EXHIBIT 10.19
REPLAY NETWORK SERVICE AGREEMENT
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This Replay Network Service Agreement (this "Agreement") is made as of the
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30/th/ day of July, 1999 between Replay Networks, Inc., a California corporation
having its place of business at 0000 Xxxxxxxxxx Xxxx, Xxxxxxxx Xxxx, Xxxxxxxxxx
00000 ("Replay Networks" or "Replay"), Xxxxxx Broadcasting System, Inc., a
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Georgia corporation having its principal place of business at Xxx XXX Xxxxxx,
Xxxxxxx, Xxxxxxx 00000 ("Turner"), and Time Warner Inc., a Delaware corporation
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having its principal place of business at 00 Xxxxxxxxxxx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000 ("Time Warner").
WHEREAS, the parties hereto desire to enter into this Agreement to more
fully describe their relationship and to provide for their respective rights and
obligations as it relates to any Xxxxxx programming and the Replay Network
Service as more fully described herein.
In consideration of the foregoing and of the mutual promises contained
below, the parties agree as follows:
1. Definitions
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As used in this Agreement, the following terms shall have the following
meanings:
a. "Affiliate" shall mean, as it relates to any party, an entity that
controls, is controlled by, or under common control with, such party.
b. "MFN Rate" shall mean the [***] rate charged by Replay for any of the RNS
offerings, including, but not limited to, Replay Zones and pre-configured Replay
Channels.
c. "ReplayTV Platform" shall mean the hardware for the Replay Network Service
(as defined below) and Replay Networks' reference implementation for such
hardware (including specifications, schematics, xxxx of materials, FPGA source,
PAL source, manufacturing documentation, and other documentation needed to
manufacture the ReplayTV Platform), the ReplayTV Platform client software
(including applications, operating system, device drivers, electronic program
guide, and other unique Replay software), related peripheral equipment such as
remote controls, and Replay owned patents, trademarks, and other intellectual
property needed to market the ReplayTV Platform. Initially, the ReplayTV
Platform shall consist of a stand-alone implementation (ReplayTV 1000 or
ReplayTV 2000). Future ReplayTV Platforms, offered by Replay and original
equipment manufacturer ("OEM") partners, may integrate additional features.
d. "Replay Network Service" or "RNS" shall mean the Replay Network Personal
Television Service, a television and Internet based service that enables
customized, on-demand television viewing, custom content, and a television
navigation portal via the ReplayTV Platform. Examples of services offered via
the Replay Network Service might include Replay Zones (as
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defined below), sponsored Replay Channels (as defined below), unique sponsored
content, messaging, commerce, software updates, electronic programming guide
data, and time services. The Replay Network Service includes "Basic" services,
"Premium" (monthly or periodic fee) services, and Pay-Per-View services.
e. "Replay Channels" are locally stored personalized channels with associated
television programming. Replay Channels may be created by a user, via explicit
specification of show or theme-based recording criteria. Replay Channels may
also be automatically created from a Replay Zone, based on information provided
by Replay or the content provider. Replay Channels are listed on the Replay
Guide, where all locally stored and available television programming is listed.
f. "Replay Zones" are promotional offerings that, when invoked, automatically
select and record television programming of interest to a user. Replay Zones
are displayed to the user on the Zone Guide, a television portal or launch
location from which pertinent television services may be selected for automatic
recording. When selected by the user, a Replay Zone may immediately select
programming to be recorded or may offer the user more detailed selection
criteria for automatically recording television programming.
g. "Xxxxxx Content" shall mean the content (other than the Xxxxxx Networks)
provided by Xxxxxx that is integrated into the RNS. This content may include
program information, text, pictures, graphics, sound, video and other data
related to television program services or personal television program services
related to each of the television program services.
h. "Xxxxxx Networks" shall mean CNN, CNNsi, CNNfn, CNNI, CNN Headline News,
TBS, TNT, TCM, Cartoon Network, and all other future networks owned or operated
by Turner or any successor to Turner.
2. Term
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The term of this Agreement (the "Term") shall commence as of July 30, 1999 and
expire three years later on July 29, 2002, unless earlier terminated in
accordance with this Agreement. Xxxxxx shall have a unilateral right to extend
this Agreement for a second three-year term by providing notice thereof to
Replay no less than [***] prior to the end of the Term.
3. License; Reservation of Rights
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a. In consideration of the relationship contemplated by this Agreement, Xxxxxx
hereby grants to Replay a [***] license to the [***] and all programming
included in the [***] and the [***], to the extent Xxxxxx owns the copyright in
such programming or such [***] or has received the requisite rights in such
programming or such [***] from the copyright holder to grant such license, for
distribution through the ReplayTV Platform and the Replay Network Service [***].
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b. Nothing contained in this Agreement shall constitute a waiver of or an
estoppel against any right of Xxxxxx or any of its Affiliates to assert any
right or claim against Replay with regard to any cause of action that Xxxxxx or
any of its Affiliates may believe it may have against Replay, all of which
rights are hereby explicitly reserved.
4. Content Rights and Responsibilities
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x. Xxxxxx will be responsible for creating, selecting, producing, and
providing all Xxxxxx Content during the Term of this Agreement and for clearing
all rights and obtaining all requisite consents for the use of the Xxxxxx
Content in the manner contemplated by this Agreement. Xxxxxx represents and
warrants that the Xxxxxx Content shall be consistent in quality and standards
with the Xxxxxx Networks and accordingly shall not contain programming that is
defamatory, lewd, pornographic or obscene. Replay shall not make any
alterations, modifications, additions, or deletions (including, without
limitation, the overlaying of any text, graphics or interactive links other than
any such text or graphics that are operational or informational as it relates to
the use of the RNS) to any of the Xxxxxx Networks, the Turner Content
(including, without limitation, credit obligations, copyright, trademark notices
and the like) or to any programming on the Xxxxxx Networks or any Xxxxxx Content
in any Replay Channel or Xxxxxx Replay Zone, except with the prior approval of
Xxxxxx in its absolute discretion. Replay hereby agrees that the requirement
for Xxxxxx'x prior approval of any such alterations, modifications, additions or
deletions to any programming on the Xxxxxx Networks or any Xxxxxx Content shall
[***].
