Document:

ex10-1_1373430.htm

Exhibit 10.1

 

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement is dated as of ___________, 20__ (this “Agreement”) and is between Access Integrated Technologies, Inc. d/b/a Cinedigm Digital Cinema Corp., a Delaware corporation (the “Company”),
and [____________] (“Indemnitee”).

 

WHEREAS, Indemnitee is a director of the Company and may also serve as a director, consultant, fiduciary or agent (collectively, the “Indemnifiable Positions”) of other corporations, limited liability companies, partnerships, joint ventures, trusts, employee benefit
plans or other enterprises controlled by the Company (collectively, the “Controlled Entities”);

 

WHEREAS, in order to induce Indemnitee to continue to serve as a director of the Company and/or in other Indemnifiable Positions of the Controlled Entities, the Company wishes to provide for the indemnification of, and the advancement of Expenses (as defined herein) to, Indemnitee to the maximum extent permitted by law;

 

WHEREAS, the Fourth Amended and Restated Certificate of Incorporation of the Company (as amended, restated or otherwise modified from time to time, the “Charter”) provides for the indemnification of the Company’s directors and officers to the fullest extent
permitted by law;

 

WHEREAS, the By-Laws of the Company (as amended, restated or otherwise modified from time to time, the “Bylaws”) provide certain indemnification rights to the Company’s directors and officers; and

 

WHEREAS, the Company and Indemnitee desire to enter into this Agreement to set forth their agreement regarding indemnification and the advancement of Expenses and to clarify the priority of the indemnification and advancement of Expenses with respect to certain Jointly Indemnifiable Claims (as defined herein).

 

NOW, THEREFORE, in consideration of Indemnitee’s service or continued service to the Company and/or the Controlled Entities and the covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows.

 

Section 1.  Indemnification.

 

To the fullest extent permitted by the Delaware General Corporation Law (the “DGCL”):

 

(a)           The Company shall indemnify Indemnitee if Indemnitee was or is made or is threatened to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending or completed Action, Suit or Proceeding (brought in the right of the Company or
otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including appeals.

 

 

 

 

 

(b)           The indemnification provided by this Section 1 shall be from and against all loss and liability suffered and Expenses (including attorneys’ fees), Judgments, Fines and Amounts Paid in Settlement actually
and reasonably incurred by or on behalf of Indemnitee in connection with such Action, Suit or Proceeding, including any appeals.

 

Section 2.  Payment of Expenses.  To the fullest extent permitted by the DGCL, Expenses (including attorneys’ fees) incurred by Indemnitee in appearing at, participating in
or defending any Action, Suit or Proceeding or in connection with an enforcement action as contemplated by Section 3(d), shall be paid by the Company in advance of the final disposition of such Action, Suit or Proceeding or such enforcement action within 15 days after receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time.  The Indemnitee hereby undertakes to repay any
amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled under this Agreement to be indemnified by the Company in respect of such Action, Suit or Proceeding or such enforcement action as contemplated by Section 3(d).  No other form of undertaking shall be required of Indemnitee other than the execution of this Agreement.  This Section
2 shall be subject to Section 3(b) and shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 6(a).

 

Section 3.  Procedure for Indemnification; Notification and Defense of Claim.

 

(a)           Promptly after receipt by Indemnitee of notice of the commencement of any Action, Suit or Proceeding, Indemnitee shall, if a claim in respect thereof is to be made or could be made against the Company hereunder, notify the Company in writing of the commencement thereof.  The
failure to promptly notify the Company of the commencement of the Action, Suit or Proceeding, or of Indemnitee’s request for indemnification, will not relieve the Company from any liability that it may have to Indemnitee hereunder, except to the extent the Company is actually and materially prejudiced (through the forfeiture of substantive rights or defenses) in its defense of such Action, Suit or Proceeding as a result of such failure.  To obtain indemnification under this Agreement, Indemnitee
shall submit to the Company a written request therefor including such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to enable the Company to determine whether and to what extent Indemnitee is entitled to indemnification.  In addition, Indemnitee shall reasonably cooperate with the Company and shall give the Company such additional information as the Company may reasonably require.

 

(b)           With respect to any Action, Suit or Proceeding of which the Company is so notified as provided in this Agreement, the Company shall, subject to the last two sentences of this paragraph and subject to the Company’s prior determination pursuant to Section
3(c) to grant Indemnitee’s indemnification request with respect to such Action, Suit or Proceeding, be entitled to assume the defense of such Action, Suit or Proceeding, with counsel reasonably acceptable to Indemnitee (which acceptance shall not be unreasonably withheld or delayed), upon the delivery to Indemnitee of written notice of its election to do so.  After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company
will not be liable to Indemnitee under this Agreement for any subsequently-incurred fees of separate counsel engaged by or on behalf of Indemnitee with respect to the same Action, Suit or Proceeding unless (i) the employment of separate counsel by Indemnitee has been previously 

 

 

 

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authorized in writing by the Company or (ii) the Company does not continue to retain such counsel to defend such Action, Suit or Proceeding.  Notwithstanding the foregoing, if Indemnitee, based on the advice of his or her counsel, shall have reasonably concluded (with written notice being given to the Company setting forth the
basis for such conclusion) that, in the conduct of any such defense, there is or is reasonably likely to be a conflict of interest or position between the Company and Indemnitee with respect to a significant issue, then the Company will not be entitled, without the written consent of Indemnitee, to assume such defense.  In addition, the Company will not be entitled, without the written consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

 

(c)           The determination whether to grant Indemnitee’s indemnification request shall be made promptly and in any event within 30 days following the Company’s receipt of a request for indemnification in accordance with Section
3(a).  If the Company determines that Indemnitee is entitled to such indemnification, the Company will make payment to Indemnitee of the indemnifiable amount within such 30 day period.  If the Company’s determination of whether to grant Indemnitee’s indemnification request shall not have been made within such 30 day period, the requisite determination of entitlement to indemnification shall, subject to Section 6,
nonetheless be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under the DGCL.

 

(d)           In the event that (i) the Company determines in accordance with this Section 3 that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company denies a request for indemnification,
in whole or in part, or fails to respond or make a determination of entitlement to indemnification within 30 days following receipt of a request for indemnification as described above, (iii) payment of indemnification is not made within such 30 day period, (iv) advancement of Expenses is not timely made in accordance with Section 2, or (v) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable,
or institutes any litigation or other action or proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction of his or her entitlement to such indemnification or advancement of Expenses.  To the extent not already advanced pursuant to Section 2, Indemnitee’s Expenses (including
attorneys’ fees) incurred in connection with successfully establishing Indemnitee’s right to indemnification or advancement of Expenses, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company; provided that to the extent Indemnitee is successful in part and unsuccessful in part in establishing Indemnitee’s right to indemnification or advancement of Expenses hereunder, Indemnitee shall
be entitled to partial indemnification of Expenses in accordance with Section 20.

 

(e)           Indemnitee shall be presumed to be entitled to indemnification and advancement of Expenses under this Agreement upon submission of a request therefor in accordance with Section 2 or Section
3 of this Agreement, as the case may be.  The Company shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of entitlement to indemnification and advancement of 

 

 

 

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Expenses unless the Company overcomes such presumption by clear and convincing evidence.  Neither the failure of the Company to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of
conduct, nor an actual determination by the Company that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.  For purposes of this Agreement, the termination of any Action, Suit or Proceeding by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee
did not meet any particular standard of conduct or have a particular belief or that a court has determined that indemnification is not permitted under this Agreement or applicable law.

 

Section 4.  Insurance and Subrogation.

 

(a)           To the extent the Company maintains a policy or policies of insurance providing directors’ and officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage
provided to any other director or officer of the Company.  If, at the time the Company receives from Indemnitee any notice of the commencement of an Action, Suit or Proceeding, the Company has such insurance in effect that would reasonably be expected to cover such Action, Suit or Proceeding, then the Company shall give prompt notice of the commencement of such Action, Suit or Proceeding to the insurers in accordance with the procedures set forth in such policy or policies.  The Company shall
thereafter take all necessary or reasonably desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Action, Suit or Proceeding in accordance with the terms of such policy or policies.

