AFFILIATION AGREEMENT
Exhibit
10.1
THIS
AFFILIATION AGREEMENT (this “Agreement”),
made
as of the 22nd
day of
March, 2006 (“Effective
Date”),
is by
and between The TUBE Music Network, Inc., a Florida corporation (the
“Network”),
and
Xxxxxxxx Television Group, Inc., a Maryland corporation (“Affiliate),
regarding the television programming service currently known as “The TUBE” (the
“Service”).
The
parties hereby mutually agree as follows:
1. DEFINITIONS:
In
addition to any other defined terms in this Agreement, the following terms
shall
have the following meanings when used in this Agreement:
“Acquired
Station”
means
any Broadcast Television station that is acquired and/or operated by Affiliate
after the Effective Date.
“Affiliate
Advertising Share”
has
the
meaning set forth in Exhibit D.
“Affiliate
Launch Date”
means
the earlier of (i) date on which the Service is initially transmitted by the
first Station; or (ii) March 31, 2006.
“Affiliate
Transactional Share”
has
the
meaning set forth in Exhibit D.
“Broadcast
Television”
means
traditional, free, FCC-licensed, over-the-air broadcast television.
“Costs”
means
all losses, liabilities, claims, costs, damages and expenses, including fines,
forfeitures, reasonable attorneys’ fees, disbursements and court or
administrative costs.
“Cross-Channel
Promotional Spots”
has
the
meaning set forth in Section 8(b).
“Designated
Market Area”
or
“DMA”
means
a
particular market area or classification to demarcate local television markets
as defined by Xxxxxxx Media Research, Inc. from time-to-time, or, if DMA falls
from general or standardized usage, a replacement term to demarcate local
television markets in a substantially similar manner which shall be determined
by the parties in good faith.
“Licensed
Community”
has
the
meaning set forth in Section 3(a).
“Local
Advertising”
has
the
meaning set forth in Section 8(c).
“MVPD”
means
a
multichannel video program distributor as such term is set forth in 47 C.F.R.
§76.905(d) of the rules of the Federal Communications Commission (“FCC”).
“Network”
means
The TUBE Music Network, Inc., or any affiliate or subsidiary of The TUBE Music
Network, Inc., any successor to The TUBE Music Network, Inc., any entity
resulting from a merger, acquisition or consolidation by The TUBE Music Network,
Inc. or any affiliate of The TUBE Music Network, Inc., and any entity resulting
from a corporate separation, reorganization or restructuring of The TUBE Music
Network, Inc. or any affiliate of The TUBE Music Network, Inc., or any entity
controlling, controlled by or under common control with The TUBE Music Network,
Inc. that, as to any of the foregoing, succeeds The TUBE Music Network, Inc.
as
the owner and operator of the Service. For purposes of this definition, the
term
“control”
means
the power to direct the management and policies of an entity, directly or
indirectly, whether through the ownership of voting securities, by contract
or
otherwise.
“Network’s
Advertising Revenue”
means
the gross dollar amount of collections received by Network from the sale by
Network of commercial advertising time included in the Service, less actual
agency representative fees and sales commissions (to the extent collections
do
not already reflect the deduction of such fees from gross xxxxxxxx by the
Network). For clarification, Network’s Advertising Revenue shall not include
Network’s Transactional Revenue.
“Network’s
Transactional Revenue”
means
the gross dollar amount of revenue actually received by Network (e.g.,
net of
the cost of goods and services and all fulfillment costs associated with the
sale of such goods and services) from (i) the sale of products and services
by way of direct response telephone orders from the toll-free number included
on
the Service, and (ii) e-commerce sales of products and services on
Network’s website (i.e.,
url
xxx.xxxxxxxxx.xxx or any replacement or supplemental URL), in all cases,
originating from within the Zip Codes in the DMA of the Station(s) transmitting
the Service.
“Primary
Feed”
means
the audio and video presentations of each Station’s primary one-way over-the-air
television signal (which signal may be in either standard definition or high
definition television (as such term is defined by the Advanced Television
Systems Committee) format).
“Service”
means
the television programming service provided by Network as defined in the
preamble to this Agreement.
“Station(s)”
means
a
Broadcast Television station owned and/or operated by Affiliate and licensed
by
the FCC that provides or is capable of providing the Service to the Licensed
Community that it is licensed to serve.