b. Replay shall provide a template and interface requirements (the "Interface
Require-ments") to serve as a basis for each of the Replay Channels, Xxxxxx
Replay Zones, and other RNS components. Examples of Interface Requirements
include text fonts and sizes, color palettes, and maximum image sizes, for the
purpose of working within the RNS. Replay shall have the right to verify that
all Xxxxxx Content meets the Interface Requirements, and to reject any content
that does not meet the requirements. All Xxxxxx Content must conform to the RNS
content specifications, to be supplied to Xxxxxx, which specifications may be
modified by Replay at its sole discretion from time to time with no less than
thirty days prior notice of any such modification to Xxxxxx. Replay shall use
commercially reasonable efforts to implement a process which will allow Xxxxxx
to update, modify, delete or otherwise alter Xxxxxx Content on each Xxxxxx
Replay Channel and Xxxxxx Replay Zone on no less than a weekly basis via a
telephone line or other mutually agreed upon electronic interface method. Xxxxxx
shall be allowed to update the look and feel of each Xxxxxx Replay Channel and
the Xxxxxx Replay Zone (subject to the Interface Requirements) at reasonable
time intervals to be mutually agreed by Xxxxxx and Replay in accordance with
delivery requirements to be provided to Xxxxxx by Replay.
c. All right, title and interest in the Xxxxxx Networks and the Xxxxxx Content
shall remain the property of Turner. All right, title and interest in the
Replay Zones and the Replay Channels (other than the Xxxxxx Networks, the Xxxxxx
Content or any element thereof) shall remain the property of Replay. Replay
acknowledges and agrees that all trade names, trademarks and service marks of
Xxxxxx and its program suppliers (collectively, the "Xxxxxx Marks") shall remain
the property of Xxxxxx or such program supplier, as applicable, and nothing in
this Agreement
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shall confer on Replay any right of ownership in any of the Xxxxxx Marks. All
uses of the Xxxxxx Marks shall inure to the benefit of Xxxxxx or such program
supplier, as applicable. Xxxxxx acknowledges and agrees that all trade names,
trademarks and service marks of Replay (the "Replay Marks") shall remain the
property of Replay and nothing in this Agreement shall confer on Xxxxxx any
right of ownership in any of the Replay Marks. All uses of the Replay Marks
shall inure to the benefit of Replay.
5. Replay Zones
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a. Replay shall develop a Replay Zone Guide in which Xxxxxx may promote its
network programming. Replay shall provide Xxxxxx (or one of its Affiliates) with
prominent positioning [***] for (i) [***] if [***] of the RNS Zone Guide has
[***] or (ii) [***] if [***] of the RNS Zone Guide has [***]. Replay will
provide to Xxxxxx (or one of its Affiliates) additional Replay Zone slots within
the [***] Zone Guide pages as follows: (i) [***] on [***] of the RNS Zone Guide
and (ii) [***] within [***] of the RNS Zone Guide, which shall be reduced to
[***] at such time that Xxxxxx has been provided [***] on [***] of the RNS Zone
Guide. Subject to the limitations described in the two immediately preceding
sentences, Xxxxxx (or one of its Affiliates) shall have the right to move any of
its Replay Zones to different pages within the RNS Zone Guide. When selected by
an RNS user, a Xxxxxx Replay Zone will display a full screen of programming
options as developed and maintained by Xxxxxx to meet the Interface
Requirements. The Replay Network Service will enable the RNS user to select one
or more of the available programming options set forth in the Xxxxxx Replay
Zone, which will automatically provide for future recording of Xxxxxx Content or
portions of the Xxxxxx Networks. Such automatically recorded Xxxxxx programming
shall reside in a Replay Channel which will be branded with a Xxxxxx specified
logo, according to a template provided by Replay. Turner will keep the
programming information associated with its Replay Zones current and consistent
with Xxxxxx Network programming on a weekly basis.
b. Replay and Turner will work together to establish processes for video and
graphics content download for Xxxxxx Replay Zones to ReplayTV Platforms using
the RNS and Xxxxxx Networks. The parties agree that the amount of text,
graphics, and video download will be limited to a reasonable, cost-effective
connection time for platforms to the RNS. Downloads exceeding such reasonable
connection time may be subject to an additional fee, to be mutually agreed by
Replay and Xxxxxx. Replay will use best efforts to reach an initial deployment
of the Xxxxxx Replay Zones in the [***] with a graphics implementation. It is
currently intended that a subsequent software release for ReplayTV Platforms
will support video-oriented promotional content in the Xxxxxx Replay Zones.
c. Replay will provide to Xxxxxx (or one of its Affiliates) [***] Xxxxxx
Replay Zones [***] for the [***]. Xxxxxx (or one of its Affiliates) shall
receive additional Replay Zones at a [***] (i) [***] of the Replay [***] for the
sponsorship of a Replay Zone and (ii) the [***] for the sponsorship of a Replay
Zone. Subject to the last sentence of this Section 5(c), Xxxxxx agrees that
Xxxxxx (or one of its Affiliates) will purchase at least [***] additional Replay
Zones at [***] of the [***]
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described in clauses (i) and (ii) of the immediately preceding sentence for the
Term of this Agreement. Replay and Xxxxxx hereby agree that the initial Replay
ratecard for the sponsorship of a Replay Zone shall be [***], subject to market
increases during the Term of the Agreement as determined by Replay.
6. Zone Advertisements
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a. Billboard and banner advertisements are to be sold by [***] as part of
Xxxxxx'x Replay Zone sponsorship. [***] may sell up to [***] of the billboard
and banner advertising inventory within any Xxxxxx Replay Zone, it being agreed
that the parties shall develop an appropriate method for [***]. Billboard and
banner ads may employ graphics as part of a graphics-based Replay Zone or may
employ video in future video-based Replay Zones. Replay agrees that all
advertising to be placed within the Xxxxxx Replay Zones shall be subject to
[***] by Xxxxxx, which [***] right shall be [***] in good faith, consistent with
Xxxxxx'x [***] concerning advertisements or promotional messages to be aired on
the Xxxxxx Networks on cable television, also taking into account existing
sponsorships, category or programming [***], or similar arrangements that Turner
may have with certain of its advertisers and, to the extent applicable, any
restrictions imposed on advertisements by any of the professional sports
leagues.
x. Xxxxxx and Replay shall agree to (i) [***] billboard and banner
advertisements within Xxxxxx Replay Zones and (ii) [***] for use in selling such
advertisements (collectively, the [***]). As market conditions allow from time
to time, Xxxxxx and Replay shall review and revise the [***]. Xxxxxx shall [***]
for the billboard and banner advertisements that [***] within the Xxxxxx Replay
Zones at the [***] set forth in the [***] and shall provide to Replay a monthly
summary of such [***]. Replay shall [***] for the billboard and banner
advertisements that it [***] within the Xxxxxx Replay Zones at the [***] set
forth in the [***] and shall provide to Xxxxxx a monthly summary of such [***].
