Document:

exv10w3

 

Exhibit 10.3

FORM OF

EMPLOYEE MATTERS AGREEMENT

     THIS EMPLOYEE MATTERS AGREEMENT (this “Agreement”) is entered into as of [• ], 2007, by
and between EchoStar Communications Corporation, a Nevada corporation (“ECC”), and EchoStar
Holding Corporation , a Nevada corporation (the “Company”).

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

     WHEREAS, ECC and the Company have entered into that certain Separation Agreement, dated as of
[•], 2007 (the “Separation Agreement”), in order to carry out, effect and consummate the
Separation; and

     WHEREAS, in connection with the Separation, ECC and the Company desire to enter into this
Employee Matters Agreement to allocate between them assets, liabilities and responsibilities with
respect to certain employee compensation, benefit plans, programs and arrangements, and certain
employment matters.

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

     “Agreement” means this Employee Matters Agreement together with those parts of the
Separation Agreement referenced herein and all Schedules hereto and all amendments, modifications
and changes hereto and thereto.

     “Business Employee” means a Transferred Employee or any other individual employed at
any time on or prior to the Distribution Date by the Company or any of its Subsidiaries or
Affiliates who has, as of the Distribution Date, or who, immediately prior to his or her
termination of employment with all of ECC, its Subsidiaries and their respective Affiliates, had
employment duties primarily related to the Company Business.

 

 

     “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as codified
at Part 6 of Subtitle B of Title I of ERISA and at Section 4980B of the Code, as amended.

     “Code” means the U.S. Internal Revenue Code of 1986, as amended.

     “Domestic Business Employee” means a Business Employee who is located in the United
States or who is an expatriate Business Employee employed by a U.S. entity but who is performing
services outside of the United States for a temporary period of time at the request of his
employer.

     “ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended, 29
U.S.C. §1001, et. seq.

     “ECC Non-ERlSA Benefit Arrangement” means any Non-ERlSA Benefit Arrangement sponsored
or maintained by ECC or its Subsidiaries.

     “ECC Plan” means any Pension Plan or Welfare Plan sponsored or maintained by ECC or
its Subsidiaries.

     “IRS” means the U.S. Internal Revenue Service.

     “Non-Domestic Business Employee” means a Business Employee who is located outside the
United States or who is an inpatriate Business Employee in the U.S. employed by a Non-U.S. entity
but who is performing services in the United States for a temporary period of time at the request
of his employer.

     “Non-ERISA Benefit Arrangement” means any contract, agreement, policy, practice,
program, plan, trust or arrangement, other than a Pension Plan or Welfare Plan, providing for
benefits, perquisites or compensation of any nature to any Business Employee, or to any family
member, dependent or beneficiary of any such Business Employee, including, without limitation,
disability, severance, health, dental, life, accidental death and dismemberment, travel and
accident, tuition reimbursement, supplemental unemployment, vacation, sick, personal or bereavement
days, holidays, retirement, deferred compensation, profit sharing, bonus, stock-based compensation
or other forms of incentive compensation.

     “Pension Plan” means any pension plan as defined in Section 3(2) of ERISA.

     “Transferred Employee” means an employee of ECC or any of its Subsidiaries (other than
the Company or any of its Subsidiaries) whose employment is transferred to the Company Group on or
immediately prior to the Distribution Date.

     “Welfare Plan” means any employee welfare plan as defined in Section 3(1) of ERISA.

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ARTICLE II

Assignment of Employees

     Effective on or immediately prior to the Distribution Date, the employment of the Transferred
Employees by ECC and its Subsidiaries shall be terminated and thereupon shall commence with and
shall be assigned and transferred to the Company or one of its Subsidiaries. Notwithstanding
anything set forth below or herein to the contrary, nothing in this Agreement shall create any
obligation on the part of the Company or any of its Subsidiaries to continue the employment of any
employee for any definite period following the Distribution Date or to change the employment status
of any employee from “at will.” Notwithstanding the foregoing, to the extent necessary to preserve
payroll, benefits, or other legal entitlements with respect to employees outside the United States,
the Company and ECC may enter into one or more agreements whereby either party may lease employees
from the other party for a limited period of time following the Distribution Date. Any such
agreement(s) shall require the party receiving the services of such leased employees to fully
reimburse the leasing company for the full cost of the employee(s) remuneration and shall contain
other terms and conditions consistent with an arm’s length commercial relationship between the
leasing entity and the service recipient.

ARTICLE III

Pension Plans

          Section 3.01 U.S. Defined Contribution Plans.

     (a) Establishment of the Company 401(k) Plan. On or as soon as administratively practicable
following the Distribution Date, the Company shall adopt, establish and maintain a 401(k) profit
sharing Pension Plan and trust intended to be qualified under Section 401(a) of the Code and exempt
from federal income tax under Section 501(a) of the Code (the “Company 401(k) Plan”).

     (b) Transfer of Account Balances and Forfeitures. As soon as administratively practicable
after the Distribution Date, there shall be transferred from the EchoStar Communications
Corporation 401(k) Employee Savings Plan Trust (“ECC 401(k) Plan Trust”) to the trust
established by the Company for the Company 401(k) Plan assets having a value as of the applicable
valuation date that are equal to the value of the account balances of, and liabilities with respect
to, all Business Employees (other than Business Employees whose employment has terminated prior to
the Distribution Date) with an account balance under the EchoStar Communications Corporation 401(k)
Employee Savings Plan (“ECC 401(k) Plan”) as of such valuation date. In addition, as soon
as administratively practicable after the Distribution Date, there shall be transferred from the
ECC 401(k) Plan Trust to the trust established by the Company to hold the Company 401(k) Plan
assets a pro rata share of all amounts held as unallocated forfeitures in the ECC 401(k) Plan
Trust, determined based upon the ratio of the sum of the account balances of the Business Employees
described in the immediately preceding sentence as of the applicable valuation date to the sum of
all account balances held in the ECC

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401(k) Plan Trust as of such valuation date. Such transferred assets shall be in cash, shares
of securities, promissory notes evidencing outstanding plan loans of such Business Employees, and
shares of ECC Class A Common Stock and Company Class A Common Stock, and such transfer shall be
made in accordance with Section 414(l) of the Code. Liabilities under any qualified domestic
relations orders (as defined in Section 414(p) of the Code) received with respect to any accounts
transferred to the Company 401(k) Plan shall be transferred to and assumed by the Company 401(k)
Plan at the time such assets attributable to such accounts are transferred. The Company shall
assume and thereafter be solely responsible for all then existing and future employer liabilities
related to such Business Employees under the Company 401(k) Plan and the administration thereof,
and ECC shall have no liability therefore.

     (c) In consideration for the continued participation of Business Employees in the ECC 401(k)
Plan for any period following the Distribution Date, the Company shall pay to ECC, or reimburse it
for, such amounts as are set forth in the Benefits Administration Services Schedule to the
Transition Services Agreement.

          Section 3.02 Non-U.S. Retirement Plans.
Following the Distribution Date, the Company
shall cause its Non-U.S. Subsidiaries to continue to maintain in full force and effect retirement
plans as were sponsored and maintained by such Subsidiaries immediately prior to the Distribution
Date, and neither ECC nor any of its Subsidiaries shall have any liability or obligation with
respect to such plans or any participants or former participants in such plans with respect to
their participation therein. In addition, effective either prior to or as of the Distribution
Date, the Company shall cause its Non-U.S. Subsidiaries in the United Kingdom, Spain, Holland, Hong
Kong, Ukraine, Korea, China, Taiwan and Dubai, to adopt retirement plans with appropriate
eligibility and benefits terms to ensure that Non-Domestic Business Employees in such countries are
either (1) eligible to participate in the same type of plan and enjoy the same level of benefits
for which such Non–Domestic Business Employees were eligible immediately prior to the Distribution
Date (or date of plan adoption, if earlier), or (2) eligible to participate in a plan intended to
provide a substantially comparable level of benefits for which such Non–Domestic Business Employees
were eligible immediately prior to the Distribution Date (or date of plan adoption, if earlier).

ARTICLE IV

Welfare Plans

          Section 4.01 Company Welfare Plans.

     (a) On or as soon as administratively practicable following the Distribution Date, the Company
shall have adopted for the benefit of eligible Domestic Business Employees and their respective
eligible dependents, health (including medical, vision and dental), life, accidental death and
dismemberment, disability and other Welfare Plans as determined by the Company (the “Company
Welfare Plans”) that are substantially similar to the terms of the corresponding Welfare Plans
maintained by ECC. Domestic Business Employees shall be eligible to participate
in the Company Welfare Plans on the terms established by the Company. In consideration for
the continued participation of Business Employees in the Welfare Plans maintained by ECC for any
period following the Distribution Date, the Company shall pay to ECC, or reimburse it for,

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such
amounts as are set forth in the Benefits Administration Services Schedule to the Transition
Services Agreement.

     (b) Following the Distribution Date, the Company shall cause its Non-U.S. Subsidiaries to
continue to maintain in full force and effect Welfare Plans as were sponsored and maintained at
such Subsidiaries immediately prior to the Distribution Date, and neither ECC nor any of its
Subsidiaries shall have any liability or obligation with respect to such plans or any participants
or former participants in such plans with respect to their participation therein. ECC and the
Company shall have separate provider contracts established for employees of ECC and Non-U.S.
Subsidiaries of the Company effective on or prior to the Distribution Date. In addition, effective
either prior to or as of the Distribution Date, the Company shall cause its Non-U.S. Subsidiaries
in the United Kingdom, Spain, Holland, Hong Kong, Ukraine, Korea, China, Taiwan and Dubai, to adopt
Welfare Plans with appropriate eligibility and benefits terms, to ensure that Non-Domestic Business
Employees in such countries are either (1) eligible to participate in the same type of plan and
enjoy the same level of benefits for which such Non-Domestic Business Employees were eligible
immediately prior to the Distribution Date (or date of plan adoption, if earlier), or (2) eligible
to participate in a plan intended to provide a substantially comparable level of benefits for which
such Non-Domestic Business Employees were eligible immediately prior to the Distribution Date (or
date of plan adoption, if earlier), and neither ECC nor any of its Subsidiaries shall have any
liability or obligation with respect to such plans or any participants in such plans.