“TV
Households”
means
the number of television households in a given DMA as determined by Xxxxxxx
Media Research, Inc. (which, as of the date hereof, is published annually by
Xxxxxxx Media Research, Inc. as the Xxxxxxx Media Research Local Universe
Estimates (US)) or, if Xxxxxxx Media Research, Inc. ceases to publish the number
of television households in a DMA, a replacement term to determine the number
of
television households in local television markets in a substantially similar
manner which shall be determined by the parties in good faith.
“Zip
Code(s)”
means
a
specific geographic delivery area defined by the United States Postal Service,
which consists of a five (5)-digit zip code plus a four (4)-digit add-on
code.
(a) Initial
Term.
Unless
earlier terminated pursuant to the terms of this Agreement, the “Term”
of
this
Agreement shall consist of, collectively, the Initial Term and, if applicable,
up to two Renewal Terms. The “Initial
Term”
of
this
Agreement shall be for five (5) years, commencing upon the Affiliate Launch
Date.
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(b) Renewal
Terms.
If this
Agreement is not terminated earlier in accordance with the terms hereof and
Affiliate is not in default hereunder, Affiliate shall have the option to renew
this Agreement for two (2) successive terms of five (5) years each, commencing
upon the expiration of the Initial Term and the first Renewal Term respectively,
upon the terms and conditions hereof (each a “Renewal
Term”)
upon
written notice to Network no later than one hundred twenty (120) days prior
to
the expiration of the Initial Term and first Renewal Term,
respectively.
3. GRANT
OF
RIGHTS; ACQUIRED STATIONS:
(a) Network
hereby grants to Affiliate the exclusive right via Broadcast Television or
via
carriage of a Station by any MVPD serving the pertinent Licensed Community,
and
Affiliate hereby accepts such exclusive right and the obligation during the
Term
to broadcast the Service (i) over the transmission facilities of each
Station identified on Exhibit A,
which
is licensed by the FCC to serve the community for each such Station (the
“Licensed
Community”),
for
receipt by TV Households in the DMA in which the Licensed Community is located,
as such DMA is identified on Exhibit A,
and
(ii) subject to subparagraph (b) below, over the transmission facilities of
any
Acquired Station, except to the extent that, as of the date Affiliate notifies
Network in writing of the closing of the acquisition of such Acquired Station,
Network is already committed to provide the Service to another Broadcast
Television station in the same DMA as the Acquired Station. Except for delays
resulting directly from the failure of Network to provide the Receiving
Equipment pursuant to Section 5(b), Affiliate shall launch the Service on each
Station on or before the Launch Date set forth opposite each Station on
Exhibit
A.
Affiliate shall telecast the Service solely from each Station’s origination
transmitter and antenna for free over-the-air television reception.
Notwithstanding the foregoing, Affiliate shall have the right to permit, and
shall use good faith, commercially reasonable efforts to obtain, carriage of
the
Service’s signal by MVPDs in the DMA of each Station that transmits the Service,
which Service signal shall be transmitted by Affiliate together with the Primary
Feed; provided, however, that Affiliate shall not be in breach of its
obligations hereunder if, after good faith negotiations, it does not reach
agreement with any MVPD for the carriage of the Service due to unrelated issues,
including compensation to be paid to Affiliate for the right to transmit the
signal of the Station(s), and/or if Affiliate reaches agreement with such MVPD
for carriage of broadcast streams that do not include the Service. Affiliate
shall promptly notify Network of any MVPD that has agreed to retransmit the
Service in the Station’s DMA. In the event Affiliate owns and/or operates more
than one Station in any single DMA, then Affiliate, at its option, shall have
the right to determine which of its Stations in such DMA shall broadcast the
Service; it being understood that Affiliate shall have no obligation to
broadcast the Service on more than one of its Stations in any particular DMA.