 

(b)           Subject to Section 9(b), in the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with
respect to any insurance policy.  Indemnitee shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to effectively bring suit to enforce such rights in accordance with the terms of such insurance policy.  The Company shall pay or reimburse all Expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.

 

(c)           Subject to Section 9(b), the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, Judgments, Fines and Amounts
Paid in Settlement, and ERISA excise taxes or penalties) if and to the extent that Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise.

 

Section 5.  Certain Definitions.  For purposes of this Agreement, the following definitions shall apply:

 

(a)           The term “Action, Suit or Proceeding” shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal
of, and the giving of testimony in, any threatened, pending or completed 

 

 

 

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claim, action, suit, arbitration, investigation, inquiry, alternative dispute mechanism or proceeding, whether civil (including intentional and unintentional tort claims), criminal, administrative or investigative, in each case, by reason of the service of Indemnitee as a director of the Company and/or in other Indemnifiable Positions
of the Controlled Entities, or by reason of any action alleged to have been taken or omitted in any such capacity.

 

(b)           The term “Expenses” shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’
fees and related disbursements, appeal bonds, other out-of-pocket costs and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise compensated by the Company or any third party), in each case, actually and reasonably incurred by or on behalf of Indemnitee in connection with either the investigation, defense or appeal of an Action, Suit or Proceeding or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim
that is indemnifiable hereunder.

 

(c)           The term “Judgments, Fines and Amounts Paid in Settlement” shall be broadly construed and shall include, without limitation, all direct and indirect payments of any type or nature whatsoever,
as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan.

 

Section 6.  Limitation on Indemnification.  Notwithstanding any other provision herein to the contrary, the Company shall not be obligated pursuant to this Agreement:

 

(a)           Claims Initiated by Indemnitee.  To indemnify or advance Expenses to Indemnitee with respect to any threatened, pending or completed claim, action, suit, arbitration, investigation, inquiry, alternative
dispute mechanism or proceeding, whether civil (including intentional and unintentional tort claims), criminal, administrative or investigative, however denominated, initiated or brought voluntarily by Indemnitee, whether by way of defense, counterclaim, cross claim or otherwise, other than (i) an action brought to establish or enforce a right to indemnification or advancement of Expenses under this Agreement (which shall be governed by the provisions of Section
6(b) of this Agreement), (ii) a claim, action, suit, arbitration, investigation, inquiry, alternative dispute mechanism or proceeding that was authorized or consented to by the Board of Directors of the Company, it being understood and agreed that such authorization or consent shall not be unreasonably withheld in connection with any compulsory counterclaim brought by Indemnitee in response to an Action, Suit or Proceeding otherwise indemnifiable under this Agreement or (iii) as otherwise required under
the DGCL.

 

(b)           Action for Indemnification.  To indemnify Indemnitee for any Expenses incurred by Indemnitee with respect to an action instituted by Indemnitee to enforce or interpret this Agreement if Indemnitee
is not successful in such enforcement action in establishing Indemnitee’s right, in whole or in part, to indemnification or advancement of Expenses hereunder; provided that to the extent Indemnitee is successful in part and unsuccessful in part in establishing Indemnitee’s right to indemnification or advancement of Expenses hereunder, Indemnitee shall be entitled to partial indemnification of Expenses in accordance with Section
20.

 

 

 

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(c)           Section 16(b) Matters.  To indemnify Indemnitee on account of any Action, Suit or Proceeding in which judgment is rendered against Indemnitee for disgorgement of profits made from the purchase
or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended; provided, however, that notwithstanding any limitation set forth in this Section 6(c) regarding the Company’s obligation to provide indemnification, Indemnitee shall
be entitled under Section 2 hereof to advancement of Expenses in connection with any such Action, Suit or Proceeding unless and until Indemnitee has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing to have
violated said statute, in which case Indemnitee hereby undertakes to repay any such amounts advanced (without interest).

 

(d)           Fraud or Willful Misconduct.  To indemnify Indemnitee on account of conduct by Indemnitee where such conduct has been determined by a final (not interlocutory) judgment or other adjudication of
a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing to have been knowingly fraudulent or constitute willful misconduct.

 

(e)           Prohibited by Law.  To indemnify Indemnitee in any circumstance where such indemnification has been determined to be prohibited by law by a final (not interlocutory) judgment or other adjudication
of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without such filing.

 

(f)           Unauthorized Settlement.  To indemnify Indemnitee for any amounts paid in settlement of any Action, Suit or Proceeding without the Company’s prior written consent.  The Company
will not unreasonably withhold or delay its consent to any proposed settlement.

 

Section 7.  Certain Settlement Provisions.  The Company shall be permitted to settle any Action, Suit or Proceeding, except that it shall not settle any Action, Suit or Proceeding
in any manner that would impose any penalty (unless the only penalty imposed is a monetary amount that will be paid in full by the Company (or its insurers)) or limitations or constitute any admission of wrongdoing or which may compromise, or may adversely affect, the defense of the Indemnitee in any other Action, Suit or Proceeding, whether civil or criminal, without Indemnitee’s prior written consent.  Indemnitee will not unreasonably withhold or delay his or, her consent to any proposed settlement.

 

Section 8.  Savings Clause.  If any provision or provisions (or portion thereof) of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then
the Company shall nevertheless indemnify Indemnitee if Indemnitee was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending or completed Action, Suit or Proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including appeals, from and against all loss and liability suffered and Expenses (including attorneys’ fees), Judgments, Fines and Amounts Paid in Settlement
actually and reasonably incurred by or on behalf of Indemnitee 

 

 

 

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in connection with such Action, Suit or Proceeding, including any appeals, to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated.

 

Section 9.  Contribution; Jointly Indemnifiable Claims.

 

(a)           In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event, the Company shall,
to the fullest extent permitted by law, contribute to the payment of all of Indemnitee’s loss and liability suffered and Expenses (including attorneys’ fees), Judgments, Fines and Amounts Paid in Settlement actually and reasonably incurred by or on behalf of Indemnitee in connection with any Action, Suit or Proceeding, including any appeals, in an amount that is just and equitable in the circumstances; provided, that, without limiting
the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in Section 4(c), Section 6 or Section 7 hereof.

 

(b)           Given that certain Jointly Indemnifiable Claims by reason of the service of Indemnitee as a director of the Company and/or in other Indemnifiable Positions of the Controlled Entities, or by reason of any action alleged to have been taken or omitted in any such capacity,
the Company acknowledges and agrees that the Company shall, and to the extent applicable shall cause the Controlled Entities to, be fully and primarily responsible for the payment to the Indemnitee in respect of indemnification or advancement of Expenses in connection with any such Jointly Indemnifiable Claim, pursuant to and in accordance with (as applicable) the terms of (i) the DGCL, (ii) the Charter, (iii) the Bylaws, (iv) this Agreement, (v) any other agreement between the Company or any Controlled Entity
and the Indemnitee pursuant to which the Indemnitee is indemnified, (vi) the laws of the jurisdiction of incorporation or organization of any Controlled Entity and/or (vii) the certificate of incorporation, certificate of organization, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or other organizational or governing documents of any Controlled Entity ((i) through (vii) collectively, the “Indemnification
Sources”), irrespective of any right of recovery the Indemnitee may have from the Indemnitee-Related Entities.  Under no circumstance shall the Company or any Controlled Entity be entitled to any right of subrogation or contribution by the Indemnitee-Related Entities and no right of advancement or recovery the Indemnitee may have from the Indemnitee-Related Entities shall reduce or otherwise alter the rights of the Indemnitee or the obligations of the Company or any Controlled Entity under
the Indemnification Sources.  In the event that any of the Indemnitee-Related Entities shall make any payment to the Indemnitee in respect of indemnification or advancement of Expenses with respect to any Jointly Indemnifiable Claim, (i) the Company shall, and, to the extent applicable, shall cause the Controlled Entities to, reimburse the Indemnitee-Related Entity making such payment to the extent of such payment promptly upon written demand from such Indemnitee-Related Entity, (ii) to the extent not
previously and fully reimbursed by the Company and/or any Controlled Entity pursuant to clause (i), the Indemnitee-Related Entity making such payment shall be subrogated to the extent of the outstanding balance of such payment to all of the rights of recovery of the Indemnitee against the Company and/or any Controlled Entity, as applicable, and (iii) Indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably necessary to secure such rights, including the execution of
such documents as may be necessary to enable the Indemnitee-Related Entities effectively to bring suit to enforce such 