          Section 4.02 Welfare Plan Liabilities.

     (a) Company Liabilities. Except as otherwise provided in this Agreement, the Company
shall assume, and be solely responsible for all ECC and Company Welfare Plan liabilities incurred
by any Business Employee before, on, or after the Distribution Date.

     (b) ECC Liabilities. ECC shall continue to be responsible after the Distribution
Date for employer liabilities under the EchoStar Communications Corporation Employee Benefits
Health & Welfare Plan and any Non-U.S. Welfare Plan incurred with respect to Business Employees
and their eligible dependents only with respect to the following (except as otherwise provided in
this Agreement):

     (1) Continuation Coverage for Terminated Domestic Business Employees and their Dependents.
Any Domestic Business Employee whose employment terminates prior to the Distribution Date for any
reason, including a Domestic Business Employee currently receiving EchoStar Communications
Corporation Employee Benefits Health & Welfare Plan benefits pursuant to a termination
agreement or an “Agreement and Release” under the applicable ECC severance policy, and any
dependent of such Domestic Business Employee, who elected or is eligible to elect, pursuant to the
rights under COBRA or any comparable state law, to continue to
participate in the EchoStar Communications Corporation Employee Benefits Health & Welfare
Plan  on the applicable date of termination.

     (2) Disabled Persons. ECC shall continue to be responsible after the Distribution Date for
all claims for long-term disability incurred prior to the Distribution Date by any Domestic
Business Employee who is absent from active employment due to a total

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disability, as defined in the
EchoStar Satellite L.L.C. Employee Life Insurance and Disability Plans, on or prior to the
Distribution Date to the extent that such long-term disability benefits are provided under an
insurance contract. ECC shall also be responsible for long-term disability benefits for any
Domestic Business Employee who is receiving weekly short-term disability benefits as of the
Distribution Date and who becomes eligible for long-term disability benefits thereafter, provided
that the total disability relates to the same condition for which weekly short-term disability
benefits were paid and, provided further, that such long-term disability benefits are payable under
an insurance contract.

          Section 4.03 Flexible Spending Accounts.
Effective as of the Distribution Date, the
Company shall adopt and maintain a flexible spending account plan (the “Company FSA”) with terms
that are substantially identical in all material respects to those of the EchoStar Communications
Corporation Flexible Benefit Plan (the “ECC FSA”). As soon as practicable following the
Distribution Date, ECC shall cause to be transferred to the Company an amount in cash equal to the
excess of the aggregate accumulated contributions to the flexible spending reimbursement accounts
under the ECC FSA made during the year in which the Distribution Date occurs by the Business
Employees over the aggregate reimbursement payouts made for such year from such accounts to such
Business Employees. The Company shall cause such amounts to be credited to each such employee’s
corresponding accounts under the Company FSA following the Distribution Date. On and after the
Distribution Date, the Company shall assume and be solely responsible for all claims for
reimbursement by Business Employees, whether incurred prior to, on or after the Distribution Date,
that have not been paid in full as of the Distribution Date, which claims shall be paid pursuant to
and under the terms of the Company FSA, and the Company shall indemnify and hold harmless ECC from
any and all claims by or with respect Business Employees for reimbursement under the ECC FSA that
have not been paid in full as of the Distribution Date. The Company agrees to cause the Company FSA
to honor and continue through the end of the calendar year in which the Distribution Date occurs
the elections made by each Business Employee under the Company FSA in respect of the flexible
spending reimbursement accounts that are in effect immediately prior to the Distribution Date.

ARTICLE V

Equity Compensation Plans

          Section 5.01 Stock Options.
ECC and the Company shall take any and all action as
shall be necessary or appropriate so that outstanding options issued under the Amended and Restated
EchoStar Communications Corporation 1995 Stock Incentive Plan, the EchoStar Communications
Corporation 1999 Stock Incentive Plan, the EchoStar Communications Corporation 2001
Nonemployee Director Stock Option Plan and the ECC 1995 Nonemployee Director Stock Option Plan)
(collectively, the “ECC SIPs”) to purchase ECC Class A Common Stock (“ECC Stock
Options”) held at the close of business on the Distribution Date by current and former
employees and directors of ECC and its Subsidiaries and Affiliates (or their respective
transferees) shall be replaced pursuant to the terms of the ECC SIPs with an adjusted ECC Stock
Option with an adjusted exercise price and a substitute option under the EchoStar Holding
Corporation Transition Stock Incentive Plan (the “Company SIP”) to purchase Company Class A
Common Stock (a “Company Stock Option”). Such replacement will be

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implemented in a manner
such that immediately following the Distribution (i) the number of shares relating to the adjusted
ECC Stock Option will be equal to the number of shares of ECC Class A Common Stock subject to such
option immediately prior to the Distribution, (ii) the number of shares subject to the substitute
Company Stock Option will be equal to the number of shares of Company Class A Common Stock that
the option holder would have received in the Distribution had the ECC Class A Common Stock subject
to the option represented outstanding shares of ECC Class A Common Stock, and (iii) the per share
option exercise price of the original ECC Stock Option will be proportionally allocated between
such separate stock options based upon the relative per share trading prices of ECC Class A Common
Stock and the Company Class A Common Stock immediately following the Distribution, with the
intention that such adjustment and substitution satisfy the requirements of Section 424 of the Code
and avoid treatment as non–qualified deferred compensation subject to Section 409A of the Code.
Each adjusted ECC Stock Option and substituted Company Stock Option adjusted from or substituted
for an original ECC Stock Option described in this Section 5.01 (a), when combined, will in
the exclusive and sole discretion of the administrative committee established pursuant to the
applicable ECC SIP (the “ECC SIP Committee”) preserve the intrinsic value of such original ECC
Option, and each will preserve the ratio from the original option of the exercise price to the fair
market value of the stock subject to the option. Fractional shares shall be adjusted or
compensated by ECC as appropriate in the sole discretion of the ECC SIP Committee. All employment
with both ECC and the Company shall be taken into account for purposes of determining the vesting
and exercisability provisions of such awards.

          Section 5.02 Restricted Stock.
ECC and the Company shall take any and all action as
shall be necessary or appropriate, so that current and former employees and directors of ECC and
its Subsidiaries and Affiliates (or their respective transferees) who on the Distribution Date hold
shares of ECC Class A Common Stock issued under one or more ECC SIP that are subject to
restrictions on sale and transfer( “ECC Restricted Stock”) shall, in addition to the ECC
Restricted Stock, receive shares of the Company Class A Common Stock that are subject to
restrictions on sale and transfer (“Company Restricted Stock”) in connection with the
Distribution under the applicable Company SIP based upon the number of shares of ECC Restricted
Stock they hold. All employment with both ECC and the Company shall be taken into account for
purposes of determining when the restrictions on the sale and transfer of such shares lapse.
Fractional shares shall be adjusted or compensated by ECC as appropriate in the sole discretion of
the ECC SIP Committee.

          Section 5.03 Restricted Stock Units.
ECC and the Company shall take any and all action as shall be necessary or appropriate, so
that current and former employees and directors of ECC and its Subsidiaries and Affiliates (or
their respective transferees) will have each of their restricted stock units granted under one or
more ECC SIP with respect to ECC Class A Common Stock (“ECC Restricted Stock Unit”)
replaced with a ECC Restricted Stock Unit and a substitute Company restricted stock unit issued
under the Company SIP (“Company Restricted Stock Unit”). The number of the Company
Restricted Stock Units issued in replacement for such ECC Restricted Stock Units shall be
calculated so that immediately following the Distribution (i) the number of ECC Restricted Stock
Units will be equal to the number of ECC Restricted Stock Units held by the participant immediately
prior to the Distribution, and (ii) the number of the Company Restricted Stock Units will be equal
to the number of shares of the Company Class A Common Stock that the holder of the restricted stock

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unit would have received in the Distribution had the ECC Restricted Stock Unit represented
outstanding shares of ECC Class A Common Stock. The ECC Restricted Stock Units and the Company
Restricted Stock Units will each take into account all employment with both ECC and the Company,
and their respective Subsidiaries and Affiliates, for purposes of determining when such awards vest
and terminate. Fractional shares shall be adjusted or compensated by ECC as appropriate in the
sole discretion of the ECC SIP Committee.

          Section 5.04 Approval and Terms of Equity and Equity-Based Awards. By its approval of
this Article V, the Board of Directors of the Company, as issuer of Company substitute and
replacement equity and equity-based awards provided hereunder, and the Board of Directors of ECC,
as issuer of ECC substitute and replacement equity and equity-based awards provided hereunder and
as sole shareholder of the Company, hereby adopt and approve, respectively, the issuance of the
substitute and replacement options and equity and equity-based awards provided for herein. Except
as set forth above, the terms of the Company SIP, and the Company substitute and replacement equity
and equity-based awards hereunder, shall be substantially identical in all material respects to the
terms of the ECC SIPs, and the corresponding awards under the ECC SIPs, as applicable, except that
references in the substitute and replacement equity and equity-based awards in respect of Company
Class A Common Stock to “Board” and “Committee” shall mean the Board and committee designed by the
Board of the Company, respectively. Notwithstanding the foregoing, awards made under the Company
SIP, or adjusted under the ECC SIPs, pursuant to the Company’s or ECC’s obligations under this
Agreement shall take into account all employment with both ECC and the Company, and their
respective Subsidiaries and Affiliates, for purposes of determining the vesting and exercisability
provisions of such awards. In exercising power and authority hereunder with respect to
replacement and substitute awards provided hereunder, ECC and the Company shall each (i) act in
good faith and (ii) cooperate with, and give due regard to any information provided by, the other
party. In addition, with respect to such replacement and substitute equity and equity-based
awards, neither the Company nor ECC shall, without the prior written consent of the ECC SIP
Committee or the applicable committee designated by the Company’s Board of Directors, as
applicable, take any discretionary action to accelerate vesting of any such awards.

