Document:

Exhibit 10.23

 

CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR
WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND MARKED WITH
“**”. AN UNREDACTED VERSION OF THIS DOCUMENT HAS ALSO BEEN PROVIDED TO THE
SECURITIES AND EXCHANGE COMMISSION.

 

 

CONTRACT FOR SERVICES

 

THIS AGREEMENT, dated as of June 22, 2007
(together with the schedules, appendices, attachments and exhibits, if any (“Agreement”),
between Sky Angel U.S. , LLC. having its principal office at 3050 Horseshoe
Drive N., Suite 290, Naples, Florida 34104-7910 (“Company”) and NeuLion, Inc.,
having its principal place of business at 1600 Old Country Road, Suite 101,
Plainview, New York 11803, United States (“NeuLion”), each of Company and
NeuLion being a “Party”.

 

W I T N E S S E T H:

 

WHEREAS, Company desires to hire NeuLion to build
and deliver an Internet Protocol Television (“IPTV”) service as described in
this Agreement; and

 

WHEREAS, NeuLion desires to build and deliver an
IPTV service as described in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants contained in this Agreement, the Parties agree as follows:

 

1.             Term.  This Agreement shall be for a period of three
(3) years commencing on July 1, 2007 and shall automatically renew
thereafter for subsequent one (1) year periods, unless terminated as
otherwise provided for herein.

 

2.             Services.  The services to be provided by NeuLion under
this Agreement shall consist of the setup and back office operation of an IPTV
television service (the “Service”) for the North America marketplace
(the “Territory”), as more fully described in Exhibit A hereto.  The services to be provided by Company under
this Agreement shall consist of the provision of all content (“Content”) for
the Service and the advertising and marketing thereof, as more fully described,
and with the restrictions set forth in Exhibit A hereto.

 

3.             Advertising.  In the event Company sells advertising time
to be inserted in the Content, Company shall pay NeuLion the advertising fees
set forth in Exhibit B hereto.

 

4.             Consideration.  Company shall pay to NeuLion the fees set
forth in Exhibit B hereto as consideration for the services provided
pursuant to Section 2 above.

 

5.             Independent
Contractor.  NeuLion is an
independent contractor of Company.  Accordingly,
no Party shall, nor shall any officer, director, employee, servant, agent or
independent contractor of either Party (i) be deemed an employee of the
other Party, (ii) commit the other Party to any obligation, or (iii) hold
itself, himself, or herself out as an employee of the other Party or a Person
with the authority to commit the other Party to any obligation.  As used in 

 

1

 

this Agreement the word “Person” means any
individual person, entity (including partnerships, corporations and limited
liability companies), and government or political subdivision thereof
(including agencies, bureaus, offices and departments thereof).

 

6.             Compliance
With Law.  Both Company and NeuLion
shall comply with any and all applicable Federal, State and local Laws in
connection with their respective performance under this Agreement.

 

7.             Deliverables
and Intellectual Property Rights. 
Company understands and agrees that NeuLion shall utilize its (and/or
its affiliates’) proprietary intellectual property in the development and
delivery of the Service provided for herein. 
Accordingly, NeuLion shall be the owner of the Service and any and all
intellectual property rights therein contained (including but not limited to
all patents, trademarks, know how and business models), and, in further
consideration for the rights granted herein to Company, Company hereby assigns
to the NeuLion any and all rights, title and interest, including, without
limitation, copyrights, trade secrets and proprietary rights, to the materials
created or developed by NeuLion hereunder and required to be delivered to
Company by virtue of their description or specification as a deliverable in Exhibit A
(the “Deliverables”), excluding the Content provided by Company
thereunder.  The Deliverables shall not
be deemed to be “works made for hire” under the federal copyright laws.  Company agrees to give NeuLion reasonable
assistance to perfect such assignment of such rights, title and interest.

 

8.             Infringement.
 NeuLion warrants and represents that the
Deliverables do not, and Company warrants that the Content does not, infringe
upon or constitute a misappropriation of any U.S. copyright, trademark, patent,
trade secret or other proprietary right of any third party.  Each Party will indemnify, defend and hold
harmless the other Party from and against all third party claims against, and
any related damages, claims, expenses (including reasonable attorney’s fees),
judgments, liabilities and costs (“Losses”), which such Party may suffer or
incur relating to any claim or action alleging that the Deliverables or the
Content infringe any U.S. copyright, trade secret, patent right of design, or
other third party intellectual property right. 
In the event of any third party claim against Company in respect of the
Deliverables, NeuLion, at its option, may (i) obtain the right to use the
Deliverables without obligation on the part of Company to the owner of the
allegedly infringed intellectual property, (ii) modify the Deliverables,
without materially diminishing the functionality or performance, thereof, to
become non-infringing at NeuLion’s sole expense or (iii) discontinue the
use of infringing Deliverables.  In the
event of any third party claim against NeuLion in respect of the Content,
Company, at its option, may (i) obtain the right to use the Content
without obligation on the part of NeuLion to the owner of the allegedly
infringed intellectual property, or (ii) discontinue the use of infringing
Content.

 

9.             Limited
Service Warranty.  NeuLion warrants
that the Service will operate according to the specifications published by
NeuLion.  If it is determined that the
Service does not operate according to such specifications, NeuLion’s only
responsibility will be to use its best efforts, consistent with industry
standards, to cure the defect.  EXCEPT AS
SET FORTH HEREIN, NO OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILTY AND FITNESS FOR A
PARTICULAR PURPOSE, ARE MADE BY NEULION. 
IN NO EVENT WILL NEULION BE LIABLE TO COMPANY OR ANY OTHER PARTY FOR ANY
LOSS, 

 

2

 

INCLUDING TIME, MONEY, GOODWILL, LOST PROFITS AND
CONSEQUENTIAL DAMAGES BASED ON CONTRACT, TORT OR OTHER LEGAL THEORY, WHICH MAY ARISE
HEREUNDER OR FROM THE USE OR OPERATION OF THE SERVICE.

 

10.           Indemnification;
Defense; Cooperation.  (a) Each
Party shall be responsible for and shall indemnify and hold harmless the other
Party and its officers, employees, and agents (the “Indemnified Parties”)
from and against any and all liabilities, losses, costs, expenses (including,
without limitation, attorneys’ fees and disbursements) and damages (“Losses”),
arising out of or in connection with any acts or omissions of the Party,
regardless of whether due to negligence, fault, or default, including Losses in
connection with any threatened investigation, litigation or other proceeding or
preparing a defense to or prosecuting the same; provided, however, that the
Party shall not be responsible for that portion, if any, of a Loss that is
caused by the negligence, fault or default of the other Party.

 

(b)           Each
Party shall, upon the other Party’s demand, promptly and diligently defend, at
the Party’s own risk and expense, any and all suits, actions, or proceedings
which may be brought or instituted against one or more Indemnified Parties for
which the Party is responsible under this Section, and, further to the Party’s
indemnification obligations, the Party shall pay and satisfy any judgment,
decree, loss or settlement in connection therewith.

 

(c)           Each
Party shall cooperate with the other Party in connection with the
investigation, defense or prosecution of any action, suit or proceeding in
connection with this Agreement.

 

(d)           The
provisions of this Section shall survive the termination of this
Agreement.

 

11.           Assignment;
Amendment; Waiver; Subcontracting.  (a) Neither
Party may assign this Agreement nor any of its rights and obligations under
this Agreement, without the prior written consent of the other Party, which
consent shall not be unreasonably withheld. 
Notwithstanding the foregoing, the public offering of a Party, a sale of
a controlling interest in a Party, or a sale of substantially all of the assets
of a Party shall not constitute an assignment for purposes of this Section.

 

(b)           This
Agreement and the rights and obligations hereunder may not be in whole or part (i) amended,
(ii) waived, or (iii) subcontracted, without the prior written
consent of the Party against whom enforcement of such action is sought.  Any purported modification without such prior
written consent shall be null and void. 
The failure of a Party to assert any of its rights under this Agreement,
including the right to demand strict performance, shall not constitute a waiver
of such rights.

 

12.           Termination.  This Agreement may be terminated
****************************************************

*****************************************************************************.

 

13.           Confidentiality.  “Confidential Information” shall
include:  (i) all prices, rates and
other financial information related to the Services, (ii) all information
relating to the customers of either Party, including customer lists, and (iii) all
information one Party provides to the other which is clearly identified as
confidential or proprietary. 
Confidential Information disclosed by either Party to the other shall be
held by the recipient in confidence and not: 
(a) used by the 

 

3

 

recipient for personal advantage of any kind, or (b) made
available for third parties to use.  Each
Party will direct its employees, contractors, consultants and representatives
who have access to any Confidential Information to comply with all of the terms
of this Section.  The following
information shall not be Confidential Information if:  (i) it is or becomes available to the
public through no wrongful act of the receiving Party; (ii) it is already
in the possession of the receiving Party and not subject to any agreement of
confidence between the Parties; (iii) it is received from a third Party
without restriction for the benefit of the disclosing Party and without breach
of this Agreement; (iv) it is independently developed by the receiving
Party; (v) it is disclosed pursuant to a requirement of a duly empowered
government agency or a court of competent jurisdiction after due notice and an
adequate opportunity to intervene is given to the disclosing Party unless such
notice is prohibited.  Upon termination
or expiration of this Agreement, the receiving Party shall at the disclosing
Party’s direction, either return or destroy all of the disclosing Party’s
Confidential Information and so certify in writing.  The obligations of this provision will
survive for five (5) years after any termination or expiration of this
Agreement.

 

14.           Audit.  During the Term of this Agreement, each Party
may audit the books and records of the other Party relevant to this Agreement
no more than once each year thereof.  All
such audits shall be performed by an independent accounting firm at the sole
expense of the auditing Party and must take place on reasonable notice and
during normal business hours.  Such
audits will be conducted to determine that all accounting, billing, cash collection
and cash distribution is done in accordance with the terms of the
Agreement.  Any accounting discrepancies
will be resolved within thirty (30) days from the last day of the audit and in
the event those discrepancies are **************.