 

 

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rights.  The Company and Indemnitee agree that each of the Indemnitee-Related Entities shall be third-party beneficiaries with respect to this Section 9(b), entitled to enforce this Section 9(b) as
though each such Indemnitee-Related Entity were a party to this Agreement.  The Company shall cause each of the Controlled Entities to perform the terms and obligations of this Section 9(b) as though each such Controlled Entity was a party to this Agreement.  For purposes of this Section 9(b), the following terms shall have the following meanings:

 

(i)           The term “Indemnitee-Related Entities” means any corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company,
any Controlled Entity or the insurer under and pursuant to an insurance policy of the Company or any Controlled Entity) from whom an Indemnitee may be entitled to indemnification or advancement of Expenses with respect to which, in whole or in part, the Company or any Controlled Entity may also have an indemnification or advancement obligation.

 

(ii)           The term “Jointly Indemnifiable Claims” shall be broadly construed and shall include, without limitation, any Action, Suit or Proceeding for which the Indemnitee shall be entitled to indemnification
or advancement of Expenses from both (i) the Company and/or any Controlled Entity pursuant to the Indemnification Sources, on the one hand, and (ii) any Indemnitee-Related Entity pursuant to any other agreement between any Indemnitee-Related Entity and the Indemnitee pursuant to which the Indemnitee is indemnified, the laws of the jurisdiction of incorporation or organization of any Indemnitee-Related Entity and/or the certificate of incorporation, certificate of organization, bylaws, partnership agreement, operating
agreement, certificate of formation, certificate of limited partnership or other organizational or governing documents of any Indemnitee-Related Entity, on the other hand.

 

Section 10.  Form and Delivery of Communications.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given if (a) delivered by hand, upon receipt by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier, one day after deposit with such courier and with written verification of receipt or (d) sent by email or facsimile transmission, with receipt of oral confirmation that such transmission has been received.  Addresses
for notice to either party are shown on the signature page of this Agreement, or as subsequently modified by written notice.

 

Section 11.  Nonexclusivity.  The provisions for indemnification and advancement of Expenses set forth in this Agreement shall not be deemed exclusive of any other rights which
Indemnitee may have under any provision of law, in any court in which a proceeding is brought, other agreements or otherwise, and Indemnitee’s rights hereunder shall inure to the benefit of the heirs, executors and administrators of Indemnitee.  No amendment or alteration of the Fourth Amended and Restated Certificate of Incorporation of the Company or the By-Laws of the Company as of the date hereof or any other agreement shall adversely affect the rights provided to Indemnitee under this Agreement.

 

 

 

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Section 12.  No Construction as Employment Agreement; Duration of Agreement.  Nothing contained herein shall be construed as giving Indemnitee any right to be retained as a director
of the Company or in other Indemnifiable Positions of the Controlled Entities or in the employ of the Company or any of the Controlled Entities.  For the avoidance of doubt, the indemnification and advancement of Expenses provided under this Agreement shall continue as to the Indemnitee even though he may have ceased to be a director of the Company and/or in other Indemnifiable Positions of the Controlled Entities.

 

Section 13.  Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee
to the fullest extent now or hereafter permitted by the DGCL, notwithstanding that such indemnification may not be specifically authorized by the Charter or the Bylaws, or by statute as of the date hereof.  In the event of any change after the date of this Agreement in any applicable law, statute or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, employee, consultant, fiduciary or agent, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change.  In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, employee, consultant, fiduciary or agent, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties’ rights and obligations
hereunder.

 

Section 14.  Entire Agreement.  Without limiting any of the rights of Indemnitee under the Charter or the Bylaws, this Agreement and the documents expressly referred to herein constitute
the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement.

 

Section 15.  Modification and Waiver.  No supplement, modification, waiver or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.  For the avoidance of doubt, this Agreement may not be terminated by the Company without Indemnitee’s prior written consent.

 

Section 16.  Successor and Assigns.  All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties
hereto and their respective successors, assigns, spouses, heirs, executors, administrators and legal representatives.  The Company shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place.

 

Section 17.  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.  If a court of competent jurisdiction
shall 

 

 

 

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make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Company of Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to
the contrary.

 

Section 18.  Service of Process and Venue.  The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection
with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue
of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

 

Section 19.  Injunctive Relief.  The parties hereto agree that each party hereto may enforce this Agreement by seeking specific performance hereof, without any necessity of showing
irreparable harm or posting a bond, which requirements are hereby waived, and that by seeking specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he or she may be entitled.

 

Section 20.  Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of loss and liability
suffered and Expenses (including attorneys’ fees), Judgments, Fines and Amounts Paid in Settlement actually and reasonably incurred by or on behalf of Indemnitee in connection with an Action, Suit or Proceeding, including any appeals, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such amounts otherwise payable hereunder.

 

Section 21.  Mutual Acknowledgement.  Both the Company and Indemnitee acknowledge that in certain instances, federal law or applicable public policy may prohibit the Company from
indemnifying its directors, officers, employees, consultants, fiduciaries or agents under this Agreement or otherwise.  Indemnitee understands and acknowledges that the Company may be required to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right, under public policy, to indemnify Indemnitee.

 

Section 22.  Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed
to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.

 

Section 23.  Headings.  The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

 

 

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[Signature Page Follows]

 

 

 

 

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This Indemnification Agreement has been duly executed and delivered to be effective as of the date stated above.

 

	  	  	
ACCESS INTEGRATED TECHNOLOGIES, INC.

d/b/a CINEDIGM DIGITAL CINEMA CORP.

 

	  	  	
By: 
	  
	  	  	  	
Name:

	  	  	  	
Title:

	  	  	  	  
	  	  	
Address:
	  
	  	  	  	  
	  	  	
Attention:
	  
	  	  	
Facsimile:
	  
	  	  	  	  
	  	  	
INDEMNITEE

 

	  	  	  
	  	  	  	  
	  	  	
Address:
	  
	  	  	  	  
	  	  	
Attention:
	  
	  	  	
Facsimile:
	  

 

[Signature Page to Indemnification Agreement]exv10w1

Exhibit 10.1

FORM OF

TRANSITION SERVICES AGREEMENT

BY AND BETWEEN

CABLEVISION SYSTEMS CORPORATION

AND

MADISON SQUARE GARDEN, INC.

DATED AS OF •, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I

	DEFINITIONS

	 
	 	 	 	 	 	 
	Section 1.1.
	 	General	 	 	1	 
	Section 1.2.
	 	Reference; Interpretation	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE II

	SERVICES

	 
	 	 	 	 	 	 
	Section 2.1.
	 	Services	 	 	2	 
	Section 2.2.
	 	Standard of Service	 	 	3	 
	Section 2.3.
	 	Additional Services	 	 	3	 
	Section 2.4.
	 	Representative	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE III

	LICENSES AND PERMITS

	 
	 	 	 	 	 	 
	Section 3.1.
	 	Licenses and Permits	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	PAYMENT

	 
	 	 	 	 	 	 
	Section 4.1.
	 	General	 	 	4	 
	Section 4.2.
	 	Additional Expenses	 	 	4	 
	Section 4.3.
	 	Invoices	 	 	4	 
	Section 4.4.
	 	Failure to Pay	 	 	5	 
	Section 4.5.
	 	Termination of Services	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE V

	INSURANCE MATTERS

	 
	 	 	 	 	 	 