(b) If,
during the Term hereof, Affiliate acquires an Acquired Station that is
transmitting the Service in the DMA in which such Acquired Station is located
at
the time of such acquisition by Affiliate, then Affiliate shall continue to
transmit the Service and, as of the effective date of such acquisition, the
Acquired Station shall become a “Station” hereunder and any existing agreement
between or among Network and any one or more third parties applicable to such
Station for the transmission of the Service shall terminate and cease to be
effective. If, during the Term hereof, Affiliate acquires an Acquired Station
in
a DMA that is not at such time under license by Network to a third party for
transmission of the Service, then Affiliate, by notifying Network within sixty
(60) days of the date of consummation of the assignment or transfer of the
FCC
license of the Acquired Station, may in its sole discretion request that Network
add such Acquired Station as a “Station” to this Agreement and shall commence
transmission of the Service within the DMA of such Acquired Station within
such
sixty (60) -day period. Upon receipt of such notice by Network, the Acquired
Station shall be added to this Agreement unless, prior to receipt of Affiliate’s
add notice, Network has committed to provide the Service to another Broadcast
Television station or MVPD in the same DMA as the Acquired Station. For purposes
of clarification, with regard to an Acquired Station in a DMA that is not at
such time under license by Network to a third party for transmission of the
Service, if Affiliate does not elect to add such Acquired Station to this
Agreement within such sixty (60) -day period, then Network shall thereafter
have
the right to license the transmission of the Service to another broadcast
television station or MVPD in such DMA, including on an exclusive
basis.
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(c) Except
as
expressly provided in Section 3(a) with respect to retransmission of the
Service by an MVPD in a Station’s DMA, Affiliate shall not have the right
(i) to subdistribute or otherwise sublicense the Service, or (ii) to
transmit or otherwise distribute the Service by any technology (other than
Broadcast Television), or on an interactive, time-delayed, “video-on-demand” or
similar basis. For purposes hereof, “video-on-demand”
means
the transmission of a television signal by means of a point-to-point
distribution system containing audiovisual programming chosen by a viewer for
reception on a viewer’s television receiver, where the scheduling of the
exhibition of the programming is not predetermined by the distributor, but
rather is at the viewer’s discretion.
(d) Network
hereby grants Affiliate during the Term a royalty-free, fully paid up,
non-transferable, non-exclusive license to use the Marks (as that term is
defined herein) in any advertising and promotional materials undertaken in
connection with Affiliate’s transmission of the Service, provided that such use
complies with the terms and conditions of Section 8(e).
(e) All
licenses, rights and interest in, to and with respect to the Service, the
elements and parts thereof, and the media of exhibition not specifically granted
herein to Affiliate shall be entirely reserved to Network and may be fully
exploited and utilized by Network without limitation. Provided that Affiliate
is
in compliance with its obligations hereunder, including its distribution
obligations, Network agrees that, during the Term, Network shall not simulcast
the Service in its entirety, or a substantial portion of the programming on
the
Service, over the Internet within the Licensed Community of any Station that
is
transmitting the Service pursuant to this Agreement. For purposes of
clarification, a promotional or marketing “stunt” simulcasting a live or special
event, or programming designed to increase or improve viewership of the Service
shall not be prohibited by this Section 3(e).
(f) Within
fifteen (15) calendar days of the execution of this Agreement, Affiliate shall
complete and deliver to Network a notice of launch (in the form attached hereto
in Exhibit B)
for
each Station (“Launch
Notice”)
and
subsequently launch the Service on each Station listed on Exhibit
A
no later
than the Launch Date set forth opposite each Station on Exhibit
A
(for
each Station, the “Launch
Date”).
In
addition, Affiliate shall promptly complete a Launch Notice for any Acquired
Station that is subsequently added to this Agreement.
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(g) This
Agreement shall be subject to any and all bona fide rights, programming,
scheduling or other restrictions or limitations contained in agreements between
Network and suppliers (provided that Network has negotiated any such
restrictions in good faith with such suppliers in arms-length
transactions).
4. CONTENT
OF THE SERVICE:
(a) Content.
Throughout the Term, the Service shall be a professionally produced,
advertiser-supported television service with programming generally consisting
of
music videos, related interstitial programming, promotions and commercial
advertising. Subject to the preceding sentence, the selection, scheduling,
renewal, substitution and withdrawal of any content on the Service shall at
all
times remain within Network’s sole discretion and control.
(b) Local
Programming.
Subject
to Network’s policies and procedures, Affiliate, at its own cost, shall be
provided with up to thirty (30) minutes per week on the Service for the
insertion of locally produced programming that is complimentary to the Service
and designed specifically to appeal to TV Households in the Licensed Community
of the Station broadcasting such programming (“Local
Programming”).
