Document:

Exhibit 10.22

 

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.

 

LICENSE AGREEMENT

 

This License Agreement dated
as of June 1,  2006 (“Effective
Date”) together with the schedules, appendices, attachments and exhibits, if
any, between NeuLion, Inc., a Delaware corporation located at 1600 Old
Country Road Plainview, New York 11803 (“NeuLion”) and ABS-CBN Global
Limited, a Cayman Islands registered company, with offices at 9th Floor, Eugenio Lopez Jr. Communications
Center, Quezon City, Philippines (“Licensee”) sets forth the
terms and conditions pursuant to which NeuLion hereby grants Licensee a
non-exclusive, non-transferable, limited-use license to use the NeuLion iPTV Platform, consisting of NeuLion
Trancoder, NeuLion COD Encoder, NeuLion Streaming Media Server, and NeuLion Operational Support System, including optional features,
if any, and related materials (collectively the “Licensed Programs”).  This Agreement applies to all program code, documentation
and training materials embodying or related to the Licensed Programs and the
definition of Licensed Programs includes all such code, documentation and
materials.

 

1.                                      Use of
Licensed Programs: This Agreement authorized Licensee to use, display
and perform the Licensed Programs as provided, during the
period expiring on the third anniversary of the above Effective Date of this
Agreement (the “Term”), inclusive of support and maintenance services
respecting the License Programs as provided by NeuLion, and any subsequent
versions or releases of the Licensed Programs which may be delivered to
Licensee, solely to enable Licensee to deliver its content to Licensee’s
customers (“Clients”).  It is expressly
understood and agreed that the authorization contained herein and any rights
granted to Licensee hereunder shall at all times be limited solely to Licensee
and Licensee’s majority owned subsidiaries, and shall not extend to any direct
or indirect parent corporation, affiliated company or any other entity other
than contractors performing services on behalf of Client.  No Client nor any other person or entity
(other than Licensee itself) shall be considered as the licensee hereunder for
any purpose and Licensee agrees not to provide operation of the Licensed
Programs on behalf of any other entity such that said entity receives the
benefits of a licensee (it being expressly agreed that contractors performing
services on behalf of Client are not deemed to be receiving benefits of a
licensee.

 

2.                                      License
Fee: The License Fee for use of the Licensed Programs as provided herein
during the initial term of this Agreement, inclusive of all charges for NeuLion’s
support and maintenance services respecting the License Program, and any
subsequent versions or releases of the Licensed Programs which may be delivered
to Licensee, during the Term is payable monthly as set forth in Exhibit A
hereto.

 

	
  NeuLion Initials
       

  	
  Licensee Initials
       

  

 

1

 

3.                                      Renewal: Six (6) months
prior to expiration of the Term, Licensee and NeuLion agree to enter into good
faith negotiations for renewal of this Agreement.  In the event the parties are unable to reach
an agreement for renewal, this Agreement with be renewed for one, single twelve
(12) month renewal term under the terms and conditions set forth herein and thereafter
will expire.

 

4.                                      Support
Services: NeuLion shall provide support and maintenance
services for the Licensed Programs as set forth in Exhibit B hereto.

 

5.                                      Title,
Confidentiality and Restrictions: (a) As between NeuLion
and Licensee, title to the Licensed Programs remains with NeuLion and the
Licensed Programs is acknowledged to be a trade secret and the proprietary
property of NeuLion.  Licensee and its
employees will keep the Licensed Programs strictly confidential, and Licensee
will not disclose or otherwise distribute the Licensed Programs to anyone other
than Licensee’s authorized employees or contractors who have a need to know
such information in connection with their performance of services for Licensee,
provided that nothing herein shall limit Licensee’s right to use the Licensed
Programs as expressly provided herein.  Licensee
will not remove or destroy any proprietary markings of NeuLion.  Licensee will not permit anyone except its
authorized employees or such contractors who have a need to know such
information in connection with their performance of services for Licensee to
have direct access to any code comprising the Licensed Programs.  Except for archive purposes, Licensee will
not make or permit others to make copies of or reproduce any part of the
Licensed Programs in any form without the prior written consent of NeuLion.  In no event will Licensee decompile,
disassemble or otherwise reverse engineer any Licensed Programs.  In the event that Licensee makes any changes
or modifications to the Licensed Programs, Licensee agrees that such changes
and modifications shall be the property of NeuLion, unless NeuLion shall have
given its prior written consent to the contrary.

 

(b) The terms of the
license granted hereunder are personal to Licensee and are highly confidential.  Licensee shall not disclose any of such terms
(including those relating to pricing and authorized use) to any person or
entity other than Licensee’s employees, contractors, auditors, and attorneys
who have a need to know such information in connection with their performance
of services for Licensee.