Each of Xxxxxx and Replay agrees that it will not [***] the Xxxxxx Replay Zone
billboard and banner advertising [***] except as set forth in the [***], without
the prior approval of the other party hereto.
x. Xxxxxx and Replay agree [***] the advertising revenues generated as a
result of the sale of billboard and banner advertisements in Xxxxxx Replay
Zones. Such gross advertising revenues received by [***] shall be allocated
first to third party agency commissions [***], second to [***] for recoupment by
[***] of [***] to be paid by [***] to third parties in connection with banner
and billboard advertising as set forth in a detailed accounting, it being agreed
that such fees will be [***] among all of the Replay Zone sponsors that use
banner and billboard advertisements, with the [***] of such revenues to be [***]
between Replay and Xxxxxx. Each of Xxxxxx and Replay agrees to [***] the other
party such other [***] of such [***] received each month within thirty days of
the end of each month. Each party shall have customary audit rights with respect
to such gross advertising revenues and its respective [***] of such revenues.
Any under-delivery liability
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associated with any such advertising inventory shall be [***] between Xxxxxx and
Replay.
7. Lead-in and Lead-out Advertisements
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a. Replay will use commercially reasonable efforts to develop a method for
inserting lead-in and lead-out advertising spots for Replay Channels before
[***]. Until such time that Replay's technology is capable of managing and
controlling the ad insertions for the Replay Channels, Replay agrees that it
will not insert any content in the lead-in and lead-out spots surrounding any
Turner Content or any portion of any Xxxxxx Network. At such time that
advertisements are inserted in the Replay Channels, Replay will provide to
Turner aggregate viewing information for all such advertisement spots.
b. At such time that lead-in and lead-out advertising spots surrounding any
Turner content or any portion of any Xxxxxx Network can be sold as provided in
Section 7(a) above, Replay shall be entitled to sell such spots, subject to
prior approval by Xxxxxx (as specified below in this Section 7(b)). Pricing for
lead-in and lead-out advertisements surrounding any Turner content or any
portion of any Xxxxxx Network shall be [***] (such [***] being hereinafter
referred to as the [***]). As market conditions allow from time to time,
Turner and Replay shall review and revise the [***]. Replay shall be responsible
for invoicing advertisers and providing to Xxxxxx a monthly summary of all such
advertisement sales. Replay agrees that it will not discount any such
advertising inventory except as set forth in the [***] without the
prior approval of Turner. Replay agrees that all lead-in and lead-out
advertisements surrounding any Turner content or any portion of any Xxxxxx
Network shall be subject to [***] by Turner, which [***] right shall be
exercised in good faith, consistent with Xxxxxx'x [***] concerning
advertisements or promotional messages to be aired on the Xxxxxx Networks on
cable television, also taking into account existing sponsorships, category or
programming [***], or similar arrangements that Turner may have with certain of
its advertisers and, to the extent applicable, any restrictions imposed on
advertisements by any of the professional sports leagues.
x. Xxxxxx and Replay agree to [***] the advertising revenues generated
as a result of the sale of lead-in and lead-out advertisements surrounding any
Turner content or any portion of any Xxxxxx Network. Such gross advertising
revenues received by Replay shall be allocated first to third party agency
commissions [***] second to [***] for recoupment by [***] of [***] to be paid by
[***] to third parties in connection with lead-in and lead-out advertisements as
set forth in a detailed accounting, it being agreed that such fees will be [***]
among all of the Replay Channels that use lead-in and lead-out advertisements,
with the balance of such revenues to be [***] between Replay and Xxxxxx. Replay
agrees to [***] to Xxxxxx [***] of such [***] received each month within 30 days
of the end of each month. Xxxxxx shall have customary audit rights with respect
to such gross advertising revenues and its [***] of
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such revenues. Any under-delivery liability associated with any such advertising
inventory shall be [***] between Xxxxxx and Replay.
8. Advertisement Insertion
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a. Replay will use commercially reasonable efforts to work with Xxxxxx to
develop a method for inserting video advertising or promotional spots into
content from the Xxxxxx Networks on Replay Channels for implementation in [***].
[***], these advertisements or promotions may be inserted in addition to or may
replace existing Xxxxxx video advertising content; Replay hereby agrees that the
requirement for [***] to such insertion shall [***]. Detailed operational
aspects of this activity shall be established and mutually agreed to by Xxxxxx
and Replay. Xxxxxx will be responsible for providing the ads and promotions for
such insertion and specifying the program timeslots available for such
advertisement/promotion insertion. Subject to legal requirements, Replay's
internal privacy policy and Replay's agreements with its users of the RNS,
Replay agrees to provide to Xxxxxx aggregate viewing information for all such
advertisement spots.
b. [***] agrees to coordinate with [***] as is commercially practicable to
sell and control [***] with [***] the inserted advertising spots for content
from the Xxxxxx Networks. Pricing for inserted advertisements shall be [***]
[***] by Xxxxxx and Replay (such pricing hereinafter referred to as the
[***]). As market conditions allow from time to time, Xxxxxx and Replay shall
review and revise the [***]. [***] shall be responsible for invoicing
advertisers and providing to [***] a monthly summary of all such advertisement
sales. [***] agrees that it will not [***] any such advertising inventory except
as set forth in the [***], without the prior approval of Replay.
x. Xxxxxx and Replay agree to share the [***] (as hereinafter defined)
generated as a result of inserted advertisements within Xxxxxx Replay Channels.
For purposes of this Section 8, [***] shall mean the [***] revenue received for
inserted advertisements as a result of an applicable rate which is [***] than
the [***] for the advertising previously [***] in which the advertisement is
being inserted. Such incremental advertising revenues received by Xxxxxx shall
be allocated first to third party agency commissions [***], second to [***] for
recoupment by [***] of [***] to be paid by [***] to third parties in connection
with inserted advertisements as set forth in a detailed accounting, it being
agreed that such fees will be [***] among all of the Replay Channels that use
inserted advertisements, with the [***] of the revenues to be [***] between
Replay and Xxxxxx. Xxxxxx agrees to pay to Replay [***] of such [***] received
each month within thirty days of the end of each month. Replay shall have
customary audit rights with respect to such [***] and its [***] of such
revenues. Any under-delivery liability associated with any such advertising
inventory shall be [***] between Xxxxxx and Replay.
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d. If Xxxxxx provides active promotion video content for insertion in any of
the Xxxxxx Replay Zones or within any of the Xxxxxx Networks, there will be
[***] to Xxxxxx for such active promotions for the Term of this Agreement.