	Section 5.1.
	 	Disclaimer	 	 	5	 
	Section 5.2.
	 	Insurance Transition	 	 	6	 
	Section 5.3.
	 	Claims Made Policies	 	 	6	 
	Section 5.4.
	 	Audits and Adjustments	 	 	6	 
	Section 5.5.
	 	No Assignment or Waiver	 	 	6	 
	Section 5.6.
	 	No Limitation on MSG Insurance	 	 	6	 
	Section 5.7.
	 	Scope	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	INDEMNIFICATION

	 
	 	 	 	 	 	 
	Section 6.1.
	 	Indemnification by Party Receiving Services	 	 	6	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 6.2.
	 	Indemnification by Party Providing Services	 	 	7	 
	Section 6.3.
	 	Third Party Claims	 	 	7	 
	Section 6.4.
	 	Indemnification Payments	 	 	9	 
	Section 6.5.
	 	Survival	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	COOPERATION; CONFIDENTIALITY; TITLE

	 
	 	 	 	 	 	 
	Section 7.1.
	 	Good Faith Cooperation; Consents	 	 	10	 
	Section 7.2.
	 	Confidentiality	 	 	10	 
	Section 7.3.
	 	Internal Use; Title, Copies, Return	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	TERM

	 
	 	 	 	 	 	 
	Section 8.1.
	 	Duration	 	 	11	 
	Section 8.2.
	 	Early Termination by Cablevision	 	 	11	 
	Section 8.3.
	 	Early Termination by MSG	 	 	11	 
	Section 8.4.
	 	Suspension Due to Force Majeure	 	 	12	 
	Section 8.5.
	 	Consequences on Termination	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	RECORDS

	 
	 	 	 	 	 	 
	Section 9.1.
	 	Maintenance of Records	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE X

	DISPUTE RESOLUTION

	 
	 	 	 	 	 	 
	Section 10.1.
	 	Negotiation	 	 	12	 
	Section 10.2.
	 	Continuity of Service and Performance	 	 	13	 
	Section 10.3.
	 	Other Remedies	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	NOTICES

	 
	 	 	 	 	 	 
	Section 11.1.
	 	Notices	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE XII

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 12.1.
	 	Taxes	 	 	13	 
	Section 12.2.
	 	Relationship of Parties	 	 	14	 
	Section 12.3.
	 	Complete Agreement; Construction	 	 	14	 
	Section 12.4.
	 	Counterparts	 	 	14	 
	Section 12.5.
	 	Waivers	 	 	14	 

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	 	 	 	 	Page
	Section 12.6.
	 	Amendments	 	 	14	 
	Section 12.7.
	 	Assignment	 	 	14	 
	Section 12.8.
	 	Successors and Assigns	 	 	14	 
	Section 12.9.
	 	Third Party Beneficiaries	 	 	14	 
	Section 12.10.
	 	Governing Law	 	 	15	 
	Section 12.11.
	 	Waiver of Jury Trial	 	 	15	 
	Section 12.12.
	 	Specific Performance	 	 	15	 
	Section 12.13.
	 	Severability	 	 	15	 
	Section 12.14.
	 	Provisions Unaffected	 	 	15	 
	Section 12.15.
	 	No Presumption	 	 	15	 

-iii-

 

     Transition Services Agreement, dated as of •, 2009 (this “Agreement”), between
Cablevision Systems Corporation, a Delaware corporation (“Cablevision”), and Madison Square
Garden, Inc., a Delaware corporation (“MSG”).

W I T N E S S E T H:

     WHEREAS, Cablevision and MSG have entered into a Distribution Agreement, dated as of •, 2009
(the “Distribution Agreement”), which sets forth the terms pursuant to which Cablevision
and its subsidiary CSC Holdings, Inc. (“CSC Holdings”), will transfer certain assets to MSG and
Cablevision will distribute the common stock of MSG to shareholders of Cablevision (the
“Distribution”); and

     WHEREAS, in connection with the Distribution, and in order to ensure an orderly transition
under the Distribution Agreement, it will be necessary for each of the parties to provide to the
other the Services described herein for a transitional period;

     NOW, THEREFORE, the parties hereto, in consideration of the premises and the mutual covenants
contained herein, agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1. General. As used in this Agreement, the following terms have the respective
meanings set forth below:

     “Ancillary Agreement” shall have the meaning assigned to that term in the Distribution
Agreement.

     “Applicable Rate” shall mean the rate of interest per annum announced from time to
time by Citibank, N.A., as its prime lending rate plus three percent (3%) per annum.

     “Bankruptcy Event” with respect to a party shall mean the filing of an involuntary
petition in bankruptcy or similar proceeding against such party seeking its reorganization,
liquidation or the appointment of a receiver, trustee or liquidator for it or for all or
substantially all of its assets, whereupon such petition shall not be dismissed within sixty (60)
days after the filing thereof, or if such party shall (i) apply for or consent in writing to the
appointment of a receiver, trustee or liquidator of all or substantially all of its assets, (ii)
file a voluntary petition or admit in writing its inability to pay its debts as they become due,
(iii) make a general assignment for the benefit of creditors, (iv) file a petition or an answer
seeking reorganization or an arrangement with its creditors or take advantage of any insolvency law
with respect to itself as debtor, or (v) file an answer admitting the material allegations of a
petition filed against it in any bankruptcy, reorganization, insolvency proceedings or any similar
proceedings.

     “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which
banks in New York City, New York are authorized or obligated by law or executive order to close.

 

 

     “Cablevision Services” shall mean those transitional services, including any
Additional Services, to be provided by Cablevision to MSG set forth on Schedule A hereto to assist
MSG in operating MSG’s business following the Distributions. Services or actions of Overlap
Individuals shall not be considered to be Cablevision Services under this Agreement unless
expressly agreed in writing by both parties to this Agreement.

     “Loss” shall mean any damage, claim, loss, charge, action, suit, proceeding,
deficiency, tax, interest, penalty and reasonable costs and expenses related thereto (including
reasonable attorneys’ fees).

     “Person” shall mean any natural person, corporation, business trust, limited liability
company, joint venture, association, company, partnership or government, or any agency or political
subdivision thereof.

     “MSG Services” shall mean those transitional services, including any Additional
Services, to be provided by MSG to Cablevision set forth on Schedule B hereto to assist Cablevision
in operating Cablevision’s business following the Distributions. Services or actions of Overlap
Individuals shall not be considered to be MSG Services under this Agreement unless expressly agreed
in writing by both parties to this Agreement.

     “Overlap Individuals” shall mean Persons who are officers or directors of both
Cablevision and MSG.

     “Services” shall mean, collectively, the Cablevision Services and the MSG Services.

     “Third-Party” shall mean any Person who is not a Party to this Agreement.

     Section 1.2. Reference; Interpretation. References in this Agreement to any gender include
references to all genders, and references to the singular include references to the plural and vice
versa. The words “include”, “includes” and “including” when used in this Agreement shall be deemed
to be followed by the phrase “without limitation.” Unless the context otherwise requires,
references in this Agreement to Articles, Sections and Schedules shall be deemed references to
Articles and Sections of, and Schedules to, this Agreement. Unless the context otherwise requires,
the words “hereof”, “hereby” and “herein” and words of similar meaning when used in this Agreement
refer to this Agreement in its entirety and not to any particular Article, Section or provision of
this Agreement.

ARTICLE II

SERVICES

     Section 2.1. Services. Cablevision shall provide to MSG each Cablevision Service for the
term set forth opposite the description of such Cablevision Service in Schedule A. Additional
Services may be provided to MSG by Cablevision as provided in Section 2.3. At its option and with
the consent of MSG (which consent shall not unreasonably be withheld), Cablevision may cause any
Cablevision Service it is required to provide hereunder to be provided

-2-

 

by any other Person or entity that is providing, or may from time to time provide, the same or
similar services for Cablevision.

     (a) MSG shall provide to Cablevision each MSG Service for the term set forth opposite the
description of such MSG Service in Schedule B. Additional Services may be provided by MSG to
Cablevision as provided in Section 2.3. At its option and with the consent of Cablevision (which
consent shall not unreasonably be withheld), MSG may cause any MSG Service it is required to
provide hereunder to be provided by any other Person or entity that is providing, or may from time
to time provide, the same or similar services for MSG.