 

(c) If this Agreement
should terminate for any reason, a duly authorized officer of Licensee shall
certify in writing to NeuLion that all copies and partial copies of the Licensed
Programs have been deleted from all computer libraries and storage devices and
either have been returned to NeuLion or destroyed and that no copy of the
Licensed Programs remains in use by Licensee and/or any Client.  The provisions set forth in this section
shall survive the termination of this Agreement for any reason.

 

6.                                      Limited
Warranty: (a) NeuLion warrants that it can grant the
license described in this Agreement and NeuLion agrees to indemnify Licensee,
hold Licensee harmless and defend Licensee against or, at NeuLion’s option,
settle any action at law or in equity against Licensee based upon a claim that
Licensee’s use of the Licensed Programs in accordance with this Agreement
infringes any patent, copyright or other intellectual property right of any
third party; provided that Licensee gives NeuLion prompt written 

 

	
  NeuLion Initials
       

  	
  Licensee Initials
       

  

 

2

 

notice
of such claim and control of the defense or settlement thereof, provided that
the Licensee shall be entitled to participate in the defense of such claim and
to employ counsel of its choice for such purpose and NeuLion may not without
Licensee’s prior written consent enter into any settlement that obligates
Licensee to pay money, to perform obligations or to admit liability without the
consent of Licensee.

 

(b) NeuLion also
warrants that the Licensed Programs will operate according to the
specifications published by NeuLion for the Licensed Programs.  If it is determined that the Licensed
Programs 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.

 

(c) Any warranties made
by NeuLion (other than that of non-infringement) will extend and be in effect
only for the period that Licensee is entitled to use the Licensed Programs and
for which Licensee shall have paid NeuLion’s License Fee and Maintenance Fee,
if applicable.

 

(d) In the event that
Licensee makes any changes or modifications to the Licensed Programs, Licensee
agrees that such changes and modifications shall be the property of NeuLion.  Furthermore, any such changes or
modifications made by Licensee to a Licensed Programs will mean that the
foregoing limited warranty of NeuLion with respect to such Licensed Programs
shall no longer apply to the extent a defect is caused by such changes or
modifications, and NeuLion shall have the right to charge Licensee for
additional support services at NeuLion’s then prevailing service rate with
respect to any defects caused by such changes or modifications, provided that
NeuLion shall have no obligation to agree to provide such services.

 

7.                                      Warranty
and Liability Limitations: EXCEPT AS SET FORTH HEREIN,
NO OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION,
THE IMPLIED WARRANTIES OP MERCHANTABILTY AND FITNESS FOR A PARTICULAR PURPOSE,
ARE MADE BY NEULION.  IN NO EVENT WILL
NEULION BE LIABLE TO LICENSEE 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 MODIF1CATION OF THE LICENSED PROGRAMS.

 

8.                                      Records
and Reports: During the Term and for a period of at least seven (7) years
following termination of this Agreement, Licensee shall keep full, true and
accurate records and accounts in accordance with generally accepted accounting
practices to show the amount of license fees payable to NeuLion under this Agreement.  NeuLion shall have the right, up to once
every 6 months, with five (5) business days’ prior written notice to
Licensee, to examine such records or to have such records examined by NeuLion’s
designated certified public accountants during normal business hours to
determine Licensee’s compliance with the terms of this Agreement.  NeuLion shall bear the expenses of the audit;
however, in the event any such audit reveals that Licensee has 

 

	
  NeuLion Initials
       

  	
  Licensee Initials
       

  

 

3

 

understated
the amount of fees that it is obligated to pay under this Agreement *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  . Such audit right shall
survive the termination of this Agreement for a period of two (2) years.

 

9.                                      Breach
and Termination: If Licensee breaches any term of this Agreement,
fails to pay any valid invoice rendered by NeuLion, or if bankruptcy or
receivership proceedings are initiated by or against Licensee, NeuLion shall
have the right to terminate this Agreement immediately.  In the event that NeuLion commences any claim
against Licensee for breach of this Agreement, then the prevailing party shall
he entitled to recover reasonable attorneys fees incurred by it in such action.

 

10.                               Escrow: NeuLion shall
deposit a copy of all the source code contained in the Licensed Program of
which NeuLion has exclusive intellectual property rights, with Mendelsohn,
Katy, Bell & Natoli, 1633 Broadway, New York, NY 10019.  Such copies of the source code will be held
in escrow and in the event of a final adjudication of NeuLion as bankrupt,
Licensee will, upon payment of the duplication cost and other handling charges
of the escrow agent, be entitled to obtain a copy of such source code from the
escrow agent.  Licensee will, however,
only use such copy of the source code internally to support the Licensed
Program.  The escrow agent’s only responsibility
will be to use its good faith efforts to cause a copy of the source code, in
the form as delivered by NeuLion, to be delivered to Licensee at the
appropriate time

 

11.                               Assignment: Licensee may
not assign this Agreement, the license to use any Licensed Programs nor any of
its rights and obligations under this Agreement without the prior written
consent of NeuLion; provided that Licensee may assign this Agreement to a
purchaser of substantially all of Licensee’s assets or to a party to any merger
with the Licensee, further provided however, that no assignment may be made to
a competitor of NeuLion.  NeuLion,
however, may assign this Agreement or the obligations contained herein to any
third party, provided that such third party assumes the obligations of NeuLion
under this Agreement.