 

15.           No
Third Party Beneficiaries.  This
Agreement is entered solely by and between the Parties and shall not be deemed
to create any rights in or obligations to any third parties.

 

16.           Force
Majeure.  Neither Party shall be
liable for failure to fulfill its obligations under this Agreement if that
failure is caused, directly or indirectly, by flood, communications failure,
extreme weather, fire, mud slide, earthquake, or other natural calamity or act
of God, interruption in water, electricity, riots, civil disorders, rebellions
or revolutions, acts of governmental agencies, quarantines, embargoes,
malicious acts of third parties, acts of terrorism, labor disputes affecting
vendors or subcontractors and for which the party claiming force majeure is not
responsible, or any other similar cause beyond the reasonable control of that
Party.

 

17.           Consent
to Jurisdiction and Venue; Governing Law. 
Unless otherwise specified in this Agreement or required by Law,
exclusive original jurisdiction for all claims or actions with respect to this
Agreement shall be in a State or Federal Court in Nassau County in New York
State and the Parties expressly waive any objections to the same on any
grounds, including venue and forum non convens. 
This Agreement is intended as a contract under, and shall be governed
and construed in accordance with, the Laws of New York State, without regard to
the conflict of laws provisions thereof.

 

18.           Notices.  Any notice, request, demand or other
communication required to be given or made in connection with this Agreement
shall be (a) in writing, (b) delivered or sent (i) 

 

4

 

by hand delivery, evidenced
by a signed, dated receipt, (ii) postage prepaid via certified mail,
return receipt requested, or (iii) overnight delivery via a nationally
recognized courier service, (c) deemed given or made on the date three (3) business
days after it is mailed or one (1) business day after it is released to a
courier service, as applicable, if addressed to the President or Chief
Executive Officer of the Party at the address specified above for the Party, or
in each case to such other persons or addresses as shall be designated by
written notice.

 

19.           All
Legal Provisions Deemed Included; Severability; Supremacy.  (a) Every provision required by Law to
be inserted into or referenced by this Agreement is intended to be a part of
this Agreement.  If any such provision is
not inserted or referenced or is not inserted or referenced in correct form
then (i) such provision shall be deemed inserted into or referenced by
this Agreement for purposes of interpretation and (ii) upon the
application of either Party this Agreement shall be formally amended to comply
strictly with the Law, without prejudice to the rights of either Party.

 

(b)           In
the event that any provision of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

(c)           Unless
the application of this subsection will cause a provision required by Law to be
excluded from this Agreement, in the event of an actual conflict between the
terms and conditions set forth above the signature page to this Agreement
and those contained in any schedule, exhibit, appendix, or attachment to this
Agreement, the terms and conditions set forth above the signature page shall
control.  To the extent possible, all the
terms of this Agreement should be read together as not conflicting.

 

20.           Section and
Other Headings.  The section and
other headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

 

21.           Entire
Agreement.  This Agreement represents
the full and entire understanding and agreement between the parties with regard
to the subject matter hereof and supersedes all prior agreements (whether
written or oral) of the parties relating to the subject matter of this
Agreement.

 

IN WITNESS WHEREOF, the Parties have executed this
Agreement as of the date first above written.

 

5

 

	
  NeuLion, Inc.  

  	
   

  	
  Company: Sky Angel U.S., LLC  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Ronald M.E. Nunn

  	
   

  	
  By:

  	
  /s/
  Thomas Scott

  
	
  (Authorized Signature)

  	
   

  	
  (Authorized Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Ronald
  M.E. Nunn

  	
   

  	
  Thomas
  Scott

  
	
  Type or Print Name of Person Signing 

  	
   

  	
  Type or Print Name of Person Signing 

  
	
   

  	
   

  	
   

  
	
  EVP,
  Business Operations

  	
   

  	
  President/COO

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  06-26-2007

  	
   

  	
  6/22/07

  
	
  Date

  	
   

  	
  Date

  
					

 

6

 

EXHIBIT
A

 

NEULION PROVIDED SERVICES

 

NeuLion shall provide the following services and
Deliverables for the setup and back office operations of the Service, within
the Territory, provided that Company obtains all requisite legal and regulatory
approvals for any locality.  These
Deliverables and services shall include the utilization of NeuLion owned and
licensed technologies and proprietary processes, including the NeuLion iPTV
Services Support described in Exhibit D and the NeuLion Monitoring, Backup
and Recovery processes described in Exhibit E.  The specific Deliverables to be provided by
NeuLion are:

 

·                                          Content
Encoding and Management – NeuLion shall provide the process,
technology, necessary third-party software licenses and ongoing personnel
services to encode Company provided Content for subsequent transmission over
the internet to the Service’s customers. 
Services include:

 

1.                                       The delivery,
installation, implementation, support, maintenance and remote management of the
NeuLion Transcoder System, consisting of server hardware, operating system and
NeuLion propriety software, as required for linear broadcast channel Content
encoding;

 

2.                                       The encoding of
Company provided video Content into NeuLion’s proprietary AVC (Advanced Video
Compression) format;

 

3.                                       No later than
the fourth calendar quarter of 2007 provide the encoding of Company provided
audio Content into MP3 codec at 128kbps;

 

4.                                       The publishing
of daily broadcast channel play lists for subsequent scheduling of Content
broadcast; and,

 

5.                                       The storage,
backup and maintenance of the encoded Content to support forty-eight (48) hours
of broadcast Content and unlimited Video on Demand (“VOD”) library
Content.  In the event any VOD title has
not been viewed in the preceding ninety (90) days NeuLion may delete that
title.

 

·                                          Content
Delivery — NeuLion shall provide the process, technology,
necessary third-party software licenses and ongoing personnel services to
deliver broadcast Content to the Service’s customers.  Services include:

 

1.                                       Implementation,
support, maintenance and management of hardware, software and the NeuLion iPTV
Platform to support customer access control and selection management of
broadcast channel and VOD library Content;

 

2.                                       Implementation,
support, maintenance and management of hardware, software and the NeuLion iPTV
Platform to concurrently stream broadcast channel and VOD Content as required
to support the Service’s customers Content viewing demand; and,

 

3.                                       Implementation,
support, maintenance and management of hardware, software and the NeuLion iPTV
Platform to provision and manage IP 

 

7

 

network
bandwidth resources as required supporting Service’s customers’ Content
broadcast demand.

 

·                                          Support
of Company’s Sales and Customer Service Support Requests — NeuLion
shall provide the process, technology and ongoing personnel services to accept
Company’s new customer orders and support Company’s Customer Service requests
for second level support.  Services
include:

 

1.                                       Implementation,
support, maintenance and management of hardware, software and the NeuLion iPTV
Platform to support customer order management and administration to be utilized
by both NeuLion and Company personnel, with support for direct order entry
capture from Company’s Service web site;

 

2.                                       Implementation
and maintenance of hardware, software and NeuLion technology to log and
subsequent track activity by NeuLion personnel of Company’s Customer Services
personnel’s requests for second level support; and,

 

3.                                       The ongoing
analysis, response and resolution of Company’s Customer Services personnel’s
requests for second level support of customer’s technical issues.

 

·                                          Customer
Provisioning, Maintenance and Billing — NeuLion shall provide the
process, technology, necessary third-party software licenses and ongoing
personnel services to setup and provision new customers, maintain existing
customer account information and provide monthly customer billing.  Services include:

 

1.                                       Implementation,
support, maintenance and management of hardware, software and the NeuLion iPTV
Platform to support Service’s customer account definition and maintenance to
include a internet-based customer self-service facility;

 

2.                                       The ongoing
individual customer account setup, Set Top Box (STB) relationship
definition/maintenance and STB fulfillment to include STB customer shipping;

 

3.                                       The ongoing
monthly billing of customer accounts to include pre-approved, recurring
customer credit card charge processing, monthly customer billing statement
creation and statement posting for customer access via the supplied
internet-based customer self-service facility; and,

 

4.                                       Using
commercially reasonable efforts, work with Company to analyze and develop a
proposal for paid integration of the NeuLion iPTV Platform with Company’s
business systems.

 

COMPANY PROVIDED SERVICES

 

Company shall provide the following services and
Deliverables for the sales, marketing, and direct customer support of the
Service.  The specific Deliverables to be
provided by Company are:

 

·                                          Supplying
of Content — Company shall provide the Content required for
VOD library and daily broadcast to the Service’s customers.  Services include:

 

8

 

1.                                       The daily
acquisition and aggregation of Content in an agreed upon format to be delivered
in an agreed upon timeframe as required for daily broadcast to the Service’s
customers;

 

2.                                       The creation
and delivery of Content meta data (to include Content title and description,
high resolution Content promotional images and broadcast Content programming
schedules) in an agreed upon quality and in a timely manner;

 

3.                                       The
implementation, maintenance and management of hardware, software and network
services to transmit daily broadcast and VOD library Content to NeuLion for
subsequent Content encoding; and,

 

4.                                       Daily broadcast
and VOD library Content shall be delivered at a quality level required for
encoding and subsequent broadcast to the Service’s customers.

 

·                                          Sales
and Marketing of the Service — Company shall provide the
marketing, promotions, advertising and direct customer sales for the
Service.  Services include:

 

1.                                       The creation
and maintenance of the Service’s external web site to include promotional materials,
Service description and interface to the NeuLion supplied order management
facility for direct capture of new customer orders; and

 

2.                                       The ability to
receive new customer orders via telephone and/or fax, and the subsequent entry
of these new orders into the NeuLion supplied order management facility.