          Section 5.05 Responsibility for Tax Withholding, Reporting, and Social Insurance
Contributions. ECC and the Company agree that, unless prohibited by applicable law, (a) ECC shall be
responsible for all tax withholding and reporting obligations and shall pay the employer’s share of
any social insurance tax obligations that arise in connection with the grant, vesting, exercise,
transfer or other settlement of the substitute and replacement awards held by current and former
employees and directors of ECC and its Subsidiaries and Affiliates who are not Business Employees
(or their respective transferees), (b) the Company shall be responsible for all tax withholding and
reporting obligations and shall pay the employer’s share of any social insurance tax obligations
that arise in connection with the grant, vesting, exercise, transfer or other settlement of the
substitute and replacement awards held by Business Employees (or their transferees). ECC and the
Company agree to enter into any necessary agreements regarding the subject matter of this
Section 5.05 to enable ECC and the Company to fulfill their respective obligations
hereunder, including but not limited to compliance with all applicable laws and regulations
regarding the reporting, withholding or remitting of income and social insurance taxes.

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          Section 5.06 No Change of Control. The Distribution will not constitute a “change of
control” for purposes of ECC equity and equity-based awards which are outstanding as of the
Distribution Date.

          Section 5.07 Employee Stock Purchase Plan. On or prior to the Distribution Date, the
Company shall establish an employee stock purchase plan (the “Company ESPP”) with terms
that are substantially identical in all material respects to the terms of the Amended and Restated
ECC 1997 Employee Stock Purchase Plan (the “ECC ESPP”). Business Employees will be
eligible to participate in the Company ESPP on the Distribution Date. Prior to the Distribution
Date, ECC shall take whatever action is necessary under the ECC ESPP
to provide that the “Purchase Period” (as defined in the ECC
ESPP) ending on December 31, 2007 shall instead end on or about
December 19, 2007.

          Section 5.08 Establishment of the Company Stock Incentive Plans. Effective as of the
Distribution Date, the Company shall establish the a stock incentive plan to provide for awards
which may include the following: (i) stock options (both qualified and non-qualified), (ii) stock
appreciation rights, (iii) restricted stock awards, (iv) restricted stock unit awards, (v) phantom
stock units, (vi) performance grants and (vii) bonus awards, including, without limitation, the
awards provided for herein.

ARTICLE VI

Compensation Matters and General Benefit Matters

          Section 6.01 Cessation of Participation in ECC Plans and Non-ERISA U.S. Benefit
Arrangements. Except as otherwise provided in this Agreement or as required by the terms of any ECC Plan
or ECC Non-ERISA Benefit Arrangement, or by applicable law, ECC and the Company shall take any and
all action as shall be necessary or appropriate so that participation in ECC Plans and ECC
Non-ERISA Benefit Arrangements by all Business Employees shall terminate as soon as
administratively practicable following the Distribution Date and the Company and/or its
Subsidiaries, as applicable, shall cease to be participating employers under the terms of such ECC
Plans and ECC Non-ERISA Benefit Arrangements as soon as administratively practicable following the
Distribution Date.

          Section 6.02 Assumption of Certain Employee Related Obligations. Except as otherwise
provided in this Agreement, effective as of the close of business on the Distribution Date, the
Company shall assume, and none of ECC or any of its Subsidiaries or Affiliates shall have any
further liability for, the following agreements, obligations and liabilities and the Company shall
indemnify ECC and its Subsidiaries and Affiliates, and the officers, directors, and employees of
each, and hold them harmless with respect to such agreements, obligations or liabilities:

     (a) Agreements entered into between ECC, its Subsidiaries or Affiliates and Business
Employees.

     (b) Agreements entered into between ECC, its Subsidiaries or Affiliates and independent
contractors providing services solely to the Company Business.

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     (c) All collective bargaining agreements, collective agreements, trade union, or works council
agreements entered into between ECC, its Subsidiaries or Affiliates and any union, works council,
or other body representing only Business Employees.

     (d) All wages, salary, incentive compensation, commissions and bonuses payable to Business
Employees on or after the Distribution Date, without regard to when such wages, salary, incentive
compensation, commissions and bonuses are or may have been earned.

     (e) All moving expenses and obligations related to relocation, repatriation, transfers, or
similar items incurred by or owed to Business Employees.

     (f) All immigration-related, visa, work application, or similar rights, obligations and
liabilities related to Business Employees.

     (g) All liabilities and obligations whatsoever of the Company Business with respect to claims
made by or with respect to Business Employees or any other persons who at any time prior to the
Distribution Date had employment duties primarily related to the Company Business relating to any
employee benefit plan, program or policy not otherwise retained or assumed by ECC pursuant to this
Agreement, including such liabilities relating to actions or omissions of or by the Company or any
officer, director, employee or agent thereof prior to the Distribution Date.

          Section 6.03 Restrictive Covenants in Employment and Other Agreements. To the extent permitted under applicable law, following the Distribution, the Company and
its Subsidiaries and Affiliates shall be considered to be successors to ECC and its Subsidiaries
and Affiliates for purposes of all agreements containing restrictive covenants (including but not
limited to confidentiality and non-competition provisions) between ECC (or any of its Subsidiaries
or Affiliates) and Business Employees, employees of ECC (or any of its Subsidiaries or Affiliates)
as of the Distribution Date that the Company reasonably determines have substantial knowledge of
the Company Business, former employees and independent contractors executed prior to the
Distribution Date such that each of ECC, the Company and their respective Subsidiaries and
Affiliates shall all enjoy the rights and benefits under such agreements, with respect to such
party’s and their respective Subsidiaries” and Affiliates’ business operations; provided,
however, that (a) in no event shall ECC be permitted to enforce the restrictive covenant
agreements against Business Employees in their capacity as employees of the Company or its
Subsidiaries, and (b) in no event shall the Company be permitted to enforce the restrictive
covenants agreements of ECC employees in their capacity as employees of ECC or its Subsidiaries.

          Section 6.04 Severance. Effective as of the Distribution Date, the Company may
establish one or more severance plans and policies with respect to Business Employees as the
Company deems appropriate in its discretion. ECC shall have no liability or obligation under any
ECC severance plan or policy with respect to Business Employees whose employment terminates on or
after the Distribution Date. It is not intended that any Business Employee will be eligible for
termination or severance payments or benefits from ECC or its Subsidiaries or Affiliates as a
result of the transfer or change of employment from ECC to the Company or their respective
Subsidiaries or Affiliates. Notwithstanding the preceding sentence, in the event that

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any such
termination or severance payments or benefits become payable on account of such transfer, change or
the refusal of a Business Employee to accept employment with the Company, the Company shall
indemnify ECC, and its Subsidiaries and Affiliates, for the amount of such termination or severance
payments or benefits.

          Section 6.05 Past Service Credit. With respect to all Domestic Business Employees,
the Company shall recognize all service recognized under the comparable ECC Plans and ECC Non-ERlSA
Benefit Arrangements for purposes of determining eligibility, participation, vesting, and
calculation of benefits under the Company’s comparable plans and programs, provided that
there shall be no duplication of benefits for Business Employees under the Company’s plans and
programs. ECC will provide to the Company copies of any records available to ECC to document such
service, plan participation and membership and cooperate with the Company to resolve any
discrepancies or obtain any missing data for purposes of determining benefit eligibility,
participation, vesting and calculation of benefits with respect to such Domestic Business
Employees. With respect to retaining, destroying, transferring, sharing, copying and permitting
access to all such information, ECC and the Company shall each comply with all applicable laws,
regulations and internal policies and each party shall indemnify and hold harmless the other party
from and against any and all liability, claims, actions, and damages that arise from a failure (by
the
indemnifying party) to so comply with all applicable laws, regulations and internal policies
applicable to such information.

          Section 6.06 Accrued Vacation Days Off. The Company shall recognize and assume all
liability for all vacation, holiday, sick leave, flex days and personal days off, including banked
vacation, accrued by Business Employees as of the Distribution Date and the Company shall credit
each Business Employee with such days off accrual.

          Section 6.07 Leaves of Absence. The Company will continue to apply the leave of
absence policies maintained by ECC to inactive Business Employees who are on an approved leave of
absence as of the Distribution Date. Leaves of absence taken by Business Employees prior to the
Distribution Date shall be deemed to have been taken as employees of the Company.

          Section 6.08 ECC Assets. Except as otherwise set forth herein, ECC shall retain all
reserves, bank accounts, trust funds or other balances maintained with respect to ECC’s Non-ERlSA
Benefit Arrangements.