For
purposes of clarification, Local Programming may consist of programming produced
or acquired by Affiliate for broadcast on some or all of the Stations. Affiliate
acknowledges and agrees that Local Programming shall be broadcast in one block
of time on the same day and at the same time each week, such day and time to
be
selected by Network, in consultation with Affiliate, it being agreed and
acknowledged, however, that such time period will be between 12:00 p.m. and
midnight prevailing local time. Local Programming shall not consist of or
contain (i) programming that has received, or had it been rated would have
received, an MPAA “X” or “NC-17” rating, or that would otherwise be considered
obscene, indecent, profane, or excessively violent; or programming that would
be
patently offensive as measured by the community standards of the Licensed
Community in which is displayed; (ii) pay-per-view movies or events;
(iii) blackouts; (iv) surcharges; (v) promotion or marketing of
“800,” “888,” “900,” or “976” telephone services, or other similar services that
xxxx a caller for placing or confirming the call (other than for the telephone
company’s cost of the call); or (vi) infomercials, home shopping, direct on air
sales programming or advertising; provided, however, such prohibition is not
intended to limit sales of products and services directly related to the Network
(i.e.,
sales
of Network merchandise). Affiliate shall be solely responsible for the insertion
on a timely basis of the Local Programming into the signal of the Service at
the
Stations transmitting the Service. The production quality of the Local
Programming shall be at least comparable to the production quality of the
Service transmitted by Network.
(c) Preemption.
Notwithstanding anything herein to the contrary, Affiliate shall retain the
right to elect not to transmit any programming on the Service over the broadcast
facilities of a Station if (i) the transmission of such programming would cause
such Station to be in default of its contractual obligations with the primary
television network with which such Station is affiliated with regard to its
Primary Feed (e.g.,
ABC,
CBS, NBC, Xxx, XX, CW and UPN) (individually and collectively, “Primary
Network”),
(ii)
Affiliate reasonably believes in good faith that the transmission of such
programming is contrary to applicable rules and regulations of the FCC and
that
such transmission would result in a penalty or forfeiture being imposed by
the
FCC on Affiliate or such Station (subsection (ii) hereof, an “FCC
Preemption”),
or
(iii) as a result of an unexpected failure of equipment used by such
Station in the transmission of its Primary Feed, the equipment that normally
would be used by such Station to transmit the Service must be utilized
temporarily in connection with the transmission of its Primary Feed, provided
that in each case (A) Affiliate notifies Network either before or, if prior
notification is impossible, as soon as reasonably practicable after Affiliate
exercises such right, (B) Affiliate does not exercise such right in a
manner intended to frustrate its obligations or Network’s rights hereunder,
(C) such preemption is limited to the greatest extent possible, (D)
Affiliate does not exercise such right arbitrarily, or as a consequence of
a
dispute with Network, and (E) Affiliate uses commercially reasonable
efforts to remedy the cause of such preemption as soon as commercially
practicable.
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(d) Children’s
Programming.
(i) Network
will provide as part of the Service an amount of core educational and
informational children’s programming as defined by FCC rules, including 47
C.F.R. §73.671, as the same may be amended from time to time (“Core
Children’s Programming”)
sufficient to satisfy the minimum Core Children’s Programming hours required to
meet the FCC’s benchmark for such programming incurred by Affiliate as a result
of the broadcast by the Stations of the Service on each such Station’s free,
over-the-air, multicast feed, if and solely to the extent required by applicable
FCC rules and regulations. Provided Network has been granted the rights to
broadcast the Core Children’s Programming on a Station’s Primary Feed by all
pertinent programming providers and Network may exercise such rights at no
additional cost or expense to Network, Affiliate may simulcast or rebroadcast
the Core Children’s Programming on the pertinent Station’s Primary Feed. In
addition, Affiliate agrees to notify Network in the event Affiliate elects
to
meet the Core Children’s Programming requirements resulting from its Stations’
free, over-the-air multicast feeds on a single free, over-the-air multicast
feed
in which case Network’s obligations shall thereafter cease.
(ii) Network
represents and warrants that if it supplies to Affiliate any programming
produced primarily for children 12 years old or younger, such programming shall
comply with the FCC’s commercial limits, including 47 C.F.R. §73.670, as the
same may be amended from time to time, including limits on the amount of
commercial matter and the prohibition on certain commercial matter in both
the
program material and commercial material, provided that each Station passes
through such programming without alteration.