     Section 2.2. Standard of Service. Cablevision and MSG shall maintain sufficient resources to
perform their respective obligations hereunder. In performing the Services, Cablevision and MSG
shall provide substantially the same level of service and use substantially the same degree of care
as their respective personnel provided and used in providing such Services prior to completion of
the Distribution for itself (but in no event less than a reasonable degree of care), subject in
each case to any provisions set forth on Schedule A or Schedule B with respect to each such
Service. Each party shall provide reasonable assistance to the other party in migrating the
applicable Services to the recipient of such Services.

     Section 2.3. Additional Services. From time to time after the date hereof, the parties may
identify additional services that one party will provide to the other party in accordance with the
terms of this Agreement (the “Additional Services”). The parties shall cooperate and act
in good faith to agree on the terms pursuant to which any such Additional Service shall be provided
and to amend Schedule A or B, as applicable, in accordance with such terms. Notwithstanding the
foregoing, neither party shall have any obligation to agree to provide Additional Services.

     Section 2.4. Representative. The parties shall each appoint a representative (each, a
“Representative”) to facilitate communications and performance under this Agreement. Each
party may treat an act of a Representative of another party as being authorized by such other party
without inquiring behind such act or ascertaining whether such Representative had authority to so
act. Each Party shall have the right at any time and from time to time to replace its
Representative by giving notice in writing to the other party. The initial representative of each
party is as set forth on Schedule C.

ARTICLE III

LICENSES AND PERMITS

     Section 3.1. Licenses and Permits. Each party warrants and covenants that all duties and
obligations (including with respect to Cablevision, all Cablevision Services and with respect to
MSG, all MSG Services) to be performed hereunder shall be performed in compliance with all material
applicable federal, state and local laws, rules and regulations. Each party shall obtain and
maintain all material permits, approvals and licenses necessary or appropriate to perform its
duties and obligations (including with respect to Cablevision, the Cablevision Services and with
respect to MSG, the MSG Services) hereunder and shall at all times comply with the terms and
conditions of such permits, approvals and licenses.

-3-

 

ARTICLE IV

PAYMENT

     Section 4.1. General. (a) In consideration for the provision of each of the Cablevision
Services, MSG shall pay to Cablevision the fee calculated as set forth for such Cablevision Service
on Schedule A.

     (b) In consideration for the provision of each of the MSG Services, Cablevision shall pay to
MSG the fee as calculated as set forth for such MSG Service on Schedule B.

     Section 4.2. Additional Expenses. (a) In addition to the fees payable in accordance with
Section 4.1(a), MSG shall reimburse Cablevision for all reasonable and necessary out-of-pocket
costs and expenses (including without limitation postage and other delivery costs, telephone,
telecopy and similar expenses) incurred by Cablevision with respect to Third Parties in connection
with the provision of Cablevision Services to MSG pursuant to the terms of this Agreement or paid
by Cablevision on behalf of MSG; provided that if Cablevision expects to incur in respect
of a Third Party in any month costs and expenses in excess of a threshold amount to be agreed by
the parties, Cablevision shall use best reasonable efforts to provide to MSG prior to the first day
of such month a written notice setting forth Cablevision’s reasonable estimate of the expenses it
expects to incur.

     (b) In addition to the fees payable for expenses in accordance with Section 4.1(b),
Cablevision shall reimburse MSG for all reasonable and necessary out-of-pocket costs and expenses
(including without limitation postage and other delivery costs, telephone, telecopy and similar
expenses) incurred by MSG with respect to Third Parties in connection with the provision of MSG
Services to Cablevision pursuant to the terms of this Agreement or paid by MSG on behalf of
Cablevision; provided that if MSG expects to incur in respect of a Third Party in any month
costs and expenses in excess of a threshold amount to be agreed by the parties, MSG shall use best
reasonable efforts to provide to Cablevision prior to the first day of such a month written notice
setting forth MSG’s reasonable estimate of the expenses it expects to incur

     Section 4.3. Invoices. (a) Cablevision will invoice MSG in U.S. dollars: (i) as of the
last day of each calendar month for any fees payable by MSG in accordance with Section 4.1(a) for
Cablevision Services listed on Schedule A provided pursuant to the terms of this Agreement during
such month; (ii) as of the last day of each calendar month for any amounts payable by MSG in
accordance with Section 4.2(a) (and enclosing invoices from the relevant Third Parties); and (iii)
as of the last day of each calendar month for any taxes (excluding income taxes) accrued with
respect to the provision of Cablevision Services to MSG during such month. Cablevision shall
deliver or cause to be delivered to MSG each such invoice within thirty (30) days following the
last day of the calendar month to which such invoice relates. MSG shall pay each such invoice
received by electronic funds transfer as follows: in the case of clauses (i) and (ii), within
twenty (20) Business Days of the date on which such invoice was received, and in the case of clause
(iii), not later than one (1) Business Day prior to the due date for such tax payments;
provided that Cablevision delivers such invoice not less than three (3) Business Days prior
to the due date for such tax payments.

-4-

 

     (b) MSG will invoice Cablevision in U.S. dollars: (i) as of the last day of each calendar
month for any fees payable by Cablevision in accordance with Section 4.1(b) for MSG Services listed
on Schedule B provided pursuant to the terms of this Agreement during such month; (ii) as of the
last day of each calendar month for any amounts payable by Cablevision in accordance with Section
4.2(b) (and enclosing invoices from such Third Parties); and (iii) as of the last day of each
calendar month for any taxes (excluding income taxes) accrued with respect to the provision of MSG
Services to Cablevision during such month. MSG shall deliver or cause to be delivered to
Cablevision each such invoice within thirty (30) days following the last day of the calendar month
to which such invoice relates. Cablevision shall pay each such invoice received by electronic
funds transfer: in the case of clauses (i) and (ii), within twenty (20) Business Days of the date
on which such invoice was received, and in the case of clause (iii), not later than one (1)
Business Day prior to the due date for such tax payments’ provided that MSG delivers such
invoice not less than three (3) Business Days prior to the due date for such tax payments.

     Section 4.4. Failure to Pay. Any undisputed amount not paid when due shall be subject to a
late payment fee computed daily at a rate equal to the Applicable Rate from the due date of such
amount to the date such amount is paid. Each party agrees to pay the other party’s reasonable
attorneys’ fees and other costs incurred in collection of any amounts owed to such other party
hereunder and not paid when due. Notwithstanding anything to the contrary contained herein, in the
event either party fails to make a payment of any undisputed amount when due hereunder, and such
failure continues for a period of thirty (30) days following delivery of notice to such non-paying
party of such failure, the other party shall have the right to cease provision of such Services to
such non-paying party until such overdue payment (and any applicable late payment fee accrued with
respect thereto) is paid in full. Such right of the party providing services shall not in any
manner limit or prejudice any of such party’s other rights or remedies in the event of the
non-paying party’s failure to make payments when due hereunder, including without limitation any
rights or remedies pursuant to Sections 6, 8 and 10.

     Section 4.5. Termination of Services. In the event of a termination of Services pursuant to
Section 8, with respect to the calendar month in which such Services cease to be provided, the
recipient of such Services shall be obligated to pay a fee for such Services calculated as set
forth on Schedule A or B, as applicable for the portion of the
month prior to the termination. Where possible, the parties agree to
work together cooperatively to seek to have terminations occur as of
month ends, but this agreement shall not limit a party’s right
to effect a termination in accordance with this agreement other than
as of a month end.

ARTICLE V

INSURANCE MATTERS

     Section 5.1. Disclaimer. MSG does hereby, for itself and each of its subsidiaries, agree
that Cablevision and its subsidiaries and their respective directors, officers and employees shall
not have any liability whatsoever as a result of the insurance policies and practices of
Cablevision and its affiliates as in effect at any time prior to the Distribution, including as a
result of the level or scope of any such insurance, the creditworthiness of any insurance carrier,
the selection, identity or performance of any third party administrator, the terms and conditions
of any policy, the adequacy or timeliness of any notice to any insurance carrier with respect to
any claim or potential claim or otherwise.