          Section 6.09 Further Cooperation/Personnel Records/Data Sharing. The parties shall
provide each other such records and information only as necessary or appropriate to carry out their
obligations under law, this Agreement, or for the purposes of administering the Company plans and
policies. The parties shall take commercially reasonable actions so that after the Separation, all
ministerial matters relating to (i) the Company awards issued to individuals other than Business
Employees can be administered by ECC and (ii) ECC equity and equity-based awards issued to Business
Employees can be administered by the Company. Each of the parties shall provide information
requested by the other party relating to employee status changes (such as terminations,
retirements, etc.) and exercised options during the ten-year period beginning on the Distribution
Date. Subject to applicable law, all information and records regarding employment and personnel
matters of Business Employees shall be accessed, retained,

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held, used, copied and transmitted after
the Distribution Date by the Company in accordance with all laws and policies relating to the
collection, storage, retention, use, transmittal, disclosure and destruction of such records.
Access to such records after the Distribution Date will be provided to ECC in accordance with
Article IV of the Separation Agreement. Notwithstanding the foregoing, ECC shall retain reasonable
access to those records necessary for ECC’s continued administration of any plans or programs on
behalf of Business Employees after the Distribution Date, provided that such access shall
be limited to individuals who have a job-related need to access such records. ECC shall also
retain copies of all confidentiality and non-compete agreements with any Business Employee in which
ECC has a valid business interest. With respect to retaining, destroying, transferring, sharing,
copying and permitting access to all such information, ECC and the Company shall each comply with
all applicable laws, regulations and internal policies, and each party shall indemnify and hold
harmless the other party from and against any and all liability, claims, actions, and damages that
arise from a failure (by the indemnifying party) to so comply with all applicable laws,
regulations and internal policies applicable to such information.

ARTICLE VII

General Provisions

          Section 7.01 Preservation of Rights to Amend. The rights of ECC or the Company to
amend or terminate any plan, program, or policy referred to herein shall not be limited in any way
by this Agreement.

          Section 7.02 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.

          Section 7.03 Administrative Complaints/Litigation. Except as otherwise provided in
this Agreement, as of and after the Distribution Date, the Company shall assume, and be solely
liable for, the handling, administration, investigation, and defense of actions, including, without
limitation, ERISA, occupational safety and health, employment standards, union grievances, wrongful
dismissal, discrimination or human rights and unemployment compensation claims, asserted at any
time against ECC or the Company by any Business Employee (including any dependent or beneficiary of
a Business Employee), or any other person to the extent such actions or claims arise out of or
relate to employment or the provision of services (whether as an employee, contractor, consultant,
or otherwise) to or with the Company Business. Any Liabilities arising from such actions shall be
deemed Assumed Liabilities under the Separation Agreement.

          Section 7.04 Reimbursement and Indemnification. The parties hereto agree to reimburse
each other, within 30 days of receipt from the other party of appropriate verification, for all
costs and expenses which each may incur on behalf of the other as a result of any of the Welfare
Plans, Pension Plans and Non-ERISA Benefit Arrangements and, as contemplated by Section
6.04, any termination or severance payments or benefits. All liabilities retained, assumed or
indemnified against by the Company pursuant to this Agreement, and all

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liabilities retained,
assumed or indemnified against by ECC pursuant to this Agreement, shall in each case shall be
subject to the indemnification provisions of Article V of the Separation Agreement.

          Section 7.05 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 7.06 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.

          Section 7.07 Amendment. This Agreement shall not be amended, modified or supplemented
except by a written instrument signed by an authorized representative of each of ECC and the
Company.

          Section 7.08 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 7.09 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

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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 7.10 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 7.11 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 7.12 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 7.13 Performance. Each party hereto shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set forth herein to be
performed by any Affiliate of such party.

          Section 7.14 No Public Announcement. Neither ECC 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, 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 7.15 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 ECC, 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 ECC, 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 7.16 Mutual Drafting. This Agreement shall be deemed to be the joint work
product of ECC 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.

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          Section 7.17 Dispute Resolution. The parties hereto agree that any dispute,
controversy or claim between them with respect to the matters covered hereby shall be governed by
and resolved in accordance with the procedures set forth in Article VIII of the Separation
Agreement.

          Section 7.18 No Third Party Beneficiaries. No Business Employee or other current or
former employee of ECC or the Company or any Subsidiary or Affiliate of either (or his/her spouse,
dependent or beneficiary), or any other person not a party to this Agreement, shall be entitled to
assert any claim hereunder. 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 7.19 Effect if Separation Does Not Occur. Notwithstanding anything in this
Agreement to the contrary, if the Separation Agreement is terminated prior to the Distribution
Date, this Agreement shall be of no further force and effect

          Section 7.20 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 7.21 Corporate Authorization. The officers of ECC and the Company are hereby authorized, empowered and directed, in the
name and on behalf of each of ECC and the Company, respectively, to take or cause to be taken all
such further action, to execute and deliver or cause to be executed and delivered all such further
agreements, certificates, instruments and documents, to make or cause to be made all such filings
with governmental or regulatory authorities, and to pay or cause to be paid all such fees and
expenses, in each case which shall in such officers’ judgment be deemed necessary, proper or
advisable to effect and carry out the intent of this Agreement, such determination to be evidenced
conclusively by such officers’ execution and delivery thereof or taking of action in respect
thereto.

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     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:exv10w4

 

Exhibit 10.4

FORM OF

INTELLECTUAL PROPERTY MATTERS AGREEMENT

BY AND AMONG

ECHOSTAR COMMUNICATIONS CORPORATION

ECHOSTAR ACQUISITION L.L.C.

ECHOSPHERE L.L.C.

ECHOSTAR DBS CORPORATION

ECHOSTAR SATELLITE L.L.C.

ECHOSTAR INTERNATIONAL CORPORATION

EIC SPAIN SL

ECHOSTAR TECHNOLOGIES CORPORATION

ECHOSTAR ORBITAL CORPORATION

AND

ECHOSTAR HOLDING CORPORATION

DATED AS OF                      ___, 2007

 

 

FORM OF

INTELLECTUAL PROPERTY MATTERS AGREEMENT

     THIS INTELLECTUAL PROPERTY MATTERS AGREEMENT (this “Agreement”), dated as of
                     ___, 2007 (the “Effective Date”), is entered into by and among EchoStar
Communications Corporation (“ECC”), a Nevada corporation with its principal place of
business located at 9601 South Meridian Boulevard, Englewood, CO 80112; EchoStar Acquisition L.L.C.
(“Acquisition LLC”), a Colorado limited liability company with its principal place of
business located at 9601 South Meridian Boulevard, Englewood, CO 80112; Echosphere L.L.C.
(“Echosphere”), a Colorado limited liability company with its principal place of business
located at 9601 South Meridian Boulevard, Englewood, CO 80112; EchoStar DBS Corporation
(“EDBS”), a Colorado corporation with its principal place of business located at 9601 South
Meridian Boulevard, Englewood, CO 80112; EchoStar Satellite L.L.C. (“Satellite LLC”), a
Colorado limited liability company with its principal place of business located at 9601 South
Meridian Boulevard, Englewood, CO 80112; EchoStar International Corporation (“EIC”), a
Colorado corporation with its principal place of business located at 9601 South Meridian Boulevard,
Englewood, CO 80112; EIC Spain SL (“EIC Spain”), a Spanish corporation with its principal
place of business located at Avenida de los Pirineos 23, 28700 San Sebastián de los Reyes, Madrid,
Spain; EchoStar Technologies Corporation (“ETC”), a Texas corporation with its principal
place of business located at 90 Inverness Circle East, Englewood, CO 80112; EchoStar Orbital
Corporation (“Orbital”), a Colorado corporation with its principal place of business located at
9601 South Meridian Boulevard, Englewood, CO 80112; and EchoStar Holding Corporation
(“Company”), a Nevada corporation with its principal place of business located at 90
Inverness Circle East, Englewood, CO 80112 (collectively, the “Parties” and individually, a
“Party”).

W I T N E S S E T H:

     WHEREAS, ECC is the common parent company of an affiliated group of corporations and other
legal entities through which ECC operates the DISH Network, which is a leading provider of
satellite delivered digital television to customers across the United States of America;

     WHEREAS, ECC, through its Affiliates, also operates a technology business, which designs and
develops satellite receivers or set-top-boxes, antennae and other digital equipment for the DISH
Network segment of its business and designs, develops and distributes similar equipment for
international satellite service providers and other third party customers;

     WHEREAS, the Company is currently an indirectly wholly-owned subsidiary of ECC;

     WHEREAS, ECC has determined that it is in the company’s best interests to separate the
Consumer Business from the Receiver Business (as such terms are defined below) through various
internal corporate transactions and an external distribution of shares of the Company such that the
Company would cease being a subsidiary of ECC and would be separately owned by current ECC
shareholders;

 

 

     WHEREAS, after the aforementioned distribution of shares, the Company and its Affiliates would
continue to conduct the Receiver Business under the brand ECHOSTAR or such other marks as the
Company and its Affiliates may choose, but would exist as separate legal entities no longer
controlled by ECC;

     WHEREAS, after the aforementioned distribution of shares, ECC and its remaining Affiliates
would continue to conduct the Consumer Business under the brand DISH NETWORK or such other marks as
ECC and its Affiliates may choose;

     WHEREAS, in furtherance of the foregoing, ECC and the Company have entered into that certain
Separation and Distribution Agreement, dated as of                      ___, 2007 (the “Separation
Agreement”), wherein it was agreed that certain Intellectual Property would be assigned to the
Company in connection with the ECC Contribution, EDBS Contribution and the Satellite LLC
Contribution (as such terms are defined in the Separation Agreement);

     WHEREAS, members of the ECC Group are currently the owners of certain right, title and
interest in and to certain Intellectual Property related to the Receiver Business as described
herein;

     WHEREAS, the Company desires to obtain an assignment of all right, title and interest in and
to such Intellectual Property from such members of the ECC Group to the Company and ETC, which will
become a subsidiary of the Company, in accordance with the terms of this Agreement;

     WHEREAS, members of the Company Group are currently the owners of certain right, title and
interest in and to certain Intellectual Property related to the Consumer Business as described
herein;

     WHEREAS, ECC desires to obtain an assignment of all right, title and interest in and to such
Intellectual Property from such members of the Company Group to ECC in accordance with the terms of
this Agreement; and

     WHEREAS, ECC and the Company wish to address other Intellectual Property issues necessary for
the conduct of the Receiver Business and the Consumer Business after the Distribution Date.