9. Pause Time
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a. Replay intends to develop a method for inserting advertising or promotional
spots in the "pause" time that is created through the RNS. [***], subject to
[***] as set forth in Section 9(b) below, shall be entitled to sell the
advertising and promotional inventory in the "pause" time on any Turner Content
or any portion of any Xxxxxx Network and shall use best efforts to include
members of the [***] advertising salesforce in sales calls with advertisers or
advertising agencies with respect to such inventory.
b. Pricing for "pause" time inventory on any Turner Content or any portion of
any Xxxxxx Network shall be set by [***] (such pricing being hereinafter
referred to as the [***]). As market conditions allow from time to time, [***]
shall review and revise the [***]. [***] shall be responsible for invoicing
advertisers and providing to [***] a monthly summary of all such advertisement
sales. [***] agrees that it will not [***] any such inventory except as set
forth in the [***], without the prior approval of [***]. Replay agrees that all
"pause" time advertisements and promotions on any Turner Content or any portion
of any Xxxxxx Network shall be subject to [***] by Turner, which [***] right
shall be [***] in good faith, consistent with Xxxxxx'x [***] concerning
advertisements or promotional messages to be aired on the Xxxxxx Networks on
cable television, also taking into account existing sponsorships, category or
programming [***] or similar arrangements that Turner may have with certain of
its advertisers and, to the extent applicable, any restrictions imposed on
advertisements by any of the professional sports leagues.
x. Xxxxxx and Replay agree to [***] the advertising revenues generated as a
result of the sale of "pause" time inventory on any Turner Content or any
portion of a Xxxxxx Network. Such gross advertising revenues received by Replay
shall be allocated first to third party agency commissions [***], second to
[***] for recoupment by [***] of [***] to be paid by [***] to third parties in
connection with "pause" time advertisements and promotions as set forth in a
detailed accounting, it being agreed that such fees will be [***] among all of
the Replay Channels that use "pause" time advertisements and promotions, with
the balance of such revenues to be [***] between Replay and Xxxxxx. Replay
agrees to pay to Xxxxxx [***] of such advertising revenues received each month
within thirty days of the end of each month. Xxxxxx shall have customary audit
rights with respect to such gross advertising revenues and its [***] of such
revenues. Any under-delivery liability associated with any such advertising
inventory shall be shared equally between Xxxxxx and Replay.
10. Enhanced Zone Sponsored Programming
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Xxxxxx may also elect to provide, and Replay may include as part of the RNS,
supplemental programming associated with Xxxxxx Replay Zone sponsored programs.
Such Xxxxxx Content may include video out-takes, bloopers, behind-the-scenes
footage, special interviews, etc. which enhance the programming of the Xxxxxx
Networks. Turner may broadcast this enhanced programming content at its
discretion, either before or after the show associated with such program
enhancements has been broadcast, the promotional value of the placement of such
enhancements being taken into account. The RNS will automatically record this
enhanced content and append this content to the Xxxxxx Replay Zone sponsored
Replay Channel, subject to non-conflicting tuning requirements and available
storage capacity for applicable ReplayTV Platforms. Replay agrees that there
will be [***] to Xxxxxx for any such programming enhancements tied to Xxxxxx
Replay Zone sponsored programming for the Term of this Agreement.
11. Pre-Configured Replay Channel
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Replay will use commercially reasonable efforts to pre-configure a Replay
Channel containing up to thirty minutes of deletable pre-recorded Xxxxxx
programming content on the ReplayTV Platform. Xxxxxx will provide pre-configured
channel content in a mutually agreed format to Replay upon a mutually agreed
schedule. The pre-configured channel will be capable of automatically recording
future programs, based on the Replay Channel parameters defined by Xxxxxx.
Replay agrees to [***] to Xxxxxx for one pre-configured Replay Channel for the
Term of this Agreement. Xxxxxx [***] additional pre-configured Replay Channels
at a [***] which is the [***] (i) [***] for a pre-configured Replay Channel and
(ii) [***] for a pre-configured Replay Channel.
12. Personalized CNN Premium Channel
--------------------------------
a. Replay and Turner shall use commercially reasonable efforts to develop,
launch and implement a mutually acceptable personalized CNN video news service.
The parties currently intend that the personalized news service shall consist of
at [***] of Turner news content broadcast in indexed short stories [***] on CNN
or CNN Headline News. The ReplayTV Platform will record the Turner personal news
broadcast, parse program segments according to consumer preferences for a
personalized news channel, and offer this channel to consumers on a daily basis.
Xxxxxx and Replay agree to start development of this service [***]. Xxxxxx and
Replay hereto agree that the availability of bandwidth for such service remains
to be determined and that their respective obligations set forth in this Section
12 are conditioned upon a mutually satisfactory and commercially reasonable
arrangement for such bandwidth.
b. Indexed content shall be considered Turner Content and shall be maintained
and updated by Turner, using a template and interface provided by Replay. Turner
will broadcast indexed content during a [***] broadcast interval to be
scheduled. Replay shall develop and operate the system for specifying user news
preferences, downloading and displaying indexed content, and presenting the
premium channel to the user. Replay will provide to Xxxxxx viewing statistics
and consumer billing services for the premium channel.
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c. The personalized CNN news channel will be one element of a premium service
offering of the RNS, requiring a monthly subscription fee for consumer service
activation. This service will consist of several personal channels. If there
is a personalized channel using Xxxxxx Content in such service, Xxxxxx and
Replay agree that the Xxxxxx portion of this subscription fee shall be an amount
which is equal to the [***] by the number of [***]. Replay will invoice
consumers and collect payment for the premium service offering and will provide
to Turner a monthly summary of such subscription fees.
d. The subscription revenues from the CNN news service shall be [***] by
Turner and Replay after recoupment of certain costs. Such revenues shall be
allocated equitably as described below to Replay for recoupment by Replay of
[***] paid to third parties by [***] in connection with personalized channels as
set forth in a detailed accounting, it being agreed that such fees will be [***]
among all of the personalized channels offered by Replay, and to Xxxxxx for
recoupment of programming cost for such news service as set forth in a detailed
accounting; with the balance of such revenues to be [***] between Xxxxxx and
Replay. To ensure equitable treatment of the parties in the recoupment of costs,
revenues will be allocated to the parties' respective costs on a pro rata basis
such that at any time each party shall have recouped the same percentage of its
total costs for any specified time period. Replay agrees to pay to Xxxxxx
Xxxxxx'x share of such revenues received each month within thirty days of the
end of each month. Each party shall have customary audit rights with respect to
the subscription revenues and its respective share of such revenues.
x. Xxxxxx and Replay agree to develop and maintain the CNN personal news
service (or other such name to be determined), which shall cover U.S., World,
Politics, Business/Financial, Technology and Weather, but shall not include
local news or sports highlights. Xxxxxx agrees to provide such personal news
service (virtual channels with indexed content) solely with Replay Networks for
[***] from deployment. Replay agrees to operate such personal news service [***]
with Xxxxxx for such [***] period. Xxxxxx and Replay further agree to jointly
promote the CNN personal news service and not to promote any other personal news
service during such [***] period.
x. Xxxxxx and Replay agree to exploit reasonable and appropriate opportunities
to promote the CNN personal news service on ReplayTV Platforms. Promotional
opportunities may include advertising on CNN and Xxxxxx networks, print
advertisements, point-of-sale promotions, and other marketing vehicles used by
Xxxxxx and Replay Networks.
