Netflix and Verizon Exceptions. The parties acknowledge that Netflix is offering STE Services at prices below the relevant SLPs as of the Amendment Date and that Netflix shall be required to meet the relevant SLPs or be subject to the Multiplier associated with such lower prices not later than June 30, 2009; provided, however, that to the extent Netflix offers an STE Service in a bundle at a price below the $8.99 tier or on an a la carte basis at a price below $7.99, in either case, at any time prior to June 30, 2009, then a Multiplier shall immediately apply to such Netflix subscribers using $8.99 and $7.99, respectively, as the relevant reference prices. For example, if Netflix offers an STE Service bundled with a $6.99 tier, then a 3.25x Multiplier would apply (based on a $2.00 discount representing a 22% discount to the $8.99 price). In light of the fact that prior to the Amendment Date STE entered into an agreement with Verizon that does not expire until December 31, 2013, prior to the expiration of such agreement, the DSL Bundle SLP applicable to such Verizon subscribers shall in no event exceed $29.99.