     NOW, THEREFORE, in consideration of the mutual promises set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereby covenant and agree as follows:

	1.	 	Definitions. All capitalized terms used herein, but not otherwise defined herein,
shall have the meaning ascribed to them in the Separation Agreement. Words in the singular
shall be held to include the plural and vice versa and words of one gender shall be held to
include the other genders as the context requires. The terms “hereof,” “herein,” and
“herewith ” and words of similar import shall, unless otherwise stated, be construed to refer
to this Agreement as a whole (including all of the Exhibits hereto) and not to any particular
provision of this Agreement. Article, Section, and Exhibit references are to the Articles,
Sections and Exhibits to this Agreement unless otherwise specified. The word

2

 

	 	 	“including” and words of similar import when used in this Agreement shall mean “including,
without limitation,” unless the context otherwise requires or unless otherwise specified.
The word “or” shall not be exclusive. Unless expressly stated to the contrary in this
Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and
“hereupon” and words of similar import shall all be references to the Effective Date,
regardless of any amendment or restatement hereof. For the purposes of this
Agreement, the following terms shall have the meanings ascribed to them as follows:

	 	1.1.	 	“Acquisition LLC Intellectual Property” shall mean those patents,
patent applications, trademarks, trademark registrations and applications for trademark
registration listed on Exhibit A hereto.
	 
	 	1.2.	 	“Affiliate” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.3.	 	“Applicable Law” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.4.	 	“Business Day” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.5.	 	“Company Group” shall mean the Company, each Subsidiary of the Company
and each other Person that is controlled directly or indirectly by the Company
immediately after the Distribution Date.
	 
	 	1.6.	 	“Consumer Business” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.7.	 	“Distribution Date” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.8.	 	“ECC Contribution Date” shall mean the date the ECC Contribution is
consummated.
	 
	 	1.9.	 	“ECC Group” shall mean ECC and each Person (other than any member of
the Company Group) that is an Affiliate of ECC immediately after the Distribution Date.
	 
	 	1.10.	 	“ECC Intellectual Property” shall mean those patents, patent
applications, trademarks, trademark registrations and applications for trademark
registration listed on Exhibit B hereto.
	 
	 	1.11.	 	“Echosphere Intellectual Property” shall mean those trademarks,
trademark registrations and applications for trademark registration listed on
Exhibit C hereto.

	 
	 	1.12.	 	“EDBS Contribution Date” shall mean the date the EDBS Contribution is
consummated.

3

 

	 	1.13.	 	“EIC Trademarks” shall mean those trademarks, trademark registrations
and applications for trademark registration listed on Exhibit D hereto.
	 
	 	1.14.	 	“ETC Trademarks” shall mean those trademarks, trademark registrations
and applications for trademark registration listed on Exhibit E hereto.
	 
	 	1.15.	 	“External Use” shall mean any use that is not an Internal Use.
	 
	 	1.16.	 	“Intellectual Property” means (a) all U.S. and foreign patents,
including all reissues, divisions, continuations, continuations-in-part, reissues,
renewals, registrations, reexaminations and extensions thereof arising from and/or
claiming priority to any patent and all rights under the International Convention for
the Protection of Industrial Property, patent applications, patent rights, trademarks,
trademark applications and registrations, trade names, brand names, d/b/a’s, domain
names, logos, trade dress, other indicia of origin, copyrights, copyright registrations
and applications, database rights, confidential information, trade secrets, proprietary
technology, know-how, inventions, discoveries, and improvements, (b) all information
and data, whether in printed or electronic form and whether contained in a database or
otherwise, including customer lists, (c) all other forms of intellectual property or
proprietary rights, (d) claims or causes of action arising out of or related to any
infringement, misappropriation or other violation of any of the foregoing, including
rights to recover for past, present and future violations thereof, and (e) all goodwill
embodied in or related to any of the foregoing.
	 
	 	1.17.	 	“Internal Use” shall mean any use solely within ECC Group without any
communication (written or oral) with any third party that is not a member or employee
of the ECC Group.
	 
	 	1.18.	 	“Person” shall have the meaning set forth in the Separation Agreement.
	 
	 	1.19.	 	“Receiver Business” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.20.	 	“Satellite LLC Contribution Date” shall mean the date the Satellite
Contribution is consummated.
	 
	 	1.21.	 	“Satellite LLC Intellectual Property” shall mean those patents, patent
applications, trademarks, trademark registrations and applications for trademark
registration listed on Exhibit F hereto.
	 
	 	1.22.	 	“Subsidiary” shall have the meaning set forth in the Separation
Agreement.
	 
	 	1.23.	 	“Third Party” shall mean a Person that is not an Affiliate of any
Party hereto.

4

 

	2.	 	Assignment of Acquisition LLC Intellectual Property.

	 	2.1.	 	Prior to the Satellite LLC Contribution Date, Acquisition LLC shall assign to
Satellite LLC, all right, title and interest in and to the Acquisition LLC Intellectual
Property, including all rights to sue for past, present and future infringements or
misappropriations of any of the foregoing and for all damages arising therefrom and all
goodwill associated with, relating to or embodied in any of the foregoing.
	 
	 	2.2.	 	No later than the Satellite LLC Contribution Date, Acquisition LLC and
Satellite LLC shall, at their sole cost and expense, execute and deliver to the Company
and ECC the assignment agreements attached hereto as Exhibit G and Exhibit
H for the assignment of the Acquisition LLC Intellectual Property to Satellite LLC.
Acquisition LLC and Satellite LLC shall take such other actions as are necessary to
transfer to, and perfect in, Satellite LLC all right, title and interest in and to the
Acquisition LLC Intellectual Property.
	 
	 	2.3.	 	After the assignment contemplated by Sections 2.1 and 2.2 above has been
completed and effective as of the Satellite LLC Contribution Date, Satellite LLC hereby
assigns to the Company, all right, title and interest in and to the Acquisition LLC
Intellectual Property and the Satellite LLC Intellectual Property, including all rights
to sue for past, present and future infringements or misappropriations of any of the
foregoing and for all damages arising therefrom and all goodwill associated with,
relating to or embodied in any of the foregoing. Such assignment shall be considered
part of the Satellite LLC Contribution.
	 
	 	2.4.	 	No later than the Satellite LLC Contribution Date, Satellite LLC shall, at its
sole cost and expense, execute and deliver to the Company the assignment agreements
attached hereto as Exhibit I and Exhibit J for the assignment of the
Acquisition LLC Intellectual Property and the Satellite LLC Intellectual Property to
the Company. The Company shall then execute and deliver copies of the assignment
agreements to ECC. Satellite LLC and the Company shall take such other actions as are
necessary to transfer to, and perfect in, the Company all right, title and interest in
and to the Acquisition LLC Intellectual Property and the Satellite LLC Intellectual
Property.
	 
	 	2.5.	 	Acquisition LLC and Satellite LLC shall cooperate with the Company in taking
such steps as are reasonably requested by the Company in connection with the
prosecution and maintenance of any of the Acquisition LLC Intellectual Property and the
Satellite LLC Intellectual Property and the enforcement of the Acquisition LLC
Intellectual Property and the Satellite LLC Intellectual Property, including signing
appropriate documents, providing truthful evidence and sworn testimony and joining as a
party to any related lawsuit, all at the Company’s expense for out-of-pocket expenses
incurred by Acquisition LLC or Satellite LLC.

5

 

	3.	 	Assignment of Echosphere Intellectual Property.

	 	3.1.	 	Prior to the EDBS Contribution Date, Echosphere shall assign to EDBS, all
right, title and interest in and to the Echosphere Intellectual Property, including all
rights to sue for past, present and future infringements or misappropriations of any of
the foregoing and all goodwill associated with, relating to or embodied in any of the
foregoing.
	 
	 	3.2.	 	No later than the EDBS Contribution Date, Echosphere and EDBS shall, at their
sole cost and expense, execute and deliver to the Company and ECC the assignment
agreement attached hereto as Exhibit K for the assignment of the Echosphere
Intellectual Property to EDBS. Echosphere and EDBS shall take such other actions as
are necessary to transfer to, and perfect in, EDBS all right, title and interest in and
to the Echosphere Intellectual Property.
	 
	 	3.3.	 	After the assignment contemplated by Sections 3.1 and 3.2 above
has been completed and effective as of the EDBS Contribution Date, EDBS hereby assigns
to ETC, all right, title and interest in and to the Echosphere Intellectual Property,
including all rights to sue for past, present and future infringements or
misappropriations of any of the foregoing and for all damages arising therefrom and all
goodwill associated with, relating to or embodied in any of the foregoing. Such
assignment shall be considered part of the EDBS Contribution.
	 
	 	3.4.	 	No later than the EDBS Contribution Date, EDBS and ETC shall, at their sole
cost and expense, execute and deliver to the Company and ECC the assignment agreement
attached hereto as Exhibit L for the assignment of the Echosphere Intellectual
Property to ETC. EDBS and ETC shall take such other actions as are necessary to
transfer to, and perfect in, ETC all right, title and interest in and to the Echosphere
Intellectual Property.
	 
	 	3.5.	 	It is contemplated that ETC will become a subsidiary of the Company. As such,
Echosphere LLC and EDBS shall cooperate with the Company and ETC in taking such steps
as are reasonably requested by the Company and ETC in connection with the prosecution
and maintenance of any of the Echosphere Intellectual Property and the enforcement of
the Echosphere Intellectual Property, including signing appropriate documents,
providing truthful evidence and sworn testimony and joining as a party to any related
lawsuit, all at Company’s expense for out-of-pocket expenses incurred by the Echosphere
LLC and EDBS.