13. Other Personalized Premium Programming
--------------------------------------
a. Replay agrees to provide Xxxxxx [***] option during the Term of this
Agreement to create a [***]. The launch of such service is predicated upon the
mutual agreement between Replay and Xxxxxx that such service will provide value
to RNS premium subscribers and deliver content that is unique and proprietary;
to the extent such mutual agreement is reached, Xxxxxx will use commercially
reasonable efforts to launch such service.
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10
b. In the event that Replay desires to enter into an agreement with a third
party to create a [***] service, Replay agrees that, for the [***] period from
the launch of a Xxxxxx [***] service, the [***] ratio of content for such [***]
service will be substantially similar to the [***] ratio of content on such
third party's television network. Notwithstanding the foregoing, this section is
not intended to limit Replay's ability to produce personalized [***] content
with [***].
14. Xxxxxx Replay Channel Branding
------------------------------
Replay will use commercially reasonable efforts to develop the ability to
overlay Xxxxxx network brands on Replay Channels containing content broadcast on
a Xxxxxx Network, created as a result of show-based, theme-based, or zone-based
program selection. The Xxxxxx brand identifier will indicate the Xxxxxx Network
on which a program episode was originally broadcast. The Xxxxxx brand
identifier will be developed and provided by Xxxxxx according to a template
developed and specified by Replay.
15. Electronic-Commerce
-------------------
Replay shall use commercially reasonable efforts to develop the network
capability to support electronic-commerce transactions, including using industry
standard and approved security methods for billing of such transactions. The
parties mutually agree to develop electronic purchasing of Xxxxxx goods and
services at a later date using the ReplayTV Platform. The details of this
program, including the schedule for deployment, implementation detail, and
revenue sharing, shall be developed and mutually agreed to in an amendment to
this Agreement.
16. Sharing of Viewership & User Data
---------------------------------
a. Replay shall use best efforts to collect [***] viewership and usage data on
a monthly basis, during the Term of this Agreement, from users of the RNS. This
data will be in aggregate form and may be gathered via statistical sampling.
Replay will summarize this viewership information in the following [***]
information fields to be collected for [***]:
[***]
b. Replay will provide monthly viewership reports to Xxxxxx comprising the
information fields shown above. Initial viewership information is targeted to be
available in [***], although the exact date is subject to change due to changes
in Replay development schedules. Replay shall make this data available to
Xxxxxx, provided that such data will only be made available in aggregate form,
as permitted by law, as permitted by Replay's internal privacy policy, and by
Replay's agreement with its users of the RNS. Replay will also provide Xxxxxx
with the ability to conduct reasonable qualitative and/or quantitative research
among RNS users that also subscribe to personal television services, the scope
of such research being subject to approval by Replay, which approval shall not
be unreasonably withheld. For the purpose of conducting such research (and not
for the purposes of sale to third parties), upon Xxxxxx'x request, Replay will
provide Xxxxxx'x designated third party research vendor with access to RNS users
via telephone contact information. In such event, Xxxxxx agrees that no contact
information shall be provided by such third party research vendor to Xxxxxx and
all data obtained from RNS users by such third party research vendor is to be
shared and used by Xxxxxx and Replay for internal research purposes, with strict
respect to the privacy of such RNS users. All data collected by Replay as set
forth herein shall remain the property of Replay and may be used by Xxxxxx only
as provided herein. Replay shall provide all of the information described in
this Section 16 to Xxxxxx [***].
c. The parties hereto agree that (i) Replay shall not be obligated to provide
to Xxxxxx any of the aforedescribed information to the extent that such
information is specifically identifiable as information relating to programming
that is broadcast on any network other than the Xxxxxx networks and (ii) without
Xxxxxx'x prior approval, Replay shall not provide to any third party any of the
aforedescribed information to the extent that such information is specifically
identifiable as information relating to programming that is broadcast on any of
the Xxxxxx Networks, it being understood and agreed that this Section 16(c) is
not intended to prohibit the provision by Replay of any of the aforedescribed
information in aggregate form, such that individual programs, networks or
programmers cannot be identified.
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11
17. Future Service Offerings
------------------------
Replay will manage the delivery of software upgrades to the ReplayTV Platform
via the RNS. Software updates will provide for field-upgradeable Replay Zones,
Replay Channels, features, interfaces, and bug fixes. During the Term of this
Agreement, Xxxxxx and Replay may agree to develop additional service offerings
that will become future elements of the RNS and may be downloaded to the
installed base of ReplayTV Platforms. Such service offerings shall be mutually
agreed to on a project-by-project basis, including the amount of financial,
creative, production, and technical resources each party shall commit.
18. Test Periods; Bandwidth
-----------------------
x. Xxxxxx and Replay agree that, for no less than the first [***] period of
the Term of this Agreement, the parties will conduct a test (the "Test") of the
Replay Network Service and
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12
its functionality. The Test shall consist of an initial [***] period during
which Xxxxxx and Replay will test the revenue potential and efficiencies of
billboard and banner advertisements that are downloaded to the Replay Network
Service via the telephone connection that will exist with each RNS user.
Following the initial period of the Test (which may be extended beyond the
initial [***] period upon mutual agreement of Xxxxxx and Replay) and provided
that (i) Xxxxxx and Replay agree and (ii) there has been [***] of the insertion
of such non-video content, the parties shall proceed with the second period of
the Test. Such second period shall be a [***] period during which Xxxxxx agrees
to distribute video content of no more than [***] in length within unsold
commercial pods on one or more of the nationally-distributed Xxxxxx Networks (as
determined by Xxxxxx), not to exceed an aggregate of [***] of such video content
in any twenty-four hour period.
b. During the Test, Xxxxxx agrees to initiate discussions with its
distributors regarding the willingness of such distributors to provide bandwidth
for additional content for the creation of Xxxxxx premium channels, enhanced
zone-sponsored programming, e-commerce or other services on the Replay Network
Service and to use commercially reasonable efforts to reach an agreement with
such distributors with respect to the provision of such bandwidth.
Notwithstanding the foregoing, Xxxxxx shall have [***] if Xxxxxx determines, in
its sole discretion, that it would be disadvantageous to Xxxxxx to so continue,
it being understood that Xxxxxx will exercise the right to [***] in good faith,
taking into account that any such bandwidth is an opportunity for Replay to
provide additional services not only to Xxxxxx, but also to other programmers.