 

·                                          Direct
Customer Support — Company shall provide direct customer
communication, support and management of the Service’s customers.  Services include:

 

1.                                       The ability to
receive (both electronically and via telephone), log and track support requests
from the Service’s customers; and,

 

2.                                       The maintenance
of trained support personnel at a reasonable level as required to respond to
the Service’s customers’ support requests in a timely fashion.

 

9

 

EXHIBIT
B

 

NEULION SERVICE FEES

 

In consideration for services provided to Company,
NeuLion shall receive the following fees from Company:

 

·                                          Setup
Fee — For NeuLion’s services to setup the infrastructure and processes for
the Service’s Content encoding, management and delivery, and customer
provisioning, management and billing facilities, Company shall:

 

1.                                       ********;

 

2.                                       ********:

 

a.                                       ***********;

 

b.                                      ***********;
and,

 

c.                                       ***********

 

3.                                       ********;

 

4.                                       ********; and,

 

5.                                       NeuLion agrees
that for each NeuLion Transcoder System paid for by Company as described in
item 2 above, Company may at no additional charge:

 

a.                                       Replace a
linear broadcast channel on a NeuLion Transcoder System with a different linear
broadcast channel based upon a mutually agreed upon schedule and frequency;
and,

 

b.                                      Install,
execute, and use (according to NeuLion provided specifications), NeuLion’s
proprietary transcoder software on a backup computer system when the supplied
NeuLion Transcoder System is temporarily inoperable because of uncontrollable
events.  Such authorization shall extend
only until operable status is restored to the designated Computer System and in
no event longer then thirty (30) days.

 

·                                          Operations
Fee - For ongoing back office operations of the Services of this
Agreement, NeuLion shall retain the following Monthly Operations Fees:

 

                                                **********

                                                **********

                                                **********

 

 

10

 

[One Page omitted pursuant
to confidential treatment request.]

 

11

 

**********

**********

 

·              Set Top
Box (STB) Acquisition Fee – For STB fulfillment to Service’s
customers for this Agreement including NeuLion’s STB limited warranty as
described in Exhibit C, Company shall order **** and pay NeuLion for such
orders as follows:

 

**********

**********

 

12

 

EXHIBIT
C

 

NEULION SET TOP BOX LIMITED WARRANTY

 

1.             NeuLion
warrants to Company and the Service’s customer that the STBs will be free from
defects in workmanship and materials, under normal use and service, for one
year from the date of resell by Company to the Service’s customer.  NeuLion’s sole obligation under this express warranty
shall be, at NeuLion’s option and expense, to repair the defective STB or part,
deliver to the affected Service’s customer an equivalent STB or part to replace
the defective item, or if neither of the two foregoing options are reasonably
available, NeuLion may, on its sole discretion, refund to the affected Service’s
customer the purchase price paid for the defective STB.  All STBs that are replaced will become the
property of NeuLion.  Replacement STBs or
parts may be new or reconditioned. 
NeuLion warrants any replaced or repaired STB or part for ninety (90)
days from shipment, or the remainder of the initial warranty period, whichever
is longer.

 

2.             STBs
returned to NeuLion by a customer of the Service must be authorized by
Company.  Return shipping from the
affected Service’s customer to NeuLion will be paid by NeuLion.  The repaired or replaced STB will be shipped
to the customer, at NeuLion’s expense, not later than thirty (30) days after
NeuLion receives the defective STB, and NeuLion will retain risk of loss or
damage until the item is delivered to the customer.

 

3.             NeuLion
will not be liable under this limited warranty if its testing and examination
disclose that the alleged defect or malfunction in the STB does not exist or
results from: (i) failure to follow NeuLion’s installation, operation, or
maintenance instructions; (ii) unauthorized product modification or
alteration; (iii) abuse, misuse, negligent acts or omissions of the
Service’s customer and persons under the Service’s customer’s control; or, (iv) acts
of third parties, acts of God, accident, fire, lightning, power surges or
outages, or other hazards.

 

4.             IF
A NEULION STB DOES NOT OPERATE AS WARRANTED ABOVE, COMPANY’S AND SERVICE’S
CUSTOMER’S SOLE REMEDY FOR BREACH OF THAT WARRANTY SHALL BE REPAIR,
REPLACEMENT, OR REFUND OF THE PURCHASE PRICE PAID, AT NEULION ‘S OPTION.  TO THE FULL EXTENT ALLOWED BY LAW, THE
FOREGOING WARRANTIES AND REMEDIES ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER
WARRANTIES, TERMS, OR CONDITIONS, EXPRESS OR IMPLIED, EITHER IN FACT OR BY
OPERATION OF LAW, STATUTORY OR OTHERWISE, INCLUDING WARRANTIES, TERMS, OR
CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY
QUALITY, CORRESPONDENCE WITH DESCRIPTION, AND NON-INFRINGEMENT, ALL OF WHICH ARE
EXPRESSLY DISCLAIMED.  NEULION NEITHER
ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR IT ANY OTHER LIABILITY IN
CONNECTION WITH THE SALE, INSTALLATION, MAINTENANCE OR USE OF ITS PRODUCTS.

 

5.             EXCEPT
AS SET FORTH HEREIN, NO OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILTY AND FITNESS FOR A
PARTICULAR PURPOSE, 

 

13

 

ARE MADE BY NEULION. 
IN NO EVENT WILL NEULION BE LIABLE TO COMPANY OR ANY OTHER PARTY FOR ANY
LOSS, INCLUDING TIME, MONEY, GOODWILL, LOST PROFITS AND CONSEQUENTIAL DAMAGES
BASED ON CONTRACT, TORT OR OTHER LEGAL THEORY, WHICH MAY ARISE HEREUNDER
OR FROM THE USE, OPERATION OR MODIFICATION OF THE STBS AND THE NEULION SET TOP
BOX SYSTEM.

 

14

 

EXHIBIT
D

 

NEULION IPTV SERVICE SUPPORT

 

NeuLion’s iPTV Service support provides for logging,
categorization, analysis and creation of resolutions to all support requests
made by Company.  Request resolutions can
consist of answers to questions, creating of procedures to resolve and/or
circumvent a problem, and changes to the Service to correct a problem.

 

NeuLion’s web-based support request tracking system
allows Company to log requests, provide updates and review the status of the
request logs, 24 hours per day, 7 days per week, and 365 days per year.  For opened requests, there are two types of
technical support performed by NeuLion.

 

“Primary Support Services” address all the requests
opened on the support tracking system. 
Primary Support Services personnel will work on requests during
********************** ************.  “Emergency
Support Services” are provided after Primary Support Services hours for High
severity requests only.  When a High
severity request is opened outside of Primary Support Services hours, a NeuLion
support technician will be automatically notified of the new request so that it
can be addressed as quickly as possible. 
Within *** of entering a High severity request a NeuLion support
technician will update the request.

 

Additionally, NeuLion has an Emergency Support
Escalation telephone number, which is available 24 hours a day, 7 days a week,
that can be used for reporting ******************** ***********************.   NeuLion provides web support services within
the following timeframes.

 

	
  Request Severity Description

  	
   

  	
  Fix Plan
  Response

  
	
   

  	
   

  	
   

  
	
  High
  Severity Requests - A “Service down” or Service operations halted
  condition and a manual work around is not practical.

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  
	
  Medium-High
  Severity Requests - A suspected high impact condition associated
  with the Service causing significant problems.

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  
	
  Medium-Low
  Severity Requests - An intermittent or low-impact condition
  associated with the Service.

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  
	
  Low
  Severity Requests - Questions concerning performance or use of the
  Service.

  	
   

  	
  ***

  

 

NeuLion uses best efforts to correct High severity
requests by continually working with Company to provide a fix or work around
that eliminates a “Service down” condition.

 

15

 

EXHIBIT
E

 

NEULION MONITORING, BACKUP AND RECOVERY

 

NeuLion’s iPTV Service provides for monitoring,
backup and recovery from Service disruptions to the Service.  The procedures and systems available will provide
for a timely system recovery.

 

NeuLion utilizes a 24x7, automated system that
monitors the NeuLion iPTV Service at the Data Center system level and all
remotely located NeuLion Transcoder Systems. 
The monitoring system notifies NeuLion personnel of appropriate system
events allowing for proactive operator action as required.

 

NeuLion provides a scalable replicated Data Center
environment with multiple Data Centers. 
These Data Centers provide for complete redundancy of the Company’s VOD
and linear channels Content, and Content serving to their Services Subscribers.

 

All VOD Content is replicated to each Data Center at
time of initial Content store.  For
linear channel Content, NeuLion’s Transcoder Systems can be setup to feed
redundant transcoded streams to two separate Data Centers, which in turn
replicate the transcoded linear stream to the other Data Center, thus ensuring
that each Data Centers has two sources of the linear channel Content.  In the event of a failure to receive the
transcoded linear channel Content directly from the primary NeuLion Transcoder
System, the NeuLion iPTV Service automatically switches to the transcoded
linear channel content being replicated from the other Data Center, the Service’s
Subscribers will experience a minimum interruption.

 

16

 

EXHIBIT
F

 

RESPONSE TO TECHNICAL QUESTIONS

 

Question —

 

(1) We need a description of how radio channels will
be handled...either that one transcoder and set up fee will cover _X_ number of
radio channels or that video channels can also carry radio channels ( one or
two) if this is technically possible without additional charge which is how we
currently do it.

 

Answer —

 

NeuLion currently requires a dedicated radio
Transcoder Server and the input requirement is an ASI input.  Additionally, if the radio is bundled in the
ASI (MPEG2) input, the server can handle at least 10 channels.  For redundancy, it is recommended that a
second Transcoder be implemented to handle the same set of radio channels.

 

Question

 

2) We would like to see something in Exhibit D
or E that specifically gives us permission to locally and remotely (for our
remote programmers) monitor and control the system.(Michael has verbally said
this was Ok but we would like to see it in the Agreement) Michael said in NY
that we would be able to “fine tune” and set certain parameters of the video
encoding process (eg. bandwidth usage) to achieve the quality that we desired
from the out of the box configuration. 
We would like to see that confirmed in the Agreement and that we would
not at any time be asked to downgrade our performance to accommodate a new
system or box.