-5-

 

     Section 5.2. Insurance Transition. Cablevision agrees to use its best reasonable efforts to
cause the interest and rights of MSG and each of its subsidiaries as of the date of the
Distribution as insureds, additional named insureds or beneficiaries or in any other capacity under
occurrence-based insurance policies and programs (and under claims-made policies and programs to
the extent a claim has been submitted prior to the Distribution or later if so permitted by the
terms of the applicable insurance policy and assuming that such policy is then in effect) of
Cablevision in respect of periods prior to the date of the Distribution to survive the Distribution
for the period for which such interests and rights would have survived without regard to the
transactions contemplated hereby to the extent permitted by such policies. In accordance with this
Agreement, Cablevision shall transition the administration of such insurance policies and programs
to MSG and MSG shall pay the costs and fees of Cablevision during such transition as provided in
Article IV and Schedule A. Any proceeds received by Cablevision or any of its subsidiaries or
affiliates after the date of the Distribution under such policies and programs in respect of MSG
shall be for the benefit of MSG.

     Section 5.3. Claims Made Policies. Cablevision agrees that if it obtains or maintains any
insurance coverage after the date of the Distribution for matters occurring prior to that time
(e.g., a claims made directors and officers insurance policy) it will also obtain or maintain such
coverage for MSG and its subsidiaries, subject to MSG’s payment of the fees and costs in connection
therewith as provided in this Agreement.

     Section 5.4. Audits and Adjustments. MSG agrees that it will reimburse Cablevision under
this Agreement for any additional premiums or other amounts owing to any third party as a result of
any audit or similar procedure by a third party, to the extent that such additional premiums or
amounts owing relate to MSG or any of its subsidiaries during the period MSG or such subsidiaries
were covered by the relevant insurance policy.

     Section 5.5. No Assignment or Waiver. This Agreement is not intended as an attempted
assignment of any policy of insurance or as a contract of insurance and shall not be construed to
waive any right or remedy of Cablevision in respect of any insurance policy or any other contract
or policy of insurance.

     Section 5.6. No Limitation on MSG Insurance. Nothing in this Agreement shall be deemed to
restrict MSG from acquiring at its own expense any other insurance policy in respect of any
liabilities or covering any period.

     Section 5.7. Scope. The provisions of this Article V shall not apply to insurance practices
or policies relating to health and welfare plans or any other employee benefit arrangement.

ARTICLE VI

INDEMNIFICATION

     Section 6.1. Indemnification by Party Receiving Services. (a) MSG agrees to indemnify,
defend and hold Cablevision harmless from and against any Loss to which Cablevision may become
subject arising out of, by reason of or otherwise in connection with the provision hereunder by
Cablevision of Cablevision Services, other than Losses resulting from

-6-

 

Cablevision’s gross negligence, willful misconduct or breach of its obligations pursuant to
this Agreement. Notwithstanding any provision in this Agreement to the contrary, MSG shall not be
liable under this Section 6.1 for any consequential, special or punitive damages (including but not
limited to lost profits), except to the extent that such consequential, special or punitive damages
relate to a Loss resulting from a Third Party Claim (as defined below).

     (b) Cablevision agrees to indemnify, defend and hold MSG harmless from and against any Loss to
which MSG may become subject arising out of, by reason of or otherwise in connection with the
provision hereunder by MSG of MSG Services, other than Losses resulting from MSG’s gross
negligence, willful misconduct or breach of its obligations pursuant to this Agreement.
Notwithstanding any provision in this Agreement to the contrary, Cablevision shall not be liable
under this Section 6.1 for any consequential, special or punitive damages (including but not
limited to lost profits), except to the extent that such consequential, special or punitive damages
relate to a Loss resulting from a Third Party Claim (as defined below).

     Section 6.2. Indemnification by Party Providing Services. (a) Cablevision agrees to
indemnify, defend and hold MSG harmless from and against any Loss to which MSG may become subject
arising out of, by reason of or otherwise in connection with, the provision hereunder by
Cablevision of Cablevision Services to MSG where such Losses resulted from Cablevision’s gross
negligence, willful misconduct or breach of its obligations pursuant to this Agreement.

     (b) MSG agrees to indemnify, defend and hold Cablevision harmless from and against any Loss to
which Cablevision may become subject arising out of, by reason of or otherwise in connection with
the provision hereunder by MSG of MSG Services to Cablevision where such Losses resulted from MSG’s
gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement.

     Section 6.3. Third Party Claims. (a) If a claim or demand is made against MSG or
Cablevision (each, an “Indemnitee”) by any Third Party (a “Third Party Claim”) as
to which such Indemnitee is entitled to indemnification pursuant to this Agreement, such Indemnitee
shall notify the party which is or may be required pursuant to Section 6.1 or Section 6.2 hereof to
make such indemnification (the “Indemnifying Party”) in writing, and in reasonable detail,
of the Third Party Claim promptly and in any event by the date (the “Outside Notice Date”)
that is the 15th Business Day after receipt by such Indemnitee of written notice of the Third Party
Claim; provided, however, that failure to give such notification shall not affect the
indemnification provided hereunder except to the extent the Indemnifying Party shall have been
actually prejudiced as a result of such failure (except that the Indemnifying Party shall not be
liable for any expenses incurred during the period beginning immediately after the Outside Notice
Date and ending on the date that the Indemnitee gives the required notice). Thereafter, the
Indemnitee shall deliver to the Indemnifying Party, promptly (and in any event within ten Business
Days) after the Indemnitee’s receipt thereof, copies of all notices and documents (including court
papers) received by the Indemnitee relating to the Third Party Claim.

     (b) If a Third Party Claim is made against an Indemnitee, the Indemnifying Party shall be
entitled to participate in the defense thereof and, if it so chooses and acknowledges

-7-

 

in writing its obligation to indemnify the Indemnitee therefor, to assume the defense thereof
with counsel selected by the Indemnifying Party, provided, however, that such counsel is
not reasonably objected to by the Indemnitee. Should the Indemnifying Party so elect to assume the
defense of a Third Party Claim, the Indemnifying Party shall, within 30 days (or sooner if the
nature of the Third Party Claim so requires), notify the Indemnitee of its intent to do so, and the
Indemnifying Party shall thereafter not be liable to the Indemnitee for legal or other expenses
subsequently incurred by the Indemnitee in connection with the defense thereof; provided,
however, that such Indemnitee shall have the right to employ counsel to represent such Indemnitee
if, in such Indemnitee’s reasonable judgment, a conflict of interest between such Indemnitee and
such Indemnifying Party exists in respect of such claim which would make representation of both
such parties by one counsel inappropriate, and in such event the fees and expenses of such separate
counsel shall be paid by such Indemnifying Party. If the Indemnifying Party assumes such defense,
the Indemnitee shall have the right to participate in the defense thereof and to employ counsel,
subject to the proviso of the preceding sentence, at its own expense, separate from the counsel
employed by the Indemnifying Party, it being understood that the Indemnifying Party shall control
such defense. The Indemnifying Party shall be liable for the fees and expenses of counsel employed
by the Indemnitee for any period during which the Indemnifying Party has failed to assume the
defense thereof (other than during the period prior to the time the Indemnitee shall have given
notice of the Third Party Claim as provided above). If the Indemnifying Party so elects to assume
the defense of any Third Party Claim, all of the Indemnitees shall cooperate with the Indemnifying
Party in the defense or prosecution thereof, including by providing or causing to be provided
agreements, documents, books, records, files and witnesses as soon as reasonably practicable after
receiving any request therefor from or on behalf of the Indemnifying Party, except to the extent
that providing or causing the foregoing to be provided would constitute a waiver of any
Indemnitee’s attorney-client privilege.

