Document:

Exhibit 10.11

 

STRICTLY CONFIDENTIAL

 

CONFIDENTIAL TREATMENT REQUESTED FOR PORTIONS
OF THIS DOCUMENT. PORTIONS FOR WHICH CONFIDENTIAL TREATMENT IS REQUESTED HAVE BEEN MARKED WITH THREE ASTERISKS [***] AND A FOOTNOTE
INDICATING “CONFIDENTIAL TREATMENT REQUESTED”. MATERIAL OMITTED HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

 

DATED
***

 

AGREEMENT

 

BETWEEN

 

Cathay Pacific Airways
Limited

AND

Hong Kong Dragon Airlines Limited

 

AND

 

Inflight Productions
Limited

 

For the Supply
of

  

Programming
and Production Services    ·

For Inflight

Entertainment

 

 

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TABLE OF CONTENT

 

	1.	DEFINITIONS
    AND INTERPRETATION	 	4
	 	 	 	 
	2.	PROVISION OF SERVICES	 	8
	 	 	 	 
	3.	TERM
    	 	8
	 	 	 	 
	4.	IFP'S
    OBLIGATIONS 	 	8
	 	 	 	 
	5.	AIRLINE
    OBLIGATION 	 	13
	 	 	 	 
	6.	SERVICE
    COSTS 	 	15
	 	 	 	 
	7.	SHARING
    OF COST SAVING 	 	20
	 	 	 	 
	8.	PAYMENT SCHEDULE, INVOICING
    AND REPORTING 	 	21
	 	 	 	 
	9.	CANCELLATION
    	 	21
	 	 	 	 
	10.
    	APPROVAL
    PROCESS 	 	22
	 	 	 	 
	11.	BUDGET PROCESS AND
    MEETINGS 	 	23
	 	 	 	 
	12. 	BUSINESS PARTNERS 	 	24
	 	 	 	 
	13. 	INTELLECTUAL PROPERTY
    RIGHTS 	 	24
	 	 	 	 
	14.
    	INSURANCE
    	 	25
	 	 	 	 
	15. 	REPRESENTATIONS AND
    WARRANTIES 	 	25
	 	 	 	 
	16.
    	TERMINATION
    	 	25
	 	 	 	 
	17. 	INDEMNITY BY IFP 	 	26
	 	 	 	 
	18.	ENTIRE
    AGREEMENT 	 	27
	 	 	 	 
	19. 	REMEDIES CUMULATIVE
    	 	27
	 	 	 	 
	20.	NO WAIVER
    	 	27
	 	 	 	 
	21.	SEVERANCE
    	 	27
	 	 	 	 
	22.
    	AMENDMENT
    	 	27
	 	 	 	 
	23.	CONFIDENTIALITY
    	 	27
	 	 	 	 
	24.
    	ADVERTISING
    	 	28
	 	 	 	 
	25.	ASSIGNMENT
    	 	28
	 	 	 	 
	26.	EXPENSES
    	 	28
	 	 	 	 
	27.	FORCE MAJEURE 	 	28
	 	 	 	 
	28.	AUDIT
    	 	29
	 	 	 	 
	29. 	RIGHT OF REPLACEMENT 	 	29
	 	 	 	 

 

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	30.	NO AGENCY OR PARTNERSHIP
    	 	30
	 	 	 	 
	31.	NOTICES 	 	30
	 	 	 	 
	32.	SUCCESSORS 	 	31
	 	 	 	 
	33.	LAW AND JURISDICTION 	 	31

 

	SCHEDULE
    1- PROGRAMME SPECIFICATIONS 	33
	 	 
	SCHEDULE 2- PROGRAMMING
    GUIDELINES 	51
	 	 
	SCHEDULE 3- CONTACT
    AND DELIVERY DETAILS	53
	 	 
	SCHEDULE 4 - BUDGET
    FOR *** 	56
	 	 
	SCHEDULE 5- KEY PERFORMANCE INDICATORS	57

 

 

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THIS
AGREEMENT is dated *** and is made:

 

BETWEEN

 

		(1)	CATHAY PACIFIC AIRWAYS
                                                                                                      LIMITED, a company incorporated
                                                                                                      under the laws of Hong Kong,
                                                                                                      with its place of business
                                                                                                      at Cathay City, 8 Scenic
                                                                                                      Road, Hong Kong International
                                                                                                      Airport, Lantau, Hong Kong
                                                                                                      (hereinafter referred to
                                                                                                      as "Cathay"),

 

		(2)	HONG KONG DRAGON
                                                                                                      AIRLINES LIMITED, a
                                                                                                      company incorporated under
                                                                                                      the laws of Hong Kong, with
                                                                                                      its place of business at
                                                                                                      Dragonair House, 11 Tung
                                                                                                      Fai Road, Hong Kong International
                                                                                                      Airport, Lantau, Hong Kong
                                                                                                      (hereinafter referred to
                                                                                                      as "Dragonair")
                                                                                                      (with Cathay and Dragonair
                                                                                                      together referred to as
                                                                                                      "the Airline")

 

		(3)	INFLIGHT
PRODUCTIONS LIMITED, a company incorporated under the laws of United Kingdom, with its place of business at 15 Stukeley Street,
London, WC2B 5LT, United Kingdom (hereinafter referred to as "IFP"),

 

                                                                                                                        (together
                                                                                                                        the "Parties"
                                                                                                                        and
                                                                                                                        each a
                                                                                                                        "Party"
                                                                                                                        as
                                                                                                                        the case
                                                                                                                        may be).

 

BACKGROUND

 

		(A)	The
                                                                                               Airline wishes to appoint IFP to
                                                                                               provide inflight programming services
                                                                                               for Audio, Western Movies and Western
                                                                                               Short Feature Programmes on the
                                                                                               Airlines' Aircraft including but
                                                                                               not limited to the following:

 

		(i)	For
                                                                                                       Audio programming, the
                                                                                                       services include, but are
                                                                                                       not limited to, negotiation
                                                                                                       of Mechanical Royalties
                                                                                                       and Presenter fees, account
                                                                                                       management, industry expertise
                                                                                                       and technical processes
                                                                                                       such as programming, editing,
                                                                                                       duplication, encoding,
                                                                                                       quality control, labelling
                                                                                                       etc. and delivery;

 

		(ii)	For video programming
                                                                                                        of Western Movies and
                                                                                                        Western Short Features,
                                                                                                        the services include,
                                                                                                        but are not limited to,
                                                                                                        negotiation of License
                                                                                                        Fees, account management,
                                                                                                        industry expertise and
                                                                                                        technical processes such
                                                                                                        as programming, editing,
                                                                                                        encoding, subtitling,
                                                                                                        quality control, labelling,
                                                                                                        etc. and delivery;

 

		(B)	IFP
                                                                                               has considerable expertise in the
                                                                                               above areas and has represented
                                                                                               to Airline that it is well qualified
                                                                                               to be appointed hereunder. The
                                                                                               Parties wish to enter into this
                                                                                               Agreement to set out the terms
                                                                                               on which IFP will provide the Services
                                                                                               to the Airline.

 

BY WHICH IT IS AGREED as follows:-

 

1. DEFINITIONS AND INTERPRETATION

 

		1.1	Unless the context otherwise
                                                                                                     requires in this Agreement,
                                                                                                     the following expressions
                                                                                                     have the following meanings:-

 

	"AOD"
    	 	means audio on demand
    and shall comprise of Music Albums and Audio Programmes, offered to passengers on Aircraft equipped with an AVOD system, which
    are accessed using AOD functions such as fast forward, rewind and pause;
	 	 	 
	"AVOD"
    	 	means audio and video on demand
    and means Cathay's digital system using video and audio compression to supply Programmes to passengers when requested;

 

 

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	"Agreement"	 	means this agreement and any
    and all schedules, appendices and exhibits attached to it or incorporated in it by reference, as varied from time to time
    in accordance with its terms;
	 	 	 
	"Aircraft"	 	means all aircraft whether video
    cassette based (Non-AVOD Aircraft) or AVOD equipped (AVOD Aircraft) operated by the Airline, during the Term
    of this Agreement;
	 	 	 
	"Asian Movies"	 	means featured film which is
    shown in Asian language including but not limited to Cantonese, Mandarin, Japanese, Korean and Hindi;
	 	 	 
	"Asian Short Features"	 	means short features programme
    which is shown in Asian language including but not limited to Cantonese, Mandarin, Japanese and Hindi;
	 	 	 
	"Audio"
    	 	means audio programmes that
    include Radio Channel, Music Albums and Boarding Music, refer to programme specification in Schedule 1;
	 	 	 
	"Boarding Music"
    	 	means the music played on board
    Aircraft prior to take off and landing;
	 	 	 
	"Business Partners"	 	means any other supplier, sub-contractor, consultant, agent,
    licensor, either future or existing, nominated by the Airline;
	 	 	 
	"BOP" 	 	means the Airlines' Budget Operating
    Plan circulated annually between August and October each year detailing flights and routes scheduled for the following year.
    It is a guideline document only and subject to change;
	 	 	 
	"COs"	 	mean the CDs which are used
    on non-AVOD Aircraft incorporating the Radio Channel Programmes;
	 	 	 
	"Digital Media"
    	 	means Programmes in the form
    of an encoded compression file rather than a video cassette or CDs;
	 	 	 
	"Distributor"	 	means the distributor from whom a
    Programme is licensed and who owns the right to License and distribute the Programme for airline use;
	 	 	 
	"Duplication"	 	means the act of making cassette
    copies from the Master for video programmes and the act of making copies from the Intermaster for audio programmes;
	 	 	 
	"Effective Date"	 	means ***
    (April on board cycle);
	 	 	 
	"Encoding"
    	 	means the process of transforming
    the Programme into a digitally compressed file ;
	 	 	 
	"Exhibition"	 	means the estimated number of
    flights on which the Programmes will be shown, otherwise known as screenings, which are calculated from the Airline's BOP
    during each annual budget process;

 

 

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	"Exhibition
    Period"	 	means the time period
    during which the Airline is authorised to exhibit the Programmes on board the Aircraft.
	 	 	 
	"Flashcard"	 	means the proprietary card containing
    digital storage used to transfer music and speech onto aircraft IFE Systems;
	 	 	 
	"IFE"	 	means the Airline's inflight entertainment
    programmes;
	 	 	 
	"Interactive
    Screens"	 	means the screens, which show
    information regarding the Programmes to help passengers navigate and use the AVOD system in order to arrive at the desired
    Programme choice;
	 	 	 
	"Intermaster"	 	means digitally encoded CD combining
    two or more Radio Programmes, used to duplicate CDs for onboard use;
	 	 	 
	"Key Performance
    Indicators"	 	means a set of agreed parameters
    by which the Airline measures the performance of IFP, refer to Schedule 5 for details;
	 	 	 
	"License"	 	means an agreement given by
    a Distributor to permit the use of the Programmes on the Aircraft;
	 	 	 
	"License Fee"	 	means the amount negotiated
    by IFP, and paid by the Airline, that permits the Airline to play the contracted Programmes;
	 	 	 
	"Management Fee"	 	means the annual fees agreed
    between the Parties for IFP to carry out the Services;
	 	 	 
	"Mechanical Royalties"	 	means those royalties and fees
    required to copy musical works from one medium to another during the recording and duplication process;
	 	 	 
	"Master"	 	means the original master copy
    of a Programme Licensed from the Distributor;
	 	 	 
	"MPAA"	 	means the Movie Pictures Association
    of America;
	 	 	 
	"Music Albums"	 	means a selection of music albums
    which form Cathay's Audio-on-Demand library and are updated regularly as required by Cathay;
	 	 	 
	"Performance
    Reviews"	 	means the review which will
    be conducted twice a year whereby the Airline will review IFP's performance against the agreed Key Performance Indicators.
	 	 	 
	"Presenter"	 	means the professional radio
    presenter or artist employed to work specifically on the Airline's account;
	 	 	 
	"Programmes"	 	means programmes to be supplied
    by IFP under terms and conditions of this Agreement. These programmes include all Western Movies, Western Short Features Programmes
    and all Audio programmes.

 

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	"Programming
    Costs"	 	means the total cost incurred
    in compiling the Audio Programmes based on an hourly rate and time in the audio studio and on a computer edit facility;
	 	 	 
	"Public Performance
    Rights"	 	means the right to perform music on board the Aircraft including
    that contained in Audio, Western Movies and Western Short Features;
	 	 	 
	"Personnel"	 	mean IFP's personnel who will provide the Services to the
    Airline during the Term of the Agreement;
	 	 	 
	"Radio Channel"	 	means the channels under which
    Audio Programmes compiled by IFP are offered to all passengers on board an Aircraft;
	 	 	 
	"Services"	 	mean the supply of all required
    services for inflight programming for Audio, Western Movies and Western Short Features Programmes for Airline by IFP hereunder
    including the services specified in Clause 4 of this Agreement;
	 	 	 
	"Service Costs"	 	has the meaning ascribed to
    it in Clause 6;
	 	 	 
	"Sting"	 	means airline, channel or genre
    promotional material;
	 	 	 
	"Sub-load Ticket"	 	means a ticket issued by the
    Airline to IFP for meetings in Hong Kong, which is not a confirmed ticket but a stand-by ticket and has the same boarding
    priority as if IFP's Personnel were an Airline employee travelling on business;
	 	 	 
	"Technical Costs"	 	mean the total of technical
    costs including editing, subtitling, encoding, duplication, quality control and labelling costs;
	 	 	 
	"Term"	 	has the meaning ascribed to
    it in Clause 3;
	 	 	 
	"Western Movies"	 	means featured films which is
    shown in English and selected European languages including Italian, French, German and Dutch, refer to programme specifications
    in Schedule 1; and
	 	 	 
	"Western Short
    Features"	 	means short features programme
    which is shown in English, refer to programme specifications in Schedule 1.

 

		1.2	In this Agreement, unless the context otherwise requires:-

 

		1.2.1	references
                                                                                                         to Clauses and Schedules
                                                                                                         are to the clauses of
                                                                                                         and schedules to this
                                                                                                         Agreement;

 

		1.2.2	Clause
                                                                                                         headings and the table
                                                                                                         of contents are for convenience
                                                                                                         only and have no legal
                                                                                                         effect;

 

		1.2.3	references
                                                                                                      to (or to a specified provision
                                                                                                      of) this Agreement or any
                                                                                                      other document are to this
                                                                                                      Agreement, that document
                                                                                                      or that provision as in
                                                                                                      force for the time being
                                                                                                      and as amended, varied or
                                                                                                      supplemented in accordance
                                                                                                      with its terms;

 

		1.2.4	references
                                                                                                         to (or to a specified
                                                                                                         provision of) any Ordinance
                                                                                                         or enactment are to that
                                                                                                         Ordinance or enactment
                                                                                                         or that provision as
                                                                                                         amended, modified, extended,
                                                                                                         re-enacted, consolidated
                                                                                                         or replaced and in force
                                                                                                         for the time being;

 

 

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		1.2.5	words importing the singular include the plural and vice
versa;

 

		1.2.6	words importing one gender include any other gender;

 

		1.2.7	references to persons
                                                                                                       includes bodies corporate,
                                                                                                       firms or unincorporated
                                                                                                       associations; and

 

		1.2.8	the Schedule(s) form(s) part of this Agreement and references
to this Agreement include the Schedule(s).

 

		2.	PROVISION OF SERVICES

 

		2.1	IFP agrees to continue to provide the Services and the
Airline hereby agrees to accept the provision of such Services from IFP, on and subject to the terms set out in this Agreement.

 

		2.2	The Parties hereby agree that as consideration for the
provision of such Services by IFP, the Airline shall pay for such Services in the manner provided for in Clause 6.

 

		3.	TERM

 

		3.1	The
parties acknowledge that IFP have been providing the Services to the Airline since ***,
and this Agreement shall be deemed to have commenced as of *** and
shall continue to be in force until *** ('Initial Term), unless either Party terminates this Agreement in accordance with
Clause 16 or until such date as the Parties otherwise agree in writing (the "Term").

 

4. IFP'S OBLIGATIONS

 

		4.1	Account Servicing

 

		4.1.1	IFP warrants that
                                                                                                         all Personnel involved
                                                                                                         in the performance of
                                                                                                         the Services will be
                                                                                                         of high caliber and suitably
                                                                                                         skilled and experienced
                                                                                                         to perform properly the
                                                                                                         tasks assigned to them.
                                                                                                         IFP must provide dedicated
                                                                                                         account management available
                                                                                                         to deal with all operational
                                                                                                         and financial issues
                                                                                                         and available at time
                                                                                                         zone permissible hours
                                                                                                         to deal with requests
                                                                                                         made by the Airline.

 

		4.2	For Audio Programming:

 

		4.2.1	Programming

 

		(a)	IFP
                                                                                                       shall supply the Airline
                                                                                                       with a varied selection
                                                                                                       of Audio Programmes as
                                                                                                       specified in SCHEDULE
                                                                                                       1 - PROGRAMME SPECIFICATIONS
                                                                                                       for each agreed Exhibition
                                                                                                       Period.

 

		(b)	IFP
                                                                                                      shall be responsible for
                                                                                                      suggesting a selection of
                                                                                                      Audio Programmes to match
                                                                                                      the Airline's demographics
                                                                                                      issued to IFP from time
                                                                                                      to time and the guideline
                                                                                                      document detailed in SCHEDULE
                                                                                                      2 - PROGRAI\1MING GUIDELINES
                                                                                                      for each agreed Exhibition
                                                                                                      Period. The said programming
                                                                                                      guidelines may be updated
                                                                                                      from time to time upon mutual
                                                                                                      agreement of the Parties.

 

		(c)	IFP
                                                                                                      shall ensure that each Audio
                                                                                                      Programme is consistent
                                                                                                      throughout and features
                                                                                                      songs and artists, which
                                                                                                      are relevant to the title
                                                                                                      of the Radio Channel or
                                                                                                      the Music Album category.

 

		(d)	The
                                                                                                      Airline shall retain the
                                                                                                      right to amend the number
                                                                                                      of Audio Programmes, Radio
                                                                                                      Channels, Music Album categories,
                                                                                                      frequency and general programme
                                                                                                      specification during the
                                                                                                      period of the Agreement.
                                                                                                      However, if the current
                                                                                                      specification changes substantially
                                                                                                      then the Parties agree to
                                                                                                      review the Management Fee.

 

 

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		4.2.2	Royalties and Presenters

 

		(a)	IFP
                                                                                                       will negotiate all Presenter
                                                                                                       fees, and shall ensure
                                                                                                       that all fees are competitive
                                                                                                       and favourable to the Airline.

 

		(b)	IFP
                                                                                                     shall use best endeavours
                                                                                                     to ensure that no Presenter
                                                                                                     used on any of the Radio
                                                                                                     Channels shall work in the
                                                                                                     same capacity for a direct
                                                                                                     competitor of the Airline
                                                                                                     without prior permission
                                                                                                     of the Airline, such permission
                                                                                                     not to be unreasonably withheld.

 

		(c)	IFP shall be responsible for clearing Mechanical Royalties
for the Audio Programmes and obtaining permission for it and/or Airline to copy, duplicate, store on IFE equipment, record and
use the Audio Programmes on the Airlines' Aircraft as anticipated hereunder including in respect of all copyright works comprised
in the Audio Programmes including in all music, lyrics, songs and sound recordings and for paying all Mechanical Royalties and
other fees due to the copyright owner or the relevant royalty body in the country where the Programmes are produced or as required.
In the UK, the rights are held by PPL (Phonographic Performance Ltd) representing record companies and MCPS (Mechanical Copyright
Protection Society) representing composers, authors and publishers. Mechanical Royalties are also payable to equivalent agencies
in locations where the Programme is produced outside the UK;

 

		(d)	IFP
                                                                                                      will advise the Airline
                                                                                                      in advance of the Presenters
                                                                                                      and Mechanical Royalties
                                                                                                      fees negotiated on the Airline's
                                                                                                      behalf. IFP warrants that
                                                                                                      it will use best endeavours
                                                                                                      to negotiate favourable
                                                                                                      terms for the Airline and
                                                                                                      will provide the Airline
                                                                                                      with realistic indicative
                                                                                                      pricing during the annual
                                                                                                      budget process for approval
                                                                                                      by the Airline. IFP will
                                                                                                      not agree to or commit to
                                                                                                      any Presenter Fees or Mechanical
                                                                                                      Royalties that are greater
                                                                                                      than as stipulated in the
                                                                                                      annual budget without Airlines'
                                                                                                      consent.

 

		(e)	IFP
                                                                                                       hereby warrants that it
                                                                                                       will secure all rights
                                                                                                       required for Airline to
                                                                                                       copy and load Audio Programmes
                                                                                                       onto its Aircraft and for
                                                                                                       the same to be used in
                                                                                                       AOD format or otherwise
                                                                                                       and will be solely liable
                                                                                                       for any claims by any rights
                                                                                                       holder in any territory.

 

		4.2.3	Technical & Logistics

 

		(a)	Editing

 

		i)	IFP shall be responsible for editing Audio in accordance
with the requirements of the Airline. Editing will generally involve IFP editing the Audio Programme to combine and mix music
and speech content to the agreed duration, to include advertisements and other materials as requested by the Airline and to remove
any material detailed in SCHEDULE 2 PROGRAMMING GUIDELINES.

 

		ii)	IFP
                                                                                                     shall indemnify the Airline
                                                                                                     for any loss or damage arising
                                                                                                     or suffered due to errors
                                                                                                     or negligence in terms of
                                                                                                     editing, such as incorrect
                                                                                                     Stings or incorrectly placed
                                                                                                     advertisements. The total
                                                                                                     of such liability shall be
                                                                                                     limited to the total cost
                                                                                                     of Duplication and editing
                                                                                                     for the particular Programme(s)
                                                                                                     in question. IFP will not
                                                                                                     be liable under this clause
                                                                                                     if the error or negligence
                                                                                                     is the result of another
                                                                                                     third party.

 

		(b)	Duplication and Encoding

 

		i)	IFP
                                                                                                    shall arrange Duplication
                                                                                                    of all Audio Programmes in
                                                                                                    CD format, Encoding of the
                                                                                                    Programme in Digital Media
                                                                                                    format and/or Duplication
                                                                                                    of the Boarding Music in Flashcard
                                                                                                    format according to specifications
                                                                                                    required by the Airline.

 

		ii)	IFP
                                                                                                     will use best endeavours
                                                                                                     to recycle Boarding Music
                                                                                                     Flashcards where possible.

 

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		iii)	IFP
                                                                                                      warrants that all Duplication
                                                                                                      and Encoding of Audio Programmes
                                                                                                      shall be to the technical
                                                                                                      standard specified by the
                                                                                                      manufacturers of the IFE
                                                                                                      equipment selected for installation
                                                                                                      by the Airline on its Aircraft
                                                                                                      and shall otherwise be undertaken
                                                                                                      to best industry standards.
                                                                                                      The technical standard and
                                                                                                      format of the CDs, Digital
                                                                                                      Media and Flashcards supplied
                                                                                                      to the Airline shall comply
                                                                                                      with the technical requirements
                                                                                                      of the Airlines' equipment
                                                                                                      and any other technical
                                                                                                      requirements specified by
                                                                                                      the Airlines' designated
                                                                                                      engineers or representatives
                                                                                                      and shall otherwise be of
                                                                                                      merchantable quality and
                                                                                                      fit for purpose.

 

		(c)	Quality Control and Labelling

 

		i)	IFP shall be responsible
                                                                                                    for all quality control and
                                                                                                    labelling of all CDs in accordance
                                                                                                    with the label list issued
                                                                                                    by the Airline. IFP acknowledges
                                                                                                    that quality control and correct
                                                                                                    labelling is of the utmost
                                                                                                    importance and IFP shall be
                                                                                                    responsible for loss and damage
                                                                                                    suffered by the Airline due
                                                                                                    to incorrect labelling or
                                                                                                    poor quality control procedures. Should
                                                                                                    there be any mistakes in labelling
                                                                                                    or quality control, IFP will
                                                                                                    be responsible for rectifying
                                                                                                    the situation at their own
                                                                                                    cost.

 

		(d)	Delivery

 

		i)	IFP
                                                                                                      shall arrange for the delivery
                                                                                                      of the required number of
                                                                                                      CDs, the Digital Media and
                                                                                                      the Flashcards containing
                                                                                                      the Audio Programmes for
                                                                                                      each Exhibition Period to
                                                                                                      the delivery addresses set
                                                                                                      out in SCHEDULE 3 -CONTACT
                                                                                                      AND DELIVERY or such
                                                                                                      address as is otherwise
                                                                                                      specified by the Airline
                                                                                                      no later than the date of
                                                                                                      the agreed monthly timeline
                                                                                                      prior to the commencement
                                                                                                      of each Exhibition Period.

 

		ii)	Time
                                                                                                      of delivery shall be of
                                                                                                      the essence. In case of
                                                                                                      late delivery Airline may
                                                                                                      at its discretion choose
                                                                                                      to accept a payment equal
                                                                                                      to the total value of all
                                                                                                      the Programming Costs and
                                                                                                      Technical Costs arising
                                                                                                      under this Agreement for
                                                                                                      that particular month or
                                                                                                      such pro-rata payment as
                                                                                                      the parties shall agree,
                                                                                                      as full compensation for
                                                                                                      such late delivery.

 

		4.3	For Video Programming (Western Movies and Western Short
Features):

 

		4.3.1	Programming

 

		(a)	IFP shall supply the Airline with a varied selection of
Western Movies and Western Short Features Programmes as specified in SCHEDULE 1 - PROGRAMME SPECIFICATIONS for each
agreed Exhibition Period.

 

		(b)	IFP shall be responsible for suggesting a selection of
Western Movies and Western Short Features Programmes to match the Airline's demographics issued to IFP from time to time and the
guideline document detailed in SCHEDULE 2 - PROGRAMMING GUIDELINES for each agreed Exhibition Period. The said programming
guidelines may be updated from time to time upon mutual agreement of the Parties.

 

		(c)	The Airline shall retain the right to amend the number
of Western Movies and Western Short Features Programmes, channels, frequency and general programme specification during the period
of the Agreement. However, if the current specification changes substantially then the Parties agree to review the Management
Fee.

 

		4.3.2	Licensing

 

		(a)	IFP will negotiate License Fees with Distributors based
on the Exhibitions and commitments agreed with the Airline during the annual budget process.

 

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		(b)	IFP shall obtain Licenses for the Western Movies and Western
Short Features Programmes from Distributors, subject to the rights held by each Distributor. Such License shall set forth the
Western Movies and Western Short Features Programme title, Exhibition Period and the length (in number of minutes) of the Programme.

 

		(c)	IFP will advise the Airline in advance of any License Fee
and any other fees payable for exhibition of the Western Movies and Western Short Features Programmes negotiated on the Airline's
behalf, where such License Fees may exceed the amount agreed in the annual budget. IFP warrants that it will use best endeavours
to negotiate favourable terms for the Airline and will provide the Airline with realistic indicative pricing during the annual
budget process for approval by the Airline. IFP will not agree or commit to any Licence Fees or other fees that are greater than
as stipulated in the budget, without Airlines' consent.

 

		(d)	At the request of the Airline, IFP will license Western
Movies and Western Short Features Programmes, in dual language format whether dubbed or subtitled. Any additional costs will be
agreed in advance with the Airline during the annual budget process.

 

		(e)	If a language, whether dubbed or subtitled, is created
specifically for the Airline, dependant on the revenue of the booking to the Distributor, the Airline may have to bear the Technical
Costs of the relevant Programme, for example, the encoding of language. IFP will advise the cost in writing to the Airline for
approval prior to the booking being placed in the event that the costs are outside the scope of the budget.

 

		4.3.3	Technical & Logistics

 

		(a)	Following approval of the Western Movies and Western Short
Features Programmes as detailed in Clause 10,

 

		i)	IFP shall arrange Duplication of the relevant Programmes
in cassette format (VHS, V8 or Hi-8) according to the tape quantity required by the Airline; and/or

 

		ii)	IFP shall arrange Encoding of the relevant Programmes in
Digital Media according to the standard required by the Airline, 

 

IFP shall ensure that all such Duplication and Encoding is permitted
under the relevant Licences.

 

		(b)	Editing

 

		i)	IFP
                                                                                                                     shall be
                                                                                                                     responsible
                                                                                                                     for arranging
                                                                                                                     of Editing
                                                                                                                     all Western
                                                                                                                     Movies and
                                                                                                                     Western Short
                                                                                                                     Features
                                                                                                                     Programmes
                                                                                                                     according
                                                                                                                     to the requirements
                                                                                                                     of the Airline.
                                                                                                                     Editing will
                                                                                                                     generally
                                                                                                                     involve the
                                                                                                                     Distributor's
                                                                                                                     designated
                                                                                                                     laboratories
                                                                                                                     in Hollywood
                                                                                                                     or IFP editing
                                                                                                                     the Programme
                                                                                                                     to include
                                                                                                                     advertisements,
                                                                                                                     the Airline's
                                                                                                                     logos, channel
                                                                                                                     Stings, warning
                                                                                                                     boards, and
                                                                                                                     other materials
                                                                                                                     as requested
                                                                                                                     by the Airline
                                                                                                                     and removing
                                                                                                                     sensitive
                                                                                                                     scenes as
                                                                                                                     outlined
                                                                                                                     in the guidelines
                                                                                                                     detailed
                                                                                                                     in SCHEDULE
                                                                                                                     2- PROGRAMMING
                                                                                                                     GUIDELINES.
                                                                                                                     -

 

		ii)	IFP shall indemnify the Airline for any loss or damage
arising or suffered due to errors or negligence in terms of editing, such as incorrect Stings or incorrectly placed advertisements.
The total of such liability shall be limited to the total cost of Duplication and editing for the particular Programme(s) in question.
IFP will not be liable under this clause if the error or negligence is the result of another third party.

 

		(c)	Subtitling

 

		i)	IFP shall arrange subtitling of all Western Movies and
Western Short Features Programmes where required by the Airline.

 

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		(d)	Duplication and Encoding

 

		i)	IFP warrants that all Duplication and Encoding of all Western
Movies and Western Short Features Programmes shall be to the technical standard specified by the manufacturers of the IFE equipment
selected for installation by the Airline on its Aircraft and shall otherwise be undertaken to best industry standards. The technical
standard and format of the cassette and the Digital Media supplied to the Airline shall comply with the technical requirements
of the Airlines' equipment and any other technical requirements specified by the Airlines' designated engineers or representatives
and shall otherwise be of merchantable quality fit for purpose.

 

		ii)	IFP shall be responsible for the Encoding of advertisements
and shall be required to coordinate with the Airline's nominated Business Partners in order to ensure that the advertisements
are encoded correctly and according to the timelines agreed between the Parties.

 

		(e)	Quality Control and Labelling

 

		i)	IFP shall be responsible for all quality control and the
labelling of all Western Movies and Western Short Features Programmes in accordance with the label list issued by the Airline.

 

		ii)	IFP acknowledge that quality control and correct labelling
is of the utmost importance and IFP shall be responsible for loss and damage suffered by the Airline due to incorrect labelling
or poor quality control procedures, unless due to reasons attributable to the Airline.

 

		iii)	Should there be any mistakes in labelling or quality control,
IFP will be responsible for rectifying the situation at their own cost.

 

		(f)	Delivery

 

		i)	IFP shall arrange for the delivery of the required number
of cassettes and the Digital Media containing the Western Movies and Western Short Features Programmes for each Exhibition Period
to the address set out in SCHEDULE 3 - CONTACT AND DELIVERY or such other address as is otherwise specified by Airline
no later than the date of the agreed monthly timeline prior to the commencement of each Exhibition Period.

 

		ii)	Time of delivery shall
                                                                                                      be of the essence. In case
                                                                                                      of late delivery Airline
                                                                                                      may at its discretion choose
                                                                                                      to accept a payment equal
                                                                                                      to the total value of the
                                                                                                      License Fees and Technical
                                                                                                      Costs arising under this
                                                                                                      Agreement for that particular
                                                                                                      month or such pro-rata payment
                                                                                                      as the parties shall agree,
                                                                                                      as full compensation for
                                                                                                      such late delivery.

 

		(g)	Tape Destruction for Western Movies

 

		i)	IFP shall be responsible for the destruction and degaussing
of all Western Movie Programme cassettes returned by the Airline to IFP or IFP's nominated subcontractor.

 

		ii)	IFP warrants that it is solely liable for the performance
of any sub-contractor appointed to perform this activity and that any sub-contractor used will follow the guidelines set out by
the Distributors and the MPAA when destroying and degaussing the cassettes.

 

		4.4	Third Parties

 

		4.4.1	IFP shall as required by Airline supply the Airlines' nominated
Business Partners with full details of the Programmes, including photographs, inclusion in the Airlines' inflight entertainment
guides, the Interactive Screens of the !FE system, onboard advertising and the Airlines' websites in accordance with a timetable
to be agreed by the Parties from time to time.

 

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		4.4.2	IFP
                                                                                                       will provide or contract
                                                                                                       with strategic third parties
                                                                                                       in order to provide the
                                                                                                       equipment, materials, technology,
                                                                                                       software, goods and personnel
                                                                                                       which are required by IFP
                                                                                                       to ensure that it fulfills
                                                                                                       its obligations hereunder.

 

		4.4.3	IFP
                                                                                                       warrants that when contracting
                                                                                                       with third parties such
                                                                                                       as Distributors and Presenters,
                                                                                                       commitments made in any
                                                                                                       agreements with such parties
                                                                                                       shall not exceed the commitments
                                                                                                       including timelines agreed
                                                                                                       with the Airline. The Airline
                                                                                                       will not be liable for
                                                                                                       any liabilities arising
                                                                                                       or incurred by IFP relating
                                                                                                       to IFP contracting with
                                                                                                       third parties beyond the
                                                                                                       parameters agreed with
                                                                                                       and scope of authority
                                                                                                       provided by Airline.

 

		4.5	IFP
                                                                                                     hereby undertakes with the
                                                                                                     Airline that it shall at
                                                                                                     all times during the continuance
                                                                                                     of this Agreement:-

 

		4.5.1	provide
                                                                                                         the Services in accordance
                                                                                                         with the terms of this
                                                                                                         Agreement, to the highest
                                                                                                         business standards, and
                                                                                                         in an efficient and competent
                                                                                                         manner with due and professional
                                                                                                         skill and care;

 

		4.5.2	comply with all applicable laws, ordinances, regulations
and relevant standards in the performance of the Services;

 

		4.5.3	all
                                                                                                       physical items and media
                                                                                                       supplied hereunder including
                                                                                                       COs, cassettes and the
                                                                                                       like will be provided to
                                                                                                       specification and will
                                                                                                       be of merchantable quality
                                                                                                       and fit for purpose.

 

		4.6	In
                                                                                                      the event that IFP fails
                                                                                                      to provide the Services
                                                                                                      or the Services do not conform
                                                                                                      to the standards or specifications
                                                                                                      set out in this Agreement,
                                                                                                      the Airline, without prejudice
                                                                                                      to any other right it may
                                                                                                      have, shall be entitled
                                                                                                      to:-

 

		4.6.1	request IFP to, at the cost and expense of FP, to redeliver
any Services which are deficient or non-conforming;

 

		4.6.2	request that IFP carry out relevant repairs or rectification
of the relevant Services at such place as reasonably requested by the Airline;

 

		4.6.3	carry
                                                                                                       out the repairs or rectification
                                                                                                       of the relevant Services
                                                                                                       itself or by others and
                                                                                                       hold IFP accountable therefor;
                                                                                                       and/or

 

		4.6.4	withhold
                                                                                                        all or part of the payment
                                                                                                        of the Service Costs until
                                                                                                        the Services in question
                                                                                                        are satisfactorily provided
                                                                                                        or corrected or where
                                                                                                        the Service Costs have
                                                                                                        been paid, request IFP
                                                                                                        to refund the Service
                                                                                                        Costs on a pro rata basis
                                                                                                        in respect of the Services
                                                                                                        in question.

 

		4.7	Upon notification by the Airline under Clause 4.6 of
any deficiency in or non-compliance of the Services, IFP shall promptly take such action as may be required by the Airline pursuant
to Clause 4.6.

 

		4.8	In
                                                                                                      the event that in the Airline's
                                                                                                      opinion, IFP has failed
                                                                                                      to satisfactorily carry
                                                                                                      out the actions specified
                                                                                                      in any of Clauses 4.6.1
                                                                                                      to 4.6.4 as required
                                                                                                      by the Airline, the Airline
                                                                                                      shall be entitled to: -

 

		4.8.1	refuse
                                                                                                       to accept any Services
                                                                                                       or any further performance
                                                                                                       ofIFP without liability;

 

		4.8.2	engage any person to provide the Services and require IFP
to bear the full cost thereof; and/or

 

		4.8.3	terminate this Agreement and treat itself as discharged
by IFP's breach.

 

		5.	AIRLINE OBLIGATION

 

		5.1	Programming

 

		5.1.1	In the event that the Airline procures programmes through
sources other adherence to technical specification, copyrights and all other associated exhibition rights and fees in relation
to such programmes.

 

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		5.2	Information

 

		5.2.1	The
                                                                                                       Airline will provide details
                                                                                                       of the BOP by no later
                                                                                                       than October each year
                                                                                                       of this Agreement in order
                                                                                                       for IFP to calculate the
                                                                                                       required flight levels
                                                                                                       for movie License Fees
                                                                                                       and the required quantities
                                                                                                       of Cassettes, CDs,Intermasters
                                                                                                       and Flashcards for the
                                                                                                       following year's budget.

 

		5.2.2	The
                                                                                                       Airline will at times to
                                                                                                       be agreed advise IFP of
                                                                                                       the required quantity and
                                                                                                       format of the cassettes,
                                                                                                       CDs, Flashcards, Digital
                                                                                                       Media for each Exhibition
                                                                                                       Period.

 

		5.2.3	The
                                                                                                       Airline shall agree to
                                                                                                       keep IFP informed as to
                                                                                                       the technical specification
                                                                                                       of equipment installed
                                                                                                       on each Aircraft, and the
                                                                                                       relevant specification
                                                                                                       for each applicable IFE
                                                                                                       system. The Airline shall
                                                                                                       give IFP notice of any
                                                                                                       change or addition in specification
                                                                                                       in accordance with the
                                                                                                       monthly timeline.

 

		5.2.4	The Airline shall agree to provide updated retrofit plans,
demographics and available survey results to IFP; however, IFP must proactively request information of this nature in order to
provide the Services.

 

		5.2.5	The Airline shall notify IFP of the labelling requirements
and packaging requirements in preparation for shipment.

 

		5.3	Advertising & Promotional Material

 

		5.3.1	The
                                                                                                       Airline or its appointed
                                                                                                       agents shall supply written
                                                                                                       details to IFP of any sponsorship,
                                                                                                       advertising, airline logos
                                                                                                       etc to be included in the
                                                                                                       Programmes in accordance
                                                                                                       with the monthly timeline.
                                                                                                       Such details shall include
                                                                                                       the name of each sponsor
                                                                                                       or advertiser, the duration
                                                                                                       of the advertisement and
                                                                                                       any special instructions
                                                                                                       pertaining to the placing
                                                                                                       of the advertisement.

 

		5.3.2	The Airline or its appointed agents shall arrange for the
delivery to IFP of the advertisements required for insertion in accordance with the monthly timeline. Such advertisements shall
normally be delivered on Betacam SP together with a review copy on VHS.