 

12.                               Taxes
and Duties: Licensee agrees to pay any tariffs, duties or taxes
imposed or levied by any government or governmental agency including, without
limitation, federal, state and local sales, use, value added and personal
property taxes, (other than franchise and income taxes for which NeuLion is
responsible) on the use of the Licensed Programs but not any income tuxes of
NeuLion, upon presentation of invoices by NeuLion.  Any claimed exemption from such tariffs,
duties or taxes must be supported by proper documentary evidence delivered to
NeuLion.

 

13.                               Notices: All notices
pursuant to this Agreement shall be sent by certified mail, postage prepaid or
by overnight courier, and shall not be deemed to have been given until received
by the other party.

 

14.                               Governing
Law: This Agreement shall he governed and construed in accordance with the
laws of the State of New York.

 

	
  NeuLion Initials
       

  	
  Licensee Initials
       

  

 

4

 

15.                               Entire
Agreement: This Agreement represents the entire agreement
between NeuLion and Licensee with respect to the Licensed Programs.  NeuLion and Licensee agree that all other
agreements, proposals, purchase orders, representations and other
understandings concerning the subject matter of this Agreement, whether oral or
written, between the parties are superseded in their entirety by this Agreement.  No alterations or modifications of this
Agreement will be valid unless made in writing and signed by the parties.  No attachment, supplement or exhibit to this
Agreement shall be valid unless initialed by an authorized signatory of NeuLion
and Licensee.  This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original and all of which together shall be deemed to be one and the same
instrument.

 

	
  NeuLion, Inc.

  	
   

  	
  Licensee:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Ronald Nunn

  	
   

  	
  By:

  	
   /s/ Rafael L. Lopez

  
	
  (Authorized Signature)

  	
   

  	
  (Authorized Signature)

  
	
   

  	
   

  	
   

  
	
  Ronald Nunn

  	
   

  	
  Rafael L. Lopez

  
	
  Type or Print Name of Person Signing

  	
   

  	
  Type or Print Name of Person Signing

  
	
   

  	
   

  	
   

  
	
  EVP, Business Operations

  	
   

  	
  SVP & Chief Operating Officer

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  06/08/2006

  	
   

  	
  June 1, 2006

  
	
  Date

  	
   

  	
  Date

  
						

 

	
  NeuLion Initials
       

  	
  Licensee Initials
       

  

 

5

 

EXHIBIT A

 

License Fee

 

The License Fee during the
initial Term of this Agreement for use of the Licensed Programs as provided in
the Agreement hereto is payable to NeuLion in *** variable amounts (“*** Fee”)
as calculated based on the *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  .

 

The *** Fee shall be equal
to *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  

 

Tier Pricing Table

 

	
  Tier Range

  	
   

  	
  ***

  Price Per STB

  
	
   

  	
   

  	
   

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  

 

No later than **************
during the initial term of this Agreement, Licensee shall deliver to NeuLion
the *** Fee payment with a ******* report signed by an authorized officer of
Licensee that provides the following:

 

·                                          **************;

 

·                                          **************;
and,

 

·                                          The amount of
the *** Fee payment due to NeuLion with respect to that ***.

 

	
  NeuLion Initials
       

  	
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6

 

EXHIBIT B

 

Support and Maintenance Services

 

NeuLion’s support and
maintenance services provide for logging, categorization, analysis and creation
of resolutions to all support requests made by Licensee.  Request resolutions can consist of answers to
questions, creating of procedures to resolve and/or circumvent a problem, and
coding changes to the Licensed Programs to correct a problem.

 

NeuLion’s web-based support
request tracking system allows Licensee 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 ****************************.

 

“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 he 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 ****************************.

 

NeuLion provides web support
services within the following timeframes.

 

	
  Request Severity Description

  	
   

  	
  Fix Plan Response

  
	
   

  	
   

  	
   

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

  	
   

  	
  ***

  
	
   

  	
   

  	
   

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

  	
   

  	
  ***

  
	
   

  	
   

  	
   

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

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  
	
  Low Severity Requests - Questions concerning
  performance, use, or implementation of the Licensed Programs.

  	
   

  	
  ***

  

 

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

 

	
  NeuLion Initials
       

  	
  Licensee Initials
       

  

 

7Exhibit 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 (i) in the event of a breach of this
Agreement that has gone uncured for a period thirty (30) days after written
notice of such breach has been given, (ii) immediately upon the insolvency of
or the filing of a petition of bankruptcy by a Party, (iii) upon mutual written
Agreement of the Parties, (iv) either party may cancel without cause upon
ninety (90) days written notice to the other party and (iv) in accordance with
any other provisions of this Agreement expressly addressing termination.

 

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.

 

19

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