	4.	 	Assignment of ECC Intellectual Property and Assigned ECC IP.

	 	4.1.	 	Effective as of the ECC Contribution Date, ECC hereby assigns (or, in the case
of certain domain names, shall cause members of the ECC Group to assign) to the Company
all right, title and interest in and to: (a) the name “ECHOSTAR” and all related
trademarks and trademark rights, (b) the ECC Intellectual Property, and (c) the domain
names “echostar.com,” “echostarfixedsatellite.com,” “echostar-gov.com,”
“meridianaviation.net,” and “satelliteranch.com” and all related

6

 

	 	 	 	website content used exclusively in connection with the Receiver Business, including
all rights to sue for past, present and future infringements or misappropriations of
any of the foregoing and all goodwill associated with, relating to or embodied in
any of the foregoing (collectively, the “Assigned ECC IP”). Such assignment
shall be considered part of the ECC Contribution.

	 	4.2.	 	No later than the ECC Contribution Date, ECC shall, at its sole cost and
expense, execute and deliver to the Company the assignment agreements attached hereto
as Exhibit M and Exhibit N for the assignment of the ECC Intellectual
Property to the Company. The Company shall then execute and deliver copies of the
assignment agreements to ECC. ECC and the Company shall take such other actions as are
necessary to transfer to, and perfect in, the Company all right, title and interest in
and to the Assigned ECC IP, including the ECC Intellectual Property. ECC and the
relevant members of the ECC Group shall provide all necessary assistance and consents
required by the applicable domain name registrar to affect the assignment of the domain
names included with the Assigned ECC IP to the Company.
	 
	 	4.3.	 	ECC shall cooperate with the Company in taking such steps as are reasonably
requested by the Company, in connection with the prosecution and maintenance of any of
the Assigned ECC IP and the enforcement of the Assigned ECC IP, including signing
appropriate documents, providing truthful evidence and sworn testimony and joining as a
party to any related lawsuit, all at the Company’s expense for out-of-pocket expenses
incurred by ECC.
	 
	 	4.4.	 	No Intellectual Property of ECC or any member of the ECC Group, other than that
which is expressly assigned by this Agreement and exclusively used in the Receiver
Business, is assigned by this Agreement. All rights, including Intellectual Property
rights, not expressly assigned by ECC or any member of the ECC Group herein are
specifically reserved.

5. Assignment of ETC Trademarks.

	 	5.1.	 	It is contemplated that in connection with the reorganization and eventual
spin-off of the Company and the Company Group that ETC will be converted from a
corporation into a limited liability company. The date on which such conversion in the
legal entity status of ETC occurs shall be referred to as the “ETC Conversion Date”.
For the avoidance of doubt, the term “ETC” as used herein shall refer to ETC as it
currently exists as a corporation and as it may exist as a limited liability company
after the ETC Conversion Date.
	 
	 	5.2.	 	No later than the ETC Conversion Date, ETC shall execute and deliver to ECC all
documents required to be filed with the United States Patent and Trademark Office
(“USPTO”) to record the change in ETC’s corporate name and status, including copies of
all related corporate filings made in ETC’s state of formation. Such filings shall be
made with the USPTO by ETC no later than the ETC Conversion Date at its sole cost and
expense.

7

 

	 	5.3.	 	Effective as of the ETC Conversion Date, ETC hereby assigns to Orbital, all
right, title and interest in and to the ETC Trademarks, including all rights to sue for
past, present and future infringements or misappropriations of any of the foregoing and
all goodwill associated with, relating to or embodied in any of the foregoing.
	 
	 	5.4.	 	No later than the ETC Conversion Date, ETC shall, at its sole cost and expense,
execute and deliver to Orbital and ECC the assignment agreement attached hereto as
Exhibit O for the assignment of the ETC Trademarks to Orbital. ETC and Orbital
shall take such other actions as are necessary to transfer to, and perfect in, Orbital
all right, title and interest in and to the ETC Trademarks.
	 
	 	5.5.	 	It is contemplated that ETC will become a subsidiary of the Company. As such,
ETC shall cooperate with ECC and Orbital in taking such steps as are reasonably
requested by ECC and Orbital in connection with the prosecution and maintenance of any
of the ETC Trademarks and the enforcement of the ETC Trademarks, including signing
appropriate documents, providing truthful evidence and sworn testimony and joining as a
party to any related lawsuit, all at ECC’s and Orbital’s expense for out-of-pocket
expenses incurred by ETC.

	6.	 	Assignment of EIC Trademarks.

	 	6.1.	 	Effective as of the Effective Date, EIC hereby assigns to ECC, all right, title
and interest in and to the EIC Trademarks, including all rights to sue for past,
present and future infringements or misappropriations of any of the foregoing and all
goodwill associated with, relating to or embodied in any of the foregoing.
	 
	 	6.2.	 	No later than the Effective Date, EIC shall, at its sole cost and expense,
execute and deliver to ECC the assignment agreement attached hereto as Exhibit
O for the assignment of the EIC Trademarks to ECC. EIC and ECC shall take such
other actions as are necessary to transfer to, and perfect in, ECC all right, title and
interest in and to the EIC Trademarks.
	 
	 	6.3.	 	It is contemplated that EIC will become a subsidiary of the Company. As such,
EIC shall cooperate with ECC in taking such steps as are reasonably requested by ECC in
connection with the prosecution and maintenance of any of the EIC Trademarks and the
enforcement of the EIC Trademarks, including signing appropriate documents, providing
truthful evidence and sworn testimony and joining as a party to any related lawsuit,
all at ECC’s expense for out-of-pocket expenses incurred by EIC.

	7.	 	Assignment of EIC Spain Domain Names.

	 	7.1.	 	Effective as of the Effective Date, EIC Spain hereby assigns to ECC, all right,
title and interest in and to the domain names “dish.eu” and “dishnetwork.eu” and all
related website content used exclusively in connection with the Consumer Business,
including all rights to sue for past, present and future infringements or
misappropriations of any of the foregoing and all goodwill associated with,

8

 

	 	 	 	relating to or embodied in any of the foregoing (collectively, the “EIC Spain
Domain Names”). EIC Spain and ECC shall take such other actions as are
necessary to transfer to, and perfect in, ECC all right, title and interest in and
to the EIC Spain Domain Names. EIC Spain shall provide all necessary assistance and
consents required by the applicable domain name registrar to affect the assignment
of the EIC Domain Names to ECC.

	 	7.2.	 	It is contemplated that EIC Spain will become a subsidiary of the Company. As
such, EIC Spain shall cooperate with ECC in taking such steps as are reasonably
requested by ECC in connection with the maintenance of any of the EIC Spain Domain
Names and the enforcement of the EIC Spain Domain Names, including signing appropriate
documents, providing truthful evidence and sworn testimony and joining as a party to
any related lawsuit, all at ECC’s expense for out-of-pocket expenses incurred by EIC
Spain.

	8.	 	Assignment of DISH CO Inventions.

	 	8.1.	 	ECC, through its Affiliate Satellite LLC, currently maintains a docket for its
patent, patent applications and related invention disclosures. On such docket are the
following entries: (a) “Multiplatform Voting System” (File No. ES-1207), (b) “User
Search and Skip of DVR Events Using Closed Captioning” (File No. ES-1210), (c) “Methods
of Operating a Multi-Platform Voting System” (File No. ES-1215), and (d) “System and
Method for Concurrently Presenting User Selectable and Business Programming” (File No.
ES-1216) (collectively, the “DISH CO Inventions”). The inventors of the DISH CO
Inventors have yet to execute assignments to their inventions to ECC or an Affiliate of
ECC, however, all such assignments shall be made by such inventors to ECC or is
designated Affiliate regardless of whether such inventors remain employees of a member
of the ECC Group. To the extent such inventors become employees of a member of the
Company Group, the Company and the members of the Company Group shall cause such
inventors to assign all rights in and to the DISH CO Inventions to ECC or its
designated Affiliate and shall take such other actions as are necessary to transfer to,
and perfect in, ECC or its designated Affiliate all right, title and interest in and to
the DISH CO Inventions. The Company and the members of the Company Group, including
their employees, shall cooperate with ECC and its designated Affiliates in taking such
steps as are reasonably requested by ECC or its designated Affiliate, in connection
with the prosecution and maintenance of any of the DISH CO Inventions and the
enforcement of the DISH CO Inventions, including signing appropriate documents,
providing truthful evidence and sworn testimony and joining as a party to any related
lawsuit, all at ECC’s expense for out-of-pocket expenses incurred by Company or a
member of the Company Group.

	9.	 	IBM Cross License.

	 	9.1.	 	On or about October 2, 2006, ECC and International Business Machines
Corporation (“IBM”) entered into a Patent Cross License (the “IBM Cross

9

 

	 	 	 	License”). The Parties acknowledge and agree that all assignments of rights herein
are subject to the rights granted in the IBM Cross License. Therefore, the Company
and the Company Group acknowledge and agree that all assignments of Intellectual
Property rights to them hereunder are taken subject to the rights and obligations of
IBM and ECC respectively under the IBM Cross License.

	 	9.2.	 	The Company acknowledges that it has received and reviewed the IBM Cross
License on its behalf and on behalf of the Company Group. The Company and the Company
Group shall abide by the terms of the IBM Cross License so as not to create grounds for
IBM to reasonably declare that ECC is in breach of the IBM Cross License.
	 
	 	9.3.	 	Pursuant to Section 2.8 of the IBM Cross License, ECC and the Company (or a
member of the Company Group if appropriate) shall request in writing that IBM grant the
royalty-free patent cross license referenced in Section 2.8 of the IBM Cross License to
the Company (or a member of the Company Group if appropriate). ECC and the ECC Group
shall have no liability should IBM fail to grant the aforementioned license to the
Company or another member of the Company Group. The Parties shall exercise
commercially reasonable efforts to secure the aforementioned license from IBM in favor
of the Company and the Company Group.

	10.	 	Licensing of Certain Intellectual Property.

	 	10.1.	 	To the extent that there is unregistered Intellectual Property owned by the
Company or a member of the Company Group that is (a) not otherwise the subject of an
issued patent, pending patent application, or existing invention disclosure which is
owned by the Company or a member of the Company Group (or is being assigned to the
Company or a member of the Company Group hereunder) and (b) which relates exclusively
to or is necessary for the continued conduct of the Consumer Business (“Consumer
Business IP”), the Company and the members of the Company Group hereby grant to ECC and
the members of the ECC Group a perpetual, royalty-free, worldwide license and right to
use, practice, license, and sublicense the Consumer Business IP, but only in connection
with the Consumer Business. Such rights may not be used by ECC or the members of the
ECC Group to compete or to enable other Persons to compete with the Company or the
members of the Company Group in the Receiver Business. This license shall not grant,
or entitle ECC or any member of the ECC group to, any rights to any improvements,
modifications or derivative works of the Consumer Business IP made by the Company or
the members of the Company Group after the Distribution Date.
	 
	 	10.2.	 	To the extent that there is unregistered Intellectual Property owned by ECC or
a member of the ECC Group that is (a) not otherwise the subject of an issued patent,
pending patent application, or issued invention disclosure which is owned by ECC or a
member of the ECC Group (or is being assigned to the Company or a member of the Company
Group hereunder) and (b) which relates exclusively to or

10

 

	 	 	 	is necessary for the continued conduct of the Receiver Business (“Receiver Business
IP”), ECC and the members of the ECC Group hereby grant to the Company and the
members of the Company Group a perpetual, royalty-free, worldwide license and right
to use, practice, license, and sublicense the Receiver Business IP, but only in
connection with the Receiver Business. Such rights may not be used by the Company
or the members of the Company Group to compete or to enable other Persons to compete
with ECC or the members of the ECC Group in the Consumer Business. This license
shall not grant or entitle the Company or any member of the Company group to any
rights to any improvements, modifications or derivative works of the Receiver
Business IP made by ECC or the members of the ECC Group after the Distribution Date.

	11.	 	Transitional Trademark License and Name Change.

	 	11.1.	 	Effective as of the ECC Contribution Date, Company grants to ECC and the ECC
Group a non-exclusive, non-transferable, non-sublicensable, worldwide, limited license
(“EchoStar Name License”) to use the name “ECHOSTAR” and the Assigned ECC IP
and any similar derivations thereof (collectively, the “EchoStar Names”) as
trade names and trademarks in connection with the Consumer Business and in the same
manner as the EchoStar Names are used by ECC, the ECC Group and the Company as of the
ECC Contribution Date for: (a) External Use for a term beginning on the ECC
Contribution Date and ending one (1) year from the Distribution Date and (b) Internal
Use for a term beginning on the ECC Contribution Date and ending two (2) years from the
Distribution Date.
	 
	 	11.2.	 	ECC and the ECC Group shall use the EchoStar Names: (a) solely in connection
with the types of goods and services offered by ECC, the ECC Group or the Company Group
as of the ECC Contribution Date; (b) in accordance with the terms of this Agreement;
and (c) in a manner that is consistent with industry standards for quality, but in no
event shall the EchoStar Names be used in connection with goods or services that are of
a lesser quality than the quality of those goods and services offered as of the ECC
Contribution Date by ECC, the ECC Group or the Company Group.
	 
	 	11.3.	 	ECC and the ECC Group may use the EchoStar Names for External Use for a term
beginning on the ECC Contribution Date and ending one (1) year from the Distribution
Date for the purpose of eliminating confusion on the part of customers and others and
thereafter ECC acknowledges and agrees not to use, and to cause any member of the ECC
Group not to use, for External Use, the EchoStar Names as trademarks. ECC acknowledges
and agrees that nothing contained in this Agreement shall otherwise restrict the
Company from using any name or mark that incorporates the term “ECHOSTAR” or any terms
similar thereto or any combinations thereof.

	 	11.4.	 	The Company acknowledges and agrees not to (and to cause all members of the
Company Group not to) make any public or private use of the name or trademark “DISH
NETWORK” or any terms confusingly similar thereto or any

11

 

	 	 	 	combinations thereof with other words or phrases and not to use the name “DISH
NETWORK” or any other trademark owned by ECC or any member of the ECC Group, in any
manner as to be likely to cause confusion, deception or mistake or to suggest that
the Company or any members of the Company Group or any product or service offered by
any of them are approved, recommended, endorsed, licensed or sponsored by ECC or any
member of the ECC Group.

	 	11.5.	 	Within two (2) years from the Distribution Date, ECC shall (and shall cause
any and all members of the Company Group with the term “ECHOSTAR” in their respective
names to) change their names so that the new names of ECC and the members of the ECC
Group do not contain the term “ECHOSTAR”. ECC and the members of the ECC Group shall
make all filings and submissions, at their sole cost and expense, to effectuate the
aforementioned name changes.

	12.	 	Consents and Approvals.

	 	12.1.	 	ECC and the members of the ECC Group who are parties to this Agreement shall
use their commercially reasonable efforts to obtain any and all consents and approvals
necessary to allow such parties to assign the Acquisition LLC Intellectual Property,
the Satellite LLC Intellectual Property, the Echosphere Intellectual Property, and the
Assigned ECC IP, including the ECC Intellectual Property, to the Company, or to
otherwise grant rights to the Company, as contemplated by this Agreement (the “ECC
Required Consents”). The Company shall cooperate with ECC’s and the members of the
ECC Group’s reasonable requests to effectuate the transactions contemplated herein, and
shall execute any documents requested by ECC or the members of the ECC Group in
connection with their efforts to obtain the ECC Required Consents.
	 
	 	12.2.	 	If an ECC Required Consent is not obtained with respect to certain of the
Acquisition LLC Intellectual Property, the Satellite LLC Intellectual Property, the
Echosphere Intellectual Property, the Assigned ECC IP, including the ECC Intellectual
Property, or any other Intellectual Property rights that are to be granted to the
Company Group hereunder after the use of commercially reasonable efforts, then the
Acquisition LLC Intellectual Property, the Satellite LLC Intellectual Property, the
Echosphere Intellectual Property, the Assigned ECC IP, including the ECC Intellectual
Property, or any other such Intellectual Property rights as applicable, shall only be
assigned to the extent permitted in the absence of the missing ECC Required Consents.
The Parties shall have no further obligations if such ECC Required Consents are
withheld.
	 
	 	12.3.	 	The Company and the members of the Company Group who are parties to this
Agreement shall use their commercially reasonable efforts to obtain any and all
consents and approvals necessary to allow such parties to assign the ETC Trademarks,
EIC Trademarks, EIC Domain Names and the DISH CO Inventions to ECC, or to otherwise
grant rights to ECC, as contemplated by this Agreement (the “Company Required
Consents”). ECC shall cooperate with the Company’s and the members of the Company
Group’s reasonable requests to effectuate the

12

 

	 	 	 	transactions contemplated herein, and shall execute any documents requested by the
Company or the members of the Company Group in connection with their efforts to
obtain the Company Required Consents.

	 	12.4.	 	If a Company Required Consent is not obtained with respect to certain of the
ETC Trademarks, EIC Trademarks, EIC Domain Names, the DISH CO Inventions or any other
Intellectual Property rights that are to be granted to the ECC Group hereunder after
the use of commercially reasonable efforts, then the ETC Trademarks, EIC Trademarks,
EIC Domain Names, the DISH CO Inventions or any other such Intellectual Property rights
as applicable, shall only be assigned to the extent permitted in the absence of the
missing Company Required Consents. The Parties shall have no further obligations if
such Company Required Consents are withheld.

	13.	 	Provision and Destruction of Certain Materials.

	 	13.1.	 	Within thirty (30) days from the Distribution Date, the Company and the
members of the Company Group shall destroy all copies of marketing materials and
documentation in their possession, custody or control, including any envelopes,
letterheads, business cards, presentations, advertising, fliers, sales circulars and
direct mail packages that contain a trademark owned by ECC or any member of the ECC
Group, including the mark “DISH NETWORK” and any other marks confusingly similar
thereto.
	 
	 	13.2.	 	Within one (1) year from the Distribution Date, ECC and the members of the ECC
Group shall destroy all copies of marketing materials and documentation in their
possession, custody or control, including any envelopes, letterheads, business cards,
presentations, advertising, fliers, sales circulars and direct mail packages that
contain a trademark owned after the Distribution Date by the Company, including any
EchoStar Names.
	 
	 	13.3.	 	Within thirty (30) days after the Distribution Date, each Party shall destroy
all copies of documents or files in its respective possession, custody or control that
contain any of the other Parties’ proprietary information or Intellectual Property that
has not been assigned to such Party under this Agreement; provided, that for
any given document of file any Party at its option may instead indelibly and completely
redact any of said proprietary information of the other Parties so long as such Party
notifies the other Parties of such actions and retention of the aforementioned types of
documents and files.
	 
	 	13.4.	 	As of the Distribution Date, except as otherwise provided in the Transition
Services Agreement, the Company and the members of the Company Group shall no longer
receive any licenses or rights to use any hardware, software or other Intellectual
Property based on ECC’s or any member of the ECC Group’s agreements or licenses with
Third Parties.

13

 

	14.	 	Representations and Warranties.

	 	14.1.	 	THE ACQUISITION LLC INTELLECTUAL PROPERTY, THE SATELLITE LLC INTELLECTUAL
PROPERTY, THE ECHOSPHERE INTELLECTUAL PROPERTY, THE ASSIGNED ECC IP, INCLUDING THE ECC
INTELLECTUAL PROPERTY, THE ETC TRADEMARKS, THE EIC TRADEMARKS, THE EIC SPAIN DOMAIN
NAMES AND THE DISH CO INVENTIONS, ARE PROVIDED “AS IS” PURSUANT TO THIS AGREEMENT.
EXCEPT AS EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, NO PARTY MAKES ANY WARRANTIES ON
ANY KIND AND THIS AGREEMENT EXPRESSLY EXCLUDES, AND THE PARTIES HEREBY RESPECTIVELY
DISCLAIM, ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN,
STATUTORY OR OTHERWISE, INCLUDING: (A) ANY WARRANTY THAT THE ACQUISITION LLC
INTELLECTUAL PROPERTY, THE SATELLITE LLC INTELLECTUAL PROPERTY, THE ECHOSPHERE
INTELLECTUAL PROPERTY, THE ASSIGNED ECC IP, INCLUDING THE ECC INTELLECTUAL PROPERTY,
THE ETC TRADEMARKS, THE EIC TRADEMARKS, THE EIC SPAIN DOMAIN NAMES AND THE DISH CO
INVENTIONS, ARE ERROR FREE OR SECURE, WILL OPERATE WITHOUT INTERRUPTION, OR ARE
COMPATIBLE WITH ALL EQUIPMENT AND SOFTWARE CONFIGURATIONS; (B) ANY WARRANTY OF
MERCHANTABILITY OR WARRANTY ARISING OUT OF CUSTOM OR USAGE IN TRADE; (C) ANY WARRANTY
OF FITNESS FOR A PARTICULAR PURPOSE; AND (D) ANY WARRANTY OF NON-INFRINGEMENT OR
VALIDITY.
	 
	 	14.2.	 	EXCEPT AS EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, NO PARTY OR ITS RESPECTIVE
REPRESENTATIVES SHALL BE LIABLE TO THE OTHER PARTIES, OR ANY THIRD PARTY, FOR ANY
CONSEQUENTIAL, INCIDENTAL, SPECIAL, INDIRECT, PUNITIVE, OR EXEMPLARY DAMAGES ARISING
OUT OF OR RELATED TO THIS AGREEMENT, THE ACQUISITION LLC INTELLECTUAL PROPERTY, THE
SATELLITE LLC INTELLECTUAL PROPERTY, THE ECHOSPHERE INTELLECTUAL PROPERTY, THE ASSIGNED
ECC IP, INCLUDING THE ECC INTELLECTUAL PROPERTY, THE ETC TRADEMARKS, THE EIC
TRADEMARKS, THE EIC SPAIN DOMAIN NAMES AND THE DISH CO INVENTIONS, OR ANY ELEMENTS OF
ANY OF THE FOREGOING, OR OTHERWISE, INCLUDING DAMAGES FOR LOSS OF PROFITS, BUSINESS
INTERRUPTION, LOSS OF DATA, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES OR FOR
ANY CLAIM OR DEMAND AGAINST SUCH PARTY BY ANY OTHER PARTY, OR OTHER PECUNIARY LOSS,
EVEN IF SUCH PARTY HAS BEEN ADVISED OF OR KNOWS OF THE POSSIBILITY OF SUCH DAMAGES.

	15.	 	Term and Termination.

14

 

	 	15.1.	 	This Agreement is effective as of the Effective Date and will continue in
perpetuity, unless sooner terminated as set forth below.
	 
	 	15.2.	 	Any Party may, in addition, and without prejudice to any other rights or
remedies it may have, terminate this Agreement as follows:

	 	(a)	 	Except as otherwise provided herein, by a Party for any
material breach of this Agreement by any other Party that is not cured within
thirty (30) days of receipt by the Party in default of a notice specifying the
breach and requiring its cure; or
	 
	 	(b)	 	By a Party, immediately upon written notice, if (i) all or a
substantial portion of the assets of any other Party are transferred to an
assignee for the benefit of creditors, to a receiver, or to a trustee in
bankruptcy; (ii) a proceeding is commenced by or against the other Party for
relief under bankruptcy or similar laws; or (iii) any other Party is adjudged
bankrupt.

	 	15.3.	 	Sections 9.2, 11.3, 11.4, and 15.3 and Articles 14, 16, 17, and 18 of this
Agreement shall survive the termination of this Agreement as shall all assignments of
Intellectual Property that have occurred prior to the effective date of termination.

	16.	 	Confidentiality.

	 	16.1.	 	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.

	17.	 	No Agency Relationship.

	 	17.1.	 	Each of the Parties, in performance of this Agreement, is acting as an
independent contractor to the other Parties, and not as a partner, joint venturer or
agent, nor do the Parties intend to create by this Agreement an employer-employee
relationship. Each Party retains control over its personnel, and the employees of one
Party shall not be considered employees of the other Parties. No Party will be bound
by any representation, act or omission of the other Parties. No Party has any right,
power or authority to create any obligation, express or implied, on behalf of the other
Parties.

	18.	 	Miscellaneous.

	 	18.1.	 	This Agreement, including the Exhibits 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.

15

 

	 	18.2.	 	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 State of New York, County 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 or the agreements, instruments and documents
contemplated hereby, or the Acquisition LLC Intellectual Property, the Echosphere
Intellectual Property, or the Assigned ECC IP, including the ECC Intellectual Property,
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
(a) such Party is not personally subject to the jurisdiction of such courts, (b) 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 18.10, 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.

	 	18.3.	 	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) OR
THE ACQUISITION LLC INTELLECTUAL PROPERTY, THE ECHOSPHERE INTELLECTUAL PROPERTY, OR THE
ASSIGNED ECC IP, INCLUDING THE ECC INTELLECTUAL PROPERTY. 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 PARTIES
HERETO HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 18.3.
	 
	 	18.4.	 	This Agreement shall not be amended, modified or supplemented except by a
written instrument signed by an authorized representative of each of the Parties
hereto.
	 
	 	18.5.	 	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

16

 

	 	 	 	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.

	 	18.6.	 	Wherever possible, each provision hereof shall be interpreted in such a manner
as to be effective and valid under Applicable Law, but in case any one or more of the
provisions contained herein shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such provision or provisions shall be ineffective to the
extent, but only to the extent, of such invalidity, illegality or unenforceability
without invalidating the remainder of such provision or provisions or any other
provisions hereof, unless such a construction would be unreasonable.
	 
	 	18.7.	 	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.
	 
	 	18.8.	 	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 each of the Parties hereto under this Agreement
shall not be assignable by such Parties without the prior written consent of the other
Parties. 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).
	 
	 	18.9.	 	Except to the extent otherwise provided in this Agreement, 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 Party
any remedy, claim, liability, reimbursement or other right in excess of those existing
without reference to this Agreement.
	 
	 	18.10.	 	All notices, demands, requests, consents, approvals or other communications required
or permitted to be given hereunder or which are given with respect to this Agreement
shall be in writing and shall be personally served, delivered by reputable courier
service with charges prepaid, or transmitted by hand delivery, telegram, telex or
facsimile, addressed as set forth below, or to such other address as such Party shall
have specified most recently by written notice. Notice shall be deemed given on the
date of service or transmission if personally served or transmitted by telegram, telex
or facsimile. Notice otherwise sent as provided herein shall be deemed given on the
next Business Day following delivery of such notice to a reputable air courier service.

17

 

	 	 	 	If to the Company, ETC, EIC, or EIC Spain to:

Attention:

Telephone: ( )

Fax: ( )

	 	 	 	If to ECC, Acquisition LLC, Echosphere, EDBS, Satellite LLC or
Orbital to:

Attention:

Telephone: ( )

Fax: ( )

	 	18.11.	 	Neither ECC nor the Company (nor any member of the ECC Group or the Company Group)
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 Parties 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, 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.
	 
	 	18.12.	 	Notwithstanding any other provision of this Agreement, no individual who is a
stockholder, director, employee, officer, agent, member or representative of the
Company, ECC, or a member of the ECC Group who is a Party, 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, ECC, and the members of the ECC Group who are Parties, 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.
	 
	 	18.13.	 	This Agreement shall be deemed to be the joint work product of the Parties and any
rule of construction that a document shall be interpreted or construed against a
drafter of such document shall not be applicable.
	 
	 	18.14.	 	Each Party acknowledges that a material breach of its obligations under this
Agreement would cause irreparable damage to the other Parties, as applicable, the exact
amount of which would be difficult to ascertain, and that the remedies at law and
monetary damages for any such breach would be inadequate. Accordingly, in the event of
any action taken or threatened by any Party hereunder that, if taken, would constitute
a material breach of its obligations under this Agreement, the other Parties and their
respective successors and assigns, as applicable, are entitled to injunctive or other
relief and/or a decree for

18

 

	 	 	 	specific performance, without the posting of any bond or other security, in addition
to any other remedies it may have for damages or otherwise.

	 	18.15.	 	The article, section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.

Signatures on the Following Page.

19

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	ECHOSTAR COMMUNICATIONS CORPORATION	 	 	 	ECHOSTAR HOLDING CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

	 	Title:
	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	ECHOSTAR ACQUISITION L.L.C.	 	 	 	ECHOSPHERE L.L.C.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

	 	Title:
	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	ECHOSTAR DBS CORPORATION	 	 	 	ECHOSTAR SATELLITE L.L.C.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

	 	Title:
	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	ECHOSTAR INTERNATIONAL CORPORATION	 	 	 	ECHOSTAR TECHNOLOGIES CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

	 	Title:
	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	EIC SPAIN SL	 	 	 	ECHOSTAR ORBITAL CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

	 	Title:
	 	 	 	 	 	Title:

Signature Page to Intellectual Property Matters Agreement

20

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