 

Answer —

 

From a technical point of view, NeuLion can provide
Sky Angel with local or remote access to the Transcoder administration
features.  This will support a process
for Sky Angel and NeuLion to work together to adjust the parameters of the
Transcoder in order to “fine tune” the quality.

 

Question

 

3) We need to know if we own the middleware and
could our customers continue to use the set top box for a new service if our
Agreement with Neulion where to end. 
Could this be addressed in the Agreement?

 

Answer —

 

NeuLion is not providing a technology license
agreement for the software in support of the services agreement.  The agreement requires NeuLion to deliver a
service not a product.  If the service is
canceled by Sky Angel the consumer would not be able to view the content on
their box or use the box for other purposes.

 

17

 

Question —

 

4) Can you explain the plan procedure for (and who
has what responsibility for) bringing online a backup system in case of a
primary transcoder failure?

 

Answer —

 

See Exhibit E.

 

Question —

 

5) We will need about *** authorized set top boxes
for monitoring each channel and for engineering, call center etc.  Could we have an allowance for these STB’s in
addition to the ***?

 

Answer —

 

NeuLion will provide Sky Angel with up to *** STB’s
for internal Sky Angel use.

 

Question —

 

6) In order to provide for increased capability in
the event of system failures, could we have language in the Agreement that you
will provide training to our engineers in how to control their software
transcoder process sufficient to enable us to accomplish a quick switch to a
back up system from our end?

 

Answer —

 

NeuLion will provide the Sky Angel support staff
with Transcoder training.

 

Question

 

7) We understand that problems at your end will need
to be handled by your people at that location but where we have equipment at
our facility that is processing content could we have permission in the
contract to:

 

A) monitor the system status(transcoder and
computer/OS system health) with our own M&C system

 

Answer —

 

NeuLion will provide Sky Angel with remote
monitoring capabilities in order to check the status and welfare of the
Transcoder system.  The monitoring
facilities provided by NeuLion for remote management will also include an alert
notification system.

 

Question —

 

B) monitor the output (Ie. Be able to fully decode
the actual video stream output from the transcoder software process back to raw
video and audio that we can put up on a video monitor) before the signal is fed
into the back haul to Neulion

 

18

 

Answer —

 

NeuLion currently does not support this feature but
will consider this request as an enhancement to the current service offering.

 

Question —

 

C) Be able to adjust operating parameters of the
video encoding process independently for each channel

 

D) Be able to control whether the primary or backup
transcoder system is online I understand our engineers have discussed this with
Michael and he was OK with it.  Could you
check with him and if it is Ok put the above language in the contract in Section E
as permission for us to do at our own expense?

 

Answer —

 

NeuLion will provide Sky Angel with Transcoder
features that will allow Sky Angel to adjust the encoding parameters for each
of the channels independently. Sky Angel can also notify NeuLion at anytime
when Sky Angel would like to switch the video input between primary and backup
Transcoders on the NeuLion media servers.

 

19Exhibit 10.24

 

CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED IS OMITTED AND MARKED WITH “**”. AN UNREDACTED
VERSION OF THIS DOCUMENT HAS ALSO BEEN PROVIDED TO THE SECURITIES AND EXCHANGE
COMMISSION.

 

CONTRACT FOR SERVICES

 

THIS
AGREEMENT, dated as of June 25, 2007 (the “Effective Date”), together with
the schedules, appendices, attachments and exhibits, if any (collectively, the
“Agreement”), between NHL Interactive CyberEnterprises, LLC, a Delaware limited
liability company having its principal office at 1251 Avenue of the Americas,
New York, NY 10020 (“the NHL”) and NeuLion, Inc., having its principal
place of business at 1600 Old Country Road, Suite 101, Plainview, New York
11803, United States (“NeuLion”), each of the NHL and NeuLion being a “Party”.

 

W I T N E S S
E T H:

 

WHEREAS, the
NHL desires to engage NeuLion to build and deliver an online multimedia
streaming service as described in this Agreement; and

 

WHEREAS,
NeuLion desires to build and deliver an online multimedia streaming service as
described in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained in
this Agreement, the Parties agree as follows:

 

1.             Term.  Unless earlier terminated as otherwise provided
for herein, the term of this Agreement shall commence on the Effective Date and
expire on September 30, 2010 (the “Initial Term”), and shall renew
thereafter for subsequent one (1) year periods (each a “Renewal Term”) ***
***(the Initial Term and all Renewal Terms are referred to collectively as the
“Term”).

 

2.             Services; Acceptance; Project
Meetings.  (a) The services to
be provided by NeuLion under this Agreement shall consist of the setup and back
office operation of an online multimedia streaming service (the “Service”) as
more fully described in Exhibit A hereto, utilizing audio, video,
photographic, statistical and other content (“Content”) provided by the
NHL.  NeuLion shall furnish the Service
in accordance with the service levels set forth in Exhibit C hereto (the
“Service Levels”).

 

(b)           The NHL shall have a reasonable
period of time to test each Service element and other deliverable furnished by
NeuLion hereunder (including, without limitation, the Video Player (as defined
in Exhibit A) and each of its particular implementations, as well as
NeuLion’s geofiltering/gating mechanisms) (collectively, the “Deliverables”) to
determine whether they 

 

1

 

meet the specifications set
forth in this Agreement or otherwise agreed by the Parties, and NeuLion shall
promptly correct any deficiencies identified by the NHL in this regard.

 

(c)           Project team leaders from the NHL and
NeuLion shall meet regularly, but no less frequently than weekly, during the
Service development and implementation process, in order to prioritize tasks,
discuss changes and scheduling, identify problems and resolutions, and
otherwise coordinate and cooperate in connection with the development and
implementation of the Service and the furnishing of all Deliverables.

 

3.             Consideration.  (a)  The NHL shall pay to NeuLion the
fees set forth in Exhibit B hereto as consideration for the services
provided pursuant to Section 2 above. 
All payments (other than amounts disputed in good faith) shall be due
thirty (30) days from the date of the NHL’s receipt of NeuLion’s invoice.  The Parties shall work in good faith to
expeditiously resolve any disputed portions of NeuLion’s invoices.

 

(b)           NeuLion shall maintain complete and
accurate books and records, in accordance with generally accepted industry
practices, to demonstrate full compliance with all the terms and conditions of
this Agreement and to substantiate NeuLion’s charges and/or expenses
hereunder.  NeuLion shall retain such
records for a period of at least two (2) years from the date of final
payment hereunder.  The NHL or its
designated representative(s) shall have access to such records for
purposes of audit during normal business hours upon reasonable prior notice to
NeuLion.  In the event any such audit
reveals an overpayment by the NHL, *****************

**************************.

 

4.             Independent Contractor.  NeuLion is an independent contractor of the
NHL.  Accordingly, no Party shall, nor
shall any officer, director, employee, servant, agent or independent contractor
of either Party (i) be deemed an employee of the other Party, (ii) commit
the other Party to any obligation, or (iii) hold itself, himself, or
herself out as an employee of the other Party or a Person with the authority to
commit the other Party to any obligation. 
As used in this Agreement the word “Person” means any individual person,
entity (including partnerships, corporations and limited liability companies),
and government or political subdivision thereof (including agencies, bureaus,
offices and departments thereof).

 

5.             Compliance With Law.  Both the NHL and NeuLion shall comply with
any and all applicable Federal, State and local laws, rules and
regulations (collectively, “Laws”) in connection with their respective performance
under this Agreement.

 

6.             NeuLion Works and Intellectual
Property Rights.  (a)  The NHL
understands and agrees that NeuLion shall utilize its (and/or its affiliates’)
proprietary intellectual property (including but not limited to patents,
trademarks, know how and business models) in the development and delivery of
the Service provided for herein (“NeuLion iPTV Platform”).  Accordingly, any transformations,
modifications, enhancements, expansions or adaptations of NeuLion iPTV Platform
developed by NeuLion in delivery of the Service provided for herein
(“Derivative Works”), and any and all intellectual property rights therein
contained (including but not limited to patents, trademarks, know how and
business models) shall be owned by

 

2

 

NeuLion, and, in further
consideration for the rights granted herein to the NHL, the NHL hereby assigns
to NeuLion any and all rights, title and interest, including, without
limitation, copyrights, trade secrets and proprietary rights, to the Derivative
Works developed by NeuLion hereunder. 
The Derivative Works shall not be deemed to be “works made for hire”
under the federal copyright laws.  The
NHL agrees to give NeuLion reasonable assistance to perfect such assignment of
such rights, title and interest.

 

(b)           Notwithstanding the foregoing, the
NHL shall retain all rights, and NeuLion shall not have any ownership interest,
in materials developed by the NHL in connection with the Service (if any), such
as applications and/or code developed by the NHL that enable the NeuLion iPTV
Platform to retrieve statistical information from the NHL’s real-time scoring
system (“NHL Developments”).  Moreover,
to the extent NeuLion is involved in the creation or production of any Content
hereunder, such Content shall be deemed a “work made for hire” under the
federal copyright laws and shall be owned by the NHL.  To this end, in further consideration for the
amounts paid to NeuLion hereunder, NeuLion hereby assigns to the NHL any and
all rights, title and interest, including, without limitation, copyrights,
trade secrets and proprietary rights, in and to the NHL Developments and
Content that would otherwise vest in NeuLion, and NeuLion agrees to give the
NHL reasonable assistance to perfect such assignment of such rights, title and
interest.