Replay acknowledges that such discussions with distributors may address issues
such as [***] which may require the parties hereto to [***] in this Agreement in
order to preserve the economic value of this Agreement for each party. To the
extent that Xxxxxx is successful in reaching agreement with cable operators with
respect to the provision of bandwidth, Replay agrees that such bandwidth shall
first be used to provide new content or services to Xxxxxx (or any of its
Affiliates) as Xxxxxx shall direct.
c. Notwithstanding the outcome of the discussions referred to in paragraph (b)
above, following the Test and through the remainder of the Term of this
Agreement, Xxxxxx agrees to continue to distribute short-form video content as
described in paragraph (a) above with respect to the second period of the Test.
19. Customer Support and Billing
----------------------------
Replay or OEM partners shall provide all customer support for ReplayTV Platforms
and the RNS service. Replay shall be responsible for end-user billing of premium
and subscription services.
20. Program Management
------------------
Replay agrees to assign a program manager to Xxxxxx for the purpose of
supporting Xxxxxx Content updates and managing the Xxxxxx portion of the RNS.
21. Marketing, Promotion, and Advertising
-------------------------------------
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REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
13
a. Replay agrees to provide Xxxxxx (or any of its Affiliates) with up to [***]
ReplayTV Platforms [***]. All ReplayTV Platforms provided to Xxxxxx (or any of
its Affiliates) will contain the highest memory/storage capacity available at
the time of order. Xxxxxx agrees that, to the extent Xxxxxx conducts any
consumer testing of the Replay TV Platforms, it will consult with and involve
Replay in any such testing and provide to Replay all of the data collected as a
result of such testing.
x. Xxxxxx and Replay agree to issue a joint press release announcing the
relationship contemplated by this Agreement. Except as required by law, neither
Xxxxxx nor Replay will issue a press release or other public announcement
concerning this Agreement or the contents hereof, without the prior consent of
the other party, which consent shall not be unreasonably withheld. Replay will
be the first personal television alliance publicly announced by Xxxxxx.
c. During the Term of this Agreement, Xxxxxx and Replay agree to work together
to exploit reasonable and appropriate opportunities to promote the Replay
Network Service and Personalized CNN News (when available) on a mutually
acceptable basis and as commercially practicable on the Xxxxxx Networks, the
Xxxxxx websites and at locations owned or controlled by Xxxxxx. Such promotions
shall exhibit the Replay Networks logo and tag line during broadcast events.
d. During the Term of this Agreement, Replay agrees to use commercially
reasonable efforts to include the Xxxxxx network brands in Replay promotions and
advertisements for the ReplayTV Platform. In addition, the personalized CNN
News will be highlighted in Replay and content provider marketing materials (PR,
promotion, advertising, point-of-sale, etc.) as soon as such service becomes
commercially available.
e. During the Term of this Agreement, to the extent commercially practicable
Xxxxxx shall make promotional items available for sponsorship give-aways at
Replay events when applicable and Replay agrees to provide up to [***] ReplayTV
Platforms [***] for Xxxxxx sweepstakes give-aways.
f. As soon as commercially practicable following execution of this Agreement,
(i) Xxxxxx agrees to provide links from the Xxxxxx website locations to the
Replay websites as specified by Replay and (ii) Replay agrees to provide
reciprocal links from Replay's websites to destination URLs specified by Xxxxxx.
x. Xxxxxx shall have the right to display the Replay Networks logo on Xxxxxx
print and on- or off-network television advertising. Such logo may be displayed
as a small icon in a peripheral portion of the Xxxxxx advertisement or
promotion. All such Xxxxxx print and on- or off-network television advertising
displaying the Replay Networks logo shall be subject to the prior approval of
Replay, which approval shall not be unreasonably withheld. Reply Networks shall
have the right to display the Xxxxxx logos and names in a peripheral portion of
Replay advertisements and promotion media. All such Replay advertisements and
promotional media displaying the Xxxxxx logos and names shall be subject to the
prior approval of Xxxxxx, which approval shall not be
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WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
14
unreasonably withheld. Except as expressly provided herein, neither party hereto
shall have the right to use the trademarks, tradenames, servicemarks, logos or
any other xxxx or name identifying the other party without the prior written
consent of the owner of such name or xxxx.
22. Programming Fees and Discounts; Other Terms
-------------------------------------------
a. Within thirty days after the execution of this Agreement by each of the
parties hereto, Xxxxxx shall pay to Replay a [***] in the amount of [***].
Replay share bear any and all additional costs and expenses incurred by it in
the performance of its obligations under this Agreement. Xxxxxx will bear all
costs and expenses incurred in the creation of the Xxxxxx Networks and the
Network Content, unless otherwise provided herein. During the Term of this
Agreement and any extension, renewal or restatement hereof, for all RNS related
fees, charges and expenses, Xxxxxx and its Affiliates shall receive the [***]
(i) the [***] and (ii) the [***] discount (no less than [***] off of the Replay
ratecard rate) available on RNS offerings.
b. If Replay has entered into or enters into any agreement with any third
party media company, studio, network or content provider with respect to any of
the matters addressed in this Agreement or any other current or future RNS
offerings or services, which third party agreement provides any more favorable
terms (each, a "More Favorable Term") than the comparable terms in this
Agreement, then and in that event, Replay shall promptly notify Xxxxxx of each
such More Favorable Term. The availability of any More Favorable Term may be
subject to one, or a clearly defined few, conditions, that is or are logically
linked and directly tied to such More Favorable Term and which conditions
provide a direct, immediate or foreseeable benefit to Replay; provided, that
Xxxxxx shall not be obligated to perform any condition that Xxxxxx cannot
reasonably perform or that is designed in such a way to make performance by
Xxxxxx impracticable, unlikely or impossible or that Xxxxxx previously has
performed or rendered a substantially equivalent performance hereunder. Xxxxxx
shall have the option, at any time within [***] after Xxxxxx'x receipt of notice
of any More Favorable Term, to elect by written notice to Replay, to accept such
More Favorable Term, together with any permitted conditions, in substitution for
the comparable term in this Agreement.
23. Confidentiality and Nondisclosure
---------------------------------
a. Each party (the "receiving party") shall treat as confidential all
Confidential Information (as hereinafter defined) of the other party (the
"disclosing party") and shall not use such Confidential Information except as
set forth in this Agreement. Each receiving party shall disclose Confidential
Information of the disclosing party only to its directors, officers, employees
and consultants and those of its affiliates who are required to have such
information in order for the receiving party to carry out the transactions
contemplated by this Agreement and who have been advised of the obligations set
forth in this Section 23. The receiving party shall promptly notify the
disclosing party of any actual or suspected misuse or unauthorized disclosure of
the disclosing party's Confidential Information.