 

		5.3.3	In the event that the Airline chooses to use promotional
material of the Programmes, it must use the promotional material supplied by the Distributors and comply with all written instructions
supplied with such promotional material. The Airline agrees not to modify such material in any way and to use the promotional
material solely for the Airline's inflight entertainment guides, the Interactive Screens of the IFE system, onboard advertising
and the Airlines' websites. It is the responsibility of the Airline to obtain permission for any other use of the promotional
materials of the Programmes.

 

		5.4	Video Cassettes, CDs and Digital Media

 

		5.4.1	The
                                                                                                         Airline shall use its
                                                                                                         reasonable endeavours
                                                                                                         to ensure that the video
                                                                                                         cassettes, CDs or Digital
                                                                                                         Media incorporating Programmes
                                                                                                         remain in Cathay's or
                                                                                                         Dragonair's possession
                                                                                                         and control (as the case
                                                                                                         may be) for the authorised
                                                                                                         Exhibition Period.

 

		5.4.2	The Airline will
                                                                                                         use reasonable endeavours
                                                                                                         to prevent damage to
                                                                                                         or loss, theft, conversion
                                                                                                         or destruction of any
                                                                                                         cassette, CDs or Digital
                                                                                                         Media incorporating the
                                                                                                         Programmes. The Airline
                                                                                                         will notify IFP in writing
                                                                                                         of any such damage, theft,
                                                                                                         loss conversion or destruction
                                                                                                         and will cooperate with
                                                                                                         IFP and or the Distributor
                                                                                                         in any reasonable attempt
                                                                                                         to recover such cassettes,
                                                                                                         CDs or Digital Media.

 

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		5.4.3	The Airline shall undertake
                                                                                                     not to duplicate, copy, edit,
                                                                                                     exhibit, promote or sell
                                                                                                     any of the cassettes, CDs
                                                                                                     or Digital Media other than
                                                                                                     the permitted use of the
                                                                                                     Programmes on flights operated
                                                                                                     by the Airline and excepting
                                                                                                     material that is the property
                                                                                                     of the Airline.

 

		5.4.4	At the conclusion of the agreed Exhibition Period for a
Programme, the Airline shall within forty five (45) days of the end of the Exhibition Period;

 

		(a)	Return the movie cassettes to the address detailed in SCHEDULE
3 - CONTACT AND DELIVERY for IFP to arrange destruction of the cassettes; and

 

		(b)	erase all Digital Media from the Aircraft's digital servers.

 

		5.5	Music Royalties Licenses

 

		5.5.1	The
                                                                                                      Airline shall make all necessary
                                                                                                      payments for any and all
                                                                                                      rights, Licenses and other
                                                                                                      clearances for the performance
                                                                                                      of music contained in the
                                                                                                      soundtrack of the Programmes
                                                                                                      or advertisement that may
                                                                                                      be applicable by Public
                                                                                                      Performance Rights regulations
                                                                                                      in the Airlines' country
                                                                                                      of registration.

 

		6.	SERVICE COSTS

 

		6.1	In
consideration of the Services to be rendered by IFP under this Agreement, the Airline shall pay to IFP the fees specified
below (the "Service Costs"). The detailed budget is included in SCHEDULE 4- BUDGET FOR ***.

 

		6.2	For Audio Programming

 

		6.2.1	Management Fee

 

		(a)	The annual Management Fee for Audio has been agreed by
the parties and will be reviewed annually pursuant to Clause 11 or as otherwise agreed by the parties and will be paid
in equal instalments on a monthly basis. The Management Fee comprises a labour cost, overhead cost and a profit margin and these
costs will be taken into account in fixing any adjustment to the Management Fee.

 

		(b)	Labour Cost:

 

		i)	should include costs of in-house labour working directly
on the Airlines' account, for example, Personnel involved in account servicing, programming, logistics support, etc. Labour costs
related to technical processes, such as editing, Encoding, Duplication, quality control and labelling should not be included in
any assessment of labour costs for the purposes of assessing the Management Fee;

 

		ii)	should reflect actual salary cost and include all staff
benefits, insurance, pension, healthcare, tax, and other benefits; and

 

		iii)	will be calculated based on the estimated man-days required
and man-day rates of each of IFP's Personnel involved in the provision of the Services.

 

		(c)	Overhead Cost:

 

		i)	should include all non-labour related operating costs,
including rent, rates, labour cost related to support services such as finance, I.T., and other like costs required for the provision
of the Services. Overhead costs related to technical processes should not be included and they should be covered by the rates
of technical services; and

 

		ii)	should
be presented as a percentage of the labour cost, namely, *** for
this Agreement.

 

 

*** Confidential treatment requested.

 

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		(d)	Profit Margin:

 

		i)	should be calculated as a percentage of total of the labour
cost and overhead cost, namely, *** for this Agreement.]

 

		(e)	The agreed annual Management Fee for Audio is fixed and
firm for the duration of this Agreement, unless agreed otherwise between the parties taking into account any adjustment in labour
costs and overhead costs.

 

		6.2.2	Programming Cost

 

		(a)	Programming Cost shall include the hourly rates for programming
in a studio and using a computer edit facility, but does not include the cost of the producers.

 

		(b)	Programming Cost shall be agreed during the annual budget
meetings and will be discussed on a Programme by Programme basis showing a detailed breakdown of the hours spent using studio
and computer for each Audio Programme. It will also include the Programming Costs related to AOD Music Albums and Boarding Music.

 

		(c)	The agreed rate for programming in studio is ***
for Radio Channels produced in Hong Kong, *** for Radio Channels
produced in Singapore and *** for Radio Channels produced
in London and Los Angeles. The agreed rate for programming using a computer edit facility is ***.

 

		6.2.3	Presenter Cost

 

		(a)	IFP will use best endeavours to provide competitive prices
for costs of Presenters and will ensure that such costs charged to the Airline shall not exceed those agreed between the Parties
during the annual budget review process.

 

		(b)	Presenter costs will be charged to the Airline at cost
with no mark up or commission whatsoever and will be subject to review on an annual basis.

 

		6.2.4	Mechanical Royalties

 

		(a)	IFP shall be responsible for using best efforts to understand
the relevant royalty laws and negotiating favourable Mechanical Royalties on behalf of the Airline. The current agreement is ***
of the cost related to music production (Management Fee and Programming
Cost), CD Duplication and Encoding.

 

		(b)	Mechanical Royalties will be charged to the Airline at
cost with no mark up.

 

		6.2.5	Technical Costs

 

		(a)	All Technical Costs of whatever nature will be charged
to the Airline at cost, with no additional mark up or commission. All Technical Costs will be subject to review on an annual basis
and shall not exceed costs stipulated in the annual budget unless agreed by Airline.

 

		(b)	Duplication Cost

 

		i)	For
Cathay, 6 CDs are used to contain the 22 Radio Channels and the agreed unit cost is ***.
Intermasters are used for the Duplication of the Radio Channels and the agreed unit cost is ***.
Flashcards are used for the Duplication of Boarding Music and the agreed unit cost ***.

 

		ii)	For Dragonair, 4 CDs are used to contain 16 Radio Channels
and the agreed unit cost is *** per CD. Intermasters are used for
the Duplication of the Radio Channels and the agreed unit cost is ***.
Flashcards and Cassettes are used for the Duplication of Boarding Music and the agreed unit cost is ***
for Flashcard and *** for cassette.

 

 

*** Confidential treatment requested.

 

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		iii)	Costs relating to Duplication includes costs for quality
checking/labelling and all associated Duplication costs.

 

		iv)	Duplication costs charged to the Airline will remain fixed
and firm for the duration of this Agreement unless subject to a decrease due to efficiencies in working practice. Duplication
costs may not exceed the costs stipulated for Duplication in the annual budget unless agreed by Airline.

 

		(c)	Encoding Cost for Cathay

 

		i)	The
agreed encoding rate is *** per minute for encoding of Radio
Channels, *** per minute for encoding of Boarding Music in Flashcard for
Panasonic System, and *** per minute for encoding of Boarding
Music in CD Rom for KID System.

 

		ii)	The Cost of Encoding includes costs for quality checking
and all associated Encoding costs.

 

		iii)	Encoding costs charged to the Airline will remain fixed
and firm for the duration of this Agreement unless subject to a decrease due to efficiencies in working practice. Encoding costs
may not exceed the costs stipulated for Encoding in the annual budget unless agreed by the Airline.

 

		6.3	For Video Programming

 

		6.3.1	Management Fee

 

		(a)	The annual Management Fee for video Programmes has been
agreed by the parties and will be reviewed annually pursuant to Clause 11 or as otherwise agreed and will be paid in equal
instalments on a monthly basis. The Management Fee comprises labour cost1 overhead cost and a profit margin and these costs will
be taken into account in fixing any adjustment to the Management Fee. 

 

		(b)	Labour Costs:

 

		i)	should include costs of in-house labour working directly
on the Airline's account1 for example1 Personnel involved in account servicing, programming, logistics support, etc. Labour costs
related to technical processes, such as editing, Encoding, Duplication, quality control and labelling should not be included in
the labour costs for the purposes of assessing the Management Fee;

 

		ii)	should reflect
                                                                               actual salary cost and include all staff benefitS1
                                                                               insurance, pension, healthcare 1
                                                                               tax 1 and other benefits; and

 

		iii)	will be calculated to each category, Western Movies and
Western Short Features1 based on the estimated man-days required and man-day rates of each of IFP's Personnel involved in the
provision of the Services for each category.

 

		(c)	Overhead Costs:

 

		i)	should include all non-labour related operating costs,
including rent, rates, labour cost related to support services such as finance, I.T., and other like costs required for the provision
of the Services. Overhead costs related to technical processes should not be included and they should be covered by the rates
of technical services; and

 

		ii)	should be presented as a percentage of the Labour Cost,
namely/*** for this Agreement.

 

		(d)	Profit Margin:

 

		i)	should be calculated as a percentage of tota l of the labour
cost a nd overhead cost namely1 *** for this Agreement.

 

 

*** Confidential treatment requested.

 

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		(e)	The agreed annual Management Fee for video is fixed and
firm for the duration of this Agreement, unless agreed otherwise between the parties, taking into account any adjustment in labour
costs and overhead costs.

 

		6.3.2	License Fees

 

		(a)	In all circumstances, IFP will use best endeavours to negotiate
favourable and continuously improving rates and terms with Distributors and will pass on any reduction in price to the Airline.
IFP will on request provide the Airline the details of terms negotiated with Distributors including copies of relevant agreements.

 

		(b)	The Parties will jointly agree the necessary commitments
to be made with individual Distributors.

 

		(c)	License Fees will be charged to the Airline at cost with
no mark up or commission whatsoever and will be subject to review on an annual basis.

 

		6.3.3	Technical Costs

 

		(a)	All Technical Costs of whatever nature will be charged
to the Airline at cost, with no additional mark up or commission. All Technical Costs will be subject to review on an annual basis
and shall not exceed the costs stipulated in the annual budget unless otherwise agreed.

 

		(b)	In the event that the same programme is used for both Cathay
and Dragonair, the Technical Costs should be equally shared between Cathay and Dragonair.

 

		(c)	Master Cost

 

		i)	For Western Movies, the master costs are included in the
cost of License Fees;

 

		ii)	For Western Short Features, the master cost is charged
by the Distributors and the budgeted master cost is ***
for 30-minute Programmes and ***
for 60-minute Programmes. IFP will ensure that the Master costs charged to the Airline shall not exceed those agreed between
the Parties during the annual budget review process. Any increase in budgeted costs must be agreed in advance by Airline.

 

		(d)	Insertion Fee for Western Movie Programmes

 

		i)	The insertion fee refers to the cost to insert advertisements,
channel Stings, and warning boards into the Programmes.

 

		ii)	IFP
will use best endeavours to provide competitive prices for insertion fees and will ensure that the insertion fees charged
to the Airline shall not exceed those agreed between the Parties during the annual budget review process. The budgeted insertion
fee is *** per movie and this may not be increased unless the Airline
provides approval in advance.

 

		(e)	Editing Cost for Western Short Feature Programmes

 

		i)	The Editing refers to the process to insert advertisements,
channel stings, warning boards to the Programmes and removal of sensitive scenes from the Programmes.

 

		ii)	Editing Cost is calculated based on the hourly rates of
***, the number of edit hours required and the cost of betacam SP
tape for each cassette length, as agreed between the Parties during the annual budget review process. The agreed unit editing
cost is *** for 135-minute programme and ***
for 60-min programme and *** for 60-minute programme shown
on AVOD system only.

 

 

*** Confidential treatment requested.

 

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		iii)	The hourly rates of ***
for Editing will remain fixed and firm for the duration of this Agreement unless subject to a decrease due to efficiencies
in working practice.

 

		iv)	Editing costs may not exceed the costs stipulated in the
annual budget unless agreed by the parties.

 

		(f)	Subtitling Cost

 

		i)	IFP will use best endeavours to provide competitive prices
for subtitling costs and will ensure that the subtitling cost charged to the Airline shall not exceed those agreed between the
Parties during the annual budget review process. The budgeted subtitling cost is ***
for 30-minute programme and *** for 50- minute programme
and these may not be increased unless the Airline provides approval in advance.

 

		(g)	Duplication Cost

 

		i)	Duplication
for Western Movies is performed by the Distributor's designated laboratories in Hollywood. IFP will use best endeavours
to provide competitive prices for Duplication and will ensure that the Duplication rates charged to the A irline shall not exceed
those agreed between the Parties during the annual budget review process. The lock-up cost and applicable tax of ***
will be added to the Duplication cost. The budgeted Duplication rates are:

 

	 	VHS Tape	 	V8 or Hi-8 Tape
	For Cathay:	 	 	 
	120-minute	***	 	***
	Kids Movies	***	 	***
	For Dragonair:	 	 	 
	120-minute	***	 	***
	Kids Movies	***	 	***

 

		ii)	Duplication for Western
                                                                                                       Short Features is performed
                                                                                                       by IFP. The agreed duplication
                                                                                                       rates are:

 

	 	VHS Tape	 	V8 or Hi-8 Tape
	For Cathay:	 	 	 
	135-minute	***	 	***
	60-minute	***	 	***
	For Dragonair:	 	 	 
	130-minute	***	 	***
	80-minute	***	 	***
	60-minute	***	 	***
	30-minute	***	 	***

 

		iii)	Duplication cost charged to the Airline will remain fixed
and firm for the duration of this Agreement unless subject to a decrease due to efficiencies in working practice. For the avoidance
of doubt Duplication costs may not exceed the costs stipulated for Duplication in the annual budget unless agreed in advance by
Airline.

 

		(h)	Encoding Cost

 

		i)	Encoding for Western Movies is performed by the Distributor's
designated laboratories in Hollywood. IFP will use best endeavours to provide competitive prices for Encoding and will ensure
that the Encoding rates charged to the Airline shall not exceed those agreed between the Parties during the annual budget review
process. The budgeted Encoding rate is *** for recall fee, ***
per minute for single language, *** per minute for dual language,
*** per minute for adding a second language to a recall file and
*** for cost of encryption and output.

 

 

*** Confidential treatment requested.

 

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		ii)	Encoding
for Western Short Features and advertisements is performed by IFP. The agreed encoding rate is ***
per minute for single language and dual language. Encoding Cost charged to the Airline will remain fixed and firm for the
duration of this Agreement unless subject to a decrease due to efficiencies in working practice.

 

		iii)	If the Digital Media of a Western Movie is available in
IFP's library, IFP will offer the Airline a recall rate of *** per minute.

 

		iv)	For the avoidance of doubt Encoding costs may not exceed
the costs stipulated for Encoding in the annual budget unless agreed in advance by Airline.

 

		(i)	Cost of Quality Control, Labelling and Destruction

 

		i)	For
Western Movies, IFP will use best endeavours to provide competitive prices for quality control, la belling and destruction
and will ensure that the costs charged to the Airline shall not exceed those agreed between the Parties during the annual budget
review process. The agreed unit price per cassette is ***.

 

		ii)	For Western Short Features, the costs of Quality Control
and Labelling are covered by the Duplication Cost and Encoding Cost while destruction of cassette is performed by the Airline.

 

		6.4	Other Costs

 

		6.4.1	The cost of providing all Services hereunder (other than
as specified above as being the subject of specific fees and charges) including the cost of co-ordinating, managing and sending
promotional materials to the relevant parties, for the Interactive Screens will be covered by the Management Fee for Audio and
video.

 

		6.4.2	IFP will send master cassettes and other material to Hong
Kong or IFP's London office via the Airline's designated courier company, who will invoice the Airline directly.

 

		6.4.3	If
                                                                                                     IFP incur costs over budget
                                                                                                     in providing Services and
                                                                                                     such increase in costs are
                                                                                                     not agreed in advance by
                                                                                                     Airline, then IFP shall be
                                                                                                     responsible for such costs.

 

		7.	SHARING OF COST SAVING

 

		7.1	The Airline agrees to share a portion of the cost savings
achieved by IFP through the negotiation of the License Fees for Western Movies and Western Short Features as an incentive to IFP
to optimize License Fees in favour of the Airline.

 

		7.2	For Western Movies:

 

		7.2.1	For
the period of ***

 

		(a)	The saving in License Fees has been calculated based on
rates proposed in the IFP response to the RFP minus the actual spend on License Fees (excluding the deal with ***);
and

 

		(b)	The Airline has shared with ***
of the saving achieved which was ***.

 

		7.2.2	For the year of ***

 

		(a)	The saving in License Fees shall be calculated based on
a target reduction of *** (or another amount to be mutually agreed)
from the rates agreed in the annual budget minus the actual spend on License Fees; and

 

		(b)	The Airline will share with IFP ***
of the saving achieved or *** whichever is lower provided
that the IFP scores an average of *** or higher on the Key Performance
Indicators during the two Performance Reviews per year.

 

 

*** Confidential treatment requested.

 

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		7.3	For Western Short Features:

 

		7.3.1	For
the period of ***

 

		(a)	The
saving in License Fees has been calculated based on rates proposed in the IFP response to the RFP minus the actual spend
on License Fees (excluding the deal with ***); and

 

		(b)	The
Airline has shared with IFP *** of the saving achieved which
was ***.

 

		7.3.2	For the year of ***

 

		(a)	The
saving in License Fees shall be calculated based on a target reduction of ***
(or another amount to be mutually agreed) from the rates agreed in the annual budget minus the actual spend on License
Fees; and

 

		(b)	The
Airline will share with IFP *** of the saving achieved or ***
whichever is lower provided that the IFP scores an average of *** or
higher on the Key Performance Indicators during the two Performance Reviews per year.

 

		8.	PAYMENT SCHEDULE, INVOICING AND REPORTING

 

		8.1	IFP shall issue invoices in US Dollar or UK Pounds to the
Airline the month prior to the Exhibition Period concerned, i.e. the invoice will be received by the Airline on the 1st day of
the month prior to the Exhibition Period in question. For example, the Airline will receive invoices for January play cycle by
1st December.

 

		8.2	Encoding fees will be charged as per the budgeted amount
using an average for each title based on the number of languages required. A reconciliation against actual will take place on
a quarterly basis and a credit or invoice will be issued for the difference.

 

		8.3	Quotations for any additional requirements not detailed
in the annual budget must be sent in advance to the Manager Inflight Communication and Entertainment of the Airline for approval.
Only expenses that have been pre-approved by the Airline will be payable by the Airline.

 

		8.4	Amounts payable by the Airline under this Agreement shall
absent dispute be paid in full within forty five (45) days of the end of the month after the receipt by the Airline of the relevant
invoice from IFP. All monthly invoices from IFP shall be addressed for the attention of the Airline's Manager Inflight Communication
and Entertainment.

 

		8.5	A summary report of the expenses will be provided to the
Airline twice a year. The Parties will agree the format for such report.

 

		8.6	If any withholding, deduction or retention is required
by law to be made by the Airline in respect of any payments made to IFP under this Agreement,IFP shall not be entitled to be paid
or reimbursed the amount of such withholding, deduction or retention or to be paid an extra amount to ensure that it receives
the payment it would have received if such withholding, deduction or retention were not ma-de.

 

		9.	CANCELLATION

 

		9.1	The Airline may require IFP to change, reject, cancel or
stop any and all bookings, or previously agreed Programmes, and IFP shall in such circumstances take all possible steps to comply,
provided that IFP can do so within its contractual obligations to Distributors, and other suppliers, as such obligations have
been entered into in accordance with the authority provided by Airline. IFP shall be fully responsible for any liabilities or
costs incurred due to IFP entering into contracts with Distributors which provide for commitments greater than that agreed to
by Airline. If Airline changes, cancels or stops any previously agreed bookings, it will pay IFP reasonable costs of work completed
to date relating to the bookings in question, based on the terms of Clause 6. In the event of this occurrence, IFP will
provide supporting documentation needed to determine the amount of payment and will use best endeavours to mitigate the cost to
the Airline. IFP shall not be entitled to any such payment if Airlines' changed, cancelled or cessation of a booking is due to
a breach by IFP on its obligation hereunder.

 

 

*** Confidential treatment requested.

 

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		9.2	In the event that a Programme agreed to by the Parties as detailed in Clause 10 subsequently
becomes unavailable by the Distributor, then IFP will use best endeavours to ensure that any additional costs incurred by the Airline
from any third party or Business Partners as a result of such late change in a Programme title are covered by the Distributor.
Such costs may include but are not limited to costs related to integration, Interactive Screen changes, translation and will be
covered by the Distributor in terms of a credit payment or reduction in future licence fees from the Distributor in question.

  

		10.	APPROVALPROCESS

		10.1	IFP shall provide the Airline with a selection of recommendations
for each Programme including a synopsis of the content for video Programmes and a line up of proposed tracks and artists for audio
Programmes according to the monthly programming timeline.

 

		10.1.1	For Western Movie Programmes, it is approximately nine
(9) weeks prior to the first day of the scheduled Exhibition Period.

 

		10.1.2	For Western Short Feature Programmes, it is approximately
fifteen (15) weeks prior to the first day of the scheduled Exhibition Period.

 

		10.1.3	For Audio Programmes, it is approximately thirteen (13)
weeks prior to the first day of the scheduled Exhibition Period.

 

		10.2	The Airline shall confirm the Programmes to be produced
or licensed according to the monthly programming timeline.

 

		10.2.1	For Western Movie Programmes, it is approximately eight
(8) weeks prior to the first day of the scheduled Exhibition Period.

 

		10.2.2	For Western Short Feature
Programmes, it is approximately fourteen (14) weeks prior to the first day of the scheduled Exhibition Period.

 

		10.2.3	For Audio Programmes, it is approximately twelve (12)
weeks prior to the first day of the scheduled Exhibition Period.

 

		10.3	The following procedures should be followed for the approval
process:

 

		10.3.1	In the event of a notification by the Airline that any
of the Programmes proposed in Clause 10.1 for approval are unsuitable for any reason and rejected by the Airline, IFP shall
arrange for alternative Programmes to be suggested for immediate consideration by the Airline.

 

		10.3.2	The process described in Clause
10.3.1 shall be repeated until such time as the Airline has approved the suggested Programme line up for the Exhibition Period
in question and such process shall be undertaken in accordance
with a timetable as may be agreed by the Parties.Once approved by the Airline, the Airline shall be liable for any additional
costs incurred by IFP in implementing any further changes or amendments to
the Programme(s) as requested by the Airline.

 

		10.4	The Airline's written approval
of the Programmes will be IFP's authority to proceed.
The Airline will endeavour to provide approvals within the time period detailed in Clause 10.2.

 

		10.5	Any reference in this Agreement
to the Airline's written approval shall mean written approval by representatives of the Airline who are authorised to approve
IFP's work and whose names are set
out below:

 

 

***
Confidential treatment requested.

  

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"Authorised Person"
of the Airline

 

Manager, Product

 

Manager Inflight Communication &
Entertainment

 

		10.6	Any reference
in this Agreement to Airline's written approval
regarding commercial and contractual issues shall mean
written approval by representatives of
the Airline who are authorised to approve IFP's commercial
and contractual issues and
whose names are set out
below:

 

"Authorised
Person" of the Airline
Manager

 

Purchasing, Marketing & Product Assistant

 

Purchasing Manager - Marketing

 

		10.7	Any change to the foregoing
authorised persons during the term of this
Agreement will be notified in writing by the Airline to IFP.

 

		10.8	For the purposes of this Agreement "written approval"
shall include approval signified by:

 

		10.8.1	fax on the Airline's notepaper bearing the signature
of an Authorised Person;

 

		10.8.2	oral approval given by an
Authorised Person provided this is in circumstances where
time does not permit written approval and is subsequently supported by written confirmation within 24 hours; and

 

		10.8.3	e-mail emanating from the personal e-mail address of
an Authorised Person.

 

		10.9	Where approvals or consents
are required from Airline, Cathay has the authority to provide the same on behalf of itself and Dragonair, and IFPshall
only obtain such approvals or consents from Cathay accordingly.

 

		10.10	Where an obligation is owed to IFP hereunder by Airline,
such obligation shall be satisfied by either Cathay or Dragonair performing or undertaking the obligation.

 

		11.	BUDGET PROCESS AND MEETINGS

 

		11.1	Budget Process

 

		11.1.1	In September every year the
Parties will jointly determine the annual costs for all
aspects of the Services for the following year. ***
Budget is included in SCHEDULE
4 - BUDGET FOR ***.

 

		11.1.2	IFP will be responsible for
drafting the budget, and providing indicative pricing for
annual costs for all aspects of the Services.

 

		11.1.3	The Parties will jointly calculate
the required number of Exhibitions,
number of cassettes and COs to be used for the following year's budget using the information provided by the Airline.

 

		11.2	Meetings

 

		11.2.1	Throughout the year, the Parties
will be expected to meet on a regula r basis in order to
conduct performance reviews, discuss strategy, analyse passenger feedback and survey results, decide themes and finalise budgets
and commercial issues.

 

		11.2.2	In order to conduct such meetings,
if such meetings are
to be held in Hong Kong, the Airline will provide Sub-load Tickets to relevant
IFP Personnel, as deemed necessary. The issuance of tickets will be at the
sole discretion of
the Manager Inflight Communication and Entertainment of
the Airline. At all times IFP's
employees must adhere
to the Airline's Sub-load travel
policy issued
to IFP from time to time.

 

 

***
Confidential treatment requested.

 

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		11.2.3	 On a bi-annual basis (twice
every year), the Parties will conduct a Performance Review whereby the Airline will score
IFP's performance against a set of predetermined Key Performance Indicators while IFP will
give feedback on the Airline's performance. The Key Performance
Indicators and the Airline feedback form are detailed in
SCHEDULE 5 - KEY PERFORMANCE INDICATORS.

 

		12.	BUSINESS PARTNERS

 

		12.1	IFP shall co-operate fully
with all the Airline's suppliers who have been appointed to provide the Airline's IFE services. IFP shall endeavour to ensure
that all aspects of the Services are correctly integrated where necessary with other work, services, materials, processes and
equipment supplied or operated by the Airline's Business Partners in fulfilment of the Services and in meeting the deadlines laid
down by the Airline or the Airline's Business Partners. The Airline will ensure that its
Business Partners who have been appointed to provide services that are relevant to this
Agreement cooperate with IFP as reasonably necessary for IFP to perform the Services under this Agreement.

 

		12.2.	IFP warrants that it will
use best endeavours to work co-operatively with all nominated Business Partners of the Airline to ensure that attention to detail,
timelines, minimisation of additional costs and on time delivery are ensured for the Services.

 

		13.	INTELLECTUAL PROPERTY RIGHTS

 

		13.1	The Airline retains all Intellectual Property Rights
in all specifications, documents and reports supplied to IFP by the Airline in connection with this Agreement and the Services.

 

		13.2.	IFP will be responsible for
obtaining and warrants that it will obtain all copyright
permissions and Exhibition rights and all other similar rights and permissions relating to the Programmes required to enable the
Airline to use the Programmes on all Aircraft as anticipated hereunder, including all rights to duplicate, load
and for passengers to use such Programmes and associated copyright
works and all charges, fees, or royalties chargeable for the exercise of the above rights and liabilities shall be borne by FP.

 

		13.3	IFP further warrants that
the Exhibitions of the Programmes (including any foreign language sound track and/or subtitles) and reproduction or use of the
Programmes will not infringe the copyright, performing rights,
moral rights
or any other rights of any third party whatsoever and that
the Programmes will not be obscene or defamatory.

 

		13.4	Ownership and all copyright
and all other intellectual property rights in the Programmes
shall be retained at all times by the original Distributors,
suppliers or copyright owners.

 

		13.5	All rights, title and interest
in material, such as airline logos, fillers or advertisements
which are inserted in Programmes exclusively for the - Airline
(including all Intellectual Property Rights therein) shall vest in and/or remain
the property of the Airline or the third party supplier of such
material (as the case may be).

 

		13.6	For the purposes of this Clause,
"Intellectual Property Rights" means patents, trademarks, design rights (whether
registrable or otherwise), applications for any of the foregoing,
copyright, database rights, know-how, trade or business
names and other similar rights or obligations whether registrable
or not in any country.

 

		13.7	The parties
acknowledge that Airline will be responsible for paying any royalties
due to Phonographic Performance (South East Asia)
Ltd and CASH in respect
of Public Performance Rights and
the performance of music
and sound recordings
on Aircraft.

 

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		14.	INSURANCE

 

		14.1	Without limiting any obligation of IFP hereunder, it
is agreed that IFP shall effect and maintain at its own expense at all times for the duration of this Agreement the following
policies of insurance:-

 

		14.1.1	Workers' Compensation and
Employers' Liability Insurance with a limit of liability of not less than *** covering all claims
and liabilities in respect of the death of or injury to any person employed by, or who is deemed to be a worker of IFP or any
sub-contractor of IFP in connection with the provision of the Services;

 

		14.1.2	Insurance covering general
third party liability with a limit of liability of not less
than ***; and

 

		14.1.3	such other insurance as reasonably
requested by the Airline in writing from time to time.

 

		14.2	IFP shall:-

 

		14.2.1	observe and perform all terms and conditions of such
insurance and pay all deductibles;

 

		14.2.2	on request provide the Airline
with the certificates or policies of the insurances, other
details of the insurance and evidence of currency and premium payment; and

 

		14.2.3	ensure that all insurance arranged by IFP are effected
with reputable financially secure insurers approved by the Airline and that all insurance is on terms acceptable to the Airline.

 

		14.3	If IFP fails to take out any
of the insurance required under this Clause, the Airline
may at its sole discretion take out and maintain such insurances and deduct the costs from any moneys due to IFP or treat the
failure to insure as a material breach under this Agreement.

  

		15.	REPRESENTATIONS AND WARRANTIES

 

		15.1	Each Party represents and warrants to other Party as
follows:-

 

		15.1.1	it is a company or corporation
duly incorporated under the laws of the place of its incorporation
and has the corporate power and authority to accept the terms of this Agreement and to perform its obligations under it;
and

 

		15.1.2	its entry into this Agreement has been duly and validly
authorised and all requisite corporate action has been taken in order to make such entry valid and binding upon it in accordance
with the terms of this Agreement.

  

		16.	TERMINATION

 

		16.1	Either Party may terminate
this Agreement by giving to the other Party no less than *** notice in writing after the Initial
Term.

 

		16.2	Either Party may terminate this Agreement with immediate
effect by sending a written notice to the other Party if:

 

		16.2.1	that other Party commits a material breach of its obligations
under this Agreement and, in the case of a breach capable of remedy as determined under Clause 16.3, such breach is not
remedied within fourteen (14) days of that other Party being specifically required to do so;

 

		16.2.2	a receiver, manager, administrator
or like person takes possession or is appointed of the whole or any part of the undertaking or property of that
other Party;

 

	*** Confidential treatment requested.	 

 

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		16.2.3	an order is made by a Court for the winding-up of that
other Party or a resolution is passed by the shareholders of that other Party for its winding-up, except for the purposes of amalgamation
or reconstruction in such manner that the resulting company is bound by and assumes the obligations imposed on that other Party
by this Agreement;

 

		16.2.4	that other Party ceases to pay its debts or becomes unable
to pay its debts;

 

		16.2.5	anything having a similar effect with any of the events
referred to in Clauses 16.2.2 to 16.2.4 inclusive under the law of any jurisdiction occurs in relation to that other Party;

 

		16.2.6	that other Party disposes of the whole or any substantial
part of its undertaking or assets; or

 

		16.2.7	that other Party ceases or threatens to cease to carry
on all or any substantial part of its business.

 

		16.3	For the purposes of Clause 16.2.1, a breach shall
be considered capable of remedy if the Party in breach can comply with the provision in question in all respects to the sole satisfaction
of the other Party, other than as to the time of performance, provided that time of performance is not of the essence.

 

		16.4	The termination of this Agreement shall be without prejudice
to any rights, obligations and liabilities of any Party which have accrued at the time of termination.

 

		16.5	Upon any termination of this Agreement (howsoever occasioned),
IFP shall forthwith deliver up to the Airline all copies of any information and data supplied to IFP hereunder and shall certify
to the Airline that no copies of such information or data have been retained.

 

		17.	INDEMNITY BY IFP

 

		17.1	IFP shall indemnify on demand and hold harmless the Airline
and its employees, directors, agents and officers from and against any and all costs, damages, expenses, losses, claims or liability
incurred by it (including all costs and expenses which the Airline may incur in defending any proceedings) arising out of or in
connection with (directly or indirectly) this Agreement, including but not limited to:-

 

		17.1.1	any breach of any terms of this Agreement or the performance
of the Services by IFP;

 

		17.1.2	any breach of any warranty or undertaking given by IFP
or implied by applicable law in relation to the Services or the provision of the Services;

 

		17.1.3	any negligent or wrongful
act or omission of IFP or its employees, directors, agents or officers;

 

		17.1.4	any disputes, claims or proceedings brought by a third
party alleging that the Services (or the provision thereof) or the Programmes and/or associated materials provided by IFP hereunder
or the copying or use thereof infringe any patent, copyright, design right, trademark or other intellectual property rights of
any other person; and/or

 

		17.1.5	any non-compliance of the Services with the specifications
set out in SCHEDULE 1- PROGRAMME SPECIFICATIONS.

 

except to the
extent that such costs, damages, expenses, losses, claims or liability are due to the gross negligence
or wilful misconduct of the Airline or its employees, directors, agents or officers.

 

		17.2	This
indemnity shall survive
termination of this Agreement.

  

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		18.	ENTIRE AGREEMENT

 

		18.1	This Agreement supersedes
any agreements made or existing between the Parties before
or simultaneously with this Agreement in respect of the provision
of services similar to the Services (all of which shall be deemed to have been terminated by mutual consent with effect from the
commencement date of this Agreement but without prejudice
to the rights and liabilities of the Parties accrued before
such date), and constitutes the entire understanding between the Parties
in relation to the subject matter of this Agreement.

 

		19.	REMEDIES CUMULATIVE

 

		19.1	The rights of the Parties
under this Agreement are cumulative and do not exclude or restrict any other rights (except as otherwise provided in the
Agreement).

 

		20.	NO WAIVER

 

		20.1	No delay or failure by either
Party to exercise any of its powers, rights or remedies
under this Agreement shall operate as a waiver of them, nor shall any single or partial exercise of any such powers, rights or
remedies preclude any other
or further exercise of them. No provision of this Agreement and no breach of any provision of
this Agreement shall be waived, altered or modified except by written instrument. No waiver of any breach shall affect or alter
this Agreement, but each and every provision of this Agreement
shall continue in full force and effect with respect to
any other breach then existing or subsequent breach of any provision.

 

		21.	SEVERANCE

 

		21.1	If any provision of this Agreement
is not or ceases to be legal, valid, binding a nd
enforceable under the law of any jurisdiction, neither the legality,
validity, binding effect or enforceability of the remaining provisions under that law nor the legality,
validity, binding effect or enforceability of that provision under the law of any other jurisdiction shall be affected.

 

		22.	AMENDMENT

 

		22.1	No amendment to this Agreement
will be effective unless in writing and executed by all
the Parties.

 

		23.	CONFIDENTIALITY

 

		23.1	Each
                                                                                                                  Party shall
                                                                                                                  treat as confidential
                                                                                                                  all confidential
                                                                                                                  information
                                                                                                                  obtained from
                                                                                                                  the other pursuant
                                                                                                                  to this Agreement
                                                                                                                  and shall not
                                                                                                                  divulge such
                                                                                                                  information
                                                                                                                  to any person
                                                                                                                  (except to such
                                                                                                                  party's own
                                                                                                                  employees and
                                                                                                                  then only to
                                                                                                                  those employees
                                                                                                                  who need to
                                                                                                                  know the same)
                                                                                                                  and shall not
                                                                                                                  use the information
                                                                                                                  for any purpose
                                                                                                                  other than for
                                                                                                                  which it was
                                                                                                                  provided without
                                                                                                                  the other Party's
                                                                                                                  prior written
                                                                                                                  consent. This
                                                                                                                  clause shall
                                                                                                                  not extend to
                                                                                                                  information
                                                                                                                  (i) which was
                                                                                                                  rightfully in
                                                                                                                  consent. This
                                                                                                                  clause shall
                                                                                                                  not extend to
                                                                                                                  information
                                                                                                                  (i) which was
                                                                                                                  rightfully in
                                                                                                                  the possession
                                                                                                                  of such Party
                                                                                                                  prior to the
                                                                                                                  commencement
                                                                                                                  of negotiations
                                                                                                                  leading to this
                                                                                                                  Agreement, (ii)
                                                                                                                  which is already
                                                                                                                  public knowledge
                                                                                                                  or becomes so
                                                                                                                  at a future
                                                                                                                  date (otherwise
                                                                                                                  than in breach
                                                                                                                  of this clause),
                                                                                                                  (iii) which
                                                                                                                  is trivial or
                                                                                                                  obvious, (iv)
                                                                                                                  which is required
                                                                                                                  to be disclosed
                                                                                                                  to comply with
                                                                                                                  any court order
                                                                                                                  or stock exchange
                                                                                                                  requirement,
                                                                                                                  or (v) where
                                                                                                                  disclosure is
                                                                                                                  required by
                                                                                                                  law. Each Party
                                                                                                                  shall ensure
                                                                                                                  that its employees
                                                                                                                  are aware of
                                                                                                                  and comply with
                                                                                                                  the provisions
                                                                                                                  of this clause.
                                                                                                                  If IFP appoints
                                                                                                                  any sub-contractor
                                                                                                                  then IFP may
                                                                                                                  disclose confidential
                                                                                                                  information
                                                                                                                  to such subcontractors,
                                                                                                                  subject to Airline's
                                                                                                                  prior consent,
                                                                                                                  which shall
                                                                                                                  not be unreasonably
                                                                                                                  withheld, and
                                                                                                                  such sub-contractors
                                                                                                                  or assignees
                                                                                                                  agreeing to
                                                                                                                  the same confidentiality
                                                                                                                  terms as contained
                                                                                                                  herein.

 

		23.2	The provisions of this Clause
23 shall survive the expiration or termination
of this Agreement.

  

    	CX and KA Western Programming Agreement - IFP Final ***	Page 27 of 57

    	STRICTLY CONFIDENTIAL

    

 

		23.3	In particular during and after termination of this
Agreement IFP acknowledges its responsibility to treat in complete confidence all the demographic, marketing and sales information
and statistics relating to the Airlines' business which Airline may supply IFP in the course of this Agreement.

  

		24.	ADVERTISING

 

		24.1	Neither IFP or its affiliates
nor any of its employees, agents or subcontractors shall mention the name of the Airline in any advertisement, public relations
exercise or promotional material relating to or arising out of this Agreement without the prior written permission of the Airline.
Such permission shall not be unreasonably withheld.

  

		25.	ASSIGNMENT

 

		25.1	No Party may assign or subcontract any of the rights
or obligations of that Party under this Agreement without the prior written consent of other Party to this Agreement.Such
consents shall not be unreasonably conditioned, withheld or delayed except that the Airline may assign or sub-contract the whole
or any part of its rights or obligations to any of its subsidiaries or affiliates.

 

		25.2	In the event of the Airline
consenting to any sub-contracting of the whole or any part of this Agreement, IFP undertakes and warrants to the Airline as follows:

 

		25.2.1	that any agreement between
IFP and such a sub-contractor shall be in the same form as the relevant parts of this Agreement and without limitation
the agreement with a subcontractor shall include provisions regarding confidentiality and liability for loss, termination, force
majeure, damage, negligenceand infringementto intellectual property rights where appropriate;

 

		25.2.2	that the sub-contractor
shall comply with its obligations under such Agreement so as to ensure that all the obligations of IFP under this Agreement are
fully performed and IFP shall be responsible for all liabilities,
acts and omissions of any subcontractor; and

 

		25.2.3	that if it subcontracts any part of the Services,
that its subcontractors shall be fully experienced, properly qualified and properly organised, equipped and financed to undertake
such subcontracted Services.

 

		25.3	If in the course of providing the Services during
the Term of this Agreement IFP decides to use the services of any company in which IFP has a material financial interest, IFP
will declare this and before commissioning such services obtain the consent of the Airline thereto.

  

		26.	EXPENSES

 

		26.1	Each of the Parties is responsible for that Party's
own legal and other expenses incurred in the negotiation, preparation and completion of this Agreement.

  

		27.	FORCE MAJEURE

 

		27.1	In this Agreement, "force
majeure" shall mean any cause preventing a Party
from performing any or all of its obligations which arises from or is attributable to acts, events, omissions or accidents beyond
the reasonable control of the Party
so prevented, including without limitation, strikes, lock-out or other industrial disputes (whether involving the workforce of
the Party so prevented or of any other Party), act of God, war, riot, civil commotion, malicious damage, compliance with any law
or governmental order, rule, regulation or direction, accident, breakdown of plant or machinery, fire, flood, or storm.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 28 of 57

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		27.2	If a Party is prevented
or delayed in the performance of any of its obligations
under this Agreement by force majeure, that Party shall immediately serve notice in writing on the other Party specifying the
nature and extent of the circumstances giving rise to force majeure, and shall, subject to service of such notice and to performance
of its obligation under Clause 27.4, have no liability
in respect of the performance of such of its obligations as are prevented by the force majeure events during the continuation
of such events, and for such time after they cease as is necessary for that Party, using all reasonable endeavours, to recommence
its affected operations in order for it to perform its obligations.

 

		27.3	If a Party is prevented
from performance of its obligations for a continuous period in excess of three (3) months, the other Party may terminate this
Agreement immediately on service of written notice upon the Party so prevented, in
which case no Party shall have any liability to any other except that rights and liabilities which accrued prior to such termination
shall not be affected.

 

		27.4	The Party claiming to be
prevented or delayed in the performance of any of its obligations
under this Agreement by reason of force majeure shall use all reasonable endeavours to bring the force majeure event to a close
or to find a solution by which the Agreement may be performed despite the continuance of the force majeure event.

  

		28.	AUDIT

 

		28.1	In respect of all expenditure
and costs which is incurred by IFP hereunder and which is reimbursable by the Airline under this Agreement, IFP shall maintain
such accounts and records (the 'Records) as are reasonably necessary for the purpose of enabling the Airline to conduct an audit
of that expenditure.

 

		28.2	IFP will allow the Airline,
by its own personnel or by a professionally qualified independent
auditor, access to all the Records during the term of this Agreement and for 12 months afterwards on not less than 10 days written
notice at any time during normal business hours for the purposes of auditing or otherwise inspecting
them, provided that in the absence of exceptional circumstances IFP shall not be obliged to allow such access or inspection more
than once during any 6 month period.

 

		28.3	Should any audit or inspection
of the Records by the Airline reveal that the Airline
has been overcharged, IFP shall reimburse to the Airline the amount of the overcharge within 7 days and should the total overcharge
for the year exceed HK$100,000 then the Airline will also refund any professional costs related to the performance of the audit
(i.e. the cost of the auditors).

 

		28.4	IFP will afford to the
Airline all reasonable assistance in the carrying out of such audit, whilst the Airline and its auditor will ensure that any information
obtained in the course of the audit concerning IFP's business is kept in
the strictest confidence and not used for any purpose other than the proper conduct of the audit.

  

		29.	RIGHT OF REPLACEMENT

 

		29.1	The Airline reserves the
right to demand the replacement at any time by giving three (3) months’ notice of any employee agent or subcontractor of
IFP working on the Airline's account if in the opinion of
the Airline the performance of such person is unsatisfactory. The Airline agrees to inform IFP in writing of the reasons and supporting
evidence for the demand to replace such employee, agent or sub-contractor. If IFP receives such a demand it shall replace such
person.

 

		29.2	IFP warrants that the core
team will remain as specified at the outset of this
Agreement unless any of this core team leaves IFP. In such circumstances, IFP warrants that it will replace such personnel with
personnel of the same or higher caliber and experience.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 29 of 57

    	STRICTLY CONFIDENTIAL

    
 

		29.3	It is imperative that a
dedicated account manager is appointed to work on the Airline
account. Should the current account manager leave IFP for whatever reason, the Airline is entitled to review the resumes of any
prospective candidates for this role and approve the appointment, since working with the account manager will be a critical factor
in the success of the working relationship of the Parties.

  

		30.	NO AGENCY OR PARTNERSHIP

 

		30.1	Nothing in this Agreement
shall constitute or be deemed to constitute a partnership between the Parties hereto or constitute IFP as agents of the Airline
for any purpose whatsoever and IFP shall have no authority or power to bind the Airline or to contract in the name of or create
a liability against the Airline in any way or for any purpose. For the avoidance of doubt in all its contracts for third party
goods or services, IFP shall act as principal at law.

  

		31.	NOTICES

 

		31.1	Every notice or communication under this Agreement
must be in writing and may, without prejudice to any other form of delivery, be delivered personally or sent by post or transmitted
by fax or email.

 

		31.1.1	In the case of posting, the envelope containing the
notice or communication must be addressed to the intended recipient at the authorised address of that Party and must be properly
stamped or have the proper postage prepaid for delivery by the most expeditious service available (which will be airmail if that
service is available) and, in the case of a fax or email, the transmission must be sent to the intended recipient at the authorised
number or address of that Party.

 

		31.1.2	Subject to Clause 31.2, for the purpose of
Clause 31, please refer to SCHEDULE 3 - CONTACT AND DELIVERY DETAILS for the authorised address, fax number and
email of each Party.

 

		31.2	No change in any of the particulars set out in SCHEDULE
3 - CONTACT AND DELIVERY DETAILS will be effective against a Party until it has been notified to that Party.

 

		31.3	A notice or communication will be deemed to have been
duly given and received:-

 

		31.3.1	on personal delivery to an addressee or on a business
day to a place for the receipt of letters at that addressee's authorised address; or

 

		31.3.2	in the case of posting, where the addressee's authorised
address is in the same country as the country of posting, at 10 a.m. (local time at the place where the address is located) on
the second business day after the day of posting; or

 

		31.3.3	in the case of posting,
where the addressee's authorised address is not the same
country as the country of posting, at 10 a.m. (local time at the place where that address is located) on the fifth business day
after the day of posting; or -

 

		31.3.4	in the case of a fax, on
issue to the sender of an O.K. result confirmation report
or, if the day of issue is not a business day, at 10 a.m. (local time where the authorised fax number of the intended recipient
is located) on the next business day or

 

		31.3.5	in the case of an email, when the sender receive
acknowledgement from the address.

 

		31.4	For the purpose of Clause
31.3, a "business day" means a day which is not a Saturday or a Sunday or a public holiday in the country of posting
or transmission or in the country where the authorised address or fax number of the intended recipient is located and, where a
notice is posted, which is not a day when there is a disruption of postal services in either country which
prevents collection or delivery.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 30 of 57

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		32.	SUCCESSORS

 

		32.1	This Agreement is binding on the successors of each
Party.

 

		33.	LAW AND JURISDICTION

 

		33.1	This Agreement is governed by and will be construed
in accordance with Hong Kong law.

 

		33.2	The parties submit to the non-exclusive jurisdiction
of the Hong Kong courts and each Party waives any obligation to proceeding in Hong Kong on the grounds of venue or inconvenient
forum.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 31 of 57

    	STRICTLY CONFIDENTIAL

    
 

IN WITNESS whereof the
Parties hereto have caused this Agreement to be duly executed by their authorised representatives the day and year first above
written

 

	Signed for 	 	Witnessed by:	 
	CATHAY PACIFIC AIRWAYS LTD. by:	 	 	 
	 	 	 	 
	/s/ Alex McGowan	 	/s/ Eva Chan	 
	Alex McGowan	 	Eva Chan	 
	Manager Product	 	Assistant Purchasing Manager - Marketing	 
	 	 	 	 
	Date: ***	 	Date: ***	 
	 	 	 	 
	Signed for 	 	Witnessed by:	 
	HONG KONG DRAGON AIRLINES LTD. 	 	 	 
	by its duly authorized agent:	 	 	 
	 	 	 	 
	/s/ Alex McGowan	 	/s/ Eva Chan	 
	Alex McGowan	 	Eva Chan	 
	Manager Product	 	Assistant Purchasing Manager - Marketing	 
	 	 	 	 
	Date: ***	 	Date: ***	 
	 	 	 	 
	Signed for 	 	Witnessed by:	 
	INFLIGHT PRODUCTIONS LTD. 	 	 	 
	by:	 	 	 
	 	 	 	 
	/s/ Joan Barker	 	/s/ Janet Winstanley	 
	Joan Barker	 	Janet Winstanley	 
	Sales & Marketing Director	 	Client Services Manager	 
	 	 	 	 
	Date: ***	 	Date: ***	 

 

 

***
Confidential treatment requested.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 32 of 57

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SCHEDULE 1 -PROGRAMME SPECIFICATIONS

 

For
Cathay:

 

Specification
of Western Movies

 

		1.	Overall
Strategy for Movies

 

		(a)	Cathay aims to present
a diverse and interesting range
of movies from Hollywood's
blockbusters to popular
Asian movies, from the hottest new releases to classic movies.

 

		(b)	The selection includes new releases,
popular blockbusters and internationally
acclaimed art house
movies in multiple languages catering to the
Cathay's diverse demographic mix.
The languages include English,
Cantonese, Mandarin,
Japanese, Korean, Hindi,
French, Italian and
German

 

		(c)	Movies are
only available on routes of over
2 hours 40 minutes flying time.

 

		(d)	On regional aircraft,
                                                                                                                  *** movies are offered each month
                                                                                                                  on the Distributed Channels (*** on inbound flights
                                                                                                                  and *** on outbound flights) in all classes.

 

		(e)	On long-haul Aircraft
equipped with Panasonic 3000
IFE system, ***
movies are offered
each month on the Distributed
Channels (***
on inbound flights and ***  on
outbound flights) in Economy
Class while *** movies are offered each
month on the
AVOD system in
First and
Business Class.

 

		(f)	On long-haul
Aircraft equipped with
Panasonic eX2 IFE system,
***  Movies on the AVOD system
are offered in all
classes.

 

		2.	Movies Categories

 

		(a)	A total
of 50 movies are offered each month under
the following
categories:

  

	 	
         

        Quantity
        available each flight
	 
	 	Distributed Channel	 	 
	Categories	Regional aircraft	Long-haul aircraft	AVOD	Description
	New Release	***	***	***	Hollywood's hottest new blockbusters. (*** of them are updated every month.)
	Re-View	***	***	***	
        Hit
        movies from the
        past few years. (*** of them are

        updated every
        month.)

	Arthouse	***	***	***	The best independent films and arthouse movies. (*** of them are updated every month.)
	Asia on Film	***	***	***	
        Quality Asian
        cinema selected
        from the best
        in the region.

        (*** of
        them are updated
        every month.)

	Disney	***	***	***	A selection of Disney movies for the young ones aboard. (*** of them is updated every month.)
	Your Favourites	***	***	***	Our selection of specially- themed movies. (*** of them are updated every month.)
	Total	***	***	***	 

 

 

***
Confidential treatment requested.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 33 of 57

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		3.	Specification of
Western Movies

 

		(a)	Please refer to
the Video Channel Line-up for details.

 

		(b)	The quantity
of movies shown below is the total number of movies required
every month for
both inbound and outbound
flights.

 

	Categories	Quantity	Movie Code	Language	Subtitles
	For distributed channels  of long-haul flights  of all aircraft:
	New Releases	***	0/B: A, C,E,
    G, I, K 1/B:  B, D, F,
    H J     L	English  (+1)	Chinese
	Re-View	***	0/B:
    M 1/B:  N	English  ( +1)	Chinese
	Arthouse	***	0/B: 0 1/B:
    p	Original	Chinese
	Disney	***	0/B:
    Y, AA 1/B:  Z, BB	English and Cantonese	N/A
	For distributed channels  of long-haul flights  of long-haul aircraft only:
	Re-View	***	0/B: CC
    1/B:  DD	English  (+1)	Chinese
    (optional)
	Arthouse	***	0/B:
    EE 1/ B:  FF	Original	Chinese
    (optional)
	For AVOD of long-haul flights of long-haul aircraft only:
	Re-View	***	N/A	English (+1)	Chinese
    (optional)
	Arthouse	***	N/A	Original	Chinese
    (optional)
	Your Favourites	***	N/A	English  (+1)	Chinese
    (optional)
	TOTAL	***	 	 	 
	 	 	 	 	 	 

		(c)	Remarks:

"0/B"
means outbound flight,
"1/B" means inbound
flight

The
following movies are held over from the previous month:

*** movies from
New Releases

*** movies from Disney

*** movies from
Re-View in AVOD system

*** movies from Arthouse
in AVOD system

*** movies from
Your Favourites in
AVOD system

"English
(+1)" means the
movie should be in
English and it is
preferable to have audio soundtrack
of an additional language,
which can be French,
German, Italian,Japanese or Korean.

		•	"Original"
means the audio soundtrack
should be in original
language of
the movie, e.g.
English, French, German
and Italian.

"Chinese
(optional)"
mea ns it is
preferable to have
Chinese subtitles if
it is available.

		(d)	Other Requirements

There
should be at least
one movie with each of the additional languages in
the movie mix each month.

		•	For ***  out of the
*** movies held
over in the New Release
category, the choice
of additional language should be different from the one
shown in the previous month.

 

	*** Confidential treatment requested.	 

 

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Specification
of Western Short Features

 

		1.	Overall Strategy for Short Features

 

		(a)	Popular TV programmes are acquired
from around the world.
The selection includes
popular sitcoms, lifestyle,
documentary and sport programmes in English, Cantonese,
Mandarin, Japanese and Hindi.

 

		(b)	As well as high rating shows, we
also seek to include
a variety of niche programming that
has received critical acclaim.

 

		(c)	A total of up to *** of Western
                                                                                                Short Features is offered on
                                                                                                Distributed Channels (***  on inbound flights
and ***  on
outbound flights) in all classes of regional Aircraft and in Economy Class
of long-haul Aircraft equipped with Panasonic
3000 IFE system.

 

		(d)	Over
                                                                                                *** of Western
                                                                                                Short Features are shown
                                                                                                on AVOD system each month in First
                                                                                                and Business Class of long-haul
                                                                                                Aircraft equipped with Panasonic
                                                                                                3000 IFE system and in all classes
                                                                                                of long-haul Aircraft equipped
                                                                                                with Panasonic eX2 IFE system.

 

		(e)	On routes over 2 hours 40 minutes flying
time, compilations of 135-minute
short feature programmes are shown
on repeating cycles. There
are 8 TV channels on
flights operated
by regional Aircraft while there are 12 TV channels on flights
operated by long-haul Aircraft.

 

		(f)	On routes under
2 hours 40 minutes flying time, compilations
of 50-minute short feature programmes are
shown on repeating cycles.
There are 20 TV channels
on flights operated by regional
Aircraft while there are 26 TV channels on flights operated
by long-haul Aircraft.

 

		(g)	All programmes, except those in
the TV Series category
(TV box sets) are updated
monthly, while at least
one box set is updated every
month. For short
features offered on the
Disney Channel, 2 hours
of the programming
is updated every 3
months.

 

		(h)	50-minute and 135-minute programming blocks
are combinations of 30-minute
programmes and 50-minute programmes.
The number of programmes
selected
in a programming block may vary depending
on the actual runtime of the programmes included.
Extra fillers may be required
to fill up a 50-min.
or 135-min. programming block.

 

		2.	Short Features Categories

 

		(a)	Over 80 hours
of short features
are offered each month under
the following categories:

 

	
         

        Categories
	
         

        Quantity
	
         

        Description

	
         

        HKTV
	
        30 min
        x ***

        

        50 min x *** 

        ***

         
	
         

        Cantonese programmes
        and variety shows

	
         

        TV Asia
	
        30
        min x ***

        

        60
min x *** 

         
	
         

        An
        entertaining selection
        of Asian short features

  

 

***
Confidential treatment requested.

  

    	CX and KA Western Programming Agreement - IFP Final ***	Page 35 of 57

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        Comedy
	
        30
        min x ***

        

         
	Smash-hit comedies from  all around the globe
	
         

        E! Entertainment
	
        30min x *** 

        60min
        x ***

        

         
	
         

        Gossip,
        style news
        and celebrity interviews
        from Hollywood

	
         

        Lifestyle
        & Reality
	
        30 min
        x ***

        

        60
min x *** 

         
	
         

        Must-watch
        international reality
        and lifestyle shows

 

 

***
Confidential treatment requested.

  

    	CX and KA Western Programming Agreement - IFP Final ***	Page 36 of 57

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        Categories
	
         

        Quantity
	
         

        Description

	
         

        Drama
	
         

        60
        min x ***

         
	
         

        Action, romance
        and more from the world's hottest dramas

	
         

        Documentary
	
        30 min x ***

        

        60
        min x ***

        

         
	
         

        Riveting
        and thought-provoking documentaries

	
         

        Discovery
	
        60
        min x ***

        

         
	Exploring the history and mysteries of our planet
	
         

        Disney Channel
	
         

        30
        min x ***

        

         
	
         

        The most popular cartoons
from the Disney Channel

	
         

        Sport
	
        30min x ***

        

        60
        min x ***

        

         
	
         

        News,
        profiles and highlights from the sporting world

	
         

        News &
        Sports
	
        15
        min x ***

        (Daily)

        30
        min x ***

        (Weekly)

        ***

         

        (1 Hour)
	
         

        Daily
        news and coverage of major sporting events

	
         

        TV Series

        (Box Sets)
	
        30
        min x ***

        

        3
        x 60 minx ***

        

        (21 hours)
	
         

        Get hooked on box-sets of the hottest

        TV shows
        on the planet

	
         

        Total
	
         

        ***

         
	 

		(b)	Remarks:

		•	TV
                                                                                                                        Series
                                                                                                                        is only
                                                                                                                        available
                                                                                                                        in the
                                                                                                                        AVOD library.
                                                                                                                        It consists
                                                                                                                        of ***
                                                                                                                        Drama
                                                                                                                        box sets
                                                                                                                        (***
                                                                                                                         x
                                                                                                                        60 min),
                                                                                                                        *** Documentary
                                                                                                                        box
                                                                                                                        set
                                                                                                                        (*** x
                                                                                                                        60 min)
                                                                                                                        and
                                                                                                                        *** Comedy
                                                                                                                        box
                                                                                                                        set
                                                                                                                        (***  x
                                                                                                                        30
                                                                                                                        min).
                                                                                                                        Drama
                                                                                                                        and Documentary
                                                                                                                        box sets
                                                                                                                        are updated
                                                                                                                        quarterly,
                                                                                                                        while
                                                                                                                        the Comedy
                                                                                                                        box set
                                                                                                                        is updated
                                                                                                                        bi-monthly.

 

		3.	Channel Line-up for Distributed Channels

 

	 	No. of channels available on each  flight
	 	Flights over  2 hr.  40  min. 

(Long-haul flights)	Flights under 2 hr. 40 

min.  (Short-haul flights)
	Category	Regional

Aircraft	Long-haul

Aircraft	Regional

Aircraft	Long-haul

Aircraft
	HKTV	***	***	***	***
	TV Asia	***	***	***	***
	Comedy	***	***	***	***
	E! Entertainment	***(Outbound)

	***	***	***
	Lifestyle & Reality	*** (Inbound)

	***	***	***
	Drama	*** (Inbound)

	***	***	***
	Documentary	*** (Outbound)

	***	***	***

 

 

***
Confidential treatment requested.

 

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 37 of 57

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	Discovery	***	***	***	***
	Disney  Channel	***	***	***	***
	Sport	***	***	***	***
	News & Sports	***	***	***	***
	
         

        Total
	
        ***

        (Inbound)

        ***

        (Outbound)
	
        ***

        (Inbound)

        ***

        (Outbound)
	***	***

 

 

***
Confidential treatment requested.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 38 of 57

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		4.	Specification
of Western Short Features

 

		(a)	Please refer to the Video
Channel Line-up for
details.

 

		(b)	The quantity shown
below is the total
number of Western Short Features Programmes required every month for both inbound
and outbound flights.

 

	Categories	Quantity	Language	Subtitles
	
         

        Comedy
	30 min x***	
         

        English
	
        Chinese

        (5 hours)

	
         

        E! Entertainment
	30 min x
*** 60 min x ***

	
         

        English
	
         

        N/A

	
         

        Lifestyle &
        Reality
	30 min x
*** 60 min x
***

	
         

        English
	
         

        N/A

	
         

        Drama
	60 min x ***	
         

        English
	
        Chinese

        (6 hours)

	
         

        Documentary
	30 min x
*** min x ***

	
         

        English
	
         

        N/A

	
         

        Discovery
	60 min x ***	
         

        English
	
         

        N/A

	
         

        Disney Channel
	30 min x ***	
        English and

        Cantonese
	
         

        N/A

	
         

        Sport
	30 min x ***
60 min x ***

	
         

        English
	
         

        N/A

	
         

        TV Series

        (Box Sets)
	
        30
        min x ***

        (Comedy)

        3
        x 60 min x ***

         

        (2
        Drama, 1Documentary) ***

         
	
         

         

        English
	
         

         

        N/A

	TOTAL	***	 	 

 

		(c)	Remarks:

		•	Chinese subtitles
are required
for *** hours of
programmes in the category of
Comedy and *** hours of
programmes in the category of Drama.

		•	Drama and Documentary box sets
are updated quarterly,
while Comedy box set is updated
bi-monthly.

 

Technical Specification
for Western Movies and Western Short Features

		(a)	Specification for Broadcast
Channels

		•	NTSC system

VHS
cassettes

		•	Stereo

		(b)	Specification for AVOD

		•	Encoding: MPEG
1 @ 352 x 240

Constant bit rate

Video bit rate @
1.5 Mb/s

		•	Audio bit rate
@ 128kb/s

NTSC@ 30
fps

 

 

***
Confidential treatment requested.

 

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    	STRICTLY CONFIDENTIAL

    

 

Specification of
Audio

 

		1.	Overall Strategy
for Audio

 

		(a)	Cathay strives to bring passengers the best
audio entertainment
in the sky.
The music incorporates various genres and styles from all
around the world.
It is carefully chosen to suit all musical tastes. There are currently 22
broadcast radio channels in 9 different languages for passengers to select from.
The programmes range from the latest pop and rock
to classical, jazz, relaxation tips
and interviews with
the stars. They are available for passengers of all classes.

 

		(b)	Audio on
Demand (AOD) system with a CD library
is available to passengers
in First and Business Class on long-haul aircraft equipped with Panasonic
3000 IFE system and
passengers in all classes on long-haul aircraft equipped
with Panasonic eX2
IFE system. There is
also a Juke Box function
that allows passengers to compile their own
song list.

 

		(c)	There are currently 10 categories
featuring approximately
150 CD albums
from around the globe. 15 CDs are updated on a monthly
basis. In addition to the
CD library, 12 CDs are selected specifically
for children.

 

		(d)	Boarding music is produced every year and is played on all flights
during take off and landing for
passengers to relax and
enjoy.

 

		2.	Radio Channels

 

		(a)	There are
a total of 22 customised radio channels available in all
classes on all routes. All channels are broadcast in a
repeating cycle of 120 minutes.

 

	
         

        No.
	Channel name	
         

        Description
	
        Update

        frequency
	
         

        Language

	1	Hot:HK	
        Hosted programme with
        the greatest

        Cantonese
        pop from HK charts. Upbeat & Lively, targets passengers of 20s to
        40s.
	Monthly	Cantonese
	2	A Musical Journey	Hosted programme with the most memorable  tunes. Stories interweave between songs.  Targets more mature _Qassengers.	Monthly	Cantonese
	3	Mandarin Zone	Hosted programme with latest Mandarin hits including  artist interviews.	Monthly	Mandarin
	4	Chinese All Time Hits	Hosted programme with the most memorable  Chinese hits from the good old days.	Monthly	Cantonese
	5	J-Pop	Hosted programme with the latest Japanese Pop music or New Enka.	Monthly	Japanese
	6	Mumbai Beat	Hosted programme with a mix of Indian fusion, Bollywood remixes, Bollywood songs, ghazals and older film music.	Monthly	Indian

-
	7	Philippine Soundwave	Hosted programme the latest and best from the Philippine music world.	Monthly	Tagalog
	8	Classical Moods	Popular and familiar  light classics from the great composers, uninterrupted. (No Presenter)	Monthly	N/A
	9	Classical Choice	Hosted programme with a mix of favourite  pieces from the lighter  side of the classical-music repertoire, with works by a varied collection of composers.	Monthly	English
	10	All Time Hits	Hosted programme with favourite hits from the 50s, 60s and 70s.	Monthly	English

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	No.	Channel name	Description	Update frequency	Language
	11	Rewind	Hosted  by programme with  the  80's to 90's  Q_op or rock show.	Monthly	English
	12	Popzone	Hosted  programme with  the fastest moving, high-flying chart show direct  from  Planet Pop! All the latest tracks  are here from  some of the biggest stars  in music  today.	Monthly	English
	13	Rock	Hosted  programme with  a selection of the best rock in the sky as he plays  new and classic music  from some of the world's greatest bands.	Monthly	English
	14	Dancescape	Hosted  programme with  the DJ's personal selection, get in the  beat or simply chill  out  to these  tunes.	Monthly	English
	15	Easy Moods	Hosted  programme with  a mellow mix of light contemporary love songs and ballads from  a diverse  group  of artists.	Monthly	English
	16	Jazz	Hosted  programme with  a collection of cool, laid-back jazz.	Monthly	English
	17	Serenity	two  hours  of physical and mental relaxation, peaceful music, health and travel tips etc. (No presenter)	Bi-monthly	English
	18	Music Special	Hosted  programme with  two hours of music  and celebrity_ interviews.	Bi-monthly	English
	19	J-Medley	Hosted  programme with  older  pop songs and all time  hits  from  70s to early  2000s. This channel also includes some instrumental pieces, light jazz and well-known Enka.	Bi-monthly	Japanese
	20	Korean Music Box	Hosted  programme with  music  from the movies,TV and chart-topping artists of Korea.	Bi-monthly	Korean
	21	Malay Hits	Hosted  programme with  the  current Malaysian music.  A big portion of the  channel  will spotlight the latest Malay pop songs, and there  are also some  more  popular Indonesian pop songs.	Bi-monthly	Malay
	22	Thai Mix	Hosted  programme with  a variety of Thai contemporary hits.	Bi-monthly	Thai

		(b)	Each audio channel
is 120 minutes in length and
has approximately 26 tracks.

 

		(c)	All channels, except
'Classical Moods' and "Serenity", are hosted
with one presenter. (d)
The presenters must
be suitable for Cathay's
demographics, and should
not have strong accents.

 

		(e)	There are
currently no sponsored channels.

 

		(f)	Jingles are sometimes
used and are permitted. (g) Presenters usually
make reference to Cathay.

 

		(h)	Presenters may
conduct interviews with celebrities or guests where appropriate.

 

		(i)	Method of recording is
flexible as long as
the end product is
suitable
for inflight listening.
They can be
recorded
either on computer
or in studio.

 

		(j)	16 channels a re
updated every
month while 6 channels a
re updated bi-monthly.

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		3.	Audio on
Demand (AOD) Library

 

		(a)	The AOD Library
is available to passengers
in First and Business Class
on long-haul
aircraft equipped with Panasonic 3000
IFE system and passengers in all classes
on long-haul aircraft equipped with
Panasonic eX2 IFE system.
There are currently 10 categories featuring
up to 150
CD albums.

 

	Genre	Description
	All Time Hits	"Best  of ...." compilations from  major artists and specifically to feature officially released  'Greatest Hits' albums by international selling artists.
	Classic Albums	Classic albums are generally considered to have stood  the test of time, and remained popular throughout changing trends in recent music  history, e.g. Hotel California of Eagles, Sgt. Pepper's Lonely Hearts  Club Band of Beatles.
	Rock & Pop	
        The
biggest new releases and internationally
renowned pop and rock
performers, Western pop
COs from the US and UK charts, e.g.
Confessions On The
Dance Floor of Madonna
a nd X
& Y of Coldplav.

	Easy Listening	A cool and pop collection of contemporary easy listening ballads.
	Country	A dedicated channel for 'Country' enthusiasts.
	Jazz	A dedicated channel for 'Jazz' enthusiasts. Focus on internationally popular artists.
	Soundtracks	Introduce classic musicals, soundtracks of movies  like Grease, Saturday Night  Fever etc.
	Classical	Includes classical and opera music.  Mostly  well-known popular favourites with  a few more  challenging works.
	Cantonese	Latest  Cantonese pop albums, plus  new releases  of older  artists (e.g. Greatest Hits releases). New albums of old songs including New and  Best of, e.g. Tribute to Leslie Cheung.
	Asian Selection	Primarily pop for Mandarin like Fish Leong, Stefanie Sun, old COs like Teresa Teng,Emil Chau; Korean e.g. BoA, Rain & Japanese including some old albums like The best of Pink Lady, New  Enka e.g. KiyoshiHikawa ; Japanese  easy listening e.g. Ken Hirai & Rimi Natsukawa; and selections from other countries occasionally (Philippines, Hindi).

 

		(b)	There is currently a
CD library of approximately 150
COs.

 

		(c)	There is
a Juke Box function that allows passengers to compile
their own song list. (d) 15 COs will be
changed every
month to ensure that
the assortment is
up-to-date.

 

		(e)	The COs are divided into
10 categories a nd
a minimum
of five COs is required in each
category.

 

		(f)	In addition to the CD library,
12 COs are specially selected
for children, aged from 3 to teen. COs
in the Kids category
are updated on ad hoc
basis as agreed
between the parties.

 

		4.	Boarding Music

 

		(a)	Boarding music is
played during take
off and landing when the
IFE system is switched
off.

 

		(b)	Flashcards (2
types: PCMCIA and
Compact Flash) are
used for boarding
music.

 

		(c)	3 sets of boarding music are
produced every
year: 1st set is used
in January, February, July and
August, 2nd set is used in March, April, September and October and 3rd
set is used
in May, June, November
and December.

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		(d)	Boarding music is
30 minutes long and can
range from 3 to 7
tracks depending on the length
of the track.

 

		(e)	For existing
Panasonic PRAM System, 6
flashcards are required
per year, based on 2 duplications
for each new variation of boarding music (i.e. 3 variations
produced per year)

 

		(f)	For Airbus
A340-600 iPRAM System, 1 flashcard is needed per
aircraft that holds ALL boarding
music for a whole year.
Under current practice,
the flashcard is sourced locally
by Cathay and Cathay's engineers programme
the boarding music into the flashcards.

 

		(g)	Requirements
for boarding music: it
should be non-intrusive, easy listening
and reflect Cathay's branding.

 

Technical
Specifications for Audio

 

		1.	Radio Channels

 

		(a)	One set of CDs is
required for each aircraft and extra sets of CDs are required
as buffer.

 

		(b)	All CDs should contain mono
tracks and there are no stereo tracks.
On each CD, there should be 4 mono tracks.

 

		(c)	For aircraft
equipped with Panasonic eX2 !FE
system, the "Radio
Channels" will
be run in AOD
format. For all other aircraft, the "Radio Channels"
will be run on CD format.

 

		(d)	The update
frequency and channels
per track information are
detailed below:

 

	CD no.	 	
        Channel

        no.
	 	Current Categories	 	
        Programme

        Cycle

	CD 1ex	 	4	 	Hot: HK	 	Monthly
	 	 	5	 	A Musical Journey	 	 
	 	 	6	 	Mandarin Zone	 	 
	 	 	7	 	Chinese All Time Hits	 	 
	CD 2 ex	 	8	 	J-Pop	 	Monthly
	 	 	9	 	Mumbai Beat	 	 
	 	 	10	 	Philippine Soundwave	 	 
	 	 	11	 	Classical Moods	 	 
	CD 3 ex	 	12	 	Classical Choice	 	Monthly
	 	 	13	 	All Time Hits	 	 
	 	 	14	 	Rewind	 	 
	 	 	15	 	Pop Zone	 	 
	CD 4 ex	 	16	 	Rock	 	Monthly
	 	 	17	 	Dancescape	 	 
	 	 	18	 	Easy Moods	 	 
	 	 	19	 	Jazz	 	 
	CD sex	 	20	 	Serenity	 	Bi-monthly
	 	 	21	 	Music Special	 	 
	 	 	22	 	J-Medley	 	 
	 	 	23	 	Korean Music Box	 	 
	CD 6 ex	 	24	 	Malay Hits	 	Bi-monthly
	 	 	25	 	Thai Mix	 	 

  

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		2.	AOD specification

 

		(a)	Audio Elementary Stream:
AES

Layer
1& 2 Audio (MP1MP2 NOT MP3)

Joint stereo/stereo/mono/dual

		•	Bit rate @ 128 Kbs

Sample Rate
@ 44.1KHz

 

		(b)	Transport stream file format:

 

		•	PAT
PID = OxOO
	 	 	PMT PID
= Ox3F

		•	PCR PID = Ox30

		•	Video ES 1PID = Ox30

		•	Audio ES 1PID=Ox31

Audio ES 1PID = Ox32 OPTIONAL

		•	Audio ES 1PID=Ox33
OPTIONAL

		•	Audio ES 1PID=Ox34
OPTIONAL

 

		3.	Boarding Music specification

 

		(a)	For the current Panasonic
IFE System, PRAM is used.
Model is
RDA X7673-01
and RDAX7675-01 which supports 40MB PCMCIA flashcards. All
flashcards need to
be encoded by the Panasonic encoder. IFP is required to update the
flashcards with
the encoded contents

 

		(b)	For Airbus A340-600 iPRAM
System, the unit is integrated into the Airbus
FAP unit which supports
up to 256MB COMPACT FLASH flashcards. The
contents
are encoded in MP3 format and put on the flashcard via
the KID Compiler tool.
IFP is required
to provide the content in a CD for Cathay to update it to the COMPACT
FLASH flashcard on the aircraft.

 

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For Dragonair:

 

Specification
of Western Movies

 

1. Overall Strategy for Movies

 

		(a)	Dragonair aims to present
a diverse and interesting
range of movies from
Hollywood's blockbusters to popular Asian movies, with content
free from controversial topics touching
on political, racial,
cultural and religious
issues.

 

		(b)	The selection
includes new releases, popular blockbusters and
Asian movies in multiple
languages catering to the
airline's diverse
demographic mix.

 

		(c)	Movies are only available on routes over 2 hours 40 minutes
flying time.

 

		(d)	*** movies
                                                                                                                                                              are offered each month, ***are Hollywood
                                                                                                                                                              movies, ***
                                                                                                                                                              are Asian movies and *** are movies from Disney, i.e. *** movies on inbound flights
                                                                                                                                                                                                                                                                                     and *** on outbound
                                                                                                                                                                                                                                                                                     flights.

 

		(e)	The Hollywood
movies are shown on both mainscreen and personal TV while
Asian movies and Disney movies are shown on personal TV only.

 

		(f)	The Hollywood
movies are updated on bi-weekly basis,
the Asian movies are
updated on monthly basis while the Disney movies are updated
on quarterly basis.

 

		(g)	For the movies shown on
the Japanese routes, they are required
to be duplicated with English
and Japanese audio soundtracks to
cater for the Japanese passengers. Chinese subtitles
are required.

 

		(h)	For Western movies, there is English
                                                                                                                    soundtrack with appropriate Chinese
                                                                                                                    subtitles. For Film Asia movies, there is original language soundtrack with
                                                                                                                    Chinese and English subtitles.

 

		2.	Movie Categories

 

		(a)	A total of *** movies, ***
for inbound flights and
*** for outbound flights,
are offered each month under the following categories:

 

	Categories	 	Description	 	
        Quantity

        Required

	Blockbusters	 	
        Showcasing all the action
        from the biggest

        Hollywood blockbusters
	 	***
	Film Asia	 	Get ahead with this fine selection of the latest Asian movies	 	***
	Disney	 	Disney movies for the kids and the whole family	 	***

 

		3.	Specification of Western
Movies

 

		(a)	Please refer
to the Video Channel Line-up for details.

 

		(b)	The quantity shown
below is the total number of programmes required
every month for both inbound
and outbound flights.

 

	   Categories	 	Language	 	Subtitles	 	
        Update

        Frequency
	 	
        Quantity

        per cycle

	Blockbusters	 	English	 	Chinese	 	Bi-weekly	 	***
	Disney	 	English and Cantonese	 	N/A	 	Quarterly	 	***

 

		(c)	Chinese subtitles can be in Traditional
Chinese or Simplified
Chinese.

 

 

*** Confidential treatment requested.

 

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Specification
of Western Short Features

 

		1.	Overall Strategy for Short
Features

 

		(a)	In view
of Dragonair's operating network, the majority of the routes have a
flying time of under
2 hours and 40 minutes.
As such, only short
feature programmes
will be
broadcasted on these routes,
resulting in a demand
for a wide variety of quality
short feature programmes in the genres of lifestyle, sports,
documentary, popular sitcoms, business
and entertainment, etc.

 

		(b)	For routes
less than 2 hours flying time,
compilations of 60-minute short feature programmes are
shown on repeating cycles. For routes
between 2 hours and 2 hours 40
minutes, compilations of 80-minute programmes
are shown. For routes
over 2 hours 40 minutes
flying time, movies and
compilations of 135-minute
are shown.

 

		(c)	There is
1 main-screen channel on all classes
of the A321 fleet.
There are 5 PTV channels
on First Class and
1 main-screen channel on Business and Economy
class on the A33R fleet while there are 10
PTV channels on all
classes of the A33A
and A33L fleets.

 

		(d)	All programmes are
updated monthly except for
those featured in the mainscreen that
they are updated bi-weekly and programmes in Disney
& Disney Channel that they are
updated quarterly. The
programming is different
for inbound
and outbound flights.

 

		(e)	For SO-minute
and 135-minute programming blocks, they
are combination
of 30- minute and
60-minute programmes. The number of programmes
selected in a programming block may vary depending on
the actual runtime of the
programmes included. Extra fillers may be
required to fill up an 80-minute
or 135-minute programming block.

 

		(f)	The 60-minute and 80-minute
short feature programming blocks
showing on main-screen
of the A33R and A321
aircraft are updated bi-weekly and they
will be shown
on the channel of "On Air
TV". The programmes
shown on the main-screen channels cannot be
repeated due to the lack of channel choices as well as the
presence of frequent fliers on our regional flights.

 

		(g)	The language requirements
for Western short feature programmes should include a soundtrack in English with appropriate
Chinese subtitles.
For Asian short feature
programmes, there
should be original languages soundtrack
(Cantonese, Mandarin
or Japanese, etc.)
with English subtitles.

 

		2.	Short Feature
Categories

 

		(a)	A
total of *** hrs of
programmes are offered each month under the following
categories:

 

	Categories	 	Description	 	Quantity
                                                                                                       per

        Month

	
        Asian TV

        _(Cantonese)
	 	Lifestyle, travel, and variety shows, documentary, magazine programmes.	 	***
    hrs
	Asian TV (Mandarin)	 	Lifestyle, travel, and variety shows, documentary, magazine programmes. (Mandarin)	 	***
    hrs
	Comedy	 	Sitcoms, popular shows	 	***
    hrs
	Discovery	 	Documentaries about nature, science, history and culture.	 	***
    hrs
	Lifestyle	 	Technological trends, fashion, fine dinning/cooking, travel, design (e.g. interior, architecture), modern living	 	***
    hrs
	Sports	 	Profiles, classic matches, documentaries from the world of sport	 	***
    hrs
	Drama	 	Dramatic, action, romantic TV hits from US & UK	 	***
    hrs

 

 

*** Confidential treatment requested.

 

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	Categories	 	Description	 	
        Quantity per

        Month

	Business	 	Current affairs, documentaries and profiles from a business perspective.	 	*** hrs
	Ent-Magazine	 	Gossip, news and interviews from behind the scenes from Hollywood and beyond. Light- hearted Reality TV shows and contests.	 	*** hrs
	
        Disney

        Channel
	 	Animation and TV hits for the kids and the whole family (Disney)_	 	*** hrs

 

		3.	Specification of Western Short Features

 

		(a)	Please refer
to the Video Channel Line-up for details.

 

		(b)	The quantity shown below
is the total number of programmes
required every
month for both inbound and outbound
flights.

 

	Categories	 	Language	 	Subtitles	 	
        Quantity per

        Month

	Comedy	 	English	 	Chinese	 	*** hrs
	Discovery	 	English	 	Chinese	 	*** hrs
	Lifestyle	 	English	 	Chinese	 	***hrs
	Sports	 	English	 	Chinese	 	***hrs
	Drama	 	English	 	Chinese	 	*** hrs
	Business	 	English	 	Chinese	 	*** hrs
	Ent-Magazine	 	English	 	Chinese	 	*** hrs
	
        Disney

        Channel
	 	Cantonese	 	N/A	 	*** hrs

 

		(c)	Chinese subtitles
can be in Traditional
Chinese or Simplified Chinese.

 

Technical Specification
for Western Movies and Western Short Features

 

		(a)	Specification for Broadcast
Channels

 

		•	NTSC system

		•	VHS cassettes

		•	Hi-8 tapes

Stereo broadcast

 

 

*** Confidential treatment requested.

 

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Specification of Audio

 

		1.	Overall Strategy for Audio

 

		(a)	Tune in
to On Air Radio, Dragonair's hip 16-channel selection
of inflight airwaves for passengers of all cabin classes.
With a wide range
of premium audio entertainment showcasing the
newest and best of East and
West, timeless classics of rock and jazz, stirring
orchestral performances and music from
favourite movies, as well
as soothing sounds and mellow melodies to relax with,
the programming strategy of On Air Radio is simply to
give the greatest choice
of audio entertainment
to Dragonair's passengers.

 

		(b)	On Air Radio's 16-customised
audio channels are available in all cabin
classes on IFE-equipped aircraft. All channels are broadcast in a repeating cycle of 120
minutes. Of which, 4 channels are presented
by DJs.

 

		2.	Radio Channels

 

		(a)	There are
a total of 16 customised radio channels available
in all classes on all routes. All channels are broadcast
in a repeating cycle
of 120 minutes.

 

	No.	 	
        Channel

        name
	 	Description	 	
        Update

        frequency
	 	Language
	1	 	Canto Pop	 	Hosted Programme. Includes an artist feature segment which showcases three tracks from a single artist, plus a review of their musical history and sometimes an interview.	 	Monthly	 	Cantonese
	2	 	
        Mandarin

        Pop
	 	
        Hosted programme. The hottest

        stars from
        Hong Kong, Taiwan, Mainland China
        and Asia are featured in this jam-packed Mandarin pop show
        featuring all the latest hits!
	 	Monthly	 	Mandarin
	3	 	
        Chinese

        Gold
	 	Hosted programme with the very best Chinese Gold hits including an hour each of Cantonese and Mandarin tracks, to take passengers on a musical iournev throuqh time!	 	Monthly	 	
        Cantonese

        & Mandarin

	4	 	Pop Hits	 	
        Hosted programme.
        An up-tempo

        and
        fun mix of new and
        forthcoming releases
        plus some more established tracks from the
        international pop charts.
	 	Monthly	 	English
	5	 	
        Classical

        Moods
	 	Popular and familiar light classics from the great composers, uninterrupted. (No presenter)	 	Monthly	 	N/A
	6	 	Jazz	 	A collection of cool, laid-back jazz. (No presenter)	 	Monthly	 	English
	7	 	Rewind	 	
        A programme of
        80's to 90's pop or

        rock show.
        (No presenter)
	 	Monthly	 	English
	8	 	Easy Moods	 	
        A mellow mix of light
        contemporary

        love
        songs and ballads from
        a diverse group of artists.
        (No presenter)
	 	Monthly	 	English
	9	 	Rock	 	A selection of the best rock in the sky as we play new and classic music from some of the world's greatest bands. (No presenter)	 	Monthly	 	English
	10	 	
        All Time

        Hits
	 	
        A programme of
        favourite hits
        from

        the
        50s, 60s
        and 70s. (No presenter)
	 	Monthly	 	English

 

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        No.
	 	
        Channel

        name
	 	
         

        Description
	 	
        Update

        frequency
	 	
         

        Language

	11	 	Dancescape	 	Get in the beat or simply chill out to these tunes. (No presenter)	 	Monthly	 	English
	12	 	J-Pop	 	
        The latest
        Japanese Pop music
        or

        New Enka. (No presenter)
	 	Monthly	 	Japanese
	13	 	
        Korean

        Music Box
	 	Music from the movies,TV and chart-topping artists of Korea. (No presenter)	 	Bi-monthly	 	Korean
	14	 	Thai Mix	 	A variety of Thai contemporary hits. (No presenter)	 	Bi-monthly	 	Thai
	15	 	
        Taiwanese

        Favourites
	 	A great mix of current Taiwanese or Min Nan song, plus recent classics. The selection of music will have huge appeal to the target audience. (No presenter)	 	Bi-monthly	 	Taiwanese
	16	 	
        Chinese

        Classical
	 	An enchanting and captivating mix of traditional Chinese classical music played on traditional instruments, plus pieces composed by famous Chinese composers for western orchestras. (No presenter)	 	Bi-monthly	 	N/A

 

		(b)	Each audio channel is 120
minutes in length and has approximately 26 tracks.

 

		(c)	All channels, except 'Canto
Pop', 'Mandarin Pop',
'Pop Hits' and
'Chinese Gold',
are not hosted.

 

		(d)	The presenters
must be suitable for Dragonair's
demographics, and should not have strong accents.

 

		(e)	Jingles
are sometimes used and are permitted.

 

(f)    Presenters usually make reference
to Dragonair.

 

		(g)	A monthly
marketing message (i.e. related
to promotions, latest news, selling of the Dragonair's
brand) will be provided to the
presenter on the 13th of
each month, so that
it will be included in each
hosted channel's talks, for programmes to be run 2 months
later.

 

		(h)	Presenters may conduct interviews
with celebrities or guests where appropriate.

 

		(i)	Method of recording is flexible
as long as the end
product is suitable
for inflight listening. They can be recorded either on computer
or in studio.

 

		3.	Boarding Music

 

		(a)	Boarding music
is played on all flights during take off and landing for passengers to relax and enjoy.
Dragonair commissioned local musician
Johnny Yim to compose five exclusive tracks
of ambient music representing five unique
aspects of our region's cultures.

 

		(b)	Dragonair commissioned the
exclusive composition of the 5 instrumental" music
pieces for use as ambient music and/or any purposes as
it desires.

 

		(c)	Since the
Masters for the boarding
music have been produced, IFP is
only required to
update and encode the flashcards and cassettes according
to this schedule.

 

		4.	Technical Specifications

 

		(a)	Broadcast specifications

 

One set of
CDs is required for each Aircraft in the Dragonair Fleet
and extra sets of
CDs are required
as buffer. 

		•	All CDs should contain mono tracks and there are no stereo
tracks. On each CD, there should
be 4 mono tracks.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 49 of 57

    	STRICTLY CONFIDENTIAL

    

 

		(b)	Boarding Music
Specifications

 

A
combination of PRAM/BGM Reproducers that supports
flashcards and cassette tapes is used across the Dragonair's
fleet of A330, A321 and A320 aircraft. The
models that support flashcards are RDAX7675-51 and RDAX7675-01.
The models that support cassette tapes are RDAX7271KA01,
RDAX7271ZZZZ and RDAX7271CX01.

		•	All flashcards and cassette tapes need
to be encoded by the Panasonic encoder. IFP
is required to update the
flashcards and cassette tapes
with the encoded contents

		•	There are 2 storage formats for the Boarding Music.
Below is a summary of the BGM
Source and storage
formats of the respective
aircraft:

 

Fleet Boarding Music Source

 

	A330	 	Flashcard	 	Cassette	 	A320	 	Flashcard	 	Cassette	 	A321	 	Flashcard
	HYA	 	 	 	Yes	 	HSD	 	 	 	Yes	 	HTD	 	Yes
	HYB	 	 	 	Yes	 	HSE	 	 	 	Yes	 	HTE	 	Yes
	HYD	 	 	 	Yes	 	HSF	 	 	 	Yes	 	HTF	 	Yes
	HYE	 	 	 	Yes	 	HSG	 	 	 	Yes	 	HTG	 	Yes
	HYF	 	 	 	Yes	 	HSH	 	 	 	Yes	 	HTH	 	Yes
	HYG	 	Yes	 	 	 	HSI	 	 	 	Yes	 	HTI	 	Yes
	HYH	 	Yes	 	 	 	HSJ	 	 	 	Yes	 	 	 	 
	HYI	 	Yes	 	 	 	HSK	 	Yes	 	 	 	 	 	 
	HYJ	 	Yes	 	 	 	HSL	 	Yes	 	 	 	 	 	 
	HYO	 	Yes	 	 	 	HSM	 	Yes	 	 	 	 	 	 
	HWF	 	Yes	 	 	 	HSN	 	Yes	 	 	 	 	 	 
	HWG	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 
	A330	 	Flashcard	 	Cassette	 	A320	 	Flashcard	 	Cassette	 	A321	 	Flashcard
	HWH	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 
	HWI	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 
	HWJ	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 
	HWK	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 

 

No
of cassette based a/c                 12

No of flashcard
based a/c               21

 

		(c)	Boarding Music
Update Schedules & Process

 

		•	Cassette tape-based aircraft - In view
of the durability of the cassettes and to pre-empt wear
and tear, cassettes are updated on a bi-monthly basis,
in each ODD month.

		•	Flashcard-based aircraft - As
the boarding music is stored digitally in the
system memory, the boarding music only needs to
be updated whenever the-
actual boarding music is required
for change.

		•	Due to the Panasonic IFE systems'
proprietary encoding requirements,
the boarding music update
for flashcards and cassettes must be performed at a facility equipped with the relevant
Panasonic encoder hardware and software.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 50 of 57

    	STRICTLY CONFIDENTIAL

    

 

SCHEDULE 2- PROGRAMMING GUIDELINES

 

For Video Programmes

 

		1.	For Western Movies, wherever
possible, the threatical (unedited)
version is preferred.

 

		2.	For Western Short Features, only episode-based
programmes should be
considered and TV serial should not be selected as long
as programme is offered as
broadcast channels instead of AVOD.

 

		3.	Programmes selected must
not contain the following scenes or elements,
or the related scenes
or elements must be edited out :

 

		3.1	Full frontal nudity

 

		3.2	Derogatory portrayal of China or
Chinese citizens

 

		3.3	Possession I Satanism

 

		3.4	Active promotion of other airlines

 

		3.5	Explicit sex scene, including
special sexual orientation

 

		3.6	Extremely strong language
and swearing

 

		3.7	Extensive nudity

 

		3.8	Extreme violence, including
extreme scenes of blood and
gore

 

		4.	Attention must be brought
to Cathay if programmes contain the following elements:

 

		4.1	Scenes or
reference to aircraft crashes, hijacks, disasters, and
hostage-taking

 

		4.2	Controversial political issues, including criticism
of Communist doctrine
or Government

 

		4.3	Religious content, including
scenes disrespectful to sacred
animals

 

		4.4	Containing explicit reference
to Cathay Pacific
or other airlines

 

		5.	For Western Movies, movie
rating (e.g. R, PG-13) from terrestrial release
must be provided for reference.
Attention must be
brought to the Airline
if any NC-17 is recommended.

 

		6.	Applicable warnings and
intensity levels must be indicated for each movie
during title selection
recommendation:

 

		6.1	Warnings

 

	 	A: Strong adult themes 	- Including drug
use, criminal acts, etc. 
	 	 	 
	 	C: Aircraft incidents	 
	 	 	 
	 	L: Strong language	 
	 	 	 
	 	N: Nudity	 
	 	 	 
	 	P: Political themes	 
	 	 	 
	 	R: Religious content	 
	 	 	 
	 	S: Sexual content	 
	 	 	 
	 	V: Violence, blood or gore	 

 

		6.2	Intensity Levels

 

		•	The Intensity
levels of each
warning should be indicated
by High (H),
Medium (M), or Low (L).

 

		•	e.g. For
a TV programme with a high
intensity of strong language,
medium violence, and low
sexual content, the
warnings should be
indicated as followed:
L (H), V (M), S
(L)

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 51 of 57

    	STRICTLY CONFIDENTIAL

    
 

For Audio
Programmes

 

		1.	Audio content
must not contain:

 

		1.1	Offensive swearing

 

		1.2	Religious criticism

 

		1.3	Controversial political
issues

 

		1.4	Interviews should
not be overtly promotional

 

		1.5	Reference to aircraft disasters or
crashes

 

		1.6	Promotion of competitive
airlines

 

		1.7	Derogatory portrayal of
China or Chinese citizens

 

		1.8	Presenters or interviewees
with language and dialect, which may be hard
to follow,for example, Irish,Scottish,
Afro-Caribbean.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 52 of 57

    	STRICTLY CONFIDENTIAL

    

 

SCHEDULE 3 -CONTACT AND DELIVERY
DETAILS

 

Contact Information of the Airline:

 

8/F North
Tower

Cathay Pacific
City

8 Scenic
Road

Hong Kong
International Airport

Lantau, Hong Kong

 

Contact
Person:

Mr. Clement
Au

Manager Inflight Communication
and Entertainment

Tel:        (852) 2747
5148

Fax:       (852) 2141 5148

EmaiI:   Clement_au@cathaypacific.com

 

Ms.
Eva Chan

Assistant Purchasing
Manager - Marketing

Tel:        (852) 2747
4187

Fax:       (852) 21414187

Email:    eva_chan@cathaypacific.com

 

Contact Information
of IFP:

 

15 Stukeley
Street

London WC2B

5LT United

Kingdom

 

Contact Person:

Ms.
Janet Winstanley

Client
Services Manager

Tel:        (44) 20 7400 0733

Fax:
       (44) 20 7400 0745

Email:    janet.winstanley@inflightproductions.com

 

Delivery Address for Promotional
Materials:

 

ACP Magazines
Asia Limited

Suite 604-605

625 King's Road

North Point,
Island East

Hong Kong

 

Contact
Person:

Elisabeth Attwood

Entertainment editor

Tel:       (852) 3921 7051

Fax :      (852)
39217099

Email:   eattwood@acpmagazines.com.hk

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 53 of 57

    	STRICTLY CONFIDENTIAL

    

 

Delivery Address for Video Cassettes:

 

For Cathay:

Cathay Pacific
Airways

C/0 HAECO

2/F, 80 South Perimeter Road

Hong Kong
International Airport 

Lantau, Hong Kong

 

Contact Person:

Mr. Frankie Leung

Tel:     (852) 2787 6336

Fax:
    (852) 2767 6852

Email: ow.leung@haeco.com

 

For Dragonair:

Dragonair

C/O Cabin Services of

China Aircraft Services
Ltd.

4N505 Passenger Terminal
Building

1Cheong Hong Road

Hong Kong
International Airport

Lantau,
Hong Kong

 

Contact Person:

Mr. Patrick
Chan

Tel:     (852) 2261 2311

Fax:    (852) 2261 2312

Email: patrick.chan@casl.com.hk

 

Delivery Address for Audio COs:

 

For Cathay:

Cathay Pacific Airways

C/0 HAECO

2/F, 80 South Perimeter Road

Hong Kong
International Airport 

Lantau, Hong Kong

 

Contact Person:

Mr. Frankie
Leung

Tel:    (852)
2787 6336

Fax:    (852) 2767 6852

Email: ow.leung@haeco.com

 

For Dragonair:

Cathay Pacific Airways

C/0 HAECO

2/F,
80 South Perimeter Road

Hong Kong International
Airport

Lantau, Hong Kong

 

Contact Person:

Mr. Victor Kwan

Tel:    (852) 2767 6776

Email:
victor.kwan@haeco.com

  

    	CX and KA Western Programming Agreement - IFP Final ***	Page 54 of 57

    	STRICTLY CONFIDENTIAL

    

 

Delivery Address for Boarding
Music Flashcard:

 

Cathay Pacific Airways

Product Department

8/F North Tower

Cathay City

8 Scenic
Road

Hong Kong International Airport

Lantau, Hong Kong

 

For Cathay: 

Contact Person:

Ms. Mimi Chan

Tel:     (852) 2747 5345

Fax:    (852) 2141 5345

Email: mimi_chan@cathaypacific.com

 

For Dragonair: 

Contact Person

Ms. Mun Wong

Tel:     (852) 2747 4133

Fax:    (852) 2141 4133

Email: siu_mun_wong@cathaypacific.com

 

Delivery Address for Digital Media for Media
Integration for Cathay:

 

Inflight Productions Limited

15 Stukeley Street

London WC2B

SLT United

Kingdom

 

Contact Person:

Mr. Marc Fegredo

AVOD Coordinator

Tel:    (44)
207 400 8582

Fax:    (44)
207 400 0707

Email: marc.fegredo@inflightproductions.com

 

Delivery Address for the Airline to return
the cassette of Western Movies for destruction:

 

Inflight Productions Inc

Suite 201,615
N Nash St. 

El Segundo,
CA 90245

USA

 

Contact Person:

Ms. Sharon Engelenburg, Operations Manager

Tel:    (1) 310 414 6900 ext 114

Email: sharon.engelenburg@inflightproductions.com

  

    	CX and KA Western Programming Agreement - IFP Final ***	Page 55 of 57

    	STRICTLY CONFIDENTIAL

    

 

SCHEDULE 4- BUDGET FOR ***

 

(To be inserted)

 

***

 

 

***
Confidential treatment requested.

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 56 of 57

    	STRICTLY CONFIDENTIAL

    

 

SCHEDULE 5- KEY PERFORMANCE INDICATORS

 

(To be inserted)

 

    	CX and KA Western Programming Agreement - IFP Final ***	Page 57 of 57

    	

    

 

	tsackground	o/26/2UU

  

Key Performance
Indicators - IFP
Production Services

 

Evaluation Period: 

 

Overview

The Key Performance
Indicators are a set of recognized parameters by which CX measures the service
providers performance

 

Frequency

The basis
of the Key performance indicators outlined in this document will be
completed every 6 months as part of the

Supplier Performance
Evaluation Process. The reviews are likely to take place in
July and January.

 

The KPI's
will be evaluated on an annual basis to ensure they accurately
reflect appropriate parameters for measurement.

 

Scoring Panel

In response
to the evaluation process key members of CX who interface with
the service provider on a regular basis will
complete the evaluation
sheet judging the service provider against each of the
6 constructs outlined and will give a score
ranging from 1 - 5 as detailed below.

 

Scoring Mechanism

Each person scoring
the performance of the service provider will enter a
"1" under the appropriate score,
I.e. 5, 4,
3, 2,
or 1 for each statement.
The KPI spreadsheet will automatically calculate
the overall scores.

 

	Totally Satisfied/Far exceeds expectations	5
	Mostly Satisfied/Always meets but at times exceeds expectations	4
	Somewhat Satisfied/meets expectations	3
	Dissatisfied/below expectations	2
	Fail	1

 

Comments will be provided during
the review process for each
of the 6 sections.
Where a "1" or
"2" has been
awarded, specific comments related to that particular
score will be
detailed and
shared with the service provider.

  

    	Schedule 5a - Key Performance Indicators	Page 1 of 9

    	 

    

 

••••,ovation

 

360 Degree
Feedback

 

Supplier:
Inflight Productions Limited

 

Duration: _________________

 

The
aim of 360 degree feedback
is for the supplier
to provide feedback on Cathay Pacific's
performance. It should focus on
ways in which an improvement
in Cathay's
way of working could
help the supplier perform the role for which
they have been appointed
more efficiently.
The feedback is meant
to be constructive and
will help identify areas for Cathay to focus in order to
improve the working
relationship and efficiency
of the supplier.

 

Scores:

5:    Excellent

4:    Good

3:    Average

2:    Development Needed

1:    Poor
/ Disappointing

 

Please underline
and bold the score for the evaluation period, e.g.
2.

 

	 	 
	1.
      Communication	SCORE
	 	 
	•   
    Lines of communication are clearly defined and effective (i.e. work in practice)	1 2 3 4 5
	 	 
	•   
    Levels of authority and decision making power are
    clearly understood.	12 3 4 5
	 	 
	•   
    Role responsibilities within the IFE team and APD team
    are clearly set out and defined. (Does confusion
    arise as to who performs which role?)	1 2 3 4 5
	 	 
	•   
    Important information told to one member of CX is disseminated to
    the correct people.	1 2 3 4 5
	 	 
	•   
    A coherent message is given from all contact
    points within CX (are there conflicting messages?)	1 2 3 4 5
	 	 
	•  
     Deadlines and timescales are clearly
    communicated	1 2 3 4 5
	 	 
	Overall Score	12345
	 	 
	Comments	 
	 	 
	 	 
	2.
      Personnel and working relationship	SCORE
	 	 
	•   
    People are quick to respond to queries and emails.	1 2 3 4 5
	 	 
	•   
    Approvals on programming suggestions are
    timely.	12345
	 	 
	•
       Cx personnel are easy to deal
    with, professional, yet helpful and
    approachable.	12345
	 	 
	•
       Cx personnel have adequate knowledge of
    IFE technical issues required to perform their role effectively?	12345
	 	 

 

Schedule Sb - IFP Feedback
to Cathay

 

    	 

    	 

    

 

 

	Overall Score	12345
	 	 
	Comments	 
	 	 
	 	 
	5.  
    Information sharing	SCORE
	 	 
	• 
       The format and analysis of survey results and AVOD usage
    data is easy to understand and well presented.	1 2 3 4 5
	 	 
	•
        CX provides regular updates with regards information
    related to Cathay, such as new routes,
    new initiatives etc.	 
	 	1 2 3 4 5
	•
        Cx provides correct duplication volumes in sufficient
    time.	 
	 	 
	OveraII Score	1 2 3 4 5
	 	 
	Comments	12345
	 	 
	 	 
	6.
      Third Parties	SCORE
	 	 
	•
       Cx helps to ensure
    that third party suppliers integrate
    well.	1 2 3 4 5
	 	 
	•
       Cx understands the challenges
    of working with other third parties.	1 2 3 4 5
	 	 
	•    Cx is effective at coordinating themes and ideas among all IFE suppliers.	1 2 3 4 5
	 	 
	•    Cx helps to ensure that third party suppliers meet their deadlines.	1 2 3 4 5
	 	 
	Overall Score	12345
	 	 
	Summary	 
	 	 

 

Schedule 5b -
IFP Feedback to Cathay

 

    	 

    	 

    

 

AGREEMENT BETWEEN

CATHAY PACIFIC
AIRWAYS LIMITED, HONG KONG DRAGON AIRLINES
LIMITED AND INFLIGHT PRODUCTIONS
LIMITED

 

For the Supply
of Programming and Production Services

for Inflight Entertainment (Western Programmes)

 

AGREEMENT AMENDMENT

 

This
AGREEMENT AMENDMENT ("Amendment") is dated ***
and Is made between Cathay Pacific Airways Limited
("Cathay"), Hong Kong Dragon Airlines
Limited ("Dragonair") and Infilght
Productions Limited ("IFP") to amend the AGREEMENT
("Agreement") which was made on
***, as amended
by Agreement Amendment
which was made
on *** and
the extension notice
letter which was made on ***.

 

RECITALS

 

The
parties agree to extend the Term
of the Agreement for
*** months and
the Term will be further renewed
for another ***
subject to Cathay's/Dragonalr's
discretion.

 

The definitions
in the Agreement are incorporated by reference
into this Amendment,and shall
be deemed to have the same meanings as those ascribed to
them In the Agreement unless otherwise set forth herein.

 

NOW,
THEREFORE,the parties agree this
Agreement Amendment to supersede
the previous extension letter
dated *** and
to amend the Agreement as follows:

 

		1.	At the end of
the Term of the Agreement at
***, the Term
shall be extended for
***. Subject
to written notice from Cathay to
IFP at least three (3)
months prior to the
expiry of the Agreement, the
Agreement shall be further extended
for ***.

 

		2.	The Regional
AVOD Movie License rates
shall be reduced starting from *** till
***,as per the commercial proposal sent from
IFP to Cathay on ***.

 

	Distributor	 	
        LH/PTV Rate

        (averaqe over
        3 months)
	 	
        Regional AVOD Rate

        (averaqe over
        3 months)

	Disney	 	***	 	***
	Paramount	 	***	 	***
	Sony	 	***	 	***
	Universal	 	***	 	***
	Twentieth Century Fox	 	***	 	***
	Warner Brothers	 	***	 	***
	Cincsky	 	***	 	***
	ElM	 	***	 	***
	Jaguar	 	***	 	***
	TSI	 	***	 	***

 

		3.	The following
Service Costs shall be amended starting from ***
till *** as
stated in ***
commercial proposal:

 

		3.1	The Recall Fees
shall be covered by
*** for the
New Release titles
booked by Cathay within
the first 3 months
of release.
	 	 	 
	 	3.2	The
 unit rate for VHS Duplication
Cost shall be aligned to ***
for all lengths up
to 150 minutes at the Lab. Aero for both Cathay
and Dragonair:

 

	 	 	VHS Tape
	135-minute	 	***
	90- minute	 	***
	60-minute	 	***

 

 

***
Confidential treatment requested.

 

    	 

    	 

    

 

		3.3	The unit rate for V8 Duplication Cost shall be aligned
to *** at
Lab. Aero for Dragonair:

 

	 	 	V8 Tape
	135-mlnute	 	***
	90-minute	 	***

 

		3.4	The unit rate
for BGM Flashcard Duplication Cost shall be reduced from ***
for Dragonair.

 

		4.	All other terms and conditions of the Agreement shall remain
In full force and effect.

 

IN WITNESS whereof the Parties
hereto have caused this Agreement to be duly executed by
their authorised representatives the day and year first above written.

 

	Signed for	 	Witnessed by:
	CATHAY PACIFIC AIRWAYS LTD. by:	 	 
	 	 	 
	/s/ Gloria Chow-Vanderwell	 	/s/ Penny Chan
	Name: Gloria Chow-Vanderwell	 	Name: Penny Chan
	Job Title: Product Manager	 	Job Title: Assistant Purchasing Manager
	Cathay Pacific Airways Ltd.	 	Cathay Pacific Airways Ltd.
	 	 	 
	Date: ***	 	Date: ***
	 	 	 
	Signed for	 	Witnessed by:
	HONG KONG DRAGON AIRLINES LTD. 	 	 
	by its duly authorized agent:	 	 
	 	 	 
	/s/ Gloria Chow-Vanderwell	 	/s/ Penny Chan
	Name: Gloria Chow-Vanderwell	 	Name: Penny Chan
	Job Title: Product Manager	 	Job Title: Assistant Purchasing Manager
	Cathay Pacific Airways Ltd.	 	Cathay Pacific Airways Ltd.
	 	 	 
	Date: ***	 	Date: ***
	 	 	 
	Signed for	 	Witnessed by:
	INFLIGHT PRODUCTIONS LTD. 	 	 
	by:	 	 
	 	 	 
	/s/ Roberts G. Hamler	 	/s/ Suzi Hennessy
	Name: Roberts G. Hamler	 	Name: Suzi Hennessy
	Job Title: CEO	 	Job Title: VP Operations
	Inflight Productions Limited	 	Inflight Productions Limited 
	 	 	 
	Date: ***	 	Date: ***

 

 

***
Confidential treatment requested.Exhibit 10.12

 

CONFIDENTIAL TREATMENT REQUESTED FOR PORTIONS
OF THIS DOCUMENT. PORTIONS FOR WHICH CONFIDENTIAL TREATMENT IS REQUESTED HAVE BEEN MARKED WITH THREE ASTERISKS [***] AND A FOOTNOTE
INDICATING “CONFIDENTIAL TREATMENT REQUESTED”. MATERIAL OMITTED HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

 

 

 

 

 

AMENDED AND RESTATED 

 

SUPPLY
AND SERVICES AGREEMENT

 

by and
between

 

ROW 44,
INC.

 

and

 

SOUTHWEST
AIRLINES CO.

 

 

 

    	 

    	 

    
 

	 	Table of Contents	 
	 	 	 
	 	 	Page
	 	 	 
	ARTICLE
    1. DEFINITIONS	1
	 	 	 
	 	Definitions	1
	 	Captions, References and Construction	2
	 	Financial Terms	2
	 	 	 
	ARTICLE
    2. SUPPLY	2
	 	 	 
	2.1	Deliverables, Acceptance.	2
	2.2	Regulatory Activities.	4
	2.3	Supply of Broadband System.	5
	2.4	Inspection Rights	6
	2.5	Technical Assistance	7
	2.6	System Software License.	7
	 	 	 
	ARTICLE
    3. THE SERVICES	8
	 	 	 
	3.1	Subscription; Commissioning; Additional Features	8
	3.2	Wi-Fi Service.	8
	3.3	Additional Included Services	9
	3.4	Entertainment Portal Service.	10
	3.5	Elected Services	10
	3.6	Operational Data Service	11
	3.7	Television Service.	12
	3.8	VOD Only Solution.	13
	3.9	***	13
	 	 	 
	ARTICLE
    4. AGREEMENTS AND ACKNOWLEDGEMENTS	13
	 	 	 
	4.1	Southwest Responsibilities.	13
	4.2	Row 44 Responsibilities.	13
	4.3	Other Agreements and Acknowledgements.	14
	 	 	 
	ARTICLE
    5. REPRESENTATIONS, WARRANTIES AND COVENANTS	16
	 	 	 
	5.1	By Row 44:	16
	5.2	By Southwest:	18
	 	 	 
	ARTICLE
    6. PRICING AND PAYMENT	19

 

***
Confidential treatment requested. 

 

    	i

    	 

    
 

	6.1	System Units.	19
	6.2	Services.	19
	6.3	Invoice and Payment.	19
	6.4	Taxes.	20
	 	 	 
	ARTICLE
    7. INDEMNIFICATION AND INSURANCE	22
	 	 	 
	7.1	Indemnity By Row 44	22
	7.2	Intellectual Property Indemnity	22
	7.3	Indemnity by Southwest	23
	7.4	Third Party Actions	23
	7.5	Cooperation	24
	7.6	Insurance.	24
	 	 	 
	ARTICLE
    8. TERM AND TERMINATION	25
	 	 	 
	8.1	Term	25
	8.2	Termination by Row 44 for Failure to Pay	25
	8.3	Termination by Either Party for Breach or Insolvency	25
	8.4	Termination by Southwest	26
	8.5	Effect of Expiration or Termination of this Agreement for Any Reason	26
	8.6	Remedies Cumulative and Nonexclusive	26
	8.7	Rights In Bankruptcy	27
	8.8	Operations after Termination	27
	8.9	Notice of Termination	27
	8.10	Wind Down	27
	8.11	Post-Termination Assistance	27
	 	 	 
	ARTICLE
    9. DISPUTE RESOLUTION	27
	 	 	 
	9.1	Escalation	27
	9.2	Binding Arbitration.	27
	9.3	Governing Law; Jurisdiction; Venue	29
	 	 	 
	ARTICLE
    10. CONFIDENTIALITY, PUBLICATION AND PUBLICITY	30
	 	 	 
	10.1	Confidentiality	30
	10.2	Publicity	31
	10.3	Employees and Consultants	31
	 	 	 
	ARTICLE
    11. OTHER PROVISIONS	31
	 	 	 
	11.1	Assignment	31
	11.2	Severability	32
	11.3	Notices	32
	11.4	Entire Agreement	32
	11.5	Independent Contractors	33
	11.6	Waiver	33

 

 

    	ii

    	 

    
 

	11.7	Counterparts	33
	11.8	Waiver of Rule of Construction	33
	11.9	Force Majeure	33
	11.10	Liability Limitations	33
	11.11	Third Party Beneficiaries	34
	 	 	 
	 	 	 
	 	 	 

 

	Exhibits:	 
	 	 	 	 
	 	Exhibit A – Definitions	 
	 	 	 	 
	 	Exhibit B – Hardware Agreement Exhibits	 
	 	 	 	 
	 	Exhibit C – Commissioning Procedure	 
	 	 	 	 
	 	Exhibit D – Entertainment Portal Service	 
	 	 	 	 
	 	Exhibit E – Television Service	 
	 	 	 	 
	 	Exhibit F – Wi-Fi Service and Operational Data Service	 
	 	 	 	 
	 	Exhibit G – Content Filtering and Procedures	 
	 	 	 	 
	 	Exhibit H – Network Description	 
	 	 	 	 
	 	Exhibit I – VOD Only Solution Product	 
	 	 	 	 
	 	Exhibit J – Security Provisions	 

 

    	iii

    	 

    
 

AMENDED AND RESTATED AGREEMENT

 

THIS AMENDED AND RESTATED
SUPPLY AND SERVICES AGREEMENT (this “Agreement”), effective as of February 1, 2013 (the “Effective
Date”), is by and between Row 44, Inc., a Delaware corporation (“Row 44”), and Southwest Airlines
Co., a Texas corporation (“Southwest”). Row 44 and Southwest are sometimes referred to herein individually as
a “Party” and collectively as the “Parties”. The Parties acknowledge and agree that it is
the intention of the Parties to continue operating under the terms of the Supply Agreement (as defined below) and Services Agreement
(as defined below) unmodified by this Agreement until the Effective Date in the event this Agreement is executed by both Parties
prior to such date.

 

RECITALS

 

WHEREAS, Row 44
has developed a satellite based broadband Internet system composed of System Software (as defined in Exhibit A), System
Hardware (as defined in Exhibit A) and other components (collectively defined in Exhibit A as the “Broadband
System” and each instance of such system referred to as a “System Unit”) for use on commercial
aircraft;

 

WHEREAS, the Parties
have executed that certain Supply Agreement, dated as of August 13, 2010 (as amended and modified from time to time in accordance
with its terms, the “Supply Agreement”) pursuant to which Southwest purchases certain quantities of such System
Units from Row 44;

 

WHEREAS, the Parties
have also executed that certain Services Agreement, dated as of January 26, 2010 (as amended and modified from time to time in
accordance with its terms, the “Services Agreement”) pursuant to which Row 44 provides to Southwest, among other
services, the Wi-Fi Service in connection with Southwest’s and Southwest’s customers’ use of the Broadband System;
and

 

WHEREAS, in accordance
with Section 16.4 of the Supply Agreement and Section 10.4 of the Services Agreement, the Parties wish to amend and restate the
Supply Agreement and Services Agreement as one agreement to read as set forth herein.

 

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

 

ARTICLE
1.

DEFINITIONS

 

1.1Definitions.
Capitalized terms used in this Agreement, including in any Exhibits and/or
other documents attached to or otherwise made a part of this Agreement, shall have the meanings ascribed to them in Exhibit
A attached hereto or shall be otherwise defined in the context in which they are
used and shall have the meanings ascribed to them therein. All defined terms include the plural as well as the singular.

 

    	1

    	 

    
 

1.2Captions,
References and Construction. Captions, titles and headings to articles
and sections of this Agreement are inserted for convenience of reference only and are not intended to affect the interpretation
or construction of this Agreement. Any reference herein to a particular Section or Article number (e.g., “Section 2”)
shall be deemed a reference to all Sections of this Agreement that bear sub numbers to the number of the referenced Section or
Article (e.g., Sections 2.1, 2.1.1, etc.). The terms “this Agreement”, “herein”, “hereof”,
“hereunder” and similar expressions refer to this Agreement and not to any particular article, section or other portion
hereof. Unless otherwise specified, “days” means calendar days. Any use of the term “including” in this
Agreement shall be construed as if followed by the phrase “without limitation” or “but not limited to”.

 

1.3Financial
Terms. All financial and accounting terms not otherwise defined in this
Agreement, whether capitalized or not, will have the meanings assigned to them in accordance with GAAP.

 

ARTICLE
2.

SUPPLY

 

2.1Deliverables,
Acceptance. 

 

2.1.1Deliverables.
Row 44 shall ensure that each Deliverable under this Agreement, and components thereof, when delivered to Southwest, conforms
to the Specifications. Each shipment of a System Unit shall contain the quality control certificates and other documentation as
are set forth on Exhibit B.

 

2.1.2Acceptance.
“Acceptance” for each applicable Deliverable under this Agreement, or components thereof, shall occur only
when: (a) Row 44 has provided to Southwest such Deliverable, or components thereof, and Row 44 has completed all tasks
required to be completed by Row 44 that are identified by the Parties as a pre-condition to Southwest’s acceptance;
(b) such Deliverable, or components thereof, have passed the Southwest required receiving inspection in accordance with its Maintenance
Procedures Manual (MPM) or equivalent (c) to the extent requested by Southwest, Row 44 has corrected, to Southwest’s
satisfaction, all Defects identified by the Parties during the receiving inspection of such Deliverable, or components thereof.
Notwithstanding the foregoing, Acceptance of a Deliverable shall take place no more than ***
after delivery of such Deliverable, or components thereof, to Southwest unless one of the criteria listed in this Section
2.1.2 is not achieved and Southwest provides notice to Row 44 of the same.

 

2.1.3Failure
to Achieve Acceptance. In the event Acceptance is not achieved within *** following delivery of a Deliverable, or
components thereof, to Southwest, Southwest shall be entitled, at its election to ***

 

 

 

 ***
Confidential treatment requested.

 

    	2

    	 

    
 

2.1.4Supply
Agreements.***

 

2.1.5Direct
Negotiations. Southwest may negotiate directly with Vendors for on-going maintenance service agreements. Row 44 shall provide
all required contact information and reasonably cooperate in providing background information as requested except where providing
that information may violate existing agreements.

 

2.1.6Specifications.

 

2.1.6.1Changes
by Row 44. Row 44 may from time to time propose changes to the Specifications or a System Unit or a component
thereof, including, as applicable, to update such System Unit or component thereof for features, performance, reliability or improved
safety, and Row 44 shall propose any changes to the Specifications or a System Unit or a component thereof required to cause
such System Unit or component thereof to comply with applicable Law. Before making a decision to proceed with any such change
in Specifications or any material change in the System Units (i.e., a change that affects the form, fit or function of such System
Unit) or manufacturing process, such change must first be discussed with Southwest to enable a thorough assessment of its impact,
including potential unexpected or unintended ramifications. If such change is ultimately deemed necessary or advisable by Row 44
and agreed to in writing by Southwest, such consent to not be unreasonably withheld or delayed, Row 44 may make such change
*** If Row 44 determines to make changes to System Units or a component thereof for its other customers, including, as applicable,
to update such System Unit or component thereof for features, performance, reliability or improved safety, Row 44 shall promptly
notify Southwest of such changes and make such changes available to Southwest at the same time as any other Row 44 customer. All
such changes will be subject to the acceptance process set forth in Section 2.1.2 and Section 2.1.3. Notwithstanding
the foregoing, and for the avoidance of doubt, except as necessary to cause a System Unit or component thereof to comply with
applicable Law, the Parties acknowledge and agree that the foregoing is not intended to provide a guarantee to Southwest that
the System Units will be upgraded at no cost to Southwest to incorporate new or improved functionality developed in the future.
Nothing in this Section shall be interpreted to in any way diminish the hardware reliability standards in Exhibit B, or any of
the service levels set forth in Exhibits D, E, and F.

 

2.1.6.2Change
Requests by Southwest. At any time and from time to time during the Term, Southwest may request an update to the Specifications
or a System Unit or a component thereof. Following receipt of such request, Row 44 shall notify Southwest whether such update
is technically feasible and the estimated costs of implementing such update. If the update, in Row 44’s reasonable opinion
is technically feasible, Southwest may request that Row 44 update the Specifications or a System Unit or a component thereof
accordingly and the costs of the development of such update shall be paid by (a) Row 44, if Row 44 makes such proposed update
available to System Units of other customers of Row 44 at no charge, or (b) Southwest, if Row 44 does not make such proposed
update available to System Units of other customers of Row 44 or if Row 44 charges other customers for the proposed update,
in which case Southwest shall pay no more than the amount charged such other customers. If the update is not technically feasible,
Row 44 shall provide written notice thereof to Southwest, and the Parties shall use commercially reasonable efforts to develop
a technically feasible solution that addresses Southwest’s request. If Southwest proposes an update to the Specifications
or a System Unit or a component thereof that is custom-tailored to Southwest, then Southwest may request that Row 44 not make such
update available to System Units of other customers of Row 44, in which case the costs of the development of such update shall
be paid by Southwest and Row 44 shall not make any such updates available to System Units of other customers of Row 44.

 

 

 

 ***
Confidential treatment requested.

 

    	3

    	 

    
 

2.2Regulatory
Activities.

 

2.2.1Regulatory
Activities. Subject to, and in accordance with, the terms and conditions of this Agreement and the requirements of all
applicable Laws, Row 44, at its sole cost and expense, shall (a) take all actions necessary and file all Regulatory Filings
with respect to the Broadband System required to allow Southwest to use the Broadband System to provide wireless Internet connectivity
on the Designated Aircraft in ***, (b)
respond in a timely fashion to requests for data and information from Regulatory Authorities with respect to the Broadband System;
and (c) meet with officials of Regulatory Authorities at such times as may be requested by such Regulatory Authorities with respect
to the Broadband System (“Regulatory Activities”). Row 44 shall keep Southwest timely informed of all material
events and developments occurring in the course of the Regulatory Activities, including scheduled Row 44 regulatory strategy
discussions and meetings with Regulatory Authorities relating to the Broadband System.

 

2.2.2Row 44/Southwest
Mutual Assistance. Upon written request from either party, the other party shall use commercially reasonable efforts to
assist the requesting party in connection with any meetings and operator specific documentation with Regulatory Authorities related
to the Broadband System.

 

2.2.3Provision
of Regulatory Information to Southwest. Row 44 shall use commercially reasonable efforts to assist Southwest in connection
with its conduct of all of its Regulatory Activities, including by (a) providing Southwest with copies of the relevant sections
of any United States regulatory filings for the Broadband System filed by or on behalf of, and controlled by, Row 44 as necessary
for Southwest to make Regulatory Filings for the Broadband System and (b) supplying or granting Southwest the right to reference
any reasonably requested data controlled by Row 44 that is necessary and required by applicable Laws to allow Southwest to
meet its Regulatory Filing obligations. Southwest will have a right of access, a right of reference and the right to use and incorporate
all information provided to it pursuant to this Section 2.2.3 solely to support its Regulatory Activities and in connection
with Southwest’s use of the Broadband System and in accordance with the terms of this Agreement.

 

2.2.4Governmental
Inspections and Inquiries. Row 44 will advise Southwest promptly after it first has Knowledge thereof, but in
no event later than *** after Row 44 first has Knowledge thereof, of any planned Regulatory Authority visit to the
facilities of Row 44 or its Affiliates or subcontractors where System Units or components thereof are produced, stored
or handled or any written or oral inquiries by a Regulatory Authority concerning such facilities, the procedures of
Row 44 or its Affiliates or subcontractors for the production, storage or handling of the System Units or components
thereof, or the use of the Broadband System. If a Regulatory Authority makes an unannounced or unplanned visit, or if
Row 44 does not have at least *** of the visit, Row 44 will inform Southwest of the visit
as soon as reasonably practicable after it first has Knowledge thereof, but in no event later than *** after Row 44 has
Knowledge of the visit. Row 44 shall cause all of its contractual agreements with its subcontractors to include a requirement
that each such subcontractor shall provide to Row 44 advance notice of any planned Regulatory Authority visit, and notice as
soon as reasonably practicable of any unannounced or unplanned Regulatory Authority visit, to such subcontractor’s
facilities relating to the production or operation of the System Units or components thereof or that is generally applicable
to production of commercial aviation equipment. If a visit by a Regulatory Authority relates to the production or operation
of System Units or components thereof or is generally applicable to production of commercial aviation equipment, Row 44
will furnish to Southwest (a) minutes of the inspection generated by Row 44 promptly following such inspection and (b)
any report or correspondence provided by Row 44, or any Affiliate or subcontractor of Row 44, or their respective
representatives, as the case may be, to the Regulatory Authority or issued by or provided by the Regulatory Authority to
Row 44, or any Affiliate or subcontractor of Row 44, or any of their respective representatives, as the case may
be, in connection with such visit or inquiry as soon as reasonably practicable thereafter. Row 44 shall enter into
agreements with each of its subcontractors that require such subcontractors to provide the notices and other materials and
information contemplated by this Section 2.2.4.

 

 

 ***
Confidential treatment requested.

 

    	4

    	 

    
 

 

2.2.5Southwest
Participation Right. Southwest will have the right, at its option, upon written request at any time, to participate in
any and all of Row 44’s material regulatory strategy discussions and material meetings with Regulatory Authorities relating
to the Broadband System. Row 44 shall provide reasonable prior written notice to Southwest of any such meetings and copies
of all material correspondence with regard thereto.

 

2.3Supply
of Broadband System.

 

2.3.1Purchase
Orders. Subject to the terms hereof, Southwest may submit requests for delivery of System Units using its standard purchase
order (“Purchase Order”) setting forth the number of System Units requested, and any additional instructions
(provided the same are not in conflict with this Agreement). Each Purchase Order shall also include a mutually agreeable delivery
schedule for the System Units subject to such Purchase Order. Row 44 shall deliver the System Units specified in each Purchase
Order on or before the delivery date set forth therein. The terms and conditions of this Agreement shall be referenced in, apply
to, and form a part of every Purchase Order, and shall supersede any printed terms and conditions on any Purchase Order or acknowledgement
form. In the event of a conflict between the terms and conditions of this Agreement and the printed terms and conditions of any
Purchase Order or acknowledgement form, the terms and conditions of this Agreement shall control. All Purchase Orders shall be
governed by this Agreement whether or not expressly noted on such Purchase Orders. Row 44 agrees to reference Purchase Order
numbers on all packing slips, freight bills, invoices and other documents submitted to Southwest related to Row 44’s
performance hereunder.

 

 

 

 ***
Confidential treatment requested.

 

    	5

    	 

    
 

2.3.2Delivery
by Row 44. Row 44 shall provide to Southwest those quantities of System Units as set forth on
Southwest’s applicable Purchase Order. Row 44 shall (a) deliver the System Units *** to Southwest’s
designated facility, (b) arrange delivery of the System Units pursuant to Southwest’s written instructions and (c)
deliver all System Units by the dates set forth in the applicable Purchase Order or otherwise agreed upon by the Parties in
writing (whether hereunder or otherwise); *** Time is of the essence with respect to all delivery dates set forth herein and
in each applicable Purchase Order. The satellite antenna assembly component of the System Units will be shipped to Southwest
in a re-usable *** container, which containers shall at all times remain the property of Row 44, and be returned to Row 44,
at its expense, in order to be reused for later shipments of satellite antenna assemblies to customers of Row 44, including
Southwest.

 

2.3.3Failure
to Deliver. ***

 

2.3.4Hardware
Reliability. With respect to Line Removal Units (“LRU”) Row 44 shall use commercially reasonable
efforts to meet the reliability standards outlined in Exhibit B as measured by Southwest’s FAA approved maintenance
program. Should any unit fall below the reliability standard, Row 44 shall ***

 

2.3.5Spares.
Southwest shall maintain an inventory of spare System Unit components pursuant to the reliability standards and turn time standards
in Exhibit B and in the quantities as agreed upon by the Parties for System Unit components. Orders for spare System Unit components
shall be subject to the same Purchase Order terms as set forth herein; provided, that, Row 44 shall use its
best efforts to expedite delivery of an order to replace an un-repairable component or to supplement the spare pool. Spare pricing
shall be as set forth on Exhibit B-2.

 

2.3.6Obsolescence
Program. Row 44 shall maintain an obsolescence program throughout the term of the Agreement in accordance with this Section.
Row 44 will use commercially reasonable efforts to require all Vendors to develop and implement obsolescence requirements such
that Vendors will provide obsolescence notices to Row 44 *** prior to the planned obsolescence of an LRU or critical system subcomponent
(that is not immediately replaced with a future technology revision at comparable or better performance and backwards compatibility).
Row 44 will immediately notify Southwest as soon as a pending obsolescence event is known to Row 44. Subject to the foregoing,
Row 44 will coordinate with the Vendor and Southwest to establish an obsolescence implementation plan which includes ***. Row
44 will use diligent efforts to minimize cost and operational impact of any LRU or critical system subcomponent obsolescence.

 

2.4Inspection
Rights.  Southwest
will have the right on reasonable prior notice to conduct reasonable inspections of the facilities of Row 44 and its Affiliates
and Vendors where System Units are produced, stored or handled and to audit the procedures of Row 44 and its Affiliates and
Vendors for the production, storage and handling of the System Units or components thereof for purposes of quality control. All
such inspection requests shall be copied to Row 44 and Row 44 shall have the right to jointly participate in such inspections.
Row 44 shall enter into agreements with each of its Vendors permitting Southwest to inspect the facilities and audit the
procedures of such subcontractors pursuant to this Section 2.4.1.

 

 

 

 ***
Confidential treatment requested.

 

    	6

    	 

    
 

2.5Technical
Assistance. Upon
request by Southwest, Row 44 shall provide technical assistance to Southwest in connection with Southwest’s installation
and maintenance of the System Units on its aircraft. ***  For any installation, Row 44 agrees to provide remote technical
assistance at its expense. Notwithstanding the foregoing, in the event third party engineering or DER support is required with
respect to an installation, the ***.

 

2.6System
Software License.

 

2.6.1License.
Row 44 hereby grants to Southwest a non-exclusive, perpetual, worldwide license to use the System Software, including any third
party software embedded therein, in the manner specified in this Agreement in connection with the use of the applicable component
of the System Unit in which the System Software is included as part of the Broadband System. Open source software made by Row 44
shall be subject to the applicable open source software license as set forth on Exhibit B-2 hereto.

 

2.6.1.1Documentation.
Row 44 hereby grants to Southwest a non-exclusive, perpetual, worldwide license to use the Documentation in conjunction with Southwest’s
use of the System Software and the Broadband System.

 

2.6.1.2Right
to Copy. Southwest may make copies of the Documentation for purposes of using or maintaining the System Units; provided, that all
such Documentation is subject to the confidentiality provisions of this Agreement.

 

2.6.2Escrow.
Row 44 shall maintain all technical data with respect to STCs for the System Units, and the System Software and its associated
Documentation in escrow in accordance with the following terms:

 

2.6.2.1No
later than ***, Row 44 agrees to place in escrow the source code for all System Software and the technical data with respect to
the STCs for the System Units and related materials, with Southwest as the beneficiary of such escrow. Iron Mountain will serve
as escrow agent (the “Escrow Agent”), and Row 44 will provide a copy of the applicable escrow agreement to
Southwest promptly after its execution. The escrowed materials shall be current as of the date placed in escrow with updates to
be provided at reasonable intervals, but not less than every six months during the Term and with the release of a material modification
to the System Software. Upon the occurrence of one of the following conditions, the Escrow Agent shall be authorized to release
the escrowed materials to Southwest:

 

***

  

Row 44 represents, warrants,
and covenants that (a) the materials deposited with the Escrow Agent at all times constitute a complete and correct set of
the source code for the System Software as well as any corrections, enhancements, or other revisions to which Southwest is entitled
under this Agreement, and (b) the materials deposited with the Escrow Agent are and shall be sufficient for trained computer
programmers of general proficiency to maintain and support the System Software without further assistance from Row 44.

 

 

 

 ***
Confidential treatment requested.

 

    	7

    	 

    
 

Upon release of
the escrowed materials, the materials subject to the escrow above are hereby subject to a *** license to use such materials
solely in connection with the use and maintenance of the applicable component of the System Unit in which such software is
embedded. Row 44 agrees that Southwest shall have all of the benefits of a licensee as set forth in 11 U.S.C. § 365(n),
with respect to all licenses granted under this Agreement.

 

ARTICLE
3.

THE SERVICES

 

3.1Subscription;
Commissioning; Additional Features. Pursuant to the terms and conditions
contained herein, Row 44 hereby agrees to provide, and Southwest hereby agrees to purchase, the Wi-Fi Service, the Operational
Data Service, the Entertainment Portal Service, the Additional Included Services, Television Service, VOD Only Solution (subject
to the terms of this Agreement), and the Elected Services (if any), related to the satellite and Internet backhaul connectivity
to be purchased by Southwest from Row 44 pursuant to the terms contained herein (collectively, the “Services”)
for use in connection with each System Unit installed on a Commissioned Aircraft. As part of the installation process for System
Units on Southwest’s aircraft, each such aircraft shall undergo the service commissioning procedure set forth in Exhibit
C (the “Commissioning Procedure”).
After Southwest has completed the Commissioning Procedure, each such aircraft shall be operational for use in connection with
the Wi-Fi Service and other services to be provided hereunder (each a “Commissioned Aircraft”)
unless Southwest provides notice to Row 44 that such aircraft is not operational for maintenance, scheduling or other reasons,
in which case such aircraft shall not be considered a Commissioned Aircraft. Row 44 may make additional commissioning and/or maintenance
services available to Southwest from time to time during the Term, which shall be subject to the fees and costs associated therewith
as the Parties mutually agree in writing.

 

3.2Wi-Fi
Service. 

 

3.2.1Calculation
of Wi-Fi Service Fees.

 

3.2.1.1Wi-Fi
Fee. ***

 

3.2.1.2Subscription
Fee. ***

 

3.2.1.3Wi-Fi
Service Subsidy. Beginning on ***, Row 44 shall subsidize the cost of “free-to-the-passenger” access to the
Wi-Fi Service by the following amounts per year: (i) *** for calendar year *** ; (ii) *** for calendar year *** ; and (iii)
*** for each of calendar years *** , *** , *** and *** (the “Wi-Fi Subsidy”). The Subsidy will be
accounted for on a monthly pro-rata basis, provided that any accrual shortfall will be accounted for and payable to
Southwest in the last month of the applicable calendar year.

 

 

 

 ***
Confidential treatment requested.

 

    	8

    	 

    
 

3.2.1.4No
Net Revenue Split. For avoidance of doubt, amounts charged for the Wi-Fi Service are not subject to Net Revenue Split.

 

3.2.1.5***

 

3.2.2Passenger
Charges and Offerings. Southwest will determine the passenger charges, if any, for the Wi-Fi Service and any other services
provided to its passengers by or for Row 44. ***  Southwest shall provide reasonable advance notice to Row 44 prior to making
offers of ***in order for Southwest and Row 44 to coordinate authentication and logistics
regarding implementing the same.

 

3.3Additional
Included Services. ***  Row 44 shall provide the
following services to Southwest (the “Additional Included Services”):

 

3.3.1Network
Operations and Maintenance. During the Term, Row 44 shall maintain a network operations center that monitors the functionality
and performance of System Units and performance of the Wi-Fi Service on Commissioned Aircraft on a 24/7 basis. Row 44 shall also
maintain during the Term a 24/7 technical support phone number/e-mail for technical support inquiries from Southwest regarding
operation of the Wi-Fi Service.

 

3.3.2Training.
In connection with the operation of the Wi-Fi Service, Row 44 will provide comprehensive training in the operation and functionality
of the Wi-Fi Service (in accordance with Southwest’s requests with respect to scheduling and frequency) to Southwest’s
employees who will operate the Wi-Fi Service on board the Commissioned Aircraft. Row 44 will also provide comprehensive training
related to the functionality and use of any third party billing service provider that Row 44 offers as part of its service offering.
Such training will include written training materials and be provided in-person, by remote video conference or teleconference,
in Southwest's discretion, and on a “train the trainer” basis.

 

3.3.3Reports.
Row 44 shall provide Southwest regular reports and access to a reporting web service with respect to such reports and information
as Row 44 generally collects or makes available to its customers and that Southwest reasonably requests regarding the performance
and use of the Wi-Fi Services by Southwest’s customers including, but not limited to information by flight, purchases by
device type, aircraft availability, customer usage time, and data usage.

 

3.3.4Legal
Process Compliance. During the Term, Row 44 shall comply with, and shall ensure that the Services comply with, the Communications
Assistance for Law Enforcement Act and such similar Laws or agreements impacting Row 44 and/or the Services. Except to the extent
prohibited under applicable Law, Row 44 shall keep Southwest informed of all compliance actions taken by Row 44 in support of such
technical compliance, and, upon request from Row 44, Southwest shall provide reasonably requested cooperation to Row 44 to support
such compliance.

 

 

 

 ***
Confidential treatment requested.

 

    	9

    	 

    
 

3.3.5Coordination
with Regulatory Authorities; Maintenance of Licenses and Permits. Row 44 shall coordinate with the FCC, the FAA and other
Regulatory Authorities and maintain all licenses, permits, and other Regulatory Approvals as necessary for (i) Row 44’s performance
of this Agreement and (ii) Southwest’s and its customers’ use of the Broadband System in accordance with the terms
herein.

 

3.3.6Privacy
and Security. Row 44 shall comply with the privacy and data security obligations set forth in Exhibit J. Row 44
shall not sell or otherwise provide web analytics data to any third party and shall only use such data for Row 44 financing and
internal activities and in connection with providing its Services to Southwest pursuant to the terms of this Agreement.

 

3.3.7Basic
Web Analytics. Row 44 shall provide Basic Web Analytics for any Internet content accessed, acquired or transmitted by
Southwest or customers of Southwest via the Wi-Fi Service. Basic Web Analytics should include, but not limited to ***. Southwest,
in its sole discretion, may supply Row 44 with tags to its in-house web analytics tools, and Row 44 agrees to apply those tags
into its system and, if such tags report to a server under Row 44’s control, include the results of such tags in Row 44’s
Basic Web Analytics reports. If such tags report to a server under Southwest’s control, Southwest agrees to provide reports
of the results of such tags to Row 44 only to the extent that (a) a Southwest tag replaces a standard Row 44 tag and (b) the tags
provide results with respect to the Entertainment Portal; provided that (i) Southwest shall not be required to provide such reports
more frequently than *** and (ii) ***, then Southwest shall not be required to provide such reports. For the avoidance of doubt,
Southwest shall not be required pursuant to the immediately preceding sentence to provide any reports to Row 44 with respect to
tag results from southwest.com.

 

3.4Entertainment
Portal Service.

 

3.4.1Provision
of Service and Maintenance. Row 44 shall develop and make the Entertainment Portal available to Southwest in accordance
with the specifications set forth in Exhibit D (“Entertainment Portal Service”). Southwest shall have
the right to approve the look and feel of the Entertainment Portal creative submitted by Row 44. Row 44 shall provide maintenance
and support services in connection with the Entertainment Portal in accordance with the maintenance and support terms set forth
in Exhibit D.

 

3.4.2Entertainment
Portal ***.

 

3.5Elected
Services. Pursuant to the terms and conditions set forth below, Row 44 shall
provide the following services (the “Elected Services”) as requested
by Southwest in writing from time to time throughout the Term (or as specifically elected pursuant to this Agreement):

  

 

 

 ***
Confidential treatment requested.

 

    	10

    	 

    
 

3.5.1Billing
Services. ***

 

3.5.2Content
Control and Filtering. Row 44 shall provide content control and filtering services consistent with the content
control and filtering services and procedures set forth on Exhibit G (the “Content Control
Services”) for ***. For aircraft commissioned during the installation period, Content Control Services shall be
invoiced***. Thereafter, Row 44 shall invoice Southwest on an annual basis for Content Control Services for the total number
of Commissioned Aircraft and Southwest shall pay the invoice within *** of receipt of a correct invoice. As of the Effective
Date, Southwest elects to use the Content Control Services. Southwest shall have the right to terminate the Content Control
Services at any time upon delivery of a notice of such cancellation to Row 44; provided that Southwest shall not be entitled
to any refund for any remaining Content Control Service fees previously invoiced and paid. 

 

3.5.3Advanced
Web Analytics. Subject to terms and requirements mutually agreed upon in writing between Southwest and Row 44, upon written
request from Southwest, Row 44 shall implement advanced web analytics that provide information not included in Basic Web Analytics
for any Internet content accessed, acquired or transmitted by Southwest or customers of Southwest via the Wi-Fi Service, all in
such format and containing such detail and at such cost as mutually agreed upon in writing by Southwest and Row 44.

 

3.5.4Additional
Work. Any additional services not otherwise described herein and provided by Row 44 in connection with this Agreement shall
be provided pursuant to a written, fully executed and mutually agreeable statement of work and purchase order covering, without
limitation, pricing and payment terms, schedule and responsibilities for such work.

 

3.6Operational
Data Service. In addition to the Wi-Fi Service, Row 44 shall provide
Southwest access to a wired or wireless operational data connection (the “Operational Data Service”). Subject to the
service restrictions set forth herein, the Operational Data Service shall be implemented by Row 44 as a
direct wired connection or separately addressed (SSID) Wi-Fi connection with substantially the same functionality as the
Wi-Fi Service for use by Southwest solely to transmit operational data to and from Commissioned Aircraft. If Southwest anticipates
transmitting more than an average of *** of data per flight (take-off and landing) measured daily across all flights, in a single
transmission or series of transmissions, Southwest will provide reasonable advance notice to Row 44 of such anticipated transmission(s)
and will reasonably cooperate with Row 44 regarding the timing and implementation of such transmission(s), subject to Southwest’s
right to prioritize Operational Data Service over customer traffic usage at any time. If Southwest transmits more than ***,
measured daily across all flights and averaged on a ***, such excess will be charged at ***
for usage during periods the Wi-Fi Service is *** of Southwest and if Southwest
transmits more than ***, measured daily across all flights and averaged on a *** , such excess will be charged at *** for usage
during periods in which the Wi-Fi Service is *** of Southwest, each as measured on a per aircraft basis. Row 44 shall deliver
Southwest a *** report on Operational Data Service, including total fleet wide
usage and per aircraft usage, and, if applicable, accompanied by an invoice from Row 44 for amounts due hereunder, which invoice
shall be due and payable within *** of receipt.

 

 

 

 ***
Confidential treatment requested.

 

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3.7Television
Service.

 

3.7.1Provision
of Television Service. Row 44 shall provide the Television Service in accordance with the Service Levels on all of Southwest’s
aircraft equipped with the Wi-Fi Service and the Supplemental Television Hardware.

 

3.7.2Television
Service Description. The Television Service will be a Wi-Fi accessible, IPTV-based, live television service
consisting of *** (the “Television Service”). The Television Service will be implemented and maintained in
accordance with the terms of Exhibit E.

 

3.7.3Supplemental
Television Hardware. ***

 

3.7.4Television
Service ***.

 

3.7.5Changes
and Updates. All content selection included for the Television Service shall be mutually agreed upon by the Parties. VOD
content shall be refreshed by Row 44 on a mutually agreed upon schedule during the Term and with the goal of always providing an
up-to-date selection of content for Television Service users. During the Term, Row 44 will work to always provide a line-up of
live television content that appeals to the widest potential audience of users of the Television Service.

 

3.7.6Termination
of Television Service. Following ***, in the event the (i) Television Service take rate is below *** for a period of
*** or (ii) Row 44 fails to meet the to-be-agreed upon Service Level for the Television Service for a period of *** , then,
for a period of *** after the occurrence of either such condition, Southwest may elect to cancel the Television Service upon
*** prior written notice to Row 44. For the avoidance of doubt, the actual date of cancellation of the Television Service
will be *** after the foregoing notice is delivered to Row 44 no matter when that delivery occurs during the ***evaluation
period.

 

3.7.7Television
Service Free Options. Upon at least three (3) months prior written notice to Row 44, Southwest shall have the option to
offer the Television Service on a “free-to-all-passengers” basis for the remainder of the Term.

 

3.7.7.1***

 

 

3.7.7.2***

 

 

3.7.7.3provided,
however, that with respect to each of the foregoing options, the provisions of Section 3.7.4.2 (related to Special
Television Content) and Section 3.7.4.3 (related to advertisements) shall remain in effect. Southwest may additionally offer
the Television Service on a free promotional (not to all passengers) basis at the existing per passenger price.

 

 

 

 ***
Confidential treatment requested.

 

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3.8VOD
Only Solution. ***

 

 

3.9***

 

 

ARTICLE
4.

AGREEMENTS AND ACKNOWLEDGEMENTS

 

4.1Southwest
Responsibilities.

 

4.1.1Out,
On, Off, In (OOOI) Data. OOOI data from Commissioned Aircraft will be provided to Row 44 electronically in real time to
support aircraft performance tracking for aircraft in operational service.

 

4.1.2Terms
of Service; Privacy Policy. The Services will be provided to Southwest’s customers subject to terms of service and
a privacy policy prepared (and updated as needed) by Row 44 and approved by Southwest. Southwest shall use Row 44’s Entertainment
Portal Service landing page or develop and maintain a landing page (the “Landing Page”) as the first accessible
web page when a customer accesses the Wi-Fi Service. The Landing Page will provide an opportunity for each customer to accept the
terms of service (including terms for applicable laws for CALEA, etc.) and disclose Southwest’s privacy policy.

 

4.1.3No
Modification of System Units. Southwest acknowledges and agrees that the configuration and performance of the System Units
are critical to the ability for Row 44 to provide the Wi-Fi Service. Therefore, during the Term, Southwest shall not modify or
alter the configuration of the System Units without prior notice to Row 44.

 

4.2Row
44 Responsibilities.

 

4.2.1***

 

4.2.2Technology
and Product Enhancements. During the Term, Row 44 agrees to (a) use commercially reasonable efforts to improve and enhance
the Services on an ongoing basis so that the Services at all times during the Term represent a leading Internet and Internet based
entertainment services system for use on commercial aircraft, (b) provide Southwest a product roadmap (and periodic updates thereto)
outlining expected improvements and enhancements of Row 44’s products and services and expansions to Row 44’s coverage
areas, including future capabilities of the Services and equipment updates, and (c) meet and confer with Southwest on at least
*** basis regarding the foregoing.

 

If
Southwest, in its sole but reasonable discretion, determines that the Services do not represent a leading Internet system then
active and in service for use on commercial aircraft, including consideration of all features then provided by Row 44’s
system, then Southwest may provide written notice to Row 44 of the same. Thereafter, for a period of ***, the Parties shall
meet and confer in good faith regarding improvements to the Row 44 system to make it a leading Internet system and/or the implementation
of the alternative leading Internet service technology and features on Southwest’s fleet, including a reasonable timeline
for each of the foregoing. After such meet and confer period, Southwest may choose, in its sole discretion, to adopt the improvements
offered by Row 44 or continue with the current Service.

 

 

 

 ***
Confidential treatment requested.

 

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In the implementation
of any agreed upon improvements or alternative technology, Row 44 agrees: (i) to fund the R&D associated with any such item
and (ii) to sell all associated hardware to Southwest at Row 44’s cost. In addition, if the alternative technology implemented
results in a modified cost structure for Row 44’s provision of the Services, then the Parties shall implement a proportional
adjustment to the prices paid to Row 44 described herein.

 

If following the foregoing,
Southwest reasonably determines that Row 44 is unable or unwilling to implement a feature set that results in a leading Internet
system, Southwest may terminate the Agreement without penalty upon *** prior written notice to Row 44.

 

4.2.3Third
Party Subcontractors. Row 44 shall obtain Southwest’s prior written consent, which Southwest may withhold in its
sole discretion, before entering into new agreements with, or materially amending or extending existing agreements with, or otherwise
engaging, any subcontractors (including Affiliates of Row 44) that may supply any part of the Deliverables or Services to Southwest.
At Southwest’s request, Row 44 shall provide information regarding the subcontractors’ qualifications and a listing
of Row 44’s subcontractors’ key personnel including, if requested by Southwest, resumes of proposed subcontractor
personnel. Row 44 shall remain directly responsible to Southwest for its subcontractors and shall indemnify Southwest for the
actions or omissions of its subcontractors under the terms and conditions specified in ARTICLE 7.

 

4.2.4Records.
Row 44 shall maintain books of account and records, in accordance with its standard practices and procedures, of all transactions
arising in connection with its obligations pursuant to this Agreement for a period of five years from the expiration or earlier
termination of this Agreement. Row 44 shall keep and maintain complete and accurate books and records with respect to Row 44’s
operations, including information necessary to permit calculation and verification of amounts due hereunder.

 

4.2.5Network
Maintenance. Exhibit H describes Row 44’s network as of the Effective Date. Row 44 will ***

 

4.3Other
Agreements and Acknowledgements.

 

4.3.1Network
Security; Prohibited Actions. Southwest will not engage in, or knowingly permit customers of Southwest to engage in, any
of the following activities: (a) any course of action that is intended to or does materially compromise the performance, security
or integrity of the servers, computer systems, satellites or any other devices or software connected directly or indirectly to
the network comprising the Service; (b) any material increase in traffic levels for malicious or illegal purposes that causes a
substantial degradation of performance or denial of service to Row 44 or other customers of Row 44; (c) tampering, hacking or other
intrusion or unauthorized access to any system controlled by Row 44 or through which network access is dependent; or (d) the infringement
of the legal rights of other network users (including other users of the Service or the Internet), service providers and content
providers, except to the extent the Service itself is the cause of the infringement. In the event Southwest or any customer of
Southwest undertakes any of the above activities, Row 44 shall, in the event the continuance of such activity is reasonably likely
to affect the operation of the Broadband System (including the access controls built into the Broadband System) or Row 44’s
network, be authorized to disable access to the Services (including for a particular aircraft or customer of Southwest) until such
activity ceases; provided, however, that any disabling of Services will be limited to that reasonably required to protect the Broadband
System operations in the applicable circumstance. Notwithstanding the foregoing, Row 44 shall be under no obligation to monitor
the content Southwest or customers of Southwest transmit using the Services, except as may be required by applicable Law. Southwest
may not resell or redistribute (whether for a fee or otherwise) the Services provided by Row 44, or any portion thereof, except
for the sale of access to the Services from Southwest to Southwest’s passengers.

 

 

 

 ***
Confidential treatment requested.

 

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4.3.2Intellectual
Property Ownership.

 

4.3.2.1
Southwest Information and Materials. All information, materials and technology, including computer software, provided to Row
44 by Southwest in connection with the Service, including modifications, changes and derivatives thereto whether or not created
as part of the services provided hereunder (the “Southwest Materials”) are and shall remain the property of
Southwest or its licensors, which shall retain all Intellectual Property Rights therein. Row 44 obtains no right, title, or interest
therein, except that during the Term Row 44 may use the Southwest Materials for the sole, exclusive and limited purpose of performing
the services in connection with the Service in compliance with the terms and conditions of this Agreement. Row 44 shall comply
with the terms of any license or other agreement applicable to such Southwest Material. All Southwest Materials shall be subject
to the confidentiality provisions of this Agreement. Row 44 shall not encumber the Southwest Materials in any way, and promptly
shall return to Southwest any and all Southwest Materials in Row 44’s possession or control upon Southwest’s request
and, in any event, upon termination or expiration of this Agreement. For clarity, as between the Parties, Row 44 will own the Intellectual
Property Rights in the Row 44 Materials (a) owned by Row 44 prior to the August 13, 2010 or (b) independently created or acquired
by Row 44 after August 13, 2010 provided such materials do not constitute a derivative work of or misappropriate or infringe upon
any Southwest Materials, Southwest Intellectual Property Rights or Southwest Confidential Information.

 

4.3.2.2
Row 44 Information and Materials. All information, materials and technology, including computer software, provided to Southwest
by Row 44 in connection with the Service, including modifications, changes and derivatives thereto whether or not created as part
of the services provided hereunder (the “Row 44 Materials”) are and shall remain the property of Row 44 or its
licensors, which shall retain all Intellectual Property Rights therein. Southwest obtains no right, title, or interest therein,
except that during the Term Southwest may use the Row 44 Materials for the sole, exclusive and limited purpose of performing its
obligations in connection with the Service in compliance with the terms and conditions of this Agreement. Southwest shall comply
with the terms of any license or other agreement applicable to such Row 44 Material. All Row 44 Materials shall be subject to the
confidentiality provisions of this Agreement

 

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4.3.3Audits.

 

4.3.3.1Compliance
Audits. Within *** following a written
request from a Party (an “Auditing Party”), the other Party (the “Responding Party”) shall
provide the Auditing Party, such Auditing Party’s auditors (including internal audit staff and external auditors), inspectors,
regulators and other reasonably designated representatives as such Auditing Party may from time to time designate in writing (collectively,
the “Auditors”), with access to, at reasonable times, data and records relating to the Services for purposes
of verifying compliance with this Agreement. The Responding Party shall provide any reasonable assistance that the Auditing Party
may reasonably require with respect to such audits. All financial and non-financial transactions resulting from this Agreement
shall be documented by Row 44 and subject to audit by the Southwest Auditors. Row 44 and Southwest shall meet to review
each audit report promptly and to agree upon an appropriate and effective manner in which to respond to the deficiencies identified
and changes recommended by such audit report. Notwithstanding the foregoing, Southwest acknowledges and agrees that the documents
and data provided to Southwest shall be subject to reasonable redaction in support of Row 44’s confidentiality obligations
and compliance with applicable Law. Each Party shall be responsible for any costs associated with the exercise of its audits rights
set forth herein.

 

4.3.3.2.
Fee and Net Revenue Split Audits. Upon notice from Southwest, Row 44 shall provide the Southwest Auditors with access to
such financial books and records and supporting documentation as may be reasonably requested by Southwest’s Auditors.
Southwest’s Auditors may audit Row 44’s charges and/or payments to Southwest to determine if such charges and/or
payments are accurate and in accordance with this Agreement. If, as a result of such audit, Southwest determines that Row 44
has overcharged or underpaid Southwest, Southwest shall notify Row 44 of the amount of such overcharge or underpayment and
Row 44 shall (in addition to any and all other remedies that may be available to Southwest) promptly pay to Southwest the
amount of the overcharge or amounts owed due to underpayment, plus interest, calculated from the date of receipt by Row 44 of
the overcharged or underpaid amount until the date of payment to Southwest. In addition to Southwest’s rights set forth
in this Section 4.3.3.2 , in the event any such audit reveals an overcharge or underpayment to Southwest in excess of
*** or more, Row 44 shall (in addition to any and all other remedies that may be available to Southwest) reimburse Southwest
for the cost of such audit.

 

ARTICLE
5.

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

5.1By
Row 44:

 

 

 

 

 ***
Confidential treatment requested.

 

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5.1.1Performance
of the Services. Row 44 represents and warrants to Southwest that Row 44 has the skills, resources and expertise to provide
and shall provide all Services in accordance with the terms and conditions of this Agreement. Without limiting the generality of
the foregoing, Row 44 represents and warrants to Southwest that: (a) all Services provided under this Agreement shall be provided
in a timely, professional and workmanlike manner consistent with the highest industry standards of quality and integrity; provided,
however, that where this Agreement specifies a particular standard or criteria for performance, this warranty is not intended
to and does not diminish that standard or criteria for performance; and (b) other than the applicable fees set forth herein, no
additional cost or expense shall be required of Southwest in order for Row 44 to be able to provide the Services as required under
this Agreement.

 

5.1.2***

 

5.1.3System
Hardware. Except for Row 44’s (or its Vendors) right to receive payment for such System Unit (or component,
as applicable), Row 44 represents and warrants to Southwest that each System Unit shall be provided to Southwest free and
clear of all liens and encumbrances and when initially provided to Southwest shall be provided in new condition and shall not have
been previously refurbished or reconditioned. This warranty shall survive the expiration or termination of this Agreement. ***

 

 

5.1.4No
Violation of Laws. Row 44 represents and warrants to Southwest that Row 44, the Broadband System, and each System
Unit is not, and covenants that none of them shall be and, to the extent applicable, Southwest’s use of the Broadband System
(in conformance with the terms of this Agreement and the other agreements entered into between the Parties in connection with the
Broadband System) and each System Unit, shall not be, in violation of any Laws, and Row 44 has not failed, and shall not fail,
to obtain any licenses, permits, franchises or other governmental authorizations necessary for the performance of this Agreement,
ownership of its properties or the conduct of its business, which violation or failure, either individually or in the aggregate,
might adversely affect its business, properties or financial condition, the consummation of the transactions contemplated by this
Agreement, or the performance of its obligations hereunder. This warranty shall survive the expiration or termination of this Agreement.

 

5.1.5Disabling
Code. Row 44 represents and warrants to Southwest that the Broadband System, including the System Software, does not
contain any virus, worm, trap door, back door, timer, clock, counter or other limiting routine, instruction or design that would
erase data or programming or otherwise cause any of the Deliverables to become inoperable or incapable of being used in the full
manner for which it was designed and created (collectively, a “Disabling Code”); provided, that,
Disabling Code shall not include (a) features of the Broadband System designed to allow Row 44 to operate its service, including
providing network traffic management, (b) features of the Broadband System that allow Southwest to deactivate or modify features
of the Broadband System and (c) features of the Broadband System required by Row 44’s applicable regulatory licenses,
agreements or applicable Law. In the event a Disabling Code is identified, Row 44 shall take all steps necessary, at no additional
cost or expense to Southwest, to: (i) restore and/or reconstruct any and all Confidential Information and data lost by Southwest
as a result of such Disabling Code; (ii) furnish to Southwest new Deliverables without the presence of Disabling Codes; and (iii)
at the request of Southwest, install and implement such new Deliverables. This warranty shall survive any expiration or termination
of this Agreement until Southwest discontinues its use of the applicable Deliverables.

 

 

 

 

 ***
Confidential treatment requested.

 

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5.1.6Legal
and Corporate Authority. Row 44 represents and warrants to Southwest that: (a) Row 44 is a Delaware corporation,
and is qualified and registered to transact business in all locations where the failure to be so qualified would have a material
adverse effect on the performance of its obligations hereunder; (b) Row 44 has all necessary corporate rights, powers and
authority to enter into and perform this Agreement, and the execution, delivery and performance of this Agreement by Row 44
have been duly authorized by all necessary corporate action; (c) as of the Effective Date, the execution and performance of this
Agreement by Row 44 does not violate any Law and does not breach any agreement, covenant, court order, judgment or decree
to which Row 44 is a party or by which it is bound; and (d) Row 44 has, and promises that it shall maintain in effect,
all governmental licenses and permits necessary for it to provide the Services contemplated by this Agreement. These warranties
shall survive the expiration or termination of this Agreement.

 

5.1.7Litigation.
Row 44 represents and warrants to Southwest that there is no action, suit, claim, investigation or proceeding pending, or
to Row 44’s Knowledge, threatened in writing, by or affecting Row 44 or the Services which, if adversely decided,
might adversely affect: (a) Row 44’s ability to enter into this Agreement; (b) Row 44’s performance of its
obligations herein; or (c) except as previously disclosed to Southwest in writing, Southwest’s or its customers’ use
of the Services or Broadband System. At all times during the Term, Row 44 shall promptly notify Southwest of any action, suit,
claim, investigation or proceeding initiated by or against Row 44 that may adversely affect Row 44’s ability to
perform under this Agreement or Southwest’s use of the Services, including where amounts in dispute may result in a material
adverse change in the financial condition of Row 44.

 

5.1.8***

 

5.1.9Notification.
Row 44 agrees that it shall notify Southwest promptly in writing of the breach or existence of circumstances that could reasonably
be expected to result in a breach of any of its representations, warranties or covenants in this Agreement.

 

5.2By
Southwest:

 

5.2.1Legal
and Corporate Authority. Southwest represents and warrants to Row 44 that: (a) Southwest is a Texas corporation, and
is qualified and registered to transact business in all locations where the failure to be so qualified would have a material adverse
effect on the performance of its obligations hereunder; (b) Southwest has all necessary corporate rights, powers and authority
to enter into and perform this Agreement, and the execution, delivery and performance of this Agreement by Southwest have been
duly authorized by all necessary corporate action; and (c) as of the Effective Date, the execution and performance of this Agreement
by Southwest does not violate any Law and does not breach any agreement, covenant, court order, judgment or decree to which Southwest
is a party or by which it is bound. These warranties shall survive the expiration or termination of this Agreement.

 

 

 

 

 ***
Confidential treatment requested.

 

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ARTICLE
6.

PRICING AND PAYMENT

 

6.1System
Units. 

 

6.1.1System
Unit Cost. Southwest shall pay Row 44 for each System Unit Accepted by Southwest in accordance with the pricing terms
agreed to by the Parties as set forth in Exhibit B attached hereto. The charges specified in this Agreement are the
total charges for the Deliverables provided to Southwest under this Agreement, and no other fees, costs or expenses may be charged
to Southwest except as set forth herein. Row 44 shall have the right to increase pricing for System Units ***  The Parties
agree to meet and confer regularly during the Term regarding updates to the System Units and components thereof that may facilitate
a decrease in the cost and related prices of the System Units and components thereof. ***

 

6.2Services.
***

 

6.3Invoice
and Payment.

 

6.3.1Merchant
of Record. Unless sold directly by Southwest or otherwise agreed hereunder, Row 44 shall be the merchant of record
for the Services.

 

6.3.2Accounting. Within
***  Row 44 shall calculate the *** received by Row 44 as well as any fees owed by
and to Southwest hereunder, and submit to Southwest: (i) a report for the applicable period detailing the use of the
Services and the features included therein, and the System Units purchased by Southwest, in a form to be mutually agreed upon
by the parties, (ii) a summary of the calculation of  *** for the applicable period in a format to be mutually agreed
upon by the parties, and (iii) either a *** for *** for said period, or *** for *** for such period, all in accordance with
this Agreement. ***

 

6.3.3All
payments shall be in United States Dollars and made by wire transfer to such account(s) as designated by Southwest and Row 44 from
time to time during the Term. Each party agrees that the respective fees set forth in this Agreement are exclusive of all surcharges
and taxes, except for taxes based solely on the net income of a party or its respective business franchise.

 

 

 

 

 ***
Confidential treatment requested.

 

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6.3.4Row
44 shall invoice Southwest for System Units (and any overage of fees due to Row 44 in excess of payments due to Southwest), with
the invoices being sent to the following address:

 

Southwest Airlines Co.

 

***

 

6.3.5Except
as otherwise provided herein, Southwest shall pay each correct invoice for the purchase of System Hardware or
Supplemental Television Hardware within *** following Southwest’s receipt of such invoice (provided that such items
have been delivered). Except as otherwise provided herein, Southwest shall pay each correct invoice for all other fees owed
hereunder within *** following Southwest’s receipt of such invoice (provided that the Services there
under have been performed).

 

6.3.6All
payments shall be in United States Dollars and made by wire transfer to such account(s) as designated by Row 44 from time to time
during the Term. Southwest acknowledges that the prices set forth in this Agreement are exclusive of all applicable fees, surcharges
and taxes with respect to the Hardware and Services, except for taxes based solely on the net income of Row 44 or its business
franchise.

 

6.4Taxes.

 

6.4.1 Row
44 Tax Withholding Where Row 44 is the merchant of record, Row 44 shall pay and agrees to indemnify and hold
Southwest harmless from any taxes (except for taxes based on net income or capital or any franchise taxes, excess profit
taxes or other taxes levied on Southwest’s business) imposed by any federal, state, or local government in connection
with this Agreement. If a claim is made against Southwest for any such taxes, Southwest will promptly notify Row 44. If
requested by Row 44 in writing, Southwest will, at Row 44’s expense, take such action as Row 44 may reasonably direct
with respect to such asserted liability and will not pay such taxes except under protest. If payment is made, Southwest will,
at Row 44’s expense, take such action as Row 44 may reasonably direct to recover payment and will, if requested, permit
Row 44 in Southwest’s name to file a claim or commence an action to recover such payment. If all or any part of any
such taxes is refunded, Southwest will repay Row 44 such part thereof as Row 44 will have paid.

 

As Southwest’s
designated service provider, Row 44 shall receive and execute Southwest’s direction with respect to the collection of taxes
from Southwest passengers in the provision of the Services provided under this Agreement. Prior to the launch of any Entertainment
Portal Service feature an assessment of the tax implications of such feature shall be performed by Row 44 and the parties shall
mutually agreed on a best practices for the collection and remittance of any applicable tax for such Service.

 

6.4.3
Southwest Tax Withholding. Where Southwest is the merchant of record, Southwest shall pay and agrees to indemnify
and hold Row 44 harmless from any taxes (except for taxes based on net income or capital or any franchise taxes, excess profit
taxes or other taxes levied on Row 44’s business) imposed by any federal, state, or local government in connection with
this Agreement. If a claim is made against Row 44 for any such taxes, Row 44 will promptly notify Southwest. If requested by Southwest
in writing, Row 44 will, at Southwest’s expense, take such action as Southwest may reasonably direct with respect to such
asserted liability and will not pay such taxes except under protest. If payment is made, Row 44 will, at Southwest’s expense,
take such action as Southwest may reasonably direct to recover payment and will, if requested, permit Southwest in Row 44’s
name to file a claim or commence an action to recover such payment. If all or any part of any such taxes is refunded, Row 44 will
repay Southwest such part thereof as Southwest will have paid.

 

 

 

 ***
Confidential treatment requested.

  

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6.4.4Section
1441:

 

6.4.4.1Documents
Required/Failure to Provide Document. Row 44 hereby agrees to provide Southwest with any documentation requested by Southwest
to allow Southwest to comply with its obligations under Section 1441 of the Internal Revenue Code of 1986, as amended, and any
regulations thereunder (collectively, “Section 1441”), including without limitation, (i) a valid U.S. Taxpayer
Identification Number, and (ii) a properly completed Form W-8BEN, Form W-8ECI, Form W-8IMY, as applicable, or any similar form
requested by Southwest. If Row 44 fails to provide any such documentation to Southwest upon ***
written notice from Southwest then, notwithstanding any provision of this Agreement to the contrary, Southwest shall thereafter
have the right to (i) withhold any amounts due to Row 44 under this Agreement until Row 44 complies with this Section, (ii) withhold
any amounts required by Section 1441 with respect to any payments due to Row 44 under this Agreement and deposit such amounts with
the Internal Revenue Service, or (iii) terminate this Agreement.

 

6.4.4.2Continuing
Obligation/Failure to Provide. Row 44 shall have the obligation during the term of this Agreement to update any
information provided to Southwest under Section 6.4.4 and shall provide Southwest with any additional documentation or
forms requested by Southwest for compliance with Section 1441. If Row 44 fails to comply with this Section upon *** written
notice from Southwest then, notwithstanding any provision of this Agreement to the contrary, Southwest shall thereafter have
the right to (i) withhold any amounts due to Row 44 under this Agreement until Row 44 complies with this Section, (ii)
withhold any amounts required by Section 1441 with respect to any payments due to Row 44 under this Agreement and deposit
such amounts with the Internal Revenue Service, or (iii) terminate this Agreement.

 

6.4.4.3Tax
Indemnity. Row 44 shall defend, indemnify and hold harmless Southwest, its affiliates, and their respective officers,
directors, agents and employees from and against any and all claims, threatened or actual, brought by United States taxing authorities
under Section 1441 as a result of or arising out of Row 44’s breach of its obligations under this Section 6.4. Row
44 agrees to pay, without limitation, any litigation costs, attorneys’ fees, penalties, interest or any tax incurred by
Southwest as a result of or arising out of Row 44’s breach of its obligations under this Section 6.4.

 

 

 

 

 ***
Confidential treatment requested.

 

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ARTICLE
7.

INDEMNIFICATION AND INSURANCE

 

7.1Indemnity
By Row 44. Subject to Section 11.10 , Row 44 shall
be liable to and shall indemnify, defend and hold harmless Southwest, and its subsidiaries and Affiliates and their respective
directors, officers and employees and permitted assigns from and against any Losses arising out of, connected with or resulting
from following:

 

7.1.1Use
of the Services or System Units in conformance with the requirements of this Agreement and applicable Law and in connection with
the use of the Broadband System;

 

7.1.2any
act or omission where there was a duty to act, by Row 44 or its Affiliates or any of their respective employees, officers,
directors, shareholders or agents hired by Row 44 or its Affiliates;

 

7.1.3any
breach by Row 44 or its Affiliates of a covenant, representation or warranty herein;

 

7.1.4the
failure of Row 44 or its Affiliates or the Services or the Broadband System to comply with any applicable Laws; or

 

7.1.5personal
injury or property damages arising out of, connected with or resulting from any act or omission where there was a duty to act,
by Row 44 or its subcontractors, suppliers, personnel or agents.

 

Amounts owing under this ARTICLE 7
shall be paid promptly upon written demand for indemnification containing in reasonable detail the facts giving rise to such
liability. The terms of this ARTICLE 7 shall survive the termination or expiration of this Agreement.

  

7.2Intellectual
Property Indemnity. Row
44 shall be liable to and shall indemnify, defend and hold harmless Southwest, and its subsidiaries and Affiliates and their respective
directors, officers and employees and permitted assigns from and against any Losses arising out of, connected with or resulting
from any claim arising out of or relating to any infringement, inducement of infringement, dilution, misappropriation or other
violation of any third party Intellectual Property
Rights arising from: (a) the materials and/or technology provided or approved for use by Row 44 in connection with the Broadband
System; (b) the System Units or components thereof; or (c) the Services or Southwest’s or its passengers’ use thereof.
In the event either Party makes a good faith determination that a third party claim as described in the preceding sentence will
not be fully and finally dismissed, then upon such Party’s election, in addition to its other obligations set forth in this
Section 7.2, Row 44 shall as promptly as practicable either (i) procure for Southwest the right to use the Services or System
Units free of such liability for infringement, (ii) replace the applicable Service or component with a non-infringing interchangeable
substitute of at least similar performance and capability, or (iii) modify the applicable Service or component so that it becomes
non-infringing without materially impairing its performance or interchangeability, or (iv) if none of the above is practical,
remove the System Units from Southwest’s aircraft at Row 44’s expense. Notwithstanding the foregoing, Row 44
intellectual property indemnity obligations under this Section 7.2 shall
not apply to the extent the applicable Loss would not have occurred but for any of the following: (A) Southwest’s use of
the System Units or Services in a manner for which they were neither contemplated nor designed, (B) the use of the Services or
System Units modified in an unauthorized manner by a party other than Row 44 or any party under the direction of Row 44, (C) any
combination of a Service or a System Unit by a party other than Row 44 or any party under the direction of Row 44 with any other
service, device, equipment or technology, other than as necessary or foreseeable for reasonable use of the Broadband System or
any component thereof, (D) the failure by Southwest to use a non-infringing interchangeable substitute Service furnished by Row
44, at no additional cost, expense or undue burden to Southwest, to avoid further infringement, and (E) the infringement of a
third party’s Intellectual Property Rights by any intellectual property owned, controlled or licensed by Southwest (other
than intellectual property controlled or licensed by Southwest pursuant to this Agreement or the Supply Agreement).

 

 

 

 

 ***
Confidential treatment requested.

 

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7.3Indemnity
by Southwest. Subject to Section 11.10, Southwest shall be liable
to and shall indemnify, defend and hold harmless Row 44, and its subsidiaries and Affiliates and their respective directors, officers
and employees and permitted assigns from and against any Losses arising out of, connected with or resulting from Southwest’s
negligence or willful misconduct and resulting in injury to or death to any person or material loss or damage to any property.

 

7.4Third
Party Actions. A party entitled
to indemnification hereunder (an “Indemnified Party”) shall give prompt
written notice to the Party that is obligated to provide indemnification hereunder (an “Indemnifying Party”)
of the commencement or assertion of any action, proceeding, demand, or claim by a third party (collectively, a “third
party action”) in respect of which such Indemnified Party shall seek indemnification hereunder.
Any failure so to notify an Indemnifying Party shall not relieve such Indemnifying Party from any liability that it may have to
such Indemnified Party under this ARTICLE 7 unless the failure to give such notice materially
and adversely prejudices such Indemnifying Party. The Indemnifying Party shall have the right to assume control of the defense
of, settle, or otherwise dispose of such third party action on such terms as it deems appropriate; provided,
however, that:

 

7.4.1The
Indemnified Party shall be entitled, at its own expense, to participate in the defense of such third party action (provided,
however, that the Indemnifying Party shall pay the attorneys’ fees of the Indemnified Party if (a) the employment
of separate counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such third
party action, (b) the Indemnifying Party shall not have employed counsel reasonably satisfactory to the Indemnified Party to have
charge of such third party action, (c) the Indemnified Party shall have reasonably concluded that there may be defenses available
to such Indemnified Party that are different from or additional to those available to the Indemnifying Party, or (d) the Indemnified
Party’s counsel shall have advised the Indemnified Party that there is a conflict of interest that could make it inappropriate
under applicable standards of professional conduct to have common counsel);

 

7.4.2The
Indemnifying Party shall obtain the prior written approval of the Indemnified Party before entering into or making any settlement,
compromise, admission, or acknowledgment of the validity of such third party action or any liability in respect thereof;

 

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7.4.3No
Indemnifying Party shall consent to the entry of any judgment or enter into any settlement that does not include as an unconditional
term thereof the giving by each claimant or plaintiff to each Indemnified Party of a release from all liability in respect of such
third party action; and

 

7.4.4The
Indemnifying Party shall not be entitled to control (but shall be entitled to participate at its own expense in the defense of),
and the Indemnified Party shall be entitled to have sole control over, the defense or settlement, compromise, admission, or acknowledgment
of any third party action (a) as to which the Indemnifying Party fails to assume the defense within a reasonable length of time,
(b) to the extent the third party action seeks an order, injunction, or other equitable relief against the Indemnified Party which,
if successful, would materially adversely affect the business, operations, assets, or financial condition of the Indemnified Party,
or (c) if the third party action seeks damages in excess of the amount recoverable from the Indemnifying Party under Section
11.10.

 

7.5Cooperation. The
parties hereto shall extend reasonable cooperation in connection with the defense of any third party action pursuant to this ARTICLE
7 and, in connection therewith, shall furnish such records,
information, and testimony and attend such conferences, discovery proceedings, hearings, trials, and appeals as may be
reasonably requested.

 

7.6Insurance.

 

7.6.1Row
44, at its own expense, shall procure and maintain during the Term, policies of insurance that include the following
coverage: (a) Aviation Products Liability Insurance: Covering against any and all liabilities which Row 44 becomes
legally obligated to pay as damages because of personal injury, sickness or disease, including death at any time resulting
therefrom sustained by any person and because of injury to or destruction of property including the loss of use thereof
arising out of or in connection with the handling, use of or any condition existing in the Broadband System
(“Products Hazard”), including training aids, instructions, manuals, drawings, engineering or other data,
engineering or other advice and/or services and/or labor given or supplied by Row 44 relating to the Broadband System,
which arises out of, results from or is in connection with an accident which is neither expected nor intended (an
“Occurrence”) arising out of the Products Hazard in the amount of US$100,000,000 per occurrence and in the
amount of US$100,000,000 in the aggregate; (b) Grounding Liability Insurance: Covering against any and all liabilities which
Row 44 becomes legally obligated to pay as damages for loss of use of completed aircraft occurring after delivery and
acceptance of the Broadband System by Southwest and caused by a grounding (the complete and continuous withdrawal from all
flight operations at or about the same time of one or more aircraft due to a mandatory order of the FAA or EASA due to an
existing, alleged or suspected like defect, fault or condition affecting the safe operation of two or more like model
aircraft) following an Occurrence arising out of the Products Hazard in the amount of US$100,000,000 per occurrence and in
the amount of US$100,000,000 in the aggregate and the combined coverage under this Section 7.6.1 is US$100,000,000 in
the aggregate; (c) Non-Aviation Commercial General Liability Insurance: Covering against any and all liabilities which
Row 44 becomes legally obligated to pay as damages for non-aviation related exposures (Commercial General Liability
Insurance) and exposures over and above the underlying General Liability policies (Umbrella Excess Liability Insurance) in
the amount of US$100,000,000 in the aggregate; (d) Workers' Compensation Insurance for its own employees that meets the
statutory limits of the states in which Row 44 operates and all federal statutes and regulations, (e) Employers Liability of
not less than $1,000,000 combined single limit per occurrence, and (f) Comprehensive Automobile Liability (including
Automobile Non-Ownership Liability) with a combined single limit of not less than $5,000,000 per occurrence (provided that
Row 44 shall have thirty (30) days following the Effective Date in which to obtain such Comprehensive Automobile Liability
coverage). Southwest and all subsidiary and affiliated companies are to be named as additional insureds under the
aforementioned policies.

 

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7.6.2Insurance
certificates and notices of modification or termination shall clearly state Row 44’s name and shall be sent to:

 

Southwest Airlines Co.

***

 

ARTICLE
8.

TERM AND TERMINATION

 

8.1Term.
The initial term of the Agreement will shall commence on the Effective Date and shall continue until December 31, 2020 (the “Term”).

 

8.2Termination
by Row 44 for Failure to Pay. Each
Party may terminate this Agreement upon the failure of the other Party to pay any undisputed amount when due hereunder, if such
failure continues for 10 days after the receiving Party provides the paying Party with written notice of such failure.

 

8.3Termination
by Either Party for Breach or Insolvency. Either Party shall have the
right to terminate this Agreement prior to the expiration of the Term upon the occurrence of any of the following:

 

8.3.1Upon
the breach of any representations, warranties or obligations by the other Party if the breaching Party has not cured such breach
within 60 day after written notice thereof by the non-breaching Party; or

 

8.3.2immediately
upon written notice, if (a) the other Party, pursuant to or within the meaning of Bankruptcy Law, (i) commences a voluntary case,
(ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a custodian
of it or for any substantial part of its property, or (iv) makes a general assignment for the benefit of its creditors, or (b)
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the other Party
in an involuntary case, (ii) appoints a custodian of the other Party or for any substantial part of its property, or (iii) orders
the winding up or liquidation of the other Party.

 

 

 

 

 ***
Confidential treatment requested.

 

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8.4Termination
by Southwest. Southwest
may terminate this Agreement if:

 

8.4.1***

 

8.4.2***

 

8.4.3Any
Regulatory Authority takes any action, any Law is enacted, or any action, suit, claim, investigation or proceeding is initiated,
or any Regulatory Approval is not obtained, in each case that adversely impacts or adversely conditions, or is reasonably expected
to adversely impact or adversely condition, Southwest’s ability to deliver the Wi-Fi Service to its passengers; or

 

8.4.4Row
44 assigns or otherwise transfers this Agreement (within the meaning of Section 11.1) without the prior written
consent of Southwest (provided that (a) Southwest must provide at least six months advance notice of a termination pursuant
to this Section 8.4.4 and (b) such notice of termination must be provided no later than one year after such assignment
or transfer by Row 44).

 

8.5Effect
of Expiration or Termination of this Agreement for Any Reason.
Upon the expiration or termination of this Agreement by either Party for
any reason, the following provisions will apply:

 

8.5.1Subject
to Southwest’s rights to use materials placed in escrow hereunder, each Party will return the originals and any copies of
the other Party’s Confidential Information and Proprietary Information; provided, that, each Party may retain
copies of any Confidential Information or Proprietary Information that is subject to a continuing license pursuant to a fully executed
written agreement between the Parties, and one copy of the other Party’s Proprietary Information in possession of its legal
counsel for the purposes of monitoring its obligations hereunder and exercising any surviving rights;

 

8.5.2Subject
to Section 11.10, neither Party will be relieved of any liability or obligation of such Party that accrued, or which arose
during or relates to any period, prior to the effective date of such termination, including without limitation any payment obligations;
and

 

8.5.3The
provisions of ARTICLE 1, Sections 2.6, 3.3.6, 4.2.4, 4.3.2, 4.3.3, 5.1.2, 5.1.3, 5.1.4, 5.1.5, 5.1.6, 5.2, 6.3, 6.4, 7.1, 7.2,
7.3, 7.4, 7.5, ARTICLE 8, ARTICLE 9, ARTICLE 10 and ARTICLE 11, as applicable, will survive the expiration or termination of this
Agreement and remain in full force and effect in accordance with their terms.

 

8.6Remedies
Cumulative and Nonexclusive. All
of the non-breaching Party’s remedies will be cumulative, and the exercise of one remedy hereunder by the non-breaching
Party will not be deemed to be an election of remedies.

 

 

 

 

 ***
Confidential treatment requested.

  

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8.7Rights
In Bankruptcy. The Parties agree that Row 44 is a licensor to Southwest
of intellectual property (as defined in 11 U.S.C. § 101 (35A), including trade secrets, inventions, process and design).
In addition to all other rights and remedies that Southwest has or may come to have at law, in equity, or otherwise under this
Agreement or applicable bankruptcy and non-bankruptcy law, in the event that Row 44 were to become a debtor or debtor in possession
under Title 11 of the United States Code, Southwest shall be entitled to all rights under Title 11 of the United States Code,
and specifically those rights afforded by 11 U.S.C. § 365(n) of Title 11 of the United States Code in the event of any
rejection of this Agreement under 11 U.S.C. § 365.

 

8.8Operations
after Termination. ***

 

8.9Notice
of Termination. All termination notices delivered by either Party in
connection with this Agreement must be delivered in writing.

 

8.10Wind
Down. ***

 

8.11Post-Termination
Assistance. ***

 

 

ARTICLE
9.

DISPUTE RESOLUTION

 

9.1Escalation.
Upon the occurrence of any event that, pursuant to the express provisions
of this Agreement, is subject to the escalation provisions set out in this Section 9.1, or
upon the occurrence of any other material Dispute under this Agreement by written notice by a Party to the other Party, the following
procedures shall apply:

 

9.1.1The
Parties will attempt to resolve the Dispute promptly by negotiations between a designated Southwest Vice President and the Chief
Executive Officer of Row 44, or their respective designees (collectively, the “Senior Officers”). The Senior
Officers will meet in person or by telephone within 10 Business Days after the notice of the Dispute and attempt in good faith
to resolve the Dispute.

 

9.1.2In
the event the Senior Officers do not resolve the Dispute within 30 Business Days from receipt of notice of a Dispute (which time
period may be extended by written agreement of the Senior Officers), either Party may refer the Dispute to arbitration in accordance
with Section 9.2.

 

9.2Binding
Arbitration. 

 

9.2.1Any
controversy, dispute or claim (whether lying in contract or tort) between the Parties arising out of or related to this Agreement
or the breach, termination or validity thereof (“Dispute”) shall, after the expiration of the time period set
forth in Section 9.1.2 at the request of any Party be submitted to arbitration in accordance with this Section 9.2.

 

 

 

 

 ***
Confidential treatment requested.

 

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9.2.2All
Disputes shall, except as provided herein, be solely and finally settled by a single arbitrator; provided, however,
in the event the amount in controversy, whether in an individual Dispute or in the aggregate as to multiple Disputes between the
Parties, is ***, the Parties agree to submit such Disputes to a board of arbitrators consisting of three arbitrators, as set forth
below (the term “Arbitrators” shall refer to the board of arbitrators or the single arbitrator, as applicable).
The arbitration proceedings shall be held in Dallas, Texas, and except as otherwise may be provided in this Section 9.2,
the arbitration proceedings shall be conducted in accordance with the Commercial Arbitration Rules (the “AAA Rules”)
of the American Arbitration Association (the “AAA”).

 

9.2.3If
either Party determines to submit a Dispute for arbitration pursuant to this Section 9.2, such Party shall furnish
the other Party to the Dispute with a dated, written statement (the “Arbitration Notice”) indicating (i)
such Party’s intent to commence arbitration proceedings, (ii) the nature, with reasonable detail, of the Dispute, and
(iii) the remedy or remedies such Party will seek. Where the Parties use a single arbitrator, within *** of the Arbitration
Notice, the Parties shall select a single arbitrator from a list of members of the AAA’s National Panel of Commercial
Arbitrators. If the parties use a single arbitrator, that arbitrator must be “neutral.” A “neutral”
arbitrator shall be a Party who would not be subject to disqualification under rule No. 17 of the AAA Rules. If the Parties
do not reach agreement on the selection of a single arbitrator within the *** period, the AAA shall have the right to make
such selection upon the request of any Party to the arbitration proceedings. Where the Parties use a board of arbitrators,
within *** of the date of the Arbitration Notice, the Party commencing the arbitration (the “Petitioner”)
and the Party with whom the Petitioner has its Dispute (the “Respondent”) shall each select one qualifying
arbitrator (and provide written notice of such selection to the Respondent and Petitioner). A “qualifying”
arbitrator is a Party who is not (i) an Affiliate of either the Petitioner or Respondent or (ii) counsel to any such Party at
such time. If either the Petitioner or Respondent fails to select a qualifying arbitrator or provide such notice within the
*** period, the AAA shall have the right to make such selection upon the request of any party to the arbitration proceedings.
(Such qualifying arbitrators hereafter may be referred to, respectively, as the “First Arbitrator” and the
“Second Arbitrator.”).

  

 

 

 

 ***
Confidential treatment requested.

  

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9.2.4Within
*** following their selection, the First Arbitrator and Second Arbitrator shall mutually select (and provide written notice
to the Respondent and the Petitioner of such selection) a third arbitrator (the “Third Arbitrator”) from a
list of members of the AAA’s National Panel of Commercial Arbitrators. The Third Arbitrator must be
“neutral.” A “neutral” arbitrator shall be an individual who would not be subject to disqualification
under rule No. 17 of the AAA Rules. At any time within *** after the date of the Arbitration Notice, the Petitioner and
Respondent can make discovery requests of the other (including requests for delivery of documents, production of witnesses
for deposition testimony and delivery of interrogatory responses). The recipient of a discovery request shall have *** after
the receipt of such request to object to any or all portions of such request and make an application to the Arbitrators to
limit the scope of such discovery request, and shall respond to any portions of such request not so objected to within *** of
the receipt of such request. All objections shall be in writing and shall indicate the reasons for such objections. Within
five Business Days after the end of the period for the submission by the requested party of an application to limit the
discovery request, the Arbitrators shall grant or deny such discovery request, in whole or in part, to the extent the
Arbitrators determine such discovery is or is not, as the case may be, reasonably necessary to enable the requesting party to
obtain information relevant to the Dispute without unreasonably burdening the requested party. The requested party shall
comply with a discovery request granted by the Arbitrators within ***after such discovery request is granted, or within such
longer period as the Arbitrators may determine upon application of the requested party for extension thereof for reasonable
cause. Neither party shall be permitted to make more than one application for discovery to the Arbitrators. All depositions
shall be taken in the city in which the Person being deposed resides or has its principal place of business, unless otherwise
agreed by the parties. The Arbitrators are not authorized to subpoena documents or perform independent
investigations. Hearings must commence no later than *** following the date of the Arbitration Notice and such hearings shall
be conducted for no more than five Business Days. Each of the Petitioner and the Respondent shall submit a brief, outlining
such party’s claim for relief or defense to any claim, to the other and to the Arbitrators on or before the tenth day
before the date of the first hearing. Reply briefs must be exchanged and submitted to the Arbitrators on or before the third
day before the date of the first hearing.

 

9.2.5The
Respondent and Petitioner shall each submit to the Arbitrators within 20 days following the last hearing a proposed order
for disposing of the Dispute(s) presented. The final decision of the Arbitrators is due on or before the thirtieth day following
the date of the last hearing. The Arbitrators shall issue a final decision that, in their judgment, is consistent with the terms
of this Agreement, the intent of the parties, and Law, as supported by evidence presented by the Petitioner and Respondent in the
arbitration proceeding or, if the subject matter of the Dispute is not clearly addressed in or determinable under this Agreement,
that, in their opinion, would be most fair to the Petitioner and Respondent. The Arbitrators shall have no authority to award any
punitive, special or exemplary damages. The Arbitrators shall be required to provide reasons for their decision. The foregoing
time periods and procedural steps may be modified or extended by the Arbitrators in their discretion to the extent they deem necessary
to prevent fundamental unfairness; provided that, at all times the Arbitrators shall be mindful of the parties’
desire for the most expeditious possible resolution of Disputes.

 

9.2.6To
the extent permissible under applicable Law, the Parties agree that the award of the Arbitrators shall be final and shall
not be subject to judicial review. Judgment on the arbitration award may be entered and enforced in any court having
jurisdiction over the Parties or their assets. It is the intent of the Parties that the arbitration provisions hereof be
enforced to the fullest extent permitted by applicable Law, including the Federal Arbitration Act, 9 U.S.C.
§ 2. Nothing contained in this Section 9.2 shall prevent the Parties from seeking injunctive relief or
require arbitration of any issue for which injunctive relief is sought by either Party hereto.

 

9.3Governing
Law; Jurisdiction; Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF *** (WITHOUT REFERENCE TO ANY CONFLICT OF LAW RULES). FOR ANY PROCEEDINGS IN AID OF
ARBITRATION UNDER SECTION 9.2 OR ANY REQUEST FOR INJUNCTIVE RELIEF, EACH PARTY EXPRESSLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE STATE OF DELAWARE AND TO THE VENUE OF FEDERAL AND STATE COURTS SITUATED IN ***,
AND AGREES TO ACCEPT SERVICE OF PROCESS BY REGISTERED MAIL. EACH PARTY IRREVOCABLY WAIVES ANY OBJECTION IT MIGHT OTHERWISE HAVE
TO SUCH VENUE AND ANY RIGHT TO REMOVE OR TRANSFER JURISDICTION TO ANY OTHER FORUM.

 

 

 

 

 ***
Confidential treatment requested.

  

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ARTICLE
10.

CONFIDENTIALITY, PUBLICATION AND PUBLICITY

 

10.1Confidentiality.
All Confidential Information disclosed by or on behalf of one Party to the
other Party hereunder will be maintained in confidence by the receiving Party and will not be disclosed to a third party or used
for any purpose whatsoever except as follows:

 

10.1.1If
a Party reasonably believes based on advice of outside counsel that the Confidential Information is required to be disclosed (a)
to governmental or other regulatory agencies in order to obtain patents or (b) to comply with applicable stock exchange requirements
or Securities and Exchange Commission regulations, then such disclosure may be made only to the extent reasonably necessary to
obtain patents or approvals, or to comply with such requirements and regulations as appropriate, and such receiving Party seeks
confidential treatment to the extent reasonably practicable;

 

10.1.2If
a Party reasonably believes it is necessary for Confidential Information to be disclosed to employees, agents, consultants, Affiliates
and/or other third parties for the purpose of conducting activities permitted under this Agreement in accordance with this Agreement,
Confidential Information may be disclosed to such employees, agents, consultants, Affiliates and/or other third parties only to
the extent necessary, and only if such individuals agree to be bound by confidentiality obligations substantially equivalent to
the terms herein;

 

10.1.3If
a Party reasonably believes it is necessary to disclose the terms and conditions of this Agreement to actual or prospective investors,
lenders, real estate or equipment lessors or acquirors or other potential or current financing sources of a Party (collectively
“Financing Sources”), such terms and conditions may be disclosed to such Financing Sources provided that
the Financing Sources agree to be bound by confidentiality obligations substantially equivalent to the terms herein; or

 

10.1.4If
a Party reasonably believes that Confidential Information is required to be disclosed by law, regulation, request from a governmental
or other regulatory agency or court order, then provided that notice of such disclosure is promptly delivered to the disclosing
Party in order to provide an opportunity to challenge or limit the disclosure obligations, and provided further that the
receiving Party works in good faith with the disclosing Party to seek confidential treatment of such disclosure and to disclose
only to the extent reasonably necessary to comply with the applicable law or court order, such Confidential Information may be
disclosed to the extent legally required. If such required disclosure involves filing information with the SEC, then, in addition
to the notification obligation above, the Parties will cooperate in making any request for confidential treatment from the SEC
that a Party may deem necessary to protect trade secrets and other commercial and financial information the disclosure of which
could result in competitive harm.

 

 

 

 

 ***
Confidential treatment requested.

 

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10.2Publicity.
Subject to Section 10.1, any publication, news release or other public
announcement relating to this Agreement or the terms hereof that either Party wishes to release shall first be provided to the
other Party for review within a reasonable period in advance, and the submitting Party shall not release such announcement without
the prior written consent of the other Party. 

 

10.3Employees
and Consultants. Each Party hereby agrees and covenants that all of
its employees and consultants and all of the employees and consultants of its Affiliates who participate in any activities under
this Agreement or have access to any Confidential Information or Proprietary Information are or will, prior to their participation
or access, be bound by written obligations to maintain such Confidential Information or Proprietary Information in confidence
and not to use or transfer such information or materials except as expressly permitted hereunder. Each Party agrees to use, and
to cause its Affiliates to use, reasonable commercial efforts to enforce such obligations.

 

ARTICLE
11.

OTHER PROVISIONS

 

11.1Assignment.
In
the event that either Party desires to assign or otherwise transfer this Agreement or any obligation of such Party hereunder (the
“Assigning Party”), the Assigning Party shall seek the prior written consent of the other Party, such consent not
to be unreasonably withheld or delayed (the “Remaining Party”) (it being understood that for purposes of the foregoing
restriction on assignment and transfer, a change of control of either Party (directly or indirectly, and whether by merger, consolidation,
share exchange, stock sale or other similar transaction) and sale of all or substantially all of the assets of a Party, shall
be deemed to constitute an assignment or transfer); provided, however, that Southwest may assign this Agreement and the rights,
obligations and interests of Southwest, in whole or in part, to any of its Affiliates, to any purchaser of all, or substantially
all, of its assets or to any successor corporation resulting from any merger, consolidation, share exchange, stock sale or other
similar transaction, and provided further that Row 44 may assign or sell its rights to receive any amounts due hereunder. If the
Remaining Party does not provide its consent within 30 days after a request for consent by the Assigning Party, then the Remaining
Party shall be deemed to have withheld its consent. In the event that the Remaining Party consents to any assignment or transfer
proposed by the Assigning Party, then this Agreement shall continue in full force and effect according to its terms from and after
such assignment or transfer, with the assignee or transferee being substituted herein for the Assigning Party. In the event that
Southwest does not consent to a proposed Row 44 assignment or transfer, and Row 44 completes the assignment or transfer, then
this Agreement shall continue in full force and effect according to its terms from and after such assignment or transfer, with
the assignee or transferee being substituted herein for the Assigning Party, and Southwest will have the termination right set
forth in Section 8.4.4. This Agreement will inure to the benefit of Southwest and Row 44 and their respective successors.

 

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11.2Severability.
In the event any one or more of the provisions contained in this Agreement
should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein will not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s) adversely
affect the substantive rights of the Parties. The Parties will in such an instance use their reasonable best efforts to replace
the invalid, illegal or unenforceable provision(s) with valid, legal and enforceable provision(s) that, insofar as practical,
implement the purposes of this Agreement.

 

11.3Notices.
All notices, documents or other communications that are required or permitted
hereunder will be in writing and sufficient if delivered personally, sent by telefacsimile (and promptly confirmed by personal
delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered
or certified mail, postage prepaid, return receipt requested, addressed as follows:

 

***

 

With a copy to:

 

***

  

***

  

With a copy to:

 

***

  

or to such other address as the Party to
whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such communication will
be deemed delivered (i) if sent by mail, as aforesaid, on the date upon which the return receipt is signed or delivery is refused
or the notice is designated by the postal authorities as not deliverable, as the case may be, (ii) if sent by telefacsimile, as
aforesaid, when sent (with confirmation of receipt), and (iii) if sent by courier or hand delivered, as aforesaid, when received.

 

11.4Entire
Agreement. This Agreement, the exhibits hereto, and, when executed,
the agreements contemplated herein, contain the entire understanding of the Parties with respect to the subject matter hereof,
and all express or implied agreements and understandings, either oral or written, heretofore made are expressly superseded by
the same. Except as expressly set forth in this Agreement, this Agreement may be amended, or any term hereof modified, only by
a written instrument duly executed by both Parties. The exhibits to this Agreement are deemed incorporated herein as if directly
set forth herein in their entirety.

 

 

 

 

 ***
Confidential treatment requested.

 

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11.5Independent
Contractors. It is expressly agreed that Row 44 and Southwest will
be independent contractors and that the relationship between the two Parties will not constitute a partnership, joint venture
or agency. Neither Row 44 nor Southwest will have the authority to make any statements, representations or commitments of
any kind, or to take any action, which will be binding on the other, without the prior consent of the other Party.

 

11.6Waiver.
The waiver by either Party hereto of any right hereunder or the failure
to perform or of a breach by the other Party will not be deemed a waiver of any other right hereunder or of any other breach or
failure by said other Party whether of a similar nature or otherwise.

 

11.7Counterparts.
This Agreement may be executed in identical duplicate copies exchanged by
telefacsimile transmission. The Parties agree to execute two identical original copies of this Agreement after exchanging signed
telefacsimile versions. Each identical counterpart will be deemed an original, but all of which together will constitute one and
the same instrument.

 

11.8Waiver
of Rule of Construction. Each Party has had the opportunity to consult
with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction
that any ambiguity in this Agreement will be construed against the drafting Party will not apply.

 

11.9Force
Majeure.  Either Party’s timely performance of any part of this
Agreement, other than payment obligations, shall be excused to the extent that it is hindered, delayed or otherwise made impractical
by any cause beyond the reasonable control of that Party and not caused by the negligence of the non-performing Party (collectively
referred to as “Force Majeure”). If any Force Majeure condition(s) occur,
the non-performing Party shall make reasonable efforts to notify the other Party of the nature of any such condition and the extent
of the delay, and shall make reasonable, good faith efforts to resume performance as soon as possible.

 

11.10Liability
Limitations. EXCEPT
FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN, ROW 44 SPECIFICALLY DISCLAIMS ALL OTHER REPRESENTATIONS
AND WARRANTIES, EXPRESS OR IMPLIED, RELATING TO THE SERVICES PROVIDED BY ROW 44 HEREUNDER, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND OR NATURE (INCLUDING LOST PROFITS AND
LOST REVENUES), WHETHER FORESEEABLE OR NOT, ARISING OUT OF OR RELATING TO THIS AGREEMENT. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY LOSSES OR DAMAGES OF ANY KIND OR NATURE ARISING
OUT OF RELATING TO THIS AGREEMENT IN EXCESS OF THE TOTAL AMOUNT ACTUALLY PAID TO AND RECEIVED BY ROW 44 FROM SOUTHWEST DURING
THE 12 MONTH PERIOD PRIOR TO SUCH CLAIM, WHICH AMOUNT WILL BE THE MAXIMUM AGGREGATE LIABILITY OF EITHER PARTY TO THE OTHER PARTY
HEREUNDER. NOTWITHSTANDING THE FOREGOING, NOTHING HEREIN SHALL BE DEEMED TO LIMIT ANY LIABILITY WITH RESPECT TO (A) AN OBLIGATION
OF INDEMNITY SET FORTH IN THIS AGREEMENT, (B) FOR DAMAGES RESULTING FROM A BREACH OF AN OBLIGATION OF CONFIDENTIALITY, (C) A BREACH
OF THE OBLIGATIONS IN EXHIBIT J HEREUNDER, (D) FOR PERSONAL INJURY OR PATENT INFRINGEMENT OR (E) ANY RIGHT OR REMEDY AVAILABLE
TO SOUTHWEST AT LAW OR EQUITY BASED ON ROW 44’S FRAUDULENT ACTS, FRAUDULENT OMISSIONS OR INTENTIONAL MISREPRESENTATIONS.
THE PAST, PRESENT OR FUTURE DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS OF SOUTHWEST AND ITS AFFILIATES SHALL NOT HAVE ANY
PERSONAL LIABILITY OR OBLIGATION TO ROW 44 ARISING UNDER THIS AGREEMENT.

 

    	33

    	 

    
 

11.11Third
Party Beneficiaries. Except as otherwise expressly provided in this
Agreement, nothing herein expressed or implied is intended or will be construed to confer upon or to give to any third party any
rights or remedies by reason of this Agreement. Except as otherwise expressly provided in this Agreement, there are no intended
third party beneficiaries under or by reason of this Agreement.

 

[Remainder of this page is intentionally
left blank.]

 

    	34

    	 

    
 

IN WITNESS WHEREOF,
the Parties have executed this Agreement to be effective as of the Effective Date.

 

	SOUTHWEST AIRLINES CO.	 	ROW 44, INC.	 
	 	 	 	 	 	 
	By:	/s/ Dave Ridley	 	By:	/s/ John LaValle	 
	Name: 	Dave Ridley	 	Name:	John LaValle	 
	Title: 	SVP – Chief Marketing Officer	 	Title: 	CEO	 

 

 

Signature
Page to Amended and restated supply and services Agreement

 

    	 

    	 

    
 

EXHIBIT A

 

Definitions

 

“AAA”
has the meaning set forth in Section 9.2.2.

 

“AAA Rules”
has the meaning set forth in Section 9.2.2.

 

“Acceptance”
has the meaning set forth in Section 2.1.2.

 

“Additional
Included Services” has the meaning set forth in Section 3.3.

 

“Affiliate”
means an individual, trust, business trust, joint venture, partnership, corporation, association or other legal entity that, directly
or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with an entity. For purposes
of this definition only, “Control” and, with correlative meanings, the terms “Controlled by”
and “under common Control with” means (a) the possession, directly or indirectly, of the power to direct the
management or policies of a legal entity, whether through the ownership of voting securities or by contract relating to voting
rights or corporate governance, or (b) the ownership, directly or indirectly, of more than 50% of the voting securities or other
ownership interest of a legal entity.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Arbitration
Notice” has the meaning set forth in Section 9.2.3.

 

“Arbitrators”
has the meaning set forth in Section 9.2.2.

 

***

 

“Auditing
Party” has the meaning set forth Section 4.3.3.1.

 

“Auditors”
has the meaning set forth in Section 4.3.3.1.

 

***

 

***

 

“Bankruptcy
Law” means Title 11, United State Code, or any similar Federal or state law for the relief of debtors.

 

***

 

“Broadband
System” means the satellite based broadband internet system composed of the System Software, the System Hardware and
all other hardware and software components necessary for the system to operate in accordance with the Specifications (as defined
in the Supply Agreement).

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit A-1

    	 

    
 

“Business
Day” means a day that is not a Saturday, Sunday or a day on which banking institutions in either New York, New York or
Dallas, Texas are required by law to remain closed.

 

“Commissioned
Aircraft” has the meaning set forth in Section 3.1.

 

“Commissioning
Procedure” has the meaning set forth in Section 3.1.

 

“Confidential
Information” means the terms and conditions of this Agreement, information disclosed by a Party to the other Party in
connection with this Agreement or the performance of its obligations hereunder, or related to any use, method, compound, research
project, work in progress, future development, scientific, engineering, manufacturing, marketing, business plan, Know-How, and
financial and personnel matters relating to a Party, or its present or future products, sales, suppliers, employees, investors
or business, whether disclosed in oral, written, graphic or electronic form, and whether or not specifically marked as confidential
or proprietary, other than information that (a) is known by recipient at the time of its receipt, and not through a prior disclosure
by or on behalf of the disclosing Party, as documented by contemporaneous business records; (b) is properly in the public domain
through no fault of the recipient; (c) is subsequently disclosed to the recipient by a third party who may lawfully do so and is
not directly or indirectly under an obligation of confidentiality to the disclosing Party, as documented by written business records
in existence prior to the receipt of such information from the disclosing Party; or (d) is developed by the recipient independently
of, and without reference to or use of, the information received from the disclosing Party. For the avoidance of doubt, any and
all information provided by Southwest’s passengers to Row 44 or otherwise collected by Row 44 from Southwest’s customers
shall be considered Southwest’s Confidential Information hereunder.

 

“Content
Control Services” has the meaning set forth in Section 3.5.2.

 

***

 

“Defect”
means any failure of the Deliverables, or components thereof, to operate in accordance with or otherwise conform to the applicable
Specifications.

 

“Deliverable”
means all work product and other deliverables, and all related written reports, requirements documents (including newly created
technical and non-technical data embodied therein), specifications, program materials, flow charts, notes, outlines and the like,
and all intermediate and partial versions thereof, that are developed, authored, conceived, originated, prepared, or otherwise
created by Row 44 or its employees, agents or subcontractors for or on behalf of Southwest under this Agreement, including
the System Software and each System Unit delivered pursuant to a Purchase Order.

 

 

 

 

 ***
Confidential treatment requested.

 

    	Exhibit A-2

    	 

    
 

“Designated
Aircraft” means the aircraft identified by Southwest on which the Broadband System will be installed.

 

“Disabling
Code” has the meaning set forth in Section 5.1.5.

 

“Dispute”
has the meaning set forth in Section 9.2.1.

 

“Documentation”
means the Specifications and any other documentation associated with the Broadband System.

 

“Effective
Date” has the meaning set forth in the Preamble.

 

“Elected
Services” has the meaning set forth in Section 3.5.

 

***

 

***

 

“Entertainment
Portal Service” means the services to be provided by Row 44 in connection with the Entertainment Portal as set forth
in Section 3.4.

 

“FAA”
means the Federal Aviation Administration.

 

“FCC”
means the Federal Communications Commission.

 

“Financing
Sources” has the meaning set forth in Section 10.1.3.

 

“First Arbitrator”
has the meaning set forth in Section 9.2.3.

 

“Force Majeure”
has the meaning set forth in Section 11.9.

 

“Indemnified
Party” has the meaning set forth in Section 7.4.

 

“Indemnifying
Party” has the meaning set forth in Section 7.4.

 

“Intellectual
Property Rights” means all inventions, patents, copyrights, trade secrets, trade names, Know-How, intellectual property,
software, shop rights, moral rights, licenses, developments, research data, designs, processes, formulas and other intangible proprietary
or property rights, whether or not patentable (or otherwise subject to legally enforceable restrictions or protections against
unauthorized third party usage), and any and all applications for, and extensions, divisions and reissuances of, any of the foregoing,
and rights therein, and whether arising by statute or common law.

 

“Know-How”
means any non-public, documented or otherwise recorded or memorialized knowledge, experience, know-how, technology, information,
and data, including formulas and formulations, processes, techniques, unpatented inventions, discoveries, ideas, and developments,
test procedures, and results, together with all documents and files embodying the foregoing.

 

 

 

 

 ***
Confidential treatment requested.

 

    	Exhibit A-3

    	 

    
 

“Knowledge”
means, with respect to either Party, the actual or constructive knowledge of the chief executive officer, the president, any executive
vice-president or any vice president of such Party.

 

“Landing
Page” has the meaning set forth in Section 4.1.2.

 

“Law”
means all national, intergovernmental, common law, federal, state, provincial, regional, territorial and local laws, statutes,
ordinances, regulations, rules, executive orders, orders of a court or governmental agency, supervisory requirements, directives,
circulars, opinions, interpretive letters and other official releases of or by any government, or any authority, department or
agency thereof.

 

“Losses”
means all costs, damages, judgments, penalties, fines, losses and expenses, including reasonable attorneys’ fees, disbursements
and court costs.

 

“LRU”
shall have the meaning set forth in Section 2.3.4.

 

***

 

***

 

***

 

***

 

***

 

***

 

“Operational
Data Service” has the meaning set forth in Section 3.6.

 

“Party”
or “Parties” has the meaning set forth in the Preamble.

 

“Petitioner”
has the meaning set forth in Section 9.2.3.

 

***

 

***

 

***

 

“Proprietary
Information” means all regulatory filings, or information or data, whether disclosed in oral, written, graphic or electronic
form, which is provided by, or on behalf of, one Party to the other Party in connection with this Agreement, whether or not specifically
marked as confidential or proprietary, and whether or not it is Confidential Information.

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit A-4

    	 

    
 

“Purchase
Order” has the meaning set forth in Section 2.3.

 

“Regulatory
Activities” has the meaning set forth in Section 2.2.

 

“Regulatory
Approvals” means any approval, product and establishment license, registration or authorization of any Regulatory Authority
required for the use of the Broadband System.

 

“Regulatory
Authority” means any government regulatory authority, including any applicable government regulatory authority involved
in granting approvals for the manufacture, commercialization, use, reimbursement and/or pricing of the Services and the Broadband
System or that otherwise has regulatory authority with respect to the Services and the Broadband System or aircraft. “Regulatory
Authority” includes the FAA and the Federal Communications Commission.

 

“Regulatory
Filings” means any filings that may be required for any Regulatory Approval or otherwise filed or submitted to a Regulatory
Authority in an effort to comply with applicable Laws.

 

***

 

“Respondent”
has the meaning set forth in Section 9.2.3.

 

“Responding
Party” has the meaning set forth in Section 4.3.3.1.

 

“Row 44”
has the meaning set forth in the Preamble.

 

“Row 44 Materials”
has the meaning set forth in Section 4.3.2.2.

 

“Second Arbitrator”
has the meaning set forth in Section 9.2.3.

 

“Section
1441” has the meaning set forth in Section 6.4.4.

 

“Senior Officers”
has the meaning set forth in Section 9.1.1.

 

***

 

“Services”
has the meaning set forth in Section 3.1.

 

“Services
Agreement” has the meaning set forth in the Recitals.

 

“Southwest”
has the meaning set forth in the Preamble.

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit A-5

    	 

    
 

“Southwest
Materials” has the meaning set forth in Section 4.3.2.1.

 

***

 

“Specifications”
means the specifications set forth in the applicable STC, as it may be amended from time to time.

 

“STC”
means a supplemental type certificate as issued by the FAA.

 

“Supply Agreement”
has the meaning set forth in the Recitals.

 

***

 

***

 

***

 

“System Unit”
has the meaning set forth in the Recitals.

 

***

 

“Television
Service” has the meaning set forth in Section 3.7.2.

 

***

 

“Term”
has the meaning set forth in Section 8.1.

 

“Third Arbitrator”
has the meaning set forth in Section 9.2.4.

 

“third party
action” has the meaning set forth in Section 7.4.

 

***

 

***

 

“Vendor”
means those third parties supplying Row 44 with components for the System Units.

 

***

 

“VOD”
means video-on-demand.

 

***

 

***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit A-6

    	 

    
 

***

 

***

 

***

 

***

 

***

 

***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit A-7

    	 

    
 

EXHIBIT B

 

HARDWARE AGREEMENT EXHIBIT ITEMS

 

EXHIBIT B-1

 

Documentation

 

***

 

 

 

 

 

 ***
Confidential treatment requested.

 

    	Exhibit B-1

    	 

    
 

EXHIBIT B-2

 

System Unit Pricing

 

	New Equipment Sales per Full Up Aircraft	 	 	 	 	 	 
	 	 	 	 	 	 	 
	***	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit B-2

    	 

    
 

EXHIBIT B-3

 

System Unit Warranty Information

 

***

 

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit B-3

    	 

    
 

EXHIBIT B-4

 

System Software

 

***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit B-4

    	 

    
 

EXHIBIT B-5

 

System Hardware

 

***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit B-5

    	 

    
 

EXHIBIT C

 

Commissioning Procedure

 

 

 

The commissioning procedure shall be
the applicable installer taking the steps set forth in the *** On Aircraft Test Plan *** or the *** On Aircraft Test Plan ***
to verify the system is connected to the Service.

 

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit C-1

    	 

    
 

EXHIBIT D

 

Entertainment Portal Service 

 

The Entertainment Portal Service shall
consist of (i) Row 44’s standard web-based portal software platform, including a framework for an initial “landing
page” for customers connecting to the Wi-Fi Service, Television Service and Entertainment Portal Service and related navigation
pages to individual features offered by the Entertainment Portal Service (the “Portal Platform”) and
(ii) a variety of features and services to be incorporated into such software platform as mutually, agreed by the parties (the
“Portal Features”).

 

General Entertainment Portal Service
Management

 

Row 44 will private label the Entertainment
Portal Service for Southwest; provided, that, Row 44 will manage the portal, content, and associated updates and changes. Southwest
will have the right to approve the selection of content, the look and feel of the portal and its pages, and the initiation of new
portal services and capabilities. The Parties acknowledge and agree that the Entertainment Portal Service is dependent on mutual
agreement and cooperation regarding the specific services and features to be made available on the Entertainment Portal Service
and the business arrangements with third party providers that support such features. The Parties agree to exercise their reasonable
discretion in approval and selection of specific features, advertising partners (subject to the Southwest restriction list described
in item 2 below) (including all advertising and naming rights transactions) and business arrangements with respect to the Entertainment
Portal Service.

 

Row 44’s portal management will include,
as applicable depending on the Portal Features operating at any given time, the acquisition of content and the management, delivery,
and updating of content aboard all Southwest aircraft.

 

As part of the Program Schedule, the parties
will jointly establish a portal management team to operate the Entertainment Portal Service and engage with third parties to be
included in the same; provided, that, Row 44’s engineering team shall initially have sole responsibility for management of
the Portal Platform and implementation of Portal Features. Row 44 will provide design considerations to Southwest for review and
approval for deployment. ***

 

Basic Design/Customization

 

Row 44 will customize the “look and
feel” of the Portal Platform to Southwest’s look, feel, livery, and languages, all in accordance with the capabilities
of the Portal Platform and as reasonably requested by Southwest.

 

Row 44 will be responsible for maintaining
the Portal Platform, but will support additional reasonable customization of the look and feel of the Portal Platform as Southwest’s
brand changes over time.

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit D-1

    	 

    
 

Row 44 will diligently seek options for
improving user experience and performance throughout the Term, and promptly communicate such options to Southwest.

 

Every ***
the parties will review and “refresh” the look and feel of the Portal Platform.

 

Portal Features

 

The Entertainment Portal Service is expected
to consist of advertising, sponsorship and fee supported entertainment and services, such as media content on demand free entertainment
such as games, destination deals and shopping. Subject to all rights assigned to Southwest outlined in this Agreement, Row 44
will be responsible for 3rd party relationships and contracts associated with portal content and services, ***. Unless otherwise
agreed by the parties, Southwest acknowledges and agrees that all activities and dialog with 3rd parties related to the portal
development should be done in cooperation with Row 44 to ensure consistency of communications, branding, messaging, and maximization
of network efficiencies.

 

The Parties hereby acknowledge and agree
that it is the intent and an essential purpose of this Agreement that Row 44 have the ability to implement additional features
throughout the Term in order to maximize revenue generation of the Entertainment Portal Service. Southwest shall have the right
to veto additional Portal Features from being implemented, but only in the case where such additional Portal Feature will conflict
with Southwest’s brand and policies, all to be determined in the reasonable discretion of Southwest. Row 44 will propose
such new Portal Features to Southwest prior to implementation and Southwest shall have thirty (30) days to exercise the foregoing
veto.

 

While additional Portal Features are
expected to be under the terms of the *** set forth in this Agreement, Row 44 and/or Southwest may from time to time propose
specific a Portal Feature with a specific business model associated with such feature because of the unique nature of such
Portal Feature.

 

If Row 44 agrees to include a portal feature
sourced exclusively by Southwest and subject to an exclusivity clause for Southwest’s fleet, then such feature will be designated
as exclusive to Southwest and Row 44 may not utilize the sourced feature on any other customer’s aircraft. For the avoidance
of doubt, the foregoing shall not restrict Row 44 from implementing a similar feature on other Row 44 customers fleet using a different
third party source and/or custom development.

 

***

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit D-2

    	 

    
 

Advertising

 

Generally

 

Row 44 and Customer will coordinate the
sale and presentation of advertising for the Entertainment Portal Service (and the Television Service). Advertising may be local,
national, or international, and likely a mix of all. With respect to live and stored media content, Row 44 will use commercially
reasonable efforts to implement advertising in a reasonable set of scenarios so as not to hinder the portal experience, including
advertising to be inserted before the showing of stored content (movies and TV shows) and within the live streams of live TV channels
made available on the Television Service, all in accordance with the Entertainment Platform Service’s capabilities and the
applicable license restrictions for such content. Row 44 will be restricted from selling advertising space in violation of Southwest’s
policies, which include sales in the following categories of advertisements; provided, that Southwest may reasonably update the
following restricted categories from time to time:

 

***

 

Approval Process 

 

Southwest and Row 44 agree to the following
approval processes for approving acceptable advertisers and advertisements that may potentially appear on the Entertainment Portal
Service (and/or the Television Service):

 

***

 

Internal Southwest Promotion Space

 

Row 44 agrees to provide, and Southwest
will have the right to use a reasonable amount of space on the Entertainment Portal Service for the promotion of Southwest provided
such use does not unreasonably interfere with pre-existing advertising space committed to third parties.

 

Rapid Rewards Partners

 

The Parties acknowledge and agree that
sales and partnerships with Southwest’s current Rapid Rewards partners for the Entertainment Portal Service may require special
terms for such Parties. Southwest and Row 44 agree to continue to explore in good faith appropriate terms and economics for supporting
Rapid Rewards partners participation in the Entertainment Portal Service.

 

Portal Reporting Attributes

 

 

The Entertainment Portal Service shall
be designed to support the following reporting attributes for information to be collected regarding use of the Entertainment Portal
Service:

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit D-3

    	 

    
 

Context

 

Flight number

Tail number

City pair

On/Off time

Flight minutes

Logs from onboard devices

MDU stats

Skew stats

Plot flight

Outages

Length of outages

Reason for outage

Availability of the system

Ability to graph diagnostics

Access to tickets

 

Traffic

 

Visits

Unique visitors

URLs hit/blocked

Authenticated users

Total possible users (number of devices
that have associated to the wireless)

Number of user sessions

Average amount of time for sessions

Time on page

Average time on page

Time on site

Average time on site

Top discussions

Page views

Protocols in use

 

Identify passengers on direct and connecting
flights to the extent possible

 

User Info

 

MAC address

IP address

Laptop or handheld by device type

Operating system

Browser

Timestamp of customer usage

Amount of data upload/download

Credit card information if paid for service

from
3rd party provider other than

Southwest,
if available

Promo Code for paid Internet service

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit D-4

    	 

    
 

Reporting 

 

Following the Effective Date, the Parties
will work in good faith to establish a best practices guide for reporting Entertainment Portal Service metrics, and further agree
to update such reporting on an as needed basis as new Portal Features are added to the Entertainment Portal Service.

 

Entertainment Portal Support Metrics

 

Row 44 will support the Entertainment Portal
Service using the following error/response time terms:

 

 

	Priority	Workaround Target
	P1	4 hours if the problem occurs during Business Hours*; 8 hours if the problem occurs outside Business Hours*
	P2	24 Business Hours
	P3	8 Business Days
	P4	4 Production Cycles

 

*Business Hours are Monday –
Friday 9am Central to 6pm Central.

 

Response and resolution times are measured
from the moment Southwest opens a support ticket with the Row 44 network operations center.  

 

Priority Definitions

 

 

P1 - Priority 1: Critical Problem. 
Use of Entertainment Portal Service or key function thereof is stopped or so severely impacted and no known, viable workaround
exists. No useful work can be done. Most common operations fail consistently. P1 Problems have one or more of the following characteristics:

 

		·	System hangs. The process hangs indefinitely or there
is severe performance degradation, causing unreasonable waits for resources or response, as if the system is hanging.

 

		·	System crashes repeatedly and continues to fail after
re-login attempts.

 

		·	Critical functionality is not available. The Entertainment Portal Service cannot continue because
a vital feature is inoperable, data cannot be secured, etc.

 

    	Exhibit D-5

    	 

    
 

Note: A Southwest contact (direct phone,
cell phone and email) must be available in Priority 1 situations to provide information required for problem diagnosis and to test/confirm
the resolution.

  

P2 - Priority 2: Significant Business
Impact. Use of the Entertainment Portal Service is continuing but there is a serious impact on usefulness. Important features are
unavailable. Certain common operations fail consistently. Services crash readily. P2 Problems have one or more of the following
characteristics:

 

		·	Software error causing the Entertainment Portal Service to fail, but restart or recovery is possible.

 

		·	Severely degraded performance due to software error. 

 

		·	Some important functionality is unavailable but the Entertainment Portal Service continues to operate
in restricted fashion.

 

P3 - Priority 3: Some Business Impact.
A fundamental function is experiencing an intermittent problem, or a common operation sometimes fails. A less common operation
fails consistently. P3 Problems have one or more of the following characteristics:

 

		·	A software error for which there is an acceptable workaround.

 

		·	A software error with minor impact to the operation of the system.

 

		·	A software error requiring manual editing of configuration or script files to work around a problem.

  

P4 - Priority 4: Minimal Business
Impact. All problems not covered above. Southwest requests information, an enhancement, or documentation clarification but there
is no impact on operation. Southwest's use of the Entertainment Portal Service is continuing.

 

    	Exhibit D-6

    	 

    
 

EXHIBIT E

 

Television Service & VOD

 

General Description

 

Row 44 will develop and make
available the Television Service consisting of *** on Commissioned Aircraft. For the avoidance of doubt, subject to mutual
agreement, *** . Row 44 will secure the relevant content as agreed by the Parties, and new release content and the digital
rights management therefor in order for the content to be offered in a non-app based format, except where digital rights
management and related security requirements require use of an application or application plug-in for viewing such content.
Notwithstanding the foregoing, the Parties agree to launch the Television Service under the terms of this Agreement as
follows:

 

***

  

Deployment of Supplemental Television
Hardware

 

From the Effective Date and until ***,
the Television Service will consist of the currently available linear television channels and the expected deployment of additional
television show and movie video on demand content. During this period, Row 44 shall establish and implement a road map for the
deployment of ***.

 

The Supplemental Television Hardware will
be delivered by Row 44 and installed by Southwest pursuant to the following milestones:

 

***

  

Business Model

 

The Parties acknowledge the current business
model set forth in the Agreement describes the sale of a single package of live television channels and a selection of video-on-demand
television content. Additional items offered are expected to include “pay-per-view” access to movies and special subject
content and separately offered access to special live television channels. Southwest acknowledges and agrees that Row 44’s
current content agreements are licensed contemplating implementation of product offering outlined above and that any changes to
the business model could have a material impact on licensing costs. Row 44 and Southwest must both agree in writing to any proposed
changes to the business model for the Television Service; provided, however that the “free TV model” set forth herein
is not subject to re-negotiation.

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit E-1

    	 

    
 

Content Selection and Updating

 

All live channels and on demand content
deployed on the Television Service shall be provided as set forth in this Exhibit, and otherwise subject to the mutual agreement
of the Parties; provided, that, Row 44 shall be responsible for establishing and maintaining all licensing agreements for content.

 

Row 44 shall ensure that the content it
will make available for selection and deployment on the Television Services represents a current selection representing a leading
offering when compared to similar offerings on for use on commercial aircraft using similar in-flight entertainment systems and
technology. Row 44 shall immediately notify Southwest if Row 44 becomes aware of any events or issues that may result in certain
content becoming unavailable for any reason, including, without limitation content license contract disputes or long term service
outages. In addition, due to the varying storage capacity of installed server management units on board Commissioned Aircraft,
the following descriptions of content loading and available content may vary depending on the available capacity of a particular
Commissioned Aircraft.

 

TV Video-On-Demand

 

TV Video-On-Demand (“TV
VOD”) content will be procured on an ongoing basis by Row 44. Row 44 will program and provide a list of all
proposed TV VOD content it would like to include in the Television Service to Southwest for approval. Southwest agrees to
review and approve all content prior to inclusion in the offering. Row 44 will not be liable or responsible for any approved
content that may be deemed objectionable by any Southwest passenger.

 

TV VOD Content for the Television Service
will generally consist of the following format. TV episodes include episodes from 30 minute and 60 minutes TV series.  While
the overall content mix may fluctuate, the approximate distribution and amount of VOD content available to passengers would be
distributed as follows (shaded areas) based on current aircraft server size as of the Effective Date:

 

	Content Type	# of Movies / # of TV Series	# of Episodes	Total # of video files
	 	 	 	 
	***	***	***	***
	***	***	***	***
	***	***	***	***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit E-2

    	 

    
 

The onboard TV VOD content will be refreshed
*** with more recent movies and TV episodes being added, replacing some of the content currently onboard.  Approximate ***
updates would be distributed as follows based on *** as of the Effective Date:

 

	Content Type	# of Movies / # of TV Series	# of Episodes	Total # of video files
	 	 	 	 
	***	***	***	***
	***	***	***	***
	***	***	***	***

 

Along with each video file, Row 44 will
provide the content metadata associated with each TV episode.  The content metadata is then displayed within the portal to
describe and promote each VOD title.  For TV episodes, metadata consists of: TV Series Title, TV Episode Title, TV Episode
Synopsis, Season #, Episode #, Rating and Genre(s).  

 

Live Television 

 

The Television Service will include
a live television product consisting of at least ***. The channels will include *** by Row 44 on behalf of Southwest
Airlines. The current channels include:

 

1.
WNYW ***

2.
MLB.com Channel ***

3.
NFL Network

4.
NFL RedZone ***

5.
NBC Sports

6.
CNBC

7.
MSNBC

8.
Fox Business

9.
Fox News

 

Row 44 will work with Southwest on channel
programming. The Channel line-ups will consist of the following:

 

***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit E-3

    	 

    
 

Southwest shall have the right to determine
it its reasonable discretion whether the channels actually provided by Row 44 meet the criteria set forth above. Notwithstanding
the foregoing channel line-up category requirements, if, during the course of good faith negotiations with content providers, ***.

 

Row 44 will ensure that all channels are
licensed for ***.

 

Row 44 will ensure it secures all rights
associated with any content licensed that is procured on behalf of the live Television Service offering.

 

Movie Video-On Demand 

 

Row 44 shall make movie content available
on all Southwest airplanes equipped with the Row 44 WiFi equipment. Access to movies will be available to passengers on a “pay-per-view”
basis. Pricing for each movie title will be subject to the terms previously outlined in this Agreement.

 

Row 44 will provide access to an assortment
of movies. Southwest acknowledges and agrees that there are certain video storage limitations associated with the Row 44 WiFi server
solution and that these limitations vary and apply to the various types of equipment installed on Southwest airplanes. The variations
in storage capacity and equipment may require different movie VOD libraries aboard Southwest planes.

 

Movies will be procured on an ongoing basis
through either direct relationship with content providers, or by utilizing content service providers (CSPs). Row 44 will make a
commercially reasonable effort to adhere to security requirements associated with such agreements, but can make no guarantees that
Row 44’s security architecture implemented in it’s video streaming solution will be accepted by all content providers.

 

Row 44 will program and provide a list
of all proposed movie content it would like to offer to passengers aboard Southwest airlines for approval. Southwest agrees to
review and approve all movie content prior to Row 44 pushing the content to airplanes. Row 44 will not be liable or responsible
for any approved content that may be deemed objectionable by any Southwest passenger.

 

Movie content for the TV Product will generally
consist of the following format.

While the overall movie content mix may
fluctuate, the approximate distribution and amount of movie content available to Passengers would be distributed as follows (shaded
areas) based on aircraft server size as of the Effective Date:

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit E-4

    	 

    
 

	Content Type	# of Movies / # of TV Series	# of Episodes	Total # of video files
	***	***	***	***
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

The onboard VOD content will be
refreshed *** with more recent movies replacing some of the content currently onboard.  Approximate *** would be
distributed as follows based on aircraft server size as of the Effective Date:

 

	Content Type	# of Movies / # of TV Series	# of Episodes	Total # of video files
	***	***	***	***
	***	***	***	***
	***	***	***	***
	***	***	***	***

 

Along with each video file, Row 44 will
provide the content metadata associated with each Movie or TV episode.  The content metadata is then displayed within the
portal to describe and promote each VOD title.  For movies, metadata consists of: Movie Title, Synopsis, Director, Cast, Rating
and Genre(s).  

 

For aircraft that have ***.  The
approximate distribution and amount of the VOD content would be distributed as follows based ***:

 

	Content Type	# of Movies / # of TV Series	# of Episodes	Total # of video files
	***	***	***	***
	***	***	***	***
	***	***	***	***
	***	***	***	***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit E-5

    	 

    
 

Passenger Pricing

 

***

 

Content Licensing Acknowledgement.

 

Southwest acknowledges and understands
that content licensing agreements with content providers and third party distributors may require certain commitments and security
requirements associated with such licensing agreements. Row 44 will provide the applicable licensing and security commitments for
an item of content (or package of content from the same source) at the time such content is offered for selection by Southwest.
Without limiting the generality of the foregoing, and unless permitted in a separate agreement between Southwest and a third party,
under no circumstance may Southwest utilize the content provided by Row 44 except for distribution utilizing the Entertainment
Portal Service under the management and control of Row 44.

 

If the trademarks,
trade names, logos and other marks of content providers are provided by Row 44 to Southwest for use in the distribution and promotion
of the content or Entertainment Portal Services, Southwest acknowledges that all right, title and interest in such marks shall
remain with the applicable content provider, except as expressly permitted by the applicable content provider, which shall be included
in the delivery of such marks by Row 44 to Southwest.

 

Upon termination or
expiration of this Agreement for any reason, Southwest shall provide Row 44 with reasonable assistance to enable Row 44 to ensure
removal or destruction of all third party licensed content utilized in conjunction with the Entertainment Portal Service and stored
on any portion of the Systems Units, with the intent that all such Content be removed no later than one month from termination
or expiration.

 

Customer Support 

 

Southwest will be responsible for all first
line customer service requests associated with the Television Service. Row 44 will be responsible for providing second line support
to Southwest’s customer service organization. Row 44 will provide access to customer care tools which will identify service
level parameters for the video product such that Southwest’s Customer Care department can make refund determinations as part
of their normal support operations. These tools will be made available in the current Row 44 Billing Provider customer care solution.

 

Service Level***

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit E-6

    	 

    
 

EXHIBIT F

 

Wi-Fi Service and Operational Data
Service

 

 

Service Features:

 

Wi-Fi Service and Operational Data Service

 

The Wi-Fi Service and Operational Data
Service, as applicable, shall deliver broadband Internet access, including ground-based backhaul Internet connectivity, satellite-based
data connectivity to each aircraft and Wi-Fi-based Internet access availability within the cabin. Row 44 will work to provision
***.

 

Service Availability:

 

The Wi-Fi Service and Operational Data
Services shall be *** on Southwest’s Commissioned Aircraft for *** based on an average of all Commissioned Aircraft.

 

***

 

Service Failures

 

***

 

Restrictions

 

Use of the Services shall be subject to
all rules and regulations established by applicable Regulatory Authorities, including the FAA and FCC, including Row 44’s
FCC license.

 

 

 

 

 

 ***
Confidential treatment requested.

  

    	Exhibit F-1

    	 

    
 

EXHIBIT
G

Content
Filtering and Procedures

 

Row
44’s content filtering service can be utilized to filter (i) entire categories of websites based on the classifications
set forth below and (ii) specific, customer-selected URLs. To enable or disable a filter, Southwest must notify Row 44’s
network operation center of the classification of website(s) and/or specific URLs it would like to be filtered from customer availability,
and Row 44 will enable such filter as soon as possible but no later than 48 hours after receipt of notice from Southwest. Notwithstanding
the foregoing, the Parties acknowledge that all content filtering implemented on the Services is subject to compliance with applicable
FCC rules and regulations.

 

Categories
of Content Based Filters:

 

Abortion

Sites with neutral or balanced presentation of the issue.

		•	Pro-Choice
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              are
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              organizations
                                                                                                                              that
                                                                                                                              support
                                                                                                                              legal
                                                                                                                              abortion
                                                                                                                              or
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              support
                                                                                                                              or
                                                                                                                              encouragement
                                                                                                                              to
                                                                                                                              those
                                                                                                                              seeking
                                                                                                                              the
                                                                                                                              procedure.
		•	Pro-Life
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              are
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              organizations
                                                                                                                              that
                                                                                                                              oppose
                                                                                                                              legal
                                                                                                                              abortion
                                                                                                                              or
                                                                                                                              that
                                                                                                                              seek
                                                                                                                              increased
                                                                                                                              restriction
                                                                                                                              of
                                                                                                                              abortion.

 

Adult
Material

Parent category that contains the categories:

		•	Adult
                                                                                                                              Content
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              display
                                                                                                                              full
                                                                                                                              or
                                                                                                                              partial
                                                                                                                              nudity
                                                                                                                              in
                                                                                                                              a
                                                                                                                              sexual
                                                                                                                              context,
                                                                                                                              but
                                                                                                                              not
                                                                                                                              sexual
                                                                                                                              activity;
                                                                                                                              erotica;
                                                                                                                              sexual
                                                                                                                              paraphernalia;
                                                                                                                              sex-oriented
                                                                                                                              businesses
                                                                                                                              as
                                                                                                                              clubs,
                                                                                                                              nightclubs,
                                                                                                                              escort
                                                                                                                              services;
                                                                                                                              and
                                                                                                                              sites
                                                                                                                              supporting
                                                                                                                              the
                                                                                                                              online
                                                                                                                              purchase
                                                                                                                              of
                                                                                                                              such
                                                                                                                              goods
                                                                                                                              and
                                                                                                                              services.
		•	Lingerie
                                                                                                                              and
                                                                                                                              Swimsuit
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              images
                                                                                                                              of
                                                                                                                              models
                                                                                                                              in
                                                                                                                              suggestive
                                                                                                                              but
                                                                                                                              not
                                                                                                                              lewd
                                                                                                                              costume,
                                                                                                                              with
                                                                                                                              semi
                                                                                                                              nudity
                                                                                                                              permitted.
                                                                                                                              Includes
                                                                                                                              classic
                                                                                                                              'cheese-cake,'
                                                                                                                              calendar,
                                                                                                                              and
                                                                                                                              pinup
                                                                                                                              art
                                                                                                                              and
                                                                                                                              photography.
                                                                                                                              Includes
                                                                                                                              also
                                                                                                                              sites
                                                                                                                              offering
                                                                                                                              lingerie
                                                                                                                              or
                                                                                                                              swimwear
                                                                                                                              for
                                                                                                                              sale.
		•	Nudity
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              depictions
                                                                                                                              of
                                                                                                                              nude
                                                                                                                              or
                                                                                                                              seminude
                                                                                                                              human
                                                                                                                              forms,
                                                                                                                              singly
                                                                                                                              or
                                                                                                                              in
                                                                                                                              groups,
                                                                                                                              not
                                                                                                                              overtly
                                                                                                                              sexual
                                                                                                                              in
                                                                                                                              intent
                                                                                                                              or
                                                                                                                              effect.
		•	Sex
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              depict
                                                                                                                              or
                                                                                                                              graphically
                                                                                                                              describe
                                                                                                                              sexual
                                                                                                                              acts
                                                                                                                              or
                                                                                                                              activity,
                                                                                                                              including
                                                                                                                              exhibitionism;
                                                                                                                              also,
                                                                                                                              sites
                                                                                                                              offering
                                                                                                                              direct
                                                                                                                              links
                                                                                                                              to
                                                                                                                              such
                                                                                                                              sites.
		•	Sex
                                                                                                                              Education
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              information
                                                                                                                              about
                                                                                                                              sex
                                                                                                                              and
                                                                                                                              sexuality,
                                                                                                                              with
                                                                                                                              no
                                                                                                                              pornographic
                                                                                                                              intent.

                                                                                                                              

 

Advocacy
Groups

Sites
that promote change or reform in public policy, public opinion, social practice, economic activities, and relationships.

 

Business
and Economy 

Sites
sponsored by or devoted to business firms, business associations, industry groups, or business in general.

		•	Financial
                                                                                                                              Data
                                                                                                                              and
                                                                                                                              Services
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              news
                                                                                                                              and
                                                                                                                              quotations
                                                                                                                              on
                                                                                                                              stocks,
                                                                                                                              bonds,
                                                                                                                              and
                                                                                                                              other
                                                                                                                              investment
                                                                                                                              vehicles,
                                                                                                                              investment
                                                                                                                              advice,
                                                                                                                              but
                                                                                                                              not
                                                                                                                              online
                                                                                                                              trading.
                                                                                                                              Includes
                                                                                                                              banks,
                                                                                                                              credit
                                                                                                                              unions,
                                                                                                                              credit
                                                                                                                              cards,
                                                                                                                              and
                                                                                                                              insurance.
		•	Hosted
                                                                                                                              Business
                                                                                                                              Applications
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              access
                                                                                                                              to
                                                                                                                              business-oriented
                                                                                                                              web
                                                                                                                              applications
                                                                                                                              and
                                                                                                                              allow
                                                                                                                              storage
                                                                                                                              of
                                                                                                                              sensitive
                                                                                                                              data,
                                                                                                                              excluding
                                                                                                                              those
                                                                                                                              for
                                                                                                                              web
                                                                                                                              collaboration.

                                                                                                                              

 

Drugs

Parent category that contains the categories:

		•	Abused
                                                                                                                              Drugs
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              promote
                                                                                                                              or
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              the
                                                                                                                              use
                                                                                                                              of
                                                                                                                              prohibited
                                                                                                                              drugs,
                                                                                                                              except
                                                                                                                              marijuana,
                                                                                                                              or
                                                                                                                              the
                                                                                                                              abuse
                                                                                                                              or
                                                                                                                              unsanctioned
                                                                                                                              use
                                                                                                                              of
                                                                                                                              controlled
                                                                                                                              or
                                                                                                                              regulated
                                                                                                                              drugs;
                                                                                                                              also,
                                                                                                                              paraphernalia
                                                                                                                              associated
                                                                                                                              with
                                                                                                                              such
                                                                                                                              use
                                                                                                                              or
                                                                                                                              abuse.
		•	Marijuana
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              promote
                                                                                                                              the
                                                                                                                              cultivation,
                                                                                                                              preparation,
                                                                                                                              or
                                                                                                                              use
                                                                                                                              of
                                                                                                                              marijuana.
		•	Prescribed
                                                                                                                              Medications
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              approved
                                                                                                                              drugs
                                                                                                                              and
                                                                                                                              their
                                                                                                                              medical
                                                                                                                              use.
		•	Supplements
                                                                                                                              and
                                                                                                                              Unregulated
                                                                                                                              Compounds
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              promote
                                                                                                                              the
                                                                                                                              sale
                                                                                                                              or
                                                                                                                              use
                                                                                                                              of
                                                                                                                              chemicals
                                                                                                                              not
                                                                                                                              regulated
                                                                                                                              by
                                                                                                                              the
                                                                                                                              FDA
                                                                                                                              (such
                                                                                                                              as
                                                                                                                              naturally
                                                                                                                              occurring
                                                                                                                              compounds).

                                                                                                                              

 

 

    	Exhibit G-1

    	 

    
 

Education

Parent category that contains the categories:

		•	Cultural
                                                                                                                              Institutions
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              museums,
                                                                                                                              galleries,
                                                                                                                              theatres
                                                                                                                              (but
                                                                                                                              not
                                                                                                                              movie
                                                                                                                              theatres),
                                                                                                                              libraries,
                                                                                                                              and
                                                                                                                              similar
                                                                                                                              institutions;
                                                                                                                              also,
                                                                                                                              sites
                                                                                                                              whose
                                                                                                                              purpose
                                                                                                                              is
                                                                                                                              the
                                                                                                                              display
                                                                                                                              of
                                                                                                                              artworks.
		•	Educational
                                                                                                                              Institutions
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              schools
                                                                                                                              and
                                                                                                                              other
                                                                                                                              educational
                                                                                                                              facilities,
                                                                                                                              by
                                                                                                                              non-academic
                                                                                                                              research
                                                                                                                              institutions,
                                                                                                                              or
                                                                                                                              that
                                                                                                                              relate
                                                                                                                              to
                                                                                                                              educational
                                                                                                                              events
                                                                                                                              and
                                                                                                                              activities.
		•	Educational
                                                                                                                              Materials
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              that
                                                                                                                              sell
                                                                                                                              or
                                                                                                                              provide
                                                                                                                              curriculum
                                                                                                                              materials
                                                                                                                              or
                                                                                                                              direct
                                                                                                                              instruction;
                                                                                                                              also,
                                                                                                                              learned
                                                                                                                              journals
                                                                                                                              and
                                                                                                                              similar
                                                                                                                              publications.
		•	Reference
                                                                                                                              Materials
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              reference-shelf
                                                                                                                              content
                                                                                                                              such
                                                                                                                              as
                                                                                                                              atlases,
                                                                                                                              dictionaries,
                                                                                                                              encyclopedias,
                                                                                                                              formularies,
                                                                                                                              white
                                                                                                                              and
                                                                                                                              yellow
                                                                                                                              pages,
                                                                                                                              and
                                                                                                                              public
                                                                                                                              statistical
                                                                                                                              data.

                                                                                                                              

 

Entertainment

Sites that provide information about or promote motion pictures, non-news radio and television, books, humor, and magazines.

		•	MP3
                                                                                                                              and
                                                                                                                              Audio
                                                                                                                              Download
                                                                                                                              Services
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              support
                                                                                                                              downloading
                                                                                                                              of
                                                                                                                              MP3
                                                                                                                              or
                                                                                                                              other
                                                                                                                              sound
                                                                                                                              files
                                                                                                                              or
                                                                                                                              that
                                                                                                                              serve
                                                                                                                              as
                                                                                                                              directories
                                                                                                                              of
                                                                                                                              such
                                                                                                                              sites.

                                                                                                                              

 

 

Gambling
- Sites that provide information about or promote gambling or support online gambling, involving a risk of losing money.

 

Games
- Sites that provide information about or promote electronic games, video games, computer games, role-playing games, or online
games. Includes sweepstakes and giveaways.

  

Government

Sites sponsored by branches, bureaus, or agencies of any level of government, except for the armed forces.

		•	Military
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              branches
                                                                                                                              or
                                                                                                                              agencies
                                                                                                                              of
                                                                                                                              the
                                                                                                                              armed
                                                                                                                              services.
		•	Political
                                                                                                                              Organizations
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              or
                                                                                                                              providing
                                                                                                                              information
                                                                                                                              about
                                                                                                                              political
                                                                                                                              parties
                                                                                                                              and
                                                                                                                              interest
                                                                                                                              groups
                                                                                                                              focused
                                                                                                                              on
                                                                                                                              elections
                                                                                                                              or
                                                                                                                              legislation.

                                                                                                                              

 

Health
- Sites that provide information or advice on personal health or medical services, procedures, or devices, but not drugs.
Includes self-help groups.

 

Illegal
or Questionable - Sites that provide instruction in or promote nonviolent crime or unethical or dishonest behavior or the
avoidance of prosecution.

 

Information
Technology

Sites
sponsored by or providing information about computers, software, the Internet, and related business firms, including sites supporting
the sale of hardware, software, peripherals, and services.

		•	Computer
                                                                                                                              Security
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              free
                                                                                                                              downloadable
                                                                                                                              tools
                                                                                                                              for
                                                                                                                              computer
                                                                                                                              security.
		•	Hacking
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              promote
                                                                                                                              illegal
                                                                                                                              or
                                                                                                                              questionable
                                                                                                                              access
                                                                                                                              to
                                                                                                                              or
                                                                                                                              use
                                                                                                                              of
                                                                                                                              computer
                                                                                                                              or
                                                                                                                              communication
                                                                                                                              equipment,
                                                                                                                              software,
                                                                                                                              or
                                                                                                                              databases.
		•	Proxy
                                                                                                                              Avoidance
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              how
                                                                                                                              to
                                                                                                                              bypass
                                                                                                                              proxy
                                                                                                                              server
                                                                                                                              features
                                                                                                                              or
                                                                                                                              to
                                                                                                                              gain
                                                                                                                              access
                                                                                                                              to
                                                                                                                              URLs
                                                                                                                              in
                                                                                                                              any
                                                                                                                              way
                                                                                                                              that
                                                                                                                              bypasses
                                                                                                                              the
                                                                                                                              proxy
                                                                                                                              server.
		•	Search
                                                                                                                              Engines
                                                                                                                              and
                                                                                                                              Portals
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              support
                                                                                                                              searching
                                                                                                                              the
                                                                                                                              Web,
                                                                                                                              news
                                                                                                                              groups,
                                                                                                                              or
                                                                                                                              indices
                                                                                                                              or
                                                                                                                              directories
                                                                                                                              thereof.
		•	URL
                                                                                                                              Translation
                                                                                                                              Sites
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              offer
                                                                                                                              online
                                                                                                                              translation
                                                                                                                              of
                                                                                                                              URLs.
                                                                                                                              These
                                                                                                                              sites
                                                                                                                              access
                                                                                                                              the
                                                                                                                              URL
                                                                                                                              to
                                                                                                                              be
                                                                                                                              translated
                                                                                                                              in
                                                                                                                              a
                                                                                                                              way
                                                                                                                              that
                                                                                                                              bypasses
                                                                                                                              the
                                                                                                                              proxy
                                                                                                                              server,
                                                                                                                              potentially
                                                                                                                              allowing
                                                                                                                              unauthorized
                                                                                                                              access.
		•	Web
                                                                                                                              &
                                                                                                                              Email
                                                                                                                              Spam
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              whose
                                                                                                                              links
                                                                                                                              are
                                                                                                                              sent
                                                                                                                              in
                                                                                                                              unsolicited
                                                                                                                              commercial
                                                                                                                              email,
                                                                                                                              either
                                                                                                                              as
                                                                                                                              part
                                                                                                                              of
                                                                                                                              campaigns
                                                                                                                              to
                                                                                                                              promote
                                                                                                                              products
                                                                                                                              or
                                                                                                                              services,
                                                                                                                              or
                                                                                                                              to
                                                                                                                              entice
                                                                                                                              readers
                                                                                                                              to
                                                                                                                              click
                                                                                                                              through
                                                                                                                              to
                                                                                                                              surveys
                                                                                                                              or
                                                                                                                              similar
                                                                                                                              sites.
                                                                                                                              Also
                                                                                                                              included
                                                                                                                              are
                                                                                                                              sites
                                                                                                                              that
                                                                                                                              display
                                                                                                                              comment
                                                                                                                              spam.
		•	Web
                                                                                                                              Collaboration
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              virtual
                                                                                                                              workspace
                                                                                                                              for
                                                                                                                              purposes
                                                                                                                              of
                                                                                                                              collaboration
                                                                                                                              and
                                                                                                                              conferencing,
                                                                                                                              which
                                                                                                                              may
                                                                                                                              include
                                                                                                                              sites
                                                                                                                              that
                                                                                                                              enable
                                                                                                                              authorized
                                                                                                                              access
                                                                                                                              to
                                                                                                                              a
                                                                                                                              computer
                                                                                                                              or
                                                                                                                              network
                                                                                                                              from
                                                                                                                              a
                                                                                                                              remote
                                                                                                                              location
		•	Web
                                                                                                                              Hosting
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              of
                                                                                                                              organizations
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              hosting
                                                                                                                              services,
                                                                                                                              or
                                                                                                                              top-level
                                                                                                                              domain
                                                                                                                              pages
                                                                                                                              of
                                                                                                                              Web
                                                                                                                              communities.

                                                                                                                              

 

 

    	Exhibit G-2

    	 

    

 

Internet
Communication

Parent
category that contains the categories:

		•	Web
                                                                                                                            Chat
                                                                                                                            -
                                                                                                                            Sites
                                                                                                                            that
                                                                                                                            host
                                                                                                                            Web
                                                                                                                            chat
                                                                                                                            services
                                                                                                                            or
                                                                                                                            that
                                                                                                                            support
                                                                                                                            or
                                                                                                                            provide
                                                                                                                            information
                                                                                                                            about
                                                                                                                            chat
                                                                                                                            via
                                                                                                                            HTTP
                                                                                                                            or
                                                                                                                            IRC.
		•	General
                                                                                                                            Email
                                                                                                                            -
                                                                                                                            Sites
                                                                                                                            that
                                                                                                                            provide
                                                                                                                            email
                                                                                                                            services
                                                                                                                            open
                                                                                                                            to
                                                                                                                            general
                                                                                                                            use.
		•	Organizational
                                                                                                                            Email
                                                                                                                            -
                                                                                                                            login
                                                                                                                            sites
                                                                                                                            for
                                                                                                                            corporate
                                                                                                                            or
                                                                                                                            institutional
                                                                                                                            email
                                                                                                                            systems.
		•	Text
                                                                                                                            and
                                                                                                                            Media
                                                                                                                            Messaging
                                                                                                                            -
                                                                                                                            Sites
                                                                                                                            that
                                                                                                                            enable
                                                                                                                            the
                                                                                                                            sending
                                                                                                                            of
                                                                                                                            messages
                                                                                                                            and
                                                                                                                            other
                                                                                                                            content
                                                                                                                            via
                                                                                                                            SMS,
                                                                                                                            EMS,
                                                                                                                            MMS,
                                                                                                                            or
                                                                                                                            similar
                                                                                                                            protocols.

                                                                                                                            

 

 

Job
Search - Sites that offer information about or support the seeking of employment or employees.

 

Militancy
and Extremist - Sites that offer information about or promote or are sponsored by groups advocating antigovernment beliefs
or action.

 

Miscellaneous

Parent category that contains the categories:

		•	Content
                                                                                                                                Delivery
                                                                                                                                Networks
                                                                                                                                -
                                                                                                                                Commercial
                                                                                                                                hosts
                                                                                                                                that
                                                                                                                                deliver
                                                                                                                                content
                                                                                                                                to
                                                                                                                                subscribing
                                                                                                                                Web
                                                                                                                                sites.
		•	Dynamic
                                                                                                                                Content
                                                                                                                                -
                                                                                                                                URLs
                                                                                                                                that
                                                                                                                                are
                                                                                                                                generated
                                                                                                                                dynamically
                                                                                                                                by
                                                                                                                                a
                                                                                                                                Web
                                                                                                                                server.
		•	File
                                                                                                                                Download
                                                                                                                                Servers
                                                                                                                                -
                                                                                                                                Web
                                                                                                                                servers
                                                                                                                                whose
                                                                                                                                primary
                                                                                                                                function
                                                                                                                                is
                                                                                                                                to
                                                                                                                                deliver
                                                                                                                                files
                                                                                                                                for
                                                                                                                                download.
		•	Image
                                                                                                                                Servers
                                                                                                                                -
                                                                                                                                Web
                                                                                                                                servers
                                                                                                                                whose
                                                                                                                                primary
                                                                                                                                function
                                                                                                                                is
                                                                                                                                to
                                                                                                                                deliver
                                                                                                                                images.
		•	Images
                                                                                                                                (Media)
                                                                                                                                -
                                                                                                                                URLs
                                                                                                                                ending
                                                                                                                                with
                                                                                                                                image
                                                                                                                                filenames.
		•	Network
                                                                                                                                Errors
                                                                                                                                -
                                                                                                                                URLs
                                                                                                                                with
                                                                                                                                hosts
                                                                                                                                that
                                                                                                                                do
                                                                                                                                not
                                                                                                                                resolve
                                                                                                                                to
                                                                                                                                IP
                                                                                                                                addresses.
		•	Private
                                                                                                                                IP
                                                                                                                                Addresses
                                                                                                                                -
                                                                                                                                IP
                                                                                                                                addresses
                                                                                                                                defined
                                                                                                                                in
                                                                                                                                RFC
                                                                                                                                1918,
                                                                                                                                'Address
                                                                                                                                Allocation
                                                                                                                                for
                                                                                                                                Private
                                                                                                                                Intranets.'

 

News
and Media

Sites
that offer current news and opinion, including those sponsored by newspapers, general-circulation magazines, or other media.

		•	Alternative
                                                                                                                                Journals
                                                                                                                                -
                                                                                                                                Online
                                                                                                                                equivalents
                                                                                                                                to
                                                                                                                                supermarket
                                                                                                                                tabloids
                                                                                                                                and
                                                                                                                                other
                                                                                                                                fringe
                                                                                                                                publications.

                                                                                                                                

 

Parked
Domain - Sites that are expired, offered for sale, or known to display targeted links, advertisements.

  

Racism
and Hate - Sites that promote the identification of racial groups, the denigration or subjection of groups, or the superiority
of any group.

 

Religion

Parent category that contains the categories:

		•	Non-Traditional
                                                                                                                            Religions
                                                                                                                            and
                                                                                                                            Occult
                                                                                                                            and
                                                                                                                            Folklore
                                                                                                                            -
                                                                                                                            Sites
                                                                                                                            that
                                                                                                                            provide
                                                                                                                            information
                                                                                                                            about
                                                                                                                            or
                                                                                                                            promote
                                                                                                                            religions
                                                                                                                            not
                                                                                                                            specified
                                                                                                                            in
                                                                                                                            Traditional
                                                                                                                            Religions
                                                                                                                            or
                                                                                                                            other
                                                                                                                            unconventional,
                                                                                                                            cultic,
                                                                                                                            or
                                                                                                                            folkloric
                                                                                                                            beliefs
                                                                                                                            and
                                                                                                                            practices.
		•	Traditional
                                                                                                                            Religions
                                                                                                                            -
                                                                                                                            Sites
                                                                                                                            that
                                                                                                                            provide
                                                                                                                            information
                                                                                                                            about
                                                                                                                            or
                                                                                                                            promote
                                                                                                                            Bahai,
                                                                                                                            Buddhism,
                                                                                                                            Christian
                                                                                                                            Science,
                                                                                                                            Christianity,
                                                                                                                            Hinduism,
                                                                                                                            Islam,
                                                                                                                            Judaism,
                                                                                                                            Mormonism,
                                                                                                                            Shinto,
                                                                                                                            and
                                                                                                                            Sikhism,
                                                                                                                            as
                                                                                                                            well
                                                                                                                            as
                                                                                                                            atheism.

                                                                                                                            

 

Shopping

Sites that support the online purchase of consumer goods and services except: sexual materials, lingerie, swimwear, investments,
medications, educational materials, computer software or hardware, alcohol, tobacco, travel, vehicles and parts, weapons.

		•	Internet
                                                                                                                             Auctions
                                                                                                                             -
                                                                                                                             Sites
                                                                                                                             that
                                                                                                                             support
                                                                                                                             the
                                                                                                                             offering
                                                                                                                             and
                                                                                                                             purchasing
                                                                                                                             of
                                                                                                                             goods
                                                                                                                             between
                                                                                                                             individuals.
		•	Real
                                                                                                                             Estate
                                                                                                                             -
                                                                                                                             Sites
                                                                                                                             that
                                                                                                                             provide
                                                                                                                             information
                                                                                                                             about
                                                                                                                             renting,
                                                                                                                             buying,
                                                                                                                             selling,
                                                                                                                             or
                                                                                                                             financing
                                                                                                                             residential
                                                                                                                             real
                                                                                                                             estate.

                                                                                                                             

 

 

    	Exhibit G-3

    	 

    
 

Social
Organizations

Parent
category that contains the categories:

		•	Professional
                                                                                                                              and
                                                                                                                              Worker
                                                                                                                              Organizations
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              or
                                                                                                                              that
                                                                                                                              support
                                                                                                                              or
                                                                                                                              offer
                                                                                                                              information
                                                                                                                              about
                                                                                                                              organizations
                                                                                                                              devoted
                                                                                                                              to
                                                                                                                              professional
                                                                                                                              advancement
                                                                                                                              or
                                                                                                                              workers'
                                                                                                                              interests.
		•	Service
                                                                                                                              and
                                                                                                                              Philanthropic
                                                                                                                              Organizations
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              or
                                                                                                                              that
                                                                                                                              support
                                                                                                                              or
                                                                                                                              offer
                                                                                                                              information
                                                                                                                              about
                                                                                                                              organizations
                                                                                                                              devoted
                                                                                                                              to
                                                                                                                              doing
                                                                                                                              good
                                                                                                                              as
                                                                                                                              their
                                                                                                                              primary
                                                                                                                              activity.
		•	Social
                                                                                                                              and
                                                                                                                              Affiliation
                                                                                                                              Organizations
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              sponsored
                                                                                                                              by
                                                                                                                              or
                                                                                                                              that
                                                                                                                              support
                                                                                                                              or
                                                                                                                              offer
                                                                                                                              information
                                                                                                                              about
                                                                                                                              organizations
                                                                                                                              devoted
                                                                                                                              chiefly
                                                                                                                              to
                                                                                                                              socializing
                                                                                                                              or
                                                                                                                              common
                                                                                                                              interests
                                                                                                                              other
                                                                                                                              than
                                                                                                                              philanthropy
                                                                                                                              or
                                                                                                                              professional
                                                                                                                              advancement.

                                                                                                                              

 

Society
and Lifestyles

Sites
that provide information about matters of daily life, excluding entertainment, health, hobbies, jobs, sex, and sports.

		•	Alcohol
                                                                                                                              and
                                                                                                                              Tobacco
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about,
                                                                                                                              promote,
                                                                                                                              or
                                                                                                                              support
                                                                                                                              the
                                                                                                                              sale
                                                                                                                              of
                                                                                                                              alcoholic
                                                                                                                              beverages
                                                                                                                              or
                                                                                                                              tobacco
                                                                                                                              products
                                                                                                                              or
                                                                                                                              associated
                                                                                                                              paraphernalia.
		•	Blogs
                                                                                                                              and
                                                                                                                              Personal
                                                                                                                              Sites
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              host
                                                                                                                              blogs
                                                                                                                              and
                                                                                                                              personal
                                                                                                                              sites.
		•	Gay
                                                                                                                              or
                                                                                                                              Lesbian
                                                                                                                              or
                                                                                                                              Bisexual
                                                                                                                              Interest
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              cater
                                                                                                                              to
                                                                                                                              gay,
                                                                                                                              lesbian,
                                                                                                                              or
                                                                                                                              bisexual
                                                                                                                              lifestyles,
                                                                                                                              but
                                                                                                                              excluding
                                                                                                                              those
                                                                                                                              that
                                                                                                                              are
                                                                                                                              sexually
                                                                                                                              or
                                                                                                                              issue-oriented.
		•	Hobbies
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              information
                                                                                                                              about
                                                                                                                              or
                                                                                                                              promote
                                                                                                                              private
                                                                                                                              and
                                                                                                                              largely
                                                                                                                              sedentary
                                                                                                                              pastimes,
                                                                                                                              but
                                                                                                                              not
                                                                                                                              electronic,
                                                                                                                              video,
                                                                                                                              or
                                                                                                                              online
                                                                                                                              games.
		•	Personals
                                                                                                                              and
                                                                                                                              Dating
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              assist
                                                                                                                              users
                                                                                                                              in
                                                                                                                              establishing
                                                                                                                              interpersonal
                                                                                                                              relationships,
                                                                                                                              excluding
                                                                                                                              those
                                                                                                                              intended
                                                                                                                              to
                                                                                                                              arrange
                                                                                                                              for
                                                                                                                              sexual
                                                                                                                              encounters.
		•	Restaurants
                                                                                                                              and
                                                                                                                              Dining
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              list,
                                                                                                                              review,
                                                                                                                              advertise,
                                                                                                                              or
                                                                                                                              promote
                                                                                                                              food,
                                                                                                                              dining,
                                                                                                                              or
                                                                                                                              catering
                                                                                                                              services.
		•	Social
                                                                                                                              Networking
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              of
                                                                                                                              web
                                                                                                                              communities
                                                                                                                              that
                                                                                                                              provide
                                                                                                                              users
                                                                                                                              with
                                                                                                                              means
                                                                                                                              for
                                                                                                                              expression
                                                                                                                              and
                                                                                                                              interaction.
		•	Social
                                                                                                                              Networking
                                                                                                                              and
                                                                                                                              Personal
                                                                                                                              Sites
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              chiefly
                                                                                                                              devoted
                                                                                                                              to
                                                                                                                              personal
                                                                                                                              expression
                                                                                                                              by
                                                                                                                              individuals
                                                                                                                              (as
                                                                                                                              in
                                                                                                                              diaries
                                                                                                                              or
                                                                                                                              personal
                                                                                                                              blogs)
                                                                                                                              or
                                                                                                                              small
                                                                                                                              groups,
                                                                                                                              often
                                                                                                                              but
                                                                                                                              not
                                                                                                                              necessarily
                                                                                                                              involving
                                                                                                                              multiple
                                                                                                                              links
                                                                                                                              to
                                                                                                                              similar
                                                                                                                              sites.

 

Special
Events - Sites devoted to a current event that requires separate categorization.

 

Sports

Sites that provide information about or promote sports, active games, and recreation.

			Sport
                                                              Hunting and Gun Clubs - Sites that provide information about
                                                              or directories of gun clubs and similar groups, including war-game
                                                              and paintball facilities.

                                                              

 

Tasteless
- Sites with content that is gratuitously offensive or shocking, but not violent or frightening. Includes sites devoted in
part or whole to scatology and similar topics or to improper language, humor, or behavior.

 

Travel
- Sites that provide information about or promote travel-related services and destinations.

 

Vehicles
- Sites that provide information about or promote vehicles, including those that support online purchase of vehicles or parts.

  

Violence
- Sites that feature or promote violence or bodily harm, including self-inflicted harm; or that gratuitously display images
of death, gore, or injury; or that feature images or descriptions that are grotesque or frightening and of no redeeming value.

 

Weapons
- Sites that provide information about, promote, or support the sale of weapons and related items.

 

In
addition to the foregoing, as part of Row 44’s network monitoring service, Row 44 will utilize additional filtering of websites
that contain the following security hazards:

 

		•	Botnets
                                                                                                                              -
                                                                                                                              sites
                                                                                                                              that
                                                                                                                              host
                                                                                                                              the
                                                                                                                              command-and-control
                                                                                                                              centers
                                                                                                                              for
                                                                                                                              networks
                                                                                                                              of
                                                                                                                              bots
                                                                                                                              that
                                                                                                                              have
                                                                                                                              been
                                                                                                                              infiltrated
                                                                                                                              into
                                                                                                                              users'
                                                                                                                              computers.
                                                                                                                              Excludes
                                                                                                                              Web
                                                                                                                              crawlers.

                                                                                                                              

 

    	Exhibit G-4

    	 

    
 

		•	Keyloggers
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              or
                                                                                                                              pages
                                                                                                                              that
                                                                                                                              download
                                                                                                                              programs
                                                                                                                              that
                                                                                                                              run
                                                                                                                              in
                                                                                                                              the
                                                                                                                              background
                                                                                                                              recording
                                                                                                                              all
                                                                                                                              keystrokes,
                                                                                                                              and
                                                                                                                              which
                                                                                                                              may
                                                                                                                              also
                                                                                                                              send
                                                                                                                              those
                                                                                                                              keystrokes
                                                                                                                              (potentially
                                                                                                                              including
                                                                                                                              passwords
                                                                                                                              or
                                                                                                                              confidential
                                                                                                                              information)
                                                                                                                              to
                                                                                                                              an
                                                                                                                              external
                                                                                                                              party.

                                                                                                                              

  

		•	Malicious
                                                                                                                              Embedded
                                                                                                                              Link
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              are
                                                                                                                              infected
                                                                                                                              with
                                                                                                                              a
                                                                                                                              malicious
                                                                                                                              link.

                                                                                                                              

 

		•	Malicious
                                                                                                                              Embedded
                                                                                                                              iFrame
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              are
                                                                                                                              infected
                                                                                                                              with
                                                                                                                              a
                                                                                                                              malicious
                                                                                                                              iframe.

                                                                                                                              

 

		•	Malicious
                                                                                                                              Web
                                                                                                                              sites
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              contain
                                                                                                                              code
                                                                                                                              that
                                                                                                                              may
                                                                                                                              intentionally
                                                                                                                              modify
                                                                                                                              end-user
                                                                                                                              systems
                                                                                                                              without
                                                                                                                              their
                                                                                                                              consent
                                                                                                                              and
                                                                                                                              cause
                                                                                                                              harm.

                                                                                                                              

 

		•	Phishing
                                                                                                                              and
                                                                                                                              Other
                                                                                                                              Frauds
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              counterfeit
                                                                                                                              legitimate
                                                                                                                              business
                                                                                                                              sites
                                                                                                                              for
                                                                                                                              the
                                                                                                                              purpose
                                                                                                                              of
                                                                                                                              eliciting
                                                                                                                              financial
                                                                                                                              or
                                                                                                                              other
                                                                                                                              private
                                                                                                                              information
                                                                                                                              from
                                                                                                                              users.

                                                                                                                              

 

		•	Potentially
                                                                                                                              Unwanted
                                                                                                                              Software
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              that
                                                                                                                              use
                                                                                                                              technologies
                                                                                                                              that
                                                                                                                              alter
                                                                                                                              the
                                                                                                                              operation
                                                                                                                              of
                                                                                                                              the
                                                                                                                              user's
                                                                                                                              hardware,
                                                                                                                              software,
                                                                                                                              or
                                                                                                                              network
                                                                                                                              in
                                                                                                                              ways
                                                                                                                              that
                                                                                                                              diminish
                                                                                                                              control
                                                                                                                              over
                                                                                                                              the
                                                                                                                              user
                                                                                                                              experience,
                                                                                                                              privacy,
                                                                                                                              or
                                                                                                                              the
                                                                                                                              collection
                                                                                                                              and
                                                                                                                              distribution
                                                                                                                              of
                                                                                                                              personal
                                                                                                                              information.

                                                                                                                              

 

		•	Spyware
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              or
                                                                                                                              pages
                                                                                                                              that
                                                                                                                              download
                                                                                                                              software
                                                                                                                              that,
                                                                                                                              without
                                                                                                                              the
                                                                                                                              user's
                                                                                                                              knowledge,
                                                                                                                              generate
                                                                                                                              HTTP
                                                                                                                              traffic
                                                                                                                              (other
                                                                                                                              than
                                                                                                                              simple
                                                                                                                              user
                                                                                                                              identification
                                                                                                                              and
                                                                                                                              validation).

                                                                                                                              

 

		•	Suspicious
                                                                                                                              Embedded
                                                                                                                              Link
                                                                                                                              -
                                                                                                                              Sites
                                                                                                                              suspected
                                                                                                                              of
                                                                                                                              being
                                                                                                                              infected
                                                                                                                              with
                                                                                                                              a
                                                                                                                              malicious
                                                                                                                              link.

 

 

    	Exhibit G-5

    	 

    
 

EXHIBIT H

 

Network Description

 

 

 

***

 

 

 

 

 

 ***
Confidential treatment requested.

 

    	Exhibit H-1

    	 

    
  

EXHIBIT I

 

VOD Only Solution Product

 

 

	Description
	
        RF Cables

         

	Flight Deck Control Panel
	 
	SMU (Server Management Unit)

2.2 GHz CPU - 8GB RAM – 1.6TB

SSD Storage
	 
	Wireless Access Point, "n" capable
	 
	nWAP antennae and nWAP cables
	 
	Installation Kit for Internal LRUs 

(Provisions)
	 
	
        PCS (GSM) Antenna

         

        Row 44 Portal Platform Software

 

 

    	Exhibit I-1

    	 

    
 

EXHIBIT J

 

Security Provisions

 

 

 

I. GENERALLY APPLICABLE SECURITY PROVISIONS

 

Security Best Practices. Row 44 shall provide
a secure environment for Confidential Information and any hardware and software, including servers, network and data components,
to be provided or supported by the Row 44 as part of its performance under this Agreement. Row 44 represents that the security
measures it takes in performance of its obligations under this Agreement do, and will at all times, remain at the higher of (1)
applicable security and privacy laws and regulations, (2) applicable privacy and security rules imposed by industry groups, such
as the PCI Standards Council, (3) Privacy & IT Security Best Practices (as defined by ISO 27002), and (4) (i) all security
requirements, obligations, specifications and event reporting procedures as required in any applicable exhibit or schedule hereof
and (ii) at Southwest’s cost and expense, with any new security requirement after receiving thirty days advance notification
from Southwest of such new security requirement, specification or event reporting procedure; collectively referred to as “Security
Best Practices”. Failure by Row 44 to comply with Security Best Practices in fulfilling its security obligations shall constitute
a material breach of this Agreement and no limitation on Row 44’s liability to Southwest as set forth in Section 7 of the
Agreement shall apply to any losses resulting from or relating to such a breach, including, without limitation, any limitation
on consequential and/or incidental damages.

  

Southwest System Access.  To the
extent that Row 44 will be accessing Southwest systems, Row 44 will access Southwest systems and use Southwest data in a manner
consistent with the then-current Southwest Airlines Information Security Policy which will be provided to Row 44 upon request.

 

SOC 2 Audits and Reports.  Row 44
will provide Southwest with a copy of each applicable audit report (a “SOC 2 Report”) resulting from a SOC 2 audit
of the Row 44’s control standards in use at the Row 44 facility where the services under this Agreement are performed (each
such audit is called a “SOC 2 Audit”). If no SOC 2 Audits have been conducted, and Row 44 is unable to provide any
SOC 2 Reports, then at Southwest’s request and expense, Row 44 will appoint a qualified firm to conduct a SOC 2 Audit, and
shall provide Southwest with a copy of each applicable SOC 2 Report. To the extent that the SOC 2 Reports provided to Southwest
do not satisfy Southwest’s reporting or audit requirements, Southwest may conduct its own audits.

 

    	 

    	 

    
 

Southwest Audit of Row 44 Systems. Southwest,
or its designated representatives (at Southwest’s sole cost and expense, upon at least thirty (30) days notice to Row 44,
shall have the right to conduct an audit of the Row 44’s operations, in order to verify that the Row 44 is operating in accordance
with Security Best Practices in performance of its obligations under this Agreement. As between the parties, Southwest’s
or its designated representatives’ costs related to such audit shall be borne solely by Southwest. Such an audit may consist
of assessing all aspects of services delivered under the Agreement, and may include, but is not limited to: (i) software development
practices and procedures, (ii) network, operating system, database, and application configuration controls, (iii) general controls
and security practices and procedures, (iv) disaster recovery and back-up procedures, (v) change and problem management processes
and procedures (vi) invoice processing, (vii) service level compliance, (viii) network and system vulnerability and risk analysis
and (ix) resource consumption. Row 44 will allow reasonable access, during normal business hours and upon reasonable notice, to
all pertinent records, documentation, computer systems, data, personnel, and processing areas as Southwest deems necessary to accurately
and effectively complete their audit engagement. Southwest will take all reasonable steps to ensure that its audit will not materially
adversely impact Row 44’s business or operations.

  

Security Breaches. Row 44 shall
notify Southwest within 24 hours in the event of any breach or suspected breach in the security of its network, computing systems,
or facilities providing access to Southwest data. For all breaches, Row 44 will conduct an audit to determine the cause of such
breach and provide Southwest with a detailed report indicating the cause of the breach and the plan to address the issue. In the
event of any breach of Confidential Information, Row 44 will immediately notify Southwest in writing, and fully indemnify and hold
Southwest harmless from any and all third party claims and damages incurred by Southwest as a result of any such breach of security
caused by Row 44’s breach of this Agreement without regard to any limitation on Row 44’s liability in this Agreement.
If a breach or suspected breach involves cardholder data, Row 44 agrees that a Payment Card Industry representative, or a Payment
Card Industry approved third party, will be provided with full cooperation and access to conduct a thorough security review after
a security breach. The review will validate compliance with Payment Card Industry Data Security Standards for protecting cardholder
data.

  

System Free of Security Vulnerabilities.
To Row 44’s knowledge or to knowledge Row 44 should have, any software provided or used by Row 44 in connection with
this Agreement does not contain any malicious code, program, or other internal component (e.g., computer virus, computer worm,
computer time bomb, or similar component), which could damage, destroy, alter or disrupt any computer program, firmware, or hardware
or which could, in any manner, reveal, damage, destroy, alter or disrupt any data or other information accessed through or processed
by such software in any manner (a “Computer Virus”). Row 44 shall immediately advise Southwest, in writing, upon reasonable
suspicion or actual knowledge that any such software may contain a Computer Virus. In the event a Computer Virus is found to have
been introduced into Southwest's systems by the software, Row 44 shall use commercially reasonable efforts, at no additional charge,
to assist Southwest in reducing the effects of the computer virus and, if the computer virus causes a loss of operational efficiency
or loss of data, to assist Southwest to the same extent to mitigate and restore such losses. In addition, Row 44 shall indemnify,
defend and hold Southwest and its customers harmless from any damage resulting from the harm described above without regard to
any limitation on Row 44’s liability in this Agreement.

 

    	 

    	 

    
 

II. SECURITY PROVISIONS SPECIFIC TO
CARD-HOLDER DATA 

 

PCI-DSS, PA-DSS, and PTS Responsibilities.
 Row 44 shall provide and maintain the equipment, software services and testing necessary to effectively and reliably protect
credit card information (card-holder data) in accordance with the Security Best Practices section of this Agreement. Row 44 acknowledges
that card-holder data can ONLY be used in fulfillment of Row 44’s obligations under this Agreement for completing a transaction,
supporting a loyalty program, providing fraud control services, or for uses specifically required by law.

  

PCI-DSS Compliance. Row 44 acknowledges
it must comply with the requirements of the most current published version of the Payment Card Industry Data Security Standard
(PCI-DSS) when processing, storing, or transmitting card-holder data. The PCI-DSS is available from the PCI Security Standards
Council (currently located at https://www.pcisecuritystandards.org). Row 44 shall indemnify Southwest for any expenses incurred
by Southwest attributable to a breach of security occurring while data is under the control of the Row 44. Row 44 will provide
Southwest an annual letter of attestation from its Qualified Security Assessor confirming compliance with PCI-DSS. 

 

PA-DSS Compliance. Row 44 acknowledges
it must comply with the requirements of the most current published version of the Payment Application Data Security Standard (PA-DSS)
for all applications it develops that process, store, or transmit card-holder data that are sold, distributed or licensed to third
parties, including Southwest. The PA-DSS is available from the PCI Security Standards Council (currently located at https://www.pcisecuritystandards.org).
Row 44 shall indemnify Southwest for any expenses or incurred by a breach of security while data is under the control of the Row
44. Row 44 will maintain the status of its application as a PCI Security Standards Counsel Validated Payment Application for current
versions of payment applications provided to Southwest.

 

PTS / PED Compliance.  Row 44 acknowledges
it must comply with the requirements of the most current published version of the PIN Transaction Security standard (PTS) for PIN
transaction devices including PIN Pad Devices, Point of Sale Devices, Hardware Security Modules, or Unattended Payment Terminals
it provides that process, store, or transmit card-holder data. The PTS security requirements and testing and approval programs
are available from the PCI Security Standards Council (currently located at https://www.pcisecuritystandards.org). Row 44 shall
indemnify Southwest for any expenses incurred by Southwest attributable to a breach of security occurring through a non-certified
PTS device provided by the Row 44. Row 44 will maintain its status as a PCI Security Standards Counsel Approved PIN Transaction
Security Device for current versions of PTS devices provided to Southwest.

 

    	 

    	 

    
 

III. SECURITY PROVISIONS SPECIFIC TO
WEB-BASED SYSTEMS 

 

Secure Code Training of Developers.
All developers of systems and software being delivered to Southwest will have the expertise, knowledge and training to develop
systems that meet secure coding standards, as defined by such industry leaders as the OWASP Top Ten, SANS and NIST. Row 44 will
supply evidence reasonably satisfactory to Southwest of such training upon request.

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