 

7.             Infringement.  NeuLion warrants and represents that neither
the Service, the Derivative Works nor the NeuLion iPTV Platform infringes upon
or constitutes a misappropriation of any copyright, trademark, patent, trade
secret or other proprietary right of any third party.  Each Party will indemnify, defend and hold
harmless the other Party, and the other Party’s affiliates, officers, employees
and agents, from and against all third party claims against, and any related
damages, claims, expenses (including reasonable attorney’s fees), judgments,
liabilities and costs (“Losses”), which such Party may suffer or incur relating
to any claim or action alleging that (in the case of indemnification by
NeuLion) the Service, the Derivative Works or the NeuLion iPTV Platform or (in
the case of indemnification by the NHL) the Content infringe any copyright,
trade secret, patent right of design, or other third party intellectual
property right.  In the event of any third
party claim against the NHL in respect of the NeuLion iPTV Platform, NeuLion,
at its option, may (i) obtain the right to use the NeuLion iPTV Platform
without obligation on the part of the NHL to the owner of the allegedly
infringed intellectual property, (ii) modify the NeuLion iPTV Platform,
without materially diminishing the functionality or performance, thereof, to
become non-infringing at NeuLion’s sole expense or, after using its best
efforts to achieve either of the foregoing options, (iii) discontinue the
use of infringing NeuLion iPTV Platform components and provide the NHL with a
pro rated refund of any fees pre-paid in connection with such components (the
allocation of which shall be agreed by the Parties in good faith).  In the event of any third party claim against
NeuLion in respect of the Content, the NHL, at its option, may (i) obtain
the right to use the Content without obligation on the part of NeuLion to the
owner of the allegedly infringed intellectual property, or (ii) discontinue
the use of infringing Content.  If,
pursuant to the foregoing, NeuLion elects to discontinue a material feature or
component of the NeuLion iPTV Platform, the NHL shall have the right, upon 45
days notice, to terminate this Agreement without liability to NeuLion.

 

3

 

8.             Limited Service Warranty.  NeuLion warrants that the Service will
operate according to the specifications set forth in the Exhibits hereto or
otherwise agreed by the Parties.  If it
is determined that the Service does not operate according to such
specifications, then except as required by applicable Law, NeuLion’s only
responsibility will be to use its best efforts, consistent with industry
standards, to cure the defect at its own expense.  Moreover, NeuLion warrants that it shall use
commercially reasonable efforts to avoid the introduction of virus, lockup
program, or other malicious or disabling code or device into the NeuLion iPTV
Platform and the applications and content managed by NeuLion hereunder.  EXCEPT AS SET FORTH HEREIN, NO OTHER
WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE
IMPLIED WARRANTIES OF MERCHANTABILTY AND FITNESS FOR A PARTICULAR PURPOSE, ARE
MADE BY EITHER PARTY.  IN NO EVENT WILL
EITHER PARTY BE LIABLE TO THE OTHER PARTYFOR ANY INDIRECT, INCIDENTAL, SPECIAL
OR CONSEQUENTIAL DAMAGES BASED ON CONTRACT, TORT OR OTHER LEGAL THEORY, WHICH MAY ARISE
HEREUNDER OR FROM THE USE OR OPERATION OF THE SERVICE.

 

9.             Indemnification; Defense;
Cooperation.  (a)  Each Party
shall be responsible for and shall indemnify, defend and hold harmless the
other Party and its affiliates, officers, employees, and agents (the “Indemnified
Parties”) from and against any and all Losses, arising out of or in
connection with any acts, omissions or breaches of this Agreement by the
indemnified Party, regardless of whether due to negligence, fault, or default,
including Losses in connection with any threatened investigation, litigation or
other proceeding or preparing a defense to or prosecuting the same; provided,
however, that the indemnifying Party shall not be responsible for that portion,
if any, of a Loss that is caused by the negligence, fault or default of the
other Party.

 

(b)           Each Party shall, upon the other
Party’s demand, promptly and diligently defend, at the Party’s own risk and
expense, any and all suits, actions, or proceedings which may be brought or
instituted against one or more Indemnified Parties for which the Party is
responsible under this Section, and, further to the Party’s indemnification
obligations, the Party shall pay and satisfy any judgment, decree, loss or
settlement in connection therewith.

 

(c)           Each Party shall cooperate with the
other Party in connection with the investigation, defense or prosecution of any
action, suit or proceeding in connection with this Agreement.

 

(d)           The provisions of Sections 7, 9, and
13 to 19 shall survive the termination of this Agreement.

 

10.           Assignment; Amendment; Waiver;
Subcontracting.  (a)  Neither
Party may assign, transfer or otherwise convey this Agreement nor any of its
rights and obligations under this Agreement, including by operation of law,
without the prior written consent of the other Party, which consent shall not
be unreasonably withheld.

 

4

 

(b)           This Agreement and the rights and
obligations hereunder may not be in whole or part (i) amended, (ii) waived,
or (iii) subcontracted, without the prior written consent of the Party
against whom enforcement of such action is sought.  Any purported modification without such prior
written consent shall be null and void. 
The failure of a Party to assert any of its rights under this Agreement,
including the right to demand strict performance, shall not constitute a waiver
of such rights.

 

11.           Termination.  (a)  This Agreement may be terminated
************************************************* **************************.

 

(b)           In addition, the NHL shall have the
right to ********************************************************* **************************.

 

12.           Confidentiality.  “Confidential Information” shall include: (i) all
prices, rates and other financial information related to the Services, (ii) all
information relating to the customers of either Party, including customer lists,
and (iii) all information one Party provides to the other which is clearly
identified as confidential or proprietary. 
Confidential Information disclosed by either Party to the other shall be
held by the recipient in confidence and not: (a) used by the recipient for
personal advantage of any kind, or (b) made available for third parties to
use.  Each Party will direct its
employees, contractors, consultants and representatives who have access to any
Confidential Information to comply with all of the terms of this Section.  The following information shall not be
Confidential Information if: (i) it is or becomes available to the public
through no wrongful act of the receiving Party; (ii) it is already in the
possession of the receiving Party and not subject to any agreement of
confidence between the Parties; (iii) it is received from a third Party
without restriction for the benefit of the disclosing Party and without breach
of this Agreement; (iv) it is independently developed by the receiving
Party; (v) it is disclosed pursuant to a requirement of a duly empowered
government agency or a court of competent jurisdiction after due notice and an
adequate opportunity to intervene is given to the disclosing Party unless such
notice is prohibited.  Upon termination
or expiration of this Agreement, the receiving Party shall at the disclosing
Party’s direction, either return or destroy all of the disclosing Party’s
Confidential Information and so certify in writing.  The obligations of this provision will
survive for five (5) years after any termination or expiration of this
Agreement.

 

13.           No Third Party Beneficiaries.  This Agreement is entered solely by and
between the Parties and shall not be deemed to create any rights in or
obligations to any third parties.

 

14.           Force Majeure.  Neither Party shall be liable for failure to
fulfill its obligations under this Agreement if that failure is caused,
directly or indirectly, by flood, communications failure, extreme weather,
fire, mud slide, earthquake, or other natural calamity or act of God,
interruption in water, electricity, riots, civil disorders, rebellions or
revolutions, acts of governmental agencies, quarantines, embargoes, malicious
acts of third parties, acts of terrorism, labor disputes affecting vendors or
subcontractors and for which the Party claiming force majeure is not
responsible, or any other similar cause beyond the reasonable control of that
Party (collectively, “Force Majeure Events”).

 

5

 

15.           Consent to Jurisdiction and Venue;
Governing Law.  Unless otherwise
specified in this Agreement or required by Law, exclusive original jurisdiction
for all claims or actions with respect to this Agreement shall be in a State or
Federal Court in Nassau County in New York State and the Parties expressly
waive any objections to the same on any grounds, including venue and forum non
conveniens.  This Agreement is intended
as a contract under, and shall be governed and construed in accordance with,
the Laws of New York State, without regard to the conflict of laws provisions
thereof.

 

16.           Notices.  Any notice, request, demand or other
communication required to be given or made in connection with this Agreement
shall be (a) in writing, (b) delivered or sent (i) by hand delivery,
evidenced by a signed, dated receipt, (ii) postage prepaid via certified
mail, return receipt requested, or (iii) overnight delivery via a
nationally recognized courier service, (c) deemed given or made on the
date three (3) business days after it is mailed or one (1) business
day after it is released to a courier service, as applicable, if addressed to
the President or Chief Executive Officer of the Party at the address specified
above for the Party, or in each case to such other persons or addresses as
shall be designated by written notice.

 

17.           All Legal Provisions Deemed
Included; Severability; Supremacy.  (a) Every
provision required by Law to be inserted into or referenced by this Agreement
is intended to be a part of this Agreement. 
If any such provision is not inserted or referenced or is not inserted
or referenced in correct form then (i) such provision shall be deemed
inserted into or referenced by this Agreement for purposes of interpretation
and (ii) upon the application of either Party this Agreement shall be
formally amended to comply strictly with the Law, without prejudice to the
rights of either Party.

 

(b)           In the event that any provision of
this Agreement shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

(c)           Unless the application of this
subsection will cause a provision required by Law to be excluded from this
Agreement, in the event of an actual conflict between the terms and conditions
set forth above the signature page to this Agreement and those contained
in any schedule, exhibit, appendix, or attachment to this Agreement, the terms
and conditions set forth above the signature page shall control.  To the extent possible, all the terms of this
Agreement should be read together as not conflicting.

 

18.           Section and Other Headings.  The section and other headings contained in
this Agreement are for reference purposes only and shall not affect the meaning
or interpretation of this Agreement.

 

19.           Entire Agreement.  This Agreement represents the full and entire
understanding and agreement between the Parties with regard to the subject
matter hereof and supersedes all prior agreements (whether written or oral) of the
Parties relating to the subject matter of this Agreement.

 

6

 

20.           Publicity.  Further, the Parties will work together on
the specific messaging of any press release regarding the relationship between
NeuLion and the NHL.  Each Party will
give the other appropriate advance notice and opportunity to review any
publicity materials before the actual release, and will not issue any release
or other publicity that mentions the other without the prior approval of that
Party.