(iii) At
the
end of each calendar quarter, Network will provide to Affiliate a certification
indicating the amount of Core Children’s Programming made available to Affiliate
during the quarter and certifying that any programming produced primarily for
children 12 years old or younger, as provided by Network, complied with the
FCC’s rules on commercial limits.
(e) Advertising.
Except
for the Local Advertising, Network shall have the exclusive right and authority
to sell all of the advertising on the Service and shall share a portion of
Network’s Advertising Revenue generated from such sales with Affiliate in
accordance with the terms of this Agreement.
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(f) Program
Service Information.
Network
must provide to a reputable program information services entity a program
schedule for the Service.
(g) Closed
Captioning.
Network
shall provide closed captioning for the Service if and solely to the extent
required by applicable FCC rules and regulations.
5. DELIVERY
AND DISTRIBUTION OF THE SERVICE:
(a) During
the Term, Network, at its expense, shall deliver a 24 hours per day, 7 days
per
week signal of the Service by transmitting it via AMC-3 or another domestic
satellite commonly used for transmission of television programming. The signal
of the Service, including any program-related data and enhancements, shall
be
contained in no more than a 2.0 megabits-per-second (“mbps”)
stream
of data within a six (6)-megahertz band and shall consist of a resolution of
no
less than 480i to be considered a “good quality signal” in accordance with
industry standards.
(b) Exhibit C
sets
forth the specific equipment necessary for each Station to receive the signal
of
the Service (the “Receiving
Equipment”).
Network shall furnish, at its expense, the Receiving Equipment to each Station
that transmits the Service, provided that the Receiving Equipment for all of
the
Stations initially listed on Exhibit
A
shall
not exceed fifteen thousand dollars ($15,000.00) per individual Station (the
“Station
Reimbursement Cap”)
or two
hundred ninety thousand dollars ($290,000), in the aggregate, for all Stations.
In the event that the cost of the Receiving Equipment for any individual Station
exceeds, in the aggregate, the Station Reimbursement Cap, Network may, in its
sole discretion, elect to pay all costs to purchase such equipment. If Network
chooses not to purchase such equipment, then Affiliate may elect to pay all
costs exceeding the Station Reimbursement Cap for such Station, in which case
Network shall remain responsible for the cost of such equipment up to the
Station Reimbursement Cap. If Network chooses not to purchase such equipment
and
Affiliate elects not to pay all costs exceeding the Station Reimbursement Cap
for such Station, the pertinent Station shall be deleted from this Agreement
and
Network shall thereafter have the right to license the transmission of the
Service to another broadcast television station or MVPD in such DMA, including
on an exclusive basis. Affiliate, at its expense, shall furnish all other
equipment and facilities necessary for the receipt of the satellite transmission
of the signal of the Service and the delivery of such signal to those TV
Households in each Station’s DMA which are capable of receiving such Station’s
broadcast signal. Affiliate shall cause each of the Stations to maintain the
Receiving Equipment in good working condition, at Network’s sole cost, as
necessary and appropriate to maintain the ability of the Receiving Equipment
to
receive the signal of the Service without interruption during the
Term.
(c) Subject
to paragraph (d) below, each Station transmitting the Service shall transmit
a
principal video and audio signal of the Service of a technical quality at least
comparable to the lower of the quality of the Primary Feed or the quality of
any
other multicast feed transmitted by such Station, but in no event shall such
Station be required to deliver a signal of a technical quality higher than
the
technical quality of the video and audio signal of the Service as delivered
by
Network hereunder.
(d) Each
Station shall provide Network with 2.0 mbps to transmit the Service on a
full-time basis 24 hours per day, 7 days per week; provided that, each Station
shall have the right to remodulate and/or reduce the bit rate of the signal
of
the Service as long as such technological manipulation does not degrade or
adversely interfere with the audio or video Signal of the Service in a manner
perceptible by the average Service viewer and/or to the extent reasonably
necessary to comply with contractual obligations with the pertinent Primary
Network; provided that in each case (i) Affiliate notifies Network either
before or, if prior notification is impossible, as soon as reasonably
practicable after Affiliate exercises such right (provided that failure to
provide such notice shall not be a breach of this Agreement),
(ii) Affiliate does not exercise such right in a manner intended to
frustrate its obligations or Network’s rights hereunder, (iii) the exercise of
such right is limited to the greatest extent possible, (iv) Affiliate does
not
exercise such right arbitrarily, or as a consequence of a dispute with Network,
and (v) Affiliate uses commercially reasonable efforts to restore the signal
to
its original state as soon as commercially practicable. Except for a Station’s
Local Advertising Time and Local Programming, each Station shall transmit the
Service without alteration, editing or delay. Except as expressly provided
herein, at no time during the Term may Affiliate cease to transmit the Service
as provided herein.