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WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
15
b. For purposes of this Agreement, "Confidential Information" of a disclosing
party shall mean any non-public and/or proprietary information of such party,
including, without limitation, technical data, trade secrets, plans for products
or services, marketing plans, software, and financial documents or data, in
whatever form or medium. "Confidential Information" shall not include any
information that (i) is in the public domain or has entered the public domain
through no fault of the receiving party; (ii) was known to the receiving party
at the time of disclosure to the receiving party, as demonstrated by files in
existence at the time of disclosure; (iii) was independently developed by the
receiving party without any use of the Confidential Information, as demonstrated
by files created at the time of such independent development; or (iv) becomes
known to the receiving party from a source other than the disclosing party,
which disclosure is not in violation of the disclosing party's rights.
c. If the receiving party receives a subpoena or order for the disclosure of
Confidential Information of the disclosing party, the receiving party shall
provide prompt notice of such subpoena or order to the disclosing party to
enable the disclosing party to seek a protective order or otherwise prevent or
restrict such disclosure. Upon expiration or termination of this Agreement,
each party shall promptly return all Confidential Information of the other
party.
24. Indemnification
---------------
a. Replay will indemnify, defend and hold harmless Xxxxxx and its affiliated
companies (and each of their respective present and former employees, agents,
directors, shareholders and parent and subsidiary companies) against and from
any and all claims, damages, penalties, liabilities, costs and expenses
(including, without limitation, reasonable fees and disbursements of counsel and
court costs, but excluding lost profits and consequential damages) arising out
of or relating to (i) the breach by Replay of any of its covenants or
obligations under this Agreement and (ii) the use of any of Replay's equipment
or software, to the extent that such use infringes, or is alleged to infringe,
any U.S. copyright, mask work, patent or trademark, or misappropriates, or is
alleged to misappropriate, any trade secret.
x. Xxxxxx will indemnify, defend and hold harmless Replay and its affiliated
companies (and each of their respective present and former employees, agents,
directors, shareholders and parent and subsidiary companies) against and from
any and all claims, damages, penalties, liabilities, costs and expenses
(including, without limitation, reasonable fees and disbursements of counsel and
court costs, but excluding lost profits and consequential damages) arising out
of or relating to (i) the breach by Xxxxxx of any of its covenants or
obligations under this Agreement and (ii) any claim that the Xxxxxx Networks or
the Xxxxxx Content (A) infringes on, or constitutes a misappropriation of any
third party's copyright, patent, trademark, trade secret or other proprietary or
intellectual property right, or right of publicity or privacy; (B) is defamatory
or trade libelous; (C) is lewd, pornographic or obscene; or (D) violates any
laws regarding unfair competition, anti-discrimination or false advertising;
provided, that Replay shall, to like extent, indemnify, defend and forever hold
--------
Xxxxxx and the corresponding Xxxxxx entities, harmless from and against any and
all claims, damages, penalties, liabilities, costs and expenses (including,
without limitation, reasonable fees and disbursements of counsel and court
costs, but excluding lost profits and consequential damages) arising out of any
deletion from, alteration of, or addition to,
16
the Network Content by Replay or creation of any material by Replay (such as the
creation of promotional material).
c. In the event that legal proceeding are instituted or a claim is asserted
which may give rise to indemnification, the party seeking indemnification (the
"Indemnified Party") shall provide prompt notice of such proceeding or claim to
the party from whom indemnification is sought (the "Indemnifying Party"). The
Indemnifying Party shall be entitled to defend against, negotiate, settle or
otherwise deal with any such proceeding or claim, represented by counsel of its
own choice at its own expense; provided, that the Indemnified Party may
--------
participate in any such proceeding, with counsel of its own choice at its own
expense, and no settlement of any such claim may be effected without the consent
of the Indemnified Party, which consent will not be unreasonably withheld.
25. Termination of Agreement; Survival of Provisions
------------------------------------------------
a. This Agreement may be terminated as follows:
(i) by the mutual agreement of the parties hereto;
(ii) by any party upon a breach by another party of a material term of
this Agreement and such breach shall remain unremedied for at least
[***] after notice from a non-breaching party; or
(iii) by any party if any of the following events shall occur with
respect to another party (A) a receiver is appointed for such other
party or its assets; (B) such other party becomes insolvent, is
generally unable to pay its debts as they become due, makes an
assignment for the benefit of its creditors or seeks relief under
any bankruptcy or insolvency law; (C) if proceedings are commenced
against such other party under any bankruptcy or insolvency law,
such proceedings have not been vacated within [***] of the
commencement thereof; or (D) if such other party is liquidated,
dissolved or ceases to do business.
b. The provisions of Sections 4(a), 8(a), 23, 24 and 25 of this Agreement
shall survive the termination or expiration of this Agreement.
26. Time Warner Entities
--------------------
a. The parties hereto agree to use best efforts to engage in discussions with
each of the other divisions of Time Warner with respect to the negotiation of a
mutually agreeable arrangement between Replay and each such other division on
terms and conditions substantially similar to the terms and conditions set forth
in this Agreement to the extent such terms and conditions are relevant and
applicable to such other arrangements. Notwithstanding the foregoing, nothing
contained herein shall prohibit any other division of Time Warner from
negotiating terms that are different from the terms contained herein, or which
augment or supplement the terms contained herein.
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REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
17
b. Replay hereby agrees that Time Warner and its Affiliates shall be entitled
to designate up to [***] representatives to the Replay Advisory Council for the
Term of this Agreement and any extensions hereof. The Replay Advisory Council
shall meet on a quarterly basis at times mutually agreed and shall provide a
forum for the discussion of industry developments and advances in technology as
they relate to Replay's strategy and operations.
27. Miscellaneous
-------------
a. The relationship of the parties established by this Agreement is that of
independent contractors, and nothing contained in this Agreement will be
construed (i) to give any party the power to direct and control the day-to-day
activities of the other, (ii) to constitute the parties as partners, joint
ventures, co-owners or otherwise as participants in a joint or common
undertaking, or (iii) to allow any party to create or assume any obligation on
behalf of the other for any purpose whatsoever.
b. If the performance of this Agreement or any obligations hereunder is
prevented, restricted or interfered with by reason of fire or other casualty or
accident, strikes or labor disputes, war or other violence, any law, order,
proclamation, regulation, ordinance, demand or requirement of any government
agency, or any other act or condition beyond the reasonable control of the
parties hereto, the party so affected upon giving prompt notice to the other
parties shall be excused from such performance during such prevention,
restriction or interference.
c. This Agreement contains the entire agreement between the parties hereto
with respect to the subject matter hereof and supersedes and terminates all
prior arrangements or understandings (whether written or oral) with respect
thereto. The terms of this Agreement may be amended or waived only by a written
instrument signed by each of the parties hereto. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon the parties and
their respective successors and assigns.
d. None of the parties shall assign this Agreement or any of its rights,
obligations or privileges hereunder without the prior written consent of the
other parties hereto, which consent shall not be unreasonably withheld;
provided, that Xxxxxx or Time Warner may so assign to any of its Affiliates and
any party may so assign in connection with the sale of all or substantially all
of its assets. Subject to the foregoing, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.
e. This Agreement and all acts and transactions pursuant hereto and the rights
and obligations of the parties hereto shall be governed, construed and
interpreted in accordance with the laws of the State of California without
giving effect to principles of conflicts of law.