 

IN WITNESS
WHEREOF, the Parties have executed this Agreement as of the date first above
written.

 

 

	
  NeuLion, Inc.

  	
   

  	
  NHL Interactive CyberEnterprises, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ronald M.E. Nunn

  	
   

  	
  By:

  	
  /s/ Keith Ritter

  
	
   

  	
  (Authorized Signature)

  	
   

  	
   

  	
  (Authorized
  Signature)

  
	
   

  	
   

  	
   

  
	
  Ronald M.E. Nunn

  	
   

  	
  Keith Ritter

  
	
  Type or
  Print Name of Person Signing

  	
   

  	
  Type or
  Print Name of Person Signing

  
	
   

  	
   

  	
   

  
	
  EVP, Business Operations

  	
   

  	
  President

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  06-27-2007

  	
   

  	
  June 25, 2007

  
	
  Date

  	
   

  	
  Date

  

 

7

 

EXHIBIT A

 

NEULION
PROVIDED SERVICES

 

NeuLion shall provide the
following services for the setup and back office operations of the Service,
provided that the NHL obtains all requisite legal and regulatory approvals for
any locality.  These services shall
include the utilization of the NeuLion iPTV Platform.  The specific services to be provided by
NeuLion are:

 

·                  Base Services —
NeuLion shall provide the process, technology and ongoing personnel services to
deliver the following “Base Services” to the NHL:

 

1.     Video player template design and implementation of
a video player based on the template for NHL.com and for each Member Club;

2.     Content management and storage for up to 51,000
hours of Content;

3.     Live and on-demand Content streaming, with digital
rights management, URL encryption (as applicable), ad server integration and
geo-targeting;

4.     Subscriber management, registration, billing and
payment processing;

5.     Syndication; and,

6.     Reporting and tracking.

 

·                  Center Ice Services
— NeuLion shall provide the process, technology and ongoing personnel services
to deliver the following “Center Ice Services” to the NHL:

 

1.     Downlink and transcoding of live game feeds; and

2.     Live streaming of home team television feed, away
team television feed, home team radio feed and away team radio feed for 1,340
games per season.

3.     The NHL shall have the exclusive right to set
pricing for the NHL Center Ice Online live video offering, and any other
Content offering managed by NeuLion hereunder.

4.     NeuLion shall notify the NHL no later than July 3,
2007, as to whether the Center Ice Services will include the streaming of radio
feeds (the “Radio Services”) as of the beginning of the Term or as of the start
of the second year of the Term.

 

·                  Consulting Services
— Upon individual request by the NHL, NeuLion shall provide the following
personnel services to assist the NHL and its Member Clubs in the development
and preparation of Content for the Service:

 

1.     Training classes for (i) Content Production
Strategy, (ii) Content Management, and (iii) Film and Field
Production; and,

2.     Content production outsourcing for Content
development, preparation and publishing to the Service by an individual Member
Club.

 

·                  Additional Specifications and
Requirements — The Service, the NeuLion iPTV Platform, the video
players and all of NeuLion’s other obligations hereunder shall, except to the
extent modified by the ultimate specifications for the Deliverables as mutually

 

8

 

agreed by the Parties (it being agreed that absent any such agreement,
the specifications set forth in this Exhibit A and Exhibits A-1 through
A-3 shall apply), conform in all material respects with:

 

1.     The “NeuLion iPTV Service Proposal” and “NeuLion
iPTV Web Solution Overview” presented by NeuLion to the NHL (a copy of which is
attached hereto as Exhibit A-1), with the exception of the “Form Agreement
Example” contained therein;

2.     The “NeuLion iPTV Service Proposal - Revised Pricing”
presented by NeuLion to the NHL on May 29, 2007 (a copy of which is
attached hereto as Exhibit A-2); and

3.     The “NHL Video Streaming Requirements” document
attached hereto as Exhibit A-3.

 

In the event of any conflict between the foregoing 3 documents, the
following order of precedence shall apply: Exhibit A-3, Exhibit A-2
and lastly, Exhibit A-1.  Moreover, Exhibit B
shall take precedence over any conflicting pricing terms in Exhibit A-2.

 

·                  Content Streaming
— In connection with all of NeuLion’s Content streaming hereunder, NeuLion
agrees to the following:

 

1.     NeuLion will install, set-up, and configure all
equipment, software, and systems required for encoding and streaming the
Content including but not limited to IRDs, monitoring systems, cabling and
satellites;

2.     NeuLion shall provide all technical resources
(hardware, software, etc.) in order to downlink and decode satellite signals of
NHL games using IRDs provided by the NHL and then encode those signals
(according to mutually agreed specifications) as required in order to include
them in NeuLion’s streaming network for access by subscribers;

3.     NeuLion may not use NHL IRDs for any purpose other
than to provide the Service to the NHL. 
Upon the expiration or termination of the Agreement for any reason,
NeuLion shall allow NHL to remove, or arrange the removal of, the IRDs from
NeuLion’s premises;

4.     NeuLion acknowledges and agrees that the NHL shall
control and manage the Content provided to NeuLion and that NeuLion will not
alter the Content in any way other than the conversion to a streaming format or
as directed by the NHL;

5.     NeuLion agrees to utilize satellite dishes
sufficient to downlink up to fifteen (15) simultaneous NHL games (both home and
away team feeds);

6.     The streaming rate for video shall have bit rate
of no less than 700 kbps unless directed by NHL to do otherwise, and the
streaming rate for audio shall be 28 kbps.

7.     NeuLion shall be responsible for all co-location,
including but not limited to racks, redundant power, and Tier 1 networking.

8.     At any time, the NHL may elect to bring some of
these activities in-house (e.g. the down-linking and encoding of game feeds),
in which case NeuLion shall 

 

9

 

work with the NHL to adjust Service delivery accordingly and to the
extent such transition results in cost savings to NeuLion the Parties shall
discuss in good faith an equitable sharing of such savings.

 

DELIVERABLES
AND SPECIFICATIONS

 

·                  Video Player —
NeuLion shall design, develop, implement and host a multimedia video player
through which the Content will be streamed to the NHL’s end users (the “Video
Player”).  The Video Player shall be
consistent in all material respects with the demonstrations given by NeuLion to
the NHL at the NHL’s offices on June 8, 2007, and with any incremental
features contained in any other demonstrations, documentation and other
materials furnished by NeuLion to the NHL in connection therewith.  In particular, and except to the extent
modified by the ultimate specifications for the Deliverables as mutually agreed
by the Parties, the Video Player shall:

 

1.     Be able to pull on-demand Content from the NHL’s
own content management system as well as from NeuLion’s own hosted systems;

2.     Include chat room functionality that enables the
end user to open a chat box next to the video window and select whether (a) to
enter a chat room for end users watching the particular Content then being
viewed by the end user or (b) to enter one of a pre-set list of other chat
rooms (e.g. organized per NHL team and/or per topic);

3.     Include a statistics feature that provides end
users with NHL statistics organized by team and by player;

4.     Include the ability to sort through the available
Content by (a) NHL team, and (b) type of content (e.g. live, VOD,
highlights, features, radio, stats);

5.     Include links to NHL team and player information,
previous team matchups, and other pertinent information and web pages as
designated by the NHL;

6.     Support multi-screen “mosaic” functionality, where
the end user can watch multiple games at once through smaller video windows,
select the game they wish to focus on, and enlarge that particular window up to
maximum size;

7.     Be able to detect the bandwidth capacity of end
users and, for end users who cannot adequately support the maximum bit rate
specified by the NHL, furnish them with Content encoded at a more suitable bit
rate; and

8.     Support integration with the NHL’s real-time
scoring system*, including:

a.                Real-time scores and game clock for all
games in progress;

b.               Real-time player/goalie stats (e.g.
goals, assists, shots on goal, penalty minutes, goals against average, save
percentage);

c.                Other real-time game stats (e.g. shots
on goal, faceoffs, powerplay opportunities/goals)

 

*The NHL acknowledges that its cooperation will be required in order to
achieve full integration of the NeuLion iPTV Platform and Video Player with the
NHL’s real-time scoring system.  The
Parties agree to work together in good faith to achieve such integration, but
NeuLion shall not be in breach of this Agreement for integration failures
caused by the NHL’s failure to furnish the necessary resources.

 

10

 

9.     In addition, NeuLion shall work with the NHL to
support whatever integration with Comcast’s streaming of NHL content becomes
necessary pursuant to the NHL’s existing contractual obligations with Comcast;
provided that to the extent such integration involves more than merely the
ability to link to Comcast’s own video player or website (rather than using the
Video Player’s own video window) when particular games are selected from the
menu of Content on the Video Player, such integration shall be subject to
technical feasibility and the Parties’ good faith agreement on appropriate
consideration to NeuLion.

 

·      Registration
Interface and Subscriber Control — NeuLion shall design, develop,
implement and host a registration interface to process subscriptions to
subscription-based Content packages (e.g. the NHL Center Ice Online package)
and assign unique user names and passwords (the “Registration Interface”).  In particular, and except to the extent
modified by the ultimate specifications for the Deliverables as mutually agreed
by the Parties, the Registration Interface shall:

 

1.     Support multi-lingual and multi-character-type
text for the names of the data capture fields;

2.     Pull the text of the NHL.com Terms of Services and
Privacy Policy from the NHL.com website into the Registration Interface (e.g.
through a scrollable text box);

3.     Enable collection of opt-in and opt-out
information specified by the NHL; and

4.     Ensure that each subscriber has a unique user-name
and support a password access system. 
NeuLion shall suspend a subscriber’s account at any time upon the
reasonable request of the NHL.