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(e) Network
retains and reserves any and all rights in and to all signal distribution
capacity contained within the bandwidth of the signal of the Service, including
the program and system information protocol, audio subcarriers and all other
distribution capacity contained within the bandwidth of the signal of the
Service between Network’s uplink facilities and each Station’s downlink
facility(ies). In addition, Network shall have the right to use, and Affiliate
shall transmit, those portions of the Service signal that are directly related
to and enhance the Service programming.
(f) Affiliate
shall use reasonable efforts to require any MVPD in the DMA that is transmitting
the signal of the Service to make the Service available on such MVPD’s most
highly penetrated level of digital service.
(g) Except
as
otherwise permitted herein, Affiliate shall not itself, and shall not authorize
others to, tape or otherwise reproduce any part of the Service without Network’s
prior written consent. Affiliate and each Station shall take the same security
measures, if any, to prevent the unauthorized or otherwise unlawful copying
or
taping of the Service (or any portion thereof) by others as it takes to protect
any other multicast feed transmitted by such Station. The foregoing shall not
be
deemed to prohibit home taping by anyone viewing the Service for private,
non-commercial use; provided, however, that Affiliate shall not promote home
taping of the Service.
(h) Each
Station that transmits the Service may superimpose over the programming on
the
Service, at the top of the hour, a transparent station identification “bug” on
the viewing screen of the Service identifying the call letters and city of
license of such Station in accordance with applicable federal law; provided
that
the size, form and placement of such “bug” shall be mutually agreed upon by
Network and Affiliate prior to such superimposition, and such “bug” does not
materially interfere with any graphics or other data on the
Service.
(i) Notwithstanding
anything to the contrary contained herein, subject to material compliance with
all rules and regulations of the FCC and the licenses and permits, including
any
special temporary authority, issued by the FCC concerning the pertinent Station,
Affiliate shall determine, in its sole discretion, the power level at which
each
Station’s digital signal will be broadcast.
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6. NO
FEES; REVENUE SHARE:
(a) Neither
Affiliate nor any Station shall pay any fees to Network for any rights granted
under this Agreement.
(b) In
consideration of the terms and conditions set forth herein, Network shall pay
Affiliate (i) the Affiliate Advertising Share, and (ii) the Affiliate
Transactional Share, each as provided in Exhibit D.
7. REPORTS;
AUDITS:
(a) No
later
than thirty (30) days following each calendar quarter during the Term, Affiliate
shall provide Network with (i) a list of all MVPDs then retransmitting the
Service in the DMA of each Station; and (ii) if available from each such MVPD,
a
report supplied by each such MVPD stating the number of cable television
households that receive the Service from such MVPD in the DMA of a Station
on
average over such quarter or, if not available, Affiliate’s best estimate of
such information (together, the “Reports”).
(b) Network
shall submit to Affiliate, within fifteen (15) days of the receipt by Network
of
the Reports, a statement reporting for such calendar quarter the following
information: (i) Network’s Advertising Revenue, (ii) the Affiliate
Advertising Share, (iii) Network’s Transactional Revenue, and (iv) the
Affiliate Transactional Share.
(c) Affiliate
shall submit to Network, within forty-five (45) days of the end of each calendar
quarter, a report setting forth the date and time each Cross-Channel Promotional
Spot aired on the Primary Feed; provided, that Affiliate shall be provided
with
notice and have an opportunity to cure any breach of this
obligation.
(d) Audit.
(i) During
the Term and for one (1) year thereafter, Network shall maintain accurate and
complete books and records in accordance with generally accepted accounting
principles and practices that shall contain sufficient information to enable
an
auditor to verify, for the period under audit, Network’s Advertising Revenue,
Network’s Transactional Revenue, the Affiliate Advertising Share, the Affiliate
Transactional Share and the accuracy of the amounts paid by Network to Affiliate
hereