Exhibit 10.3
PRICING AGREEMENT
This
Pricing Agreement (“Agreement”) is entered into
effective as of January 1, 2008 (“Effective
Date”), by and among EchoStar Technologies L.L.C. (formerly
known as EchoStar Technologies Corporation,
“EchoStar”), a limited liability company organized
under the laws of the State of Texas, having a place of business at
90 Inverness Circle East, Englewood, Colorado 80112; Bell ExpressVu
Inc., in its capacity as General Partner of Bell ExpressVu Limited
Partnership (“Bell ExpressVu”), a limited partnership
organized under the laws of Ontario, having a place of business at
100 Wynford Drive, Suite 300, Toronto, Ontario M3C 4B4; Bell
Distribution Inc. (“BDI”), a corporation incorporated
under the laws of Canada, having a place of business at 5055
Satellite Drive, Mississauga, Ontario L4W 5K7; and Bell Canada, a
corporation incorporated under the laws of Canada, having its
registered office at Cote du Beaver Hall, Montreal, Quebec, H2Z
1S4. For the purpose of this Agreement, EchoStar, Bell ExpressVu
and BDI may be referred to individually as a “Party”
and collectively as the “Parties” ***. The term
“Bell Parties” shall refer to Bell ExpressVu, BDI, and
Bell Canada.
1.0 Predecessor Agreements
1.1 Bell
ExpressVu and EchoStar or their respective Affiliates (as that term
is defined in the System Agreement (as defined herein)) have
previously entered into the following agreements with respect to
the supply of certain products and services by EchoStar to Bell
ExpressVu and its Affiliates:
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(a) |
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*** (*** the “System Agreement”); |
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(b) |
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*** (*** the “Supply Agreement”); |
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(c) |
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*** (*** the “MVC II Agreement”); |
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(d) |
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*** (*** the “Additional Limited Guarantee”);
and |
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(e) |
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*** (*** the “Assignment and Assumption
Agreement”). |
The
System Agreement, Supply Agreement, MVC II Agreement, Additional
Limited Guarantee and Assignment and Assumption Agreement shall be
collectively referred to herein as the “Predecessor
Agreements”.
2.0 Interpretation
2.1 The
Parties agree that the provisions of this Agreement will be binding
upon each of the Parties *** effective as of the Effective
Date.
2.2
Notwithstanding any other provision herein, in any Schedule
attached hereto or any Predecessor Agreement, in the event of any
conflict or inconsistency between or among the provisions of this
Agreement (including without limitation the attached Schedules) and
any Predecessor Agreement, the provisions of this Agreement will
prevail. In the event of any conflict or inconsistency between or
among the Predecessor Agreements specifically, the order of
precedence, to the extent that a specific Predecessor Agreement is
still in full force and effect, shall be: a) the Additional Limited
Guarantee (solely with respect to the Outstanding Obligations (as
defined below)); b) the MVC II Agreement (solely with respect to
the Outstanding Obligations); c) the Assignment and Assumption
Agreement, d) the Supply
***Certain confidential portions of this exhibit were omitted by
means of redacting a portion of the text. Copies of the exhibit
containing the redacted portions have been filed separately with
the Securities and Exchange Commission subject to a request for
confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act.
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Agreement, and e) the System Agreement.
3.0 Survival of Predecessor Agreements
3.1 The
Parties expressly agree that the System Agreement and the Supply
Agreement remain in full force and effect, except as otherwise
amended and modified by this Agreement.
***
3.3 The
Parties agree that the MVC II Agreement and the Additional Limited
Guarantee will terminate and be of no further force or effect upon
the Effective Date, except solely with respect to the Outstanding
Obligations (as defined below). Specifically, the Parties
acknowledge and agree that:
***
3.5 The
Parties agree that solely for the purposes of interpreting the
Assignment and Assumption Agreement, this Agreement shall be deemed
to be the “MVC II Agreement”.
4.0 Supply of EchoStar Products
4.1
Purchase and Supply. In each case subject to and in
accordance with the terms and conditions of this Agreement and the
Predecessor Agreements otherwise applicable to such purchase,
including without limitation the payment duties, obligations, and
remedies set forth in the Supply Agreement (whether or not the
Supply Agreement as modified by this Agreement is in effect at the
time of such purchase), and provided, for the particular model of
EchoStar Product or Related Equipment to be purchased, that either:
(i) EchoStar is, at the time of such purchase, manufacturing
such EchoStar Product or Related Equipment for its own use or for
any of its Affiliates, or (ii) the number of the particular
model of EchoStar Product or Related Equipment ordered in the past
sixty (60) days by Bell ExpressVu and BDI, and their
respective successors and permitted assigns, is no less than ***
((i) and (ii) collectively, the “Availability
Requirement”), then Bell ExpressVu and BDI, and their
respective successors and permitted assigns, will have the right
(but not the obligation) to purchase the following EchoStar
Products and Related Equipment from EchoStar and/or its
Affiliates:
| (a) |
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receiver/decoder units described in the attached
Schedule 1 (the “Boxes”); |
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| (b) |
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antennae and antenna mounting hardware (including, without
limitation, Outdoor Units (as that term is defined in the System
Agreement)) described in the attached Schedule 1 (the
“Outdoor Units”); |
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| (c) |
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switches, accessories and other related equipment described in
the attached Schedule 1 (the “Original Related
Equipment”); and |
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| (d) |
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any of the following EchoStar products that EchoStar or its
Affiliates may develop after the Effective Date and sell to other
distributors or direct-to-home satellite television operators in
commercial quantities ***: (i) receiver/decoder units,
including, without limitation, hybrid receiver/decoder units
(“New Boxes”), (ii) antennae and antenna mounting
hardware (“New Outdoor Units”) and (iii) switches,
accessories and other related equipment (“New Related
Equipment”). *** |
For the
purpose of this Agreement: (i) the term “EchoStar
Products” shall mean Boxes, Outdoor Units,
***Certain confidential portions of this exhibit were omitted by
means of redacting a portion of the text. Copies of the exhibit
containing the redacted portions have been filed separately with
the Securities and Exchange Commission subject to a request for
confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act.
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New
Boxes and New Outdoor Units, collectively, (ii) the term
“Related Equipment” shall mean Original Related
Equipment and New Related Equipment, collectively, and
(iii) the term “New Items” shall mean New Boxes,
New Outdoor Units, and New Related Equipment, collectively. The
Parties agree that ***.
4.2
Pricing.
***
4.3
Forecasts and Order Acceptance .
4.3.1
Bell ExpressVu will use commercially reasonable efforts to provide
(or cause BDI or the Bank to provide) EchoStar on a monthly basis
with a *** month rolling estimate of the quantity of EchoStar
Products and Related Equipment it expects to purchase over the next
*** month period (the “Forecast”). For greater
certainty, the failure to provide the Forecast (but not the Binding
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