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WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
18
f. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one
instrument.
g. The section headings used in this Agreement are used for convenience only
and are not to be considered in construing or interpreting this Agreement.
h. Any notice required or permitted by this Agreement shall be in writing and
shall be deemed sufficient upon receipt, when delivered personally or by
courier, overnight delivery service or confirmed facsimile, or forty-eight hours
after being deposited in the regular mail as certified or registered mail
(airmail if sent internationally) with postage prepaid, if such notice is
addressed to the party to be notified at such party's address as set forth
above, or as subsequently modified by written notice.
i If one or more provisions of this Agreement are held to be unenforceable
under applicable law, the parties agree to renegotiate such provision in good
faith, in order to maintain the economic position enjoyed by each party as close
as possible to that under the provision rendered unenforceable. In the event
that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (i) such provision shall be excluded from this
Agreement, (ii) the balance of this Agreement shall be interpreted as if such
provision were so excluded and (iii) the balance of this Agreement shall be
enforceable in accordance with its terms.
19
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the date first written
above.
Replay Networks, Inc.
By /s/ Xxxxxxx Xxxx
----------------------
Name: Xxxxxxx Xxxx
Title: CEO
Xxxxxx Broadcasting System, Inc.
/s/ Xxxxxx X. Xxxx
-----------------------------------
Name: Xxxxxx X. Xxxx
Title: VP/General Counsel
Time Warner Inc.
By /s/ Xxxxxxx Xxxxxxxx
------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Chairman & CEO
20
AMENDMENT NO. 1 TO REPLAY NETWORK SERVICE AGREEMENT
THIS AMENDMENT NO. 1 TO REPLAY NETWORK SERVICE AGREEMENT (the "Amendment")
is entered into as of the 10th day of February, 2000 by ReplayTV, Inc.
(formerly, Replay Networks, Inc.) ("Replay"), Xxxxxx Broadcasting System, Inc.
("Turner") and Time Warner Inc. ("Time Warner"). The capitalized terms used
herein without definition shall have the meaning assigned to such terms in the
Replay Network Service Agreement referred to below.
WITNESSETH
WHEREAS, Replay, Xxxxxx and Time Warner are parties to that certain Replay
Network Service Agreement dated July 30, 1999 (the "Agreement");
WHEREAS, Replay, Turner and Time Warner desire to amend the Agreement as
set forth herein;
NOW, THEREFORE, for and in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties hereby agree as follows:
1. Amendment to Section 16. Section 16 of the Agreement is replaced in its
-----------------------
entirety as follows:
--------------------------------------------------------------------------------
16. Data
----
a. Consistent with applicable laws, any applicable Replay privacy policy and
with Replay's agreement with its users of the RNS, Replay will collect
viewership and usage data during the Term of this Agreement, from users of the
RNS. This data will only be available in aggregate form and may be gathered via
statistical sampling. Replay will summarize this viewership information and
provide monthly viewership reports to Xxxxxx comprising the aggregate data
collected in a format to be mutually agreed upon between the parties.
b. Again, subject to applicable laws, Replay privacy policies and Replay's
agreement with its users of the RNS, Replay will also provide Xxxxxx with the
ability to conduct reasonable qualitative and/or quantitative research among RNS
users that also subscribe to personal television services, the scope of such
research being subject to approval by Replay, which approval shall not be
unreasonably withheld. For the purpose of conducting such research (and not for
the purposes of sale to third parties), upon Xxxxxx'x request, Replay will
provide Xxxxxx'x designated third party research vendor with access to RNS users
via telephone contact information. In such event, Xxxxxx agrees that no contact
information shall be provided by such third party research vendor to Xxxxxx and
all data obtained from RNS users by such third party research vendor is to be
shared and used by Xxxxxx and Replay for internal research purposes, with strict
respect to the privacy of such RNS users.
21
c. All data collected by Replay as set forth herein shall remain the
property of Replay and may be used by Xxxxxx only as provided herein. Replay
shall provide all of the information described in this Section 16 to Xxxxxx
[***].
d. The parties hereto agree that (i) Replay shall not be obligated to
provide to Xxxxxx any of the aforedescribed information to the extent that such
information is specifically identifiable as information relating to programming
that is broadcast on any network other than the Xxxxxx Networks and (ii) without
Xxxxxx'x prior approval, Replay shall not provide to any third party any of the
aforedescribed information to the extent that such information is specifically
identifiable as information relating to programming that is broadcast on any of
the Xxxxxx Networks, it being understood and agreed that this Section 16(c) is
not intended to prohibit the provision by Replay of any of the aforedescribed
information in aggregate form, such that individual programs, networks or
programmers cannot be identified.
--------------------------------------------------------------------------------
2. Change of name of Replay Networks, Inc. In January, 2000, Replay Networks,
---------------------------------------
Inc. changed its name to ReplayTV, Inc. All references to Replay Networks,
Inc. in the Agreement are hereby amended to ReplayTV, Inc.
3. Governing Law. This Amendment and all acts and transactions pursuant
-------------
hereto and the rights and obligations of the parties hereto shall be
governed by, construed and interpreted in accordance with the laws of the
State of California without giving effect to principles of conflict of law.
4. Authorization. Each party represents and warrants to each other that it has
-------------
been duly authorized to execute and deliver this document and to perform
its obligations hereunder, and the person signing on such party's behalf
has the power and authority to do so.
5. Effect of this Amendment. This Amendment is limited precisely as written
------------------------
and shall not constitute a modification of any other provision of the
Agreement. Except as specifically modified or amended by this Amendment,
the Agreement remains in full force and effect in accordance with its
terms.
6. Effective Date. This Amendment shall be deemed to be effective upon the
--------------
execution hereof by each of the parties hereto.
[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
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7. Counterparts. This Amendment may be executed in two or more counterparts,
------------
each of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their authorized representatives as of the date first above written.
ReplayTV, Inc.
By /s/ Xxxxx Xxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxx
Title: Executive Vice President, RTVS
Xxxxxx Broadcasting System, Inc.
By /s/ Xxxxxx X. Xxxx
------------------------------------
Name: Xxxxxx X. Xxxx
Title: Vice President and General Counsel
Time Warner Inc.
By /s/ Xxxxxx XxXxxxxxx
-----------------------------------
Name: Xxxxxx XxXxxxxxx
Title: Vice President
23