     (c) If the Indemnifying Party acknowledges in writing responsibility under this Article VI for
a Third Party Claim, then in no event will the Indemnitee admit any liability with respect to, or
settle, compromise or discharge, any Third Party Claim without the Indemnifying Party’s prior
written consent; provided, however, that the Indemnitee shall have the right to settle,
compromise or discharge such Third Party Claim without the consent of the Indemnifying Party if the
Indemnitee releases the Indemnifying Party from its indemnification obligation hereunder with
respect to such Third Party Claim and such settlement, compromise or discharge would not otherwise
adversely affect the Indemnifying Party. If the Indemnifying Party acknowledges in writing
liability for a Third Party Claim, the Indemnitee will agree to any settlement, compromise or
discharge of a Third Party Claim that the Indemnifying Party may recommend and that by its terms
obligates the Indemnifying Party to pay the full amount of the liability in connection with such
Third Party Claim and releases the Indemnitee completely in connection with such Third Party Claim
and that would not otherwise adversely affect the Indemnitee. If an Indemnifying Party elects not
to assume the defense of a Third Party Claim, or fails to notify an Indemnitee of its election to
do so as provided herein, such Indemnitee may compromise, settle or defend such Third Party Claim.

     (d) Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to assume the
defense of any Third Party Claim (and shall be liable for the fees and expenses of counsel incurred
by the Indemnitee in defending such Third Party Claim) if the

-8-

 

Third Party Claim seeks an order, injunction or other equitable relief or relief for other
than money damages against the Indemnitee which the Indemnitee reasonably determines, after
conferring with its counsel, cannot be separated from any related claim for money damages. If such
equitable relief or other relief portion of the Third Party Claim can be so separated from that for
money damages, the Indemnifying Party shall be entitled to assume the defense of the portion
relating to money damages.

     (e) In the event and to the extent of payment by an Indemnifying Party to any Indemnitee in
connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall
stand in the place of such Indemnitee as to any events or circumstances in respect of which such
Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or
plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying
Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right or claim.

     (f) MSG and Cablevision shall cooperate as may reasonably be required in connection with the
investigation, defense and settlement of any Third-Party Claim. In furtherance of this obligation,
the parties agree that if an Indemnifying Party chooses to defend or to compromise or settle any
Third-Party Claim, Cablevision or MSG, as the case may be, shall use its best reasonable efforts to
make available to the other party, upon written request, their former and then current directors,
officers, employees and agents and those of their subsidiaries as witnesses and any records or
other documents within its control or which it otherwise has the ability to make available, to the
extent that (i) any such Person, records or other documents may reasonably be required in
connection with such defense, settlement or compromise and (ii) making such Person, records or
other documents so available would not constitute a waiver of the attorney-client privilege of
Cablevision or MSG, as the case may be.. At the request of an Indemnifying Party, an Indemnitee
shall enter into a reasonably acceptable joint defense agreement.

     (g) The remedies provided in this Article VI shall be cumulative and shall not preclude
assertion by any Indemnitee of any other rights or the seeking of any and all other remedies
against any Indemnifying Party.

     Section 6.4. Indemnification Payments. (a) Indemnification required by this Article VI
shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or any Loss is incurred. If the Indemnifying Party fails
to make an indemnification payment required by this Article VI within 30 days after receipt of a
bill therefore or notice that a Loss has been incurred, the Indemnifying Party shall also be
required to pay interest on the amount of such indemnification payment, from the date of receipt of
the bill or notice of the Loss to, but not including the date of payment, at the Applicable Rate.

     (b) The amount of any claim by an Indemnitee under this Agreement shall be reduced to reflect
any actual tax savings or insurance proceeds received by any Indemnitee that result from the Losses
that gave rise to such indemnity.

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     Section 6.5. Survival. The parties’ obligations under this Article VI shall survive the
termination of this Agreement.

ARTICLE VII

COOPERATION; CONFIDENTIALITY; TITLE

     Section 7.1. Good Faith Cooperation; Consents. Each party shall use best reasonable efforts
to cooperate with the other party in all matters relating to the provision and receipt of the
Services. Such cooperation shall include, but not be limited to, exchanging information, providing
electronic access to systems used in connection with the Services, performing true-ups and
adjustments and obtaining all consents, licenses, sublicenses or approvals necessary to permit each
party to perform its obligations hereunder. Cablevision and MSG shall maintain reasonable
documentation related to the Services and cooperate with each other in making such information
available as needed.

     Section 7.2. Confidentiality. Each party shall keep confidential the Schedules to this
Agreement and all information received from the other party regarding the Services, including,
without limitation, any information received with respect to products and services of Cablevision
or MSG, and to use such information only for the purposes set forth in this Agreement unless (i)
otherwise agreed to in writing by the party from which such information was received or (ii)
required by applicable law or any securities exchange (in which case the parties shall cooperate in
seeking to obtain a protective order or other arrangement pursuant to which the confidentiality of
such information is preserved) . The covenants in this Article VII shall survive any termination
of this Agreement for a period of three (3) years from the date such termination becomes effective.

     Section 7.3. Internal Use; Title, Copies, Return. Except to the extent inconsistent with the
express terms of the Distribution Agreement and any Ancillary Agreement other than this Agreement,
each party agrees that:

     (a) title to all systems used in performing any Service provided hereunder shall remain in the
party providing such Service or its third party vendors; and

     (b) to the extent the provision of any Service involves intellectual property, including
without limitation software programs or patented or copyrighted material, or material constituting
trade secrets, the recipient of such Service shall not copy, modify, reverse engineer, decompile or
in any way alter any of such material, or otherwise use such material in a manner inconsistent with
the terms and provisions of this Agreement, without the express written consent of the party
providing such Service; and upon the termination of any Service, the recipient of such Service
shall return to the party providing such Service, as soon as practicable, any equipment or other
property of the party providing such Service relating to such Service which is owned or leased by
the party providing such Service and is or was in its possession or control.

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ARTICLE VIII

TERM

     Section 8.1.
Duration. (a) Except as provided in Sections 4.5, 6.5, 7.2, 8.2, 8.3, 8.4 and 8.5, the
term of this Agreement shall commence on the date hereof and shall continue in full force and
effect with respect to each Service until the earlier of (i) the expiration of the term set forth
opposite the description of such Service in Schedule A or B, as applicable, unless otherwise
mutually agreed by the parties and (ii) the termination of such Service in accordance with Section
4.4 or 8.1(b).

     (b) Each party acknowledges that the purpose of this Agreement is for Cablevision to provide
the Cablevision Services to MSG on an interim basis until MSG can perform the Cablevision Services
for itself, and for MSG to provide the MSG Services to Cablevision on an interim basis until
Cablevision can perform the MSG Services for itself. Accordingly, each of Cablevision and MSG
shall use its best reasonable efforts to make or obtain such approvals, permits and licenses and
implement such systems, as shall be necessary for it to provide the appropriate services for itself
as promptly as reasonably practicable. As MSG becomes self-sufficient or engages other sources to
provide any Cablevision Service, MSG shall be entitled to release Cablevision from providing any or
all of the Cablevision Services hereunder by delivering a written notice thereof to Cablevision at
least twenty (20) Business Days prior to the effective date of release of such Cablevision
Service(s). At the end of such twenty (20) Business Day period (or such shorter period as may be
agreed by the parties), Cablevision shall discontinue the provision of the Cablevision Services
specified in such notice and any such Cablevision Services shall be excluded from this Agreement,
and Schedule A shall be deemed to be amended accordingly. Cablevision shall also be entitled to
release MSG from providing any or all of the MSG Services hereunder by delivering a written notice
thereof to MSG at least twenty (20) Business Days prior to the effective date of release of such
MSG Service(s). At the end of such twenty (20) Business Day period (or such shorter period as may
be agreed by the parties), MSG shall discontinue the provision of the MSG Services specified in
such notice and any such MSG Services shall be excluded from this Agreement, and Schedule B shall
be deemed to be amended accordingly.

     Section 8.2. Early Termination by Cablevision. Cablevision may terminate this Agreement by
giving written notice to MSG under the following circumstances:

     (a) if MSG shall default in the performance of any of its material obligations under this
Agreement, and such default or breach shall continue and not be remedied for a period of thirty
(30) days after Cablevision has given written notice to MSG specifying such default and requiring
it to be remedied; or

     (b) if a Bankruptcy Event has occurred with respect to MSG.