 

·      Payment
Processing — NeuLion shall design, develop, implement and host a
payment gateway for processing credit card transaction fees for any
subscription-based Content packages offered via the NeuLion iPTV Platform and
Video Player (the “Payment Gateway”), and shall be responsible for the credit
card transaction processing of all such fees (and any associated taxes) and
remitting all such amounts to the NHL. 
To this end, and without limitation, NeuLion shall:

 

1.     Ensure that the Payment Gateway can charge
subscribers in either US or Canadian currency based on the local of the
subscriber (i.e. quoting and charging a fee in the local US or Canadian
currency);

2.     To the extent funds are not deposited directly
into an NHL account, remit to the NHL any and all amounts collected by NeuLion
within 30 days after the end of each month (along with reports detailing the
basis for such payments);

3.     Use reasonable commercial efforts to include
indemnification obligations from any third party payment processors engaged by
NeuLion for their wrongful acts and omissions in their processing of financial
transactions hereunder (which obligations shall include indemnification of the
NHL and its affiliates); and

4.     Support the use of multiple price models (e.g.
Full-Season and Day Pass), pricing that can be changed during the course of the
season per time/date period (e.g. Full Season, Second Half Season, and
Playoffs), and pricing that can be

 

11

 

configured on a country-by-country basis (e.g. setting different
pricing for US, Canada, UK, Japan, etc.), in each case as specified by the NHL.

 

·      Geo-Filtering
and Content Blackout — NeuLion shall block Content pursuant to
blackout policies provided by the NHL. 
Such blocking will be based on the geographic location of the NHL
customer’s IP address at the time the customer seeks to access the Content,
regardless of where the customer is a resident or from where the customer
subscribed to the services.  For each NHL
team, the NHL will specify the team’s local telecast territory, and NeuLion
will blackout all of that team’s games (home and away) with respect to end
users identified by NeuLion as being located in that team’s local telecast
territory.  In addition, for games being
televised outside of a team’s local telecast territory, NeuLion shall blackout
such games for all end users located in the countries or territories where such
games are being televised, as specified by the NHL.  To this end, and except to the extent
modified by the ultimate specifications for the Deliverables as mutually agreed
by the Parties, NeuLion shall:

 

1.     Use its reasonable commercial efforts to (i) ensure
that it accurately associates the IP address of each end user to the geography
of each end user (including, without limitation, through the use of regularly
updated IP/ZIP databases, consistent with the highest industry standards) and (ii) minimize
the number of misidentifications (i.e. instances where NeuLion identifies a
user as being in one region when in fact they are in another region);

2.     Notify the NHL upon becoming aware of IP addresses
and/or end users that are being misidentified and comply with the NHL’s
determination as to what blackout rules should apply in such cases;

3.     Work in good faith with the NHL to continuously
improve the rate of accurate identifications over the course of the Term of the
Agreement;

4.     Use commercially reasonable efforts to identify
and block attempts by end users to circumvent the NHL’s blackout rules through
the use of proxy servers;

5.     Include an NHL-supplied message to consumers
seeking to access a blocked NHL game; and

6.     Allow the NHL to submit custom blackout schedule
lists in order to change their blackout designations of any game.  Among other things, this functionality would
enable the NHL to black out games that are televised nationally (or beyond the
local telecast territory of the teams involved) in all areas where such
telecasts are available.  Blackout
changes will be subject to database replication times.  48 business hours advance notice required.

 

MAINTENANCE AND SUPPORT

 

·      Support
— NeuLion shall provide Level 2 support in connection with the Content  packages managed by NeuLion hereunder.  NeuLion shall provide Level 2 support to the
NHL’s personnel during the NHL’s regular business hours and, for emergency
issues, on a 24/7 basis (phone or pager service).  Level 2 support shall be provided in
accordance with the Service Levels set forth in Exhibit C.  NeuLion shall assign a single point of
contact to the NHL for all issues arising in connection with the Service and
the NeuLion

 

12

 

iPTV Platform.  NeuLion shall also provide the NHL with
contact information for NeuLion’s network operations center.

 

·      Security
— NeuLion shall implement at all times during the Term industry-standard fraud
protection, and computer and data security measures.

 

13

 

EXHIBIT A-1

 

NeuLion iPTV Service Proposal

 

************

 

NeuLion iPTV Web Solutions Overview

 

 

14

 

EXHIBIT A-2

 

NeuLion iPTV Service Proposal – Revised Pricing

 

***************

 

15

 

EXHIBIT A-3

 

NHL Video Streaming Requirements

 

	
  Summary

  	
   

  
	
   

  	
   

  
	
  ·

  	
  Content
  Production

  
	
   

  	
  ·

  	
  “Islanders TV” style video production and content for all teams

  
	
   

  	
  ·

  	
  Live Game feeds for “Center Ice Streaming”

  
	
   

  	
  ·

  	
  Automated import of Hockey Factory Content

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Video
  Player Functionality and Features

  
	
   

  	
  ·

  	
  Easily Skinnable players, Playback controls (Stop, Skip, pause/play)

  
	
   

  	
  ·

  	
  Full-screen playback and auto-play support

  
	
   

  	
  ·

  	
  Customizable user interface

  
	
   

  	
  ·

  	
  Playlisting, Sharing of selected clips, RSS subscriptions

  
	
   

  	
  ·

  	
  Integrated search, Search engine optimization

  
	
   

  	
  ·

  	
  Multiple platform support (Windows, Mac, Linux)

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Content Management

  
	
   

  	
  ·

  	
  Per clip usage policies

  
	
   

  	
  ·

  	
  Metadata tagging

  
	
   

  	
  ·

  	
  Integration with NHL.com and Team web sites

  
	
   

  	
  ·

  	
  Transcode services

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Subscriber Management

  
	
   

  	
  ·

  	
  User Database

  
	
   

  	
  ·

  	
  Billing and customer payment processing User Registration tools

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Delivery

  
	
   

  	
  ·

  	
  Live streaming and video on demand

  
	
   

  	
  ·

  	
  E-commerce capabilities

  
	
   

  	
  ·

  	
  Zip code level access control

  
	
   

  	
  ·

  	
  Digital Rights Management

  
	
   

  	
  ·

  	
  Ad network integration

  
	
   

  	
  ·

  	
  Highly redundant and geographically diverse streaming network

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Reporting

  
	
   

  	
  ·

  	
  Usage reporting by clip, site, or network wide

  
	
   

  	
  ·

  	
  Comparative reports: most shared, most viewed

  
	
   

  	
  ·

  	
  Tracking of embedded/shared/emailed clips.

  
	
   

  	
  ·

  	
  Integration with Omniture

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Content Production

  
	
   

  	
  ·

  	
  “Islanders TV” style video production and content for all teams

  
				

 

16

 

	
   

  	
  ·

  	
  Produce the NHL Team TV product utilizing Neulion staff and all of
  its resources to: Shoot, Encode, Produce, Edit, Upload, and Publish

  
	
   

  	
  ·

  	
  Engagement not to exceed three hundred hours

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Acquisition/ encoding of Live Game feeds

  
	
   

  	
  ·

  	
  Center Ice Streaming

  
	
   

  	
  ·

  	
  In-market streaming of local rightsholder feed.

  
	
   

  	
  ·

  	
  Live Game Audio “Home & Away”

  
	
   

  	
  ·

  	
  Zip code level gating, billing, and
  subscriber support for both packages.

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Hockey Factory Content

  
	
   

  	
  ·

  	
  Automated import of Hockey Factory Content and associated metadata
  (individual event highlights, game highlights, some condensed games,
  no-stoppage whole games, weekly and occasional compilations)

  
	
   

  	
  ·

  	
  Integrated with NHL’s content management system.

  
	
   

  	
   

  	
   

  
	
  Video Player Functionality and Features

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Design Features

  
	
   

  	
  ·

  	
  Easily Skinnable players for team, team
  special event, team sponsor features, etc.

  
	
   

  	
  ·

  	
  Playback controls (Stop, Skip, pause/play)

  
	
   

  	
  ·

  	
  Full-screen playback and auto-play support

  
	
   

  	
  ·

  	
  Customizable user interface allowing teams to categorize, organize,
  and present their video content the way(s) that they choose to.

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Functionality

  
	
   

  	
  ·

  	
  Playlisting: Team-created manual playlists,
  auto-generated most-recent/most watched/most shared playlists, user-created
  playlists that can be shared with friends.

  
	
   

  	
  ·

  	
  Email sharing of selected clips, code to
  embed sharable clips in blogs and social networking sites.

  
	
   

  	
  ·

  	
  RSS subscription support.

  
	
   

  	
  ·

  	
  Integrated search
  capabilities.

  
	
   

  	
  ·

  	
  Search engine optimization supporting crawls
  by Google, Yahoo, MSN, etc.

  
	
   

  	
  ·

  	
  Multiple platform support (Windows, Mac,
  Linux)

  
	
   

  	
   

  	
   

  
	
  Content Management

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Per clip usage policies and management
  (non-DRM):

  
	
   

  	
  ·

  	
  Schedule based publishing and expiration of
  clips

  
	
   

  	
  ·

  	
  Pay per view/subscription support with user registration, e-commerce, geographical/zip code restriction

  
	
   

  	
  ·

  	
  Multiple team site and third party syndication
  support

  
	
   

  	
  ·

  	
  Sharability

  

 

17

 

	
  ·

  	
  Metadata

  
	
   

  	
  ·

  	
  Standard Metadata tagging and management with facility for metadata
  import from external systems.

  
	
   

  	
  ·

  	
  Ability to add custom metadata fields

  
	
   

  	
  ·

  	
  Thumbnail generation

  
	
   

  	
   

  	
   

  
	
  ·

  	
  Integration

  
	
   

  	
  ·

  	
  Integration with NHL.com and Team web sites
  for contextual linking of individual event highlights and game highlights.
  Links to clips by Player, Team, Game, Event type (goal, hit , save).

  
	
   

  	
  ·

  	
  Integration with NHL Content Management System.

  
	
   

  	
   

  
	
  ·

  	
  Transcode services with connectors for
  common third party delivery destinations like mobile carriers, youtube,
  yahoo, amazon, apple.

