Request, or to counsel in connection with any opinion being delivered by counsel
with respect to the Contributions or Distributions, regardless of whether such information and
representations were included in the ruling issued by the IRS or in the opinion of counsel.

ARTICLE X

MISCELLANEOUS

     Section 10.1   Notices.

     (a)   Any notice, demand, claim, or other communication under this Agreement shall be in
writing and shall be deemed to have been given upon the delivery or mailing thereof, as the case
may be, if delivered personally or sent by certified mail, return receipt requested, postage
prepaid or sent by facsimile, to the parties at the following addresses (or at such other address
as a party may specify by notice to the other):

     If to ECC, to:

EchoStar Communications Corporation

9601 S. Meridian Blvd., Englewood, CO 80112

Attention: General Counsel

Fax: 303-723-1699

If to Company, to:

EchoStar Holding Corporation

90 Inverness Circle East, Englewood, CO 80112

Attention: General Counsel

Fax: 303-723-1699

     Section 10.2   Costs and Expenses.

     (a) Except as expressly set forth in this Agreement, each party shall bear its own costs and
expenses incurred pursuant to this Agreement.

     Section 10.3   Effectiveness; Termination and Survival.

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     This Agreement shall become effective upon the consummation of the Distribution (the
“Effective Date”). All rights and obligations arising hereunder shall survive until the later of
(i) the full period of all applicable statutes of limitation (giving effect to any extension,
waiver or mitigation thereof), or (ii) all rights and obligations are fully effectuated or
performed.

     Section 10.4   Subsidiaries.

     ECC agrees and acknowledges that ECC shall be responsible for the performance by each member
of the ECC Group of the obligations hereunder applicable to such member. The Company agrees and
acknowledges that the Company shall be responsible for the performance by each member of the
Company Group of the obligations hereunder applicable to such member.

     Section 10.5   Headings.

     The headings contained in this Agreement are inserted for convenience only and shall not
constitute a part hereof or in any way affect the meaning or interpretation of this Agreement.

     Section 10.6   Entire Agreement; Amendments and Waivers; Severability.

     (a)   Entire Agreement. This Agreement contains the entire understanding of the
Parties hereto with respect to the subject matter contained herein. No alteration, amendment,
modification, or waiver of any of the terms of this Agreement shall be valid unless made by an
instrument signed by an authorized officer of each of ECC and the Company, or in the case of a
waiver, by the Party against whom the waiver is to be effective.

     (b)   Amendments and Waivers. No failure or delay by any Party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof, or the exercise of any
right, power or privilege. This Agreement shall not be waived, amended or otherwise modified
except as in writing, duly executed by all of the Parties.

     (c)   Severability. If any provision of this Agreement or the application of any such
provision to any Party or circumstances shall be determined by any court of competent jurisdiction
to be invalid, illegal or unenforceable to any extent, the remainder of this Agreement or such
provision or the application of such provision to such Party or circumstances, other than those
determined to be so invalid, illegal or unenforceable, shall remain in full force and effect to the fullest extent permitted by law and shall not be affected by such determination, unless such a
construction would be unreasonable.

     Section 10.7   Governing Law and Interpretation.

     This Agreement has been made in, and shall be construed and enforced in accordance with the
laws of, the State of New York without giving effect to laws and principles relating to conflicts
of law.

     Section 10.8   Counterparts.

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     This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same Agreement.

     Section 10.9   Assignments; Third Party Beneficiaries.

     Except as provided below, this Agreement shall be binding upon and shall inure only to the
benefit of the Parties hereto and their respective successors and assigns, by merger, acquisition
of assets or otherwise (including but not limited to any successor of a party hereto succeeding to
the Tax Attributes of such Party under applicable law). This Agreement is not intended to benefit
any Person other than the Parties hereto and such successors and assigns, and no other Person shall
be a third party beneficiary hereof.

     Section 10.10   Further Assurances.

     ECC and the Company shall execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such instruments and take such other action as may be necessary or
advisable to carry out their obligations under this Agreement and under any exhibit, document or
other instrument delivered pursuant hereto.

     Section 10.11   Authorization.

     Each of the Parties hereby represents and warrants that it has the power and authority to
execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all
necessary corporate action on the part of such party, that this Agreement constitutes a legal,
valid and binding obligation of each such party and that the execution, delivery and performance of
this Agreement by such party does not contravene or conflict with any provision or law or of its
charter or bylaws or any agreement, instrument or order binding on such Party.

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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the day and year first written above.

ECC on its own behalf and on behalf of each member of

ECC Group.

By:__________________________

Name:

Title:

Company on its own behalf and on

behalf of each member of the Company

Group.

By:__________________________

Name:

Title:

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]