     Section 8.3. Early Termination by MSG. MSG may terminate this Agreement by giving written
notice to Cablevision under the following circumstances:

     (a) if Cablevision shall default in the performance of any of its material obligations under
this Agreement and such default shall continue and not be remedied for a

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period of thirty (30) days after MSG has given written notice to Cablevision specifying such
default and requiring it to be remedied; or

     (b) if a Bankruptcy Event has occurred with respect to Cablevision.

     Section 8.4. Suspension Due to Force Majeure. In the event the performance by either MSG or
Cablevision of its duties or obligations hereunder is interrupted or interfered with by reason of
any cause beyond its reasonable control including, but not limited to, fire, storm, flood,
earthquake, explosion, war, strike or labor disruption, rebellion, insurrection, quarantine, act of
God, boycott, embargo, shortage or unavailability of supplies, riot, or governmental law,
regulation or edict (collectively, “Force Majeure Events”), the party affected by such
Force Majeure Event shall not be deemed to be in default of this Agreement by reason of its
non-performance due to such Force Majeure Event, but shall give notice to the other party of the
Force Majeure Event and the fee provided for in Section 4.1 shall be equitably adjusted to reflect
the reduced performance. In such event, the party affected by such Force Majeure Event shall
resume the performance of its duties and obligations hereunder as soon as reasonably practicable
after the end of the Force Majeure Event.

     Section 8.5. Consequences on Termination. In the event this Agreement expires or is
terminated in accordance with this Article VIII, then (a) all Services to be provided will promptly
cease, (b) each of Cablevision and MSG shall, upon request of the other party, promptly return or
destroy all confidential information received from the other party in connection with this
Agreement (including the return of all information received with respect to the Services or
products of Cablevision or MSG, as the case may be), without retaining a copy thereof (other than
one copy for file purposes), and (c) each of Cablevision and MSG shall honor all credits and make
any accrued and unpaid payment to the other party as required pursuant to the terms of this
Agreement, and no rights already accrued hereunder shall be affected.

ARTICLE IX

RECORDS

     Section 9.1. Maintenance of Records. Each of the parties shall create and maintain full and
accurate books in connection with the provision of the Services, and all other records relevant to
this Agreement, and upon reasonable notice from the other party shall make available for inspection
and copy by such other party’s agents such records during reasonable business hours.

ARTICLE X

DISPUTE RESOLUTION

     Section 10.1. Negotiation. In the event of a controversy, dispute or claim arising out of,
in connection with, or in relation to the interpretation, performance, nonperformance, validity or
breach of this Agreement or otherwise arising out of, or in any way related to this Agreement or
the transactions contemplated hereby, including, without limitation, any claim based on contract,
tort, statute or constitution (but excluding any controversy, dispute or claim arising out of any
agreement relating to the use or lease of real property if any Third Party is a party to such
controversy, dispute or claim) (collectively, “Agreement Disputes”), the

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management of the parties shall negotiate in good faith for a reasonable period of time to
settle such Agreement Dispute, provided, however, that such reasonable period shall not,
unless otherwise agreed by the parties in writing, exceed 30 days from the time the parties began
such negotiations.

     Section 10.2. Continuity of Service and Performance. Unless otherwise agreed in writing, the
parties will continue to provide service and honor all other commitments under this Agreement
during the course of any form of dispute resolution with respect to all matters not subject to such
dispute, controversy or claim.

     Section 10.3. Other Remedies. Nothing in this Article X shall limit the right that any party
may otherwise have to seek to obtain (a) preliminary injunctive relief in order to preserve the
status quo pending the resolution of a dispute or (b) temporary or permanent injunctive relief from
any breach of any provisions of this Agreement.

ARTICLE XI

NOTICES

     Section 11.1. Notices. All notices and other communications hereunder shall be in writing,
shall reference this Agreement and shall be hand delivered or mailed by registered or certified
mail (return receipt requested) to the parties at the following addresses (or at such other address
for a party as shall be specified by like notice) and will be deemed given on the date on which
such notice is received:

     To Cablevision:

Cablevision Systems Corporation

1111 Stewart Avenue

Bethpage, New York 11714

Attention: General Counsel

     To MSG:

Madison Square Garden, Inc.

Two Pennsylvania Plaza

New York, NY 10001

Attention: General Counsel

ARTICLE XII

MISCELLANEOUS

     Section 12.1. Taxes. Except as may otherwise be specifically provided herein, each party
shall bear all taxes, duties and other similar charges (and any related interest and penalties)
imposed as a result of its receipt of Services under this Agreement.

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     Section 12.2. Relationship of Parties. Nothing in this Agreement shall be deemed or
construed by the parties or any third party as creating the relationship of principal and agent,
partnership or joint venture between the parties, it being understood and agreed that no provision
contained herein, and no act of the parties, shall be deemed to create any relationship between the
parties other than the relationship of independent contractor nor be deemed to vest any rights,
interest or claims in any third parties.

     Section 12.3. Complete Agreement; Construction. This Agreement, including the Schedules
hereto, shall constitute the entire agreement between the parties with respect to the subject
matter hereof and shall supersede all previous negotiations, commitments and writings with respect
to such subject matter. In the event of any inconsistency between this Agreement and any Schedule,
the Schedule shall prevail. The rights and remedies of the parties herein provided shall be
cumulative and in addition to any other or further remedies provided by law or equity.

     Section 12.4. Counterparts. This Agreement may be executed in one or more counterparts, all
of which shall be considered one and the same agreement, and shall become effective when one or
more such counterparts have been signed by each party and delivered to the other party.

     Section 12.5. Waivers. The failure of any party to require strict performance by the other
party of any provision in this Agreement will not waive or diminish that party’s right to demand
strict performance thereafter of that or any other provision hereof.

     Section 12.6. Amendments. This Agreement may not be modified or amended except by an
agreement in writing signed by each of the parties.

     Section 12.7. Assignment. This Agreement shall not be assignable, in whole or in part, by
any party without the prior written consent of the other party, and any attempt to assign any
rights or obligations arising under this Agreement without such consent shall be void;
provided that either party may assign this Agreement to a purchaser of all or substantially
all of the properties and assets of such party so long as such purchaser expressly assumes, in a
written instrument in form reasonably satisfactory to the non-assigning party, the due and punctual
performance or observance of every agreement and covenant of this Agreement on the part of the
assigning party to be performed or observed.

     Section 12.8. Successors and Assigns. The provisions to this Agreement shall be binding
upon, inure to the benefit of and be enforceable by the parties and their respective successors and
permitted assigns.

     Section 12.9. Third Party Beneficiaries. This Agreement is solely for the benefit of the
parties and shall not be deemed to confer upon any other Person any remedy, claim, liability,
reimbursement, claim of action or other right in excess of those existing without reference to this
Agreement.

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     Section 12.10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made and to be performed
in the State of New York.

     Section 12.11. Waiver of Jury Trial. The parties hereby irrevocably waive any and all right
to trial by jury in any legal proceeding arising out of or related to this Agreement or the
transactions contemplated hereby.

     Section 12.12. Specific Performance. Subject to Article X, in the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement,
the parties agree that the party who is or is to be thereby aggrieved shall have the right to
specific performance and injunctive or other equitable relief of its rights under this Agreement,
in addition to any and all other rights and remedies at law or in equity, and all such rights and
remedies shall be cumulative. The parties agree that the remedies at law for any breach or
threatened breach of this Agreement, including monetary damages, are inadequate compensation for
any loss, that any defense in any action for specific performance that a remedy at law would be
adequate is hereby waived, and that any requirements for the securing or posting of any bond with
such remedy are hereby waived.

     Section 12.13. Severability. In the event any one or more of the provisions contained in
this Agreement should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and therein shall not in
any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     Section 12.14. Provisions Unaffected. Nothing contained in this Agreement shall affect the
rights and obligations of Cablevision and MSG pursuant to the Distribution Agreement.

     Section 12.15. No Presumption. Neither Cablevision nor MSG shall be deemed to be the drafter
of this Agreement and no term or provision of this Agreement may be construed against any party on
that basis.

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     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered on behalf of the
parties as of the date first herein above written.

	 	 	 	 	 
	 	CABLEVISION SYSTEMS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	MADISON SQUARE GARDEN, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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