  
	
   

  	
   

  	
   

  
	
  Subscriber Management

  
	
   

  	
  ·

  	
  User Database with query and import/export tools

  
	
   

  	
  ·

  	
  Billing and customer payment processing and support.

  
	
   

  	
  ·

  	
  User Registration tools with the ability to specify data collection
  and integrity requirements and the ability to specify the collection of
  customized data fields when desired (Add Favorite Player...).

  
	
   

  	
   

  	
   

  
	
  Delivery

  
	
   

  	
  ·

  	
  Live streaming and video on demand in both Flash and Windows Media.
  Support for progressive download Quicktime as well.

  
	
   

  	
  ·

  	
  E-commerce capabilities with broad payment gateway/merchant account
  support (PayPal Payflow Pro Gateway)

  
	
   

  	
  ·

  	
  Zip code level access control and gating for live streams.

  
	
   

  	
  ·

  	
  Digital Rights Management license delivery and policy management if
  desired. Support for Flash DRM tools when they become available.

  
	
   

  	
  ·

  	
  Ad network integration for both pre and post roll clips and companion
  ads. Tools to manage ad frequency.

  
	
   

  	
  ·

  	
  Support for major ad networks like Doubleclick DART and
  Lightningcast.

  
	
   

  	
  ·

  	
  Advanced targeting capabilities.

  
	
   

  	
  ·

  	
  Team players should have ability to manage and sell inventory
  delegated to them.

  
	
   

  	
  ·

  	
  Highly redundant and geographically diverse streaming
  network with guaranteed service level availability of *****.

  
	
  Reporting

  
	
   

  	
  ·

  	
  Usage reporting by clip, site, or network wide. Including user
  metrics like avg. view duration, client type, format, bit rate, bandwidth,
  screen resolution.

  
	
   

  	
  ·

  	
  Automated scheduled usage reports.

  
	
   

  	
  ·

  	
  Comparative reports: most shared, most viewed

  
	
   

  	
  ·

  	
  Tracking of embedded/shared/emailed clips.

  

 

18

 

	
   

  	
  ·

  	
  Integration with Omniture
  (web analytics) for player and stream reporting. Inclusion of Omniture
  measurement code in players and streaming media.

  

 

19

 

EXHIBIT B

 

NEULION SERVICE FEES

 

In consideration for services provided to the NHL, NeuLion shall
receive the following fees from the NHL:

 

·      Base
Services Fees — For NeuLion’s Base Services, the NHL shall pay
NeuLion:

 

1.     A one time fee of **********;

2.     A one time fee of **********;

3.     A one time fee of **********;

4.     A one time fee of **********;

5.     A monthly recurring fee of ***********; and,

6.     A monthly recurring fee during the Term of the
Agreement equal to ***************************.

 

·      Center Ice
Services Fees — For NeuLion’s Center Ice Services, the NHL shall pay
NeuLion:

 

1.     A monthly recurring fee of ***

2.     A monthly recurring fee during the Term of the
Agreement equal to the *******.

3.     In the event NeuLion elects to start providing the
Radio Services only as of the start of the second year of the Term, the fixed
monthly recurring fee for the Center Ice Services for the first year of the
Term, as set forth in Exhibit B, shall be *****.

4.     The monthly recurring fee shall be **************.

 

·      Consulting
Services Fees — For NeuLion’s Consulting Services, the NHL shall pay
NeuLion:

 

1.     A one-time fee of ********, excluding
pre-approved, documented, reasonable travel expenses for class instructors;
and,

2.     A fixed fee per Member Club engagement of
*********.

 

************************************************************************************************************
************************************************************************************************************
************************************************.

 

Absent delays caused by the NHL (excluding a mutually agreed period of
time afforded to the NHL to perform testing of the Deliverables, at its own
expense, pursuant to Section 2 of the Agreement) or Force Majeure Events,
NeuLion shall complete final setup and delivery of all Deliverables, in each
case in accordance with the terms of this Agreement, by the following dates
(the “Delivery Dates”):

 

·     Center Ice Services:

 

20

 

·      Registration functionality – September 7,
2007

·      Full product – September 21, 2007

 

·     Team Video Player:

·      Full product – September 1, 2007

 

·     In-Market Streaming Player:

·      Full product – September 7, 2007

 

·     Radio Player/Functionality:

·                   Full product (if
NeuLion elects to provide the Radio Services beginning with the first year of
the Term) – September 7, 2007

·                   Full product
(if NeuLion elects to provide the Radio Services beginning with the second year
of the Term) – September 7, 2008

 

Failure to meet any Delivery Dates by more than 5 business days shall
entitle the NHL to terminate this Agreement, in whole or with respect to the
delayed portions thereof, without liability to NeuLion.

 

At anytime during the Term of this Agreement, if, as reported by three (3) or
more recognized industry analysts, **** **** (iii) the NHL will have the
option to request a corresponding reduction of the ********* used in
calculating the monthly fees payable to NeuLion in sections Base Service Fees,
item 5 and Center Ice Fees, item 2 above.

 

21

 

EXHIBIT C

 

Service
Levels

 

In its performance of the Services hereunder, NeuLion shall meet or
exceed the following Service Levels:

 

1.     Outages/Permitted
Downtime

 

NeuLion shall use its best efforts to minimize the number of Outages
throughout the Term.  For the purpose of
this Agreement, an “Outage” shall mean a continuous period of two (2) minutes
where the NeuLion iPTV Platform is not performing in accordance with this
Agreement (including, without limitation, with respect to Content streaming, registration/subscription
processing, or payment processing); provided that the following shall be
excluded from the calculation of Outages (“Permitted Downtime”):

 

·                   Up to 12 hours
per month of scheduled maintenance, to be performed during off-peak times (i.e.
during periods where no live games are in progress) and only upon 3 days prior
notice to the NHL; and

·                   Downtime caused
by events outside of NeuLion’s reasonable control, as measured by the highest
standards of the hosting and video streaming industries (which, for clarity,
require that NeuLion (i) employ failover equipment, multiple streaming
providers and other redundancies to mitigate the effect of any given equipment
or provider outage, (ii) perform adequate testing on any third party
firmware, hardware or other applications or equipment prior to placing them in
a production environment, and (iii) generally using a standard of care
consistent with the highest standards of the hosting and video streaming
industry in its operation and support of the Service and the NeuLion iPTV
Platform).

 

2.     Latency

 

NeuLion shall use its best efforts to keep Latency below three (3) seconds
throughout the Term.  For the purposes of
this Agreement, “Latency” shall mean the network latency measured and reported
by NeuLion’s IP transit and CDN network providers, and NeuLion shall provide
the NHL with a report directly from such CDN verifying all Latency
measurements.  Latency shall exclude
delays caused by events outside of NeuLion’s reasonable control, as measured by
the highest standards of the hosting and video streaming industries (which, for
clarity, require that NeuLion (i) employ failover equipment, multiple
streaming providers and other redundancies to mitigate the effect of any given
equipment or provider outage, (ii) perform adequate testing on any third
party firmware, hardware or other applications or equipment prior to placing
them in a production environment, and (iii) generally using a standard of
care consistent with the highest standards of the hosting and video streaming
industry in its operation and support of the Service and the NeuLion iPTV
Platform).

 

22

 

3.     Blackout
Failures

 

In the event of *** or more failures by NeuLion to blackout any NHL
game substantially with respect to end users that NeuLion has identified as
being subject to such blackout (e.g. NeuLion fails to blackout a Rangers game
with respect to end users that NeuLion has determined are located within the
Rangers blackout region, regardless of where such determination is accurate),
the NHL may terminate this Agreement upon notice to NeuLion.

 

4.     Support
Response Times

 

NeuLion shall use its best efforts to respond to and resolve Service
issues in accordance with the following:

 

	
  Priority

  	
   

  	
  Initial

  Response

  	
   

  	
  Updates

  	
   

  	
  Fix Plan Response Time

  
	
  Severity 1 – Disruption that prevents
  access to streaming Content.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Severity 2 – Viewing or listening dropouts,
  degradations or intermittent interruptions

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Severity 3 – Service does not operate as
  designed, moderate operational impact. No end user impact.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Severity 4 – Minor problem. No end user
  impact.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Severity 5 – NHL request for enhancement

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

5.     Remedies

 

If (A) Outages occur either (i) *** times in a given month or
(ii) *** times over the course of any *** months during the Term, and/or (B) Latency
exceeds *** over the course of (i) *** or (ii) *** during the Term,
the NHL shall have the right to terminate this Agreement upon 30 days notice to
NeuLion.

 

In addition, in the event that the NHL issues refunds to Service end
users as a result of Service-related issues occurring on any given day during
the Term, then for each such day, the Parties shall work together in good faith
to determine whether such issues were the result of Outages (i.e. not Permitted
Downtime), and in such cases NeuLion shall reimburse the NHL for any such
refunds issued, up to a maximum of the daily equivalent

 

23

 

of NeuLion’s monthly recurring Center Ice Services Fee ****** ******
******.

 

6.     Monitoring
and Reporting

 

NeuLion shall continuously monitor the Service and the NeuLion iPTV
Platform for performance against the foregoing Service Levels.  NeuLion shall furnish the NHL with reasonable
access to an up-to-date online monitoring system that will enable the NHL to
view NeuLion’s Service Level performance going back at least as far as ****.

 

NeuLion shall also provide the NHL with test objects for each NeuLion
Point-of-Presence (“POP”), so as to enable the NHL to monitor each POP through
its own third party monitoring solution (currently Gomez).

 

24

 

Attachment B

 

Advertising Fee Schedule

 

	
  Streamed
  Event #

  	
   

  	
  NeuLion’s
  Share of Advertising Revenue

  
	
  1

  	
   

  	
  ***

  
	
  Additional Event

  	
   

  	
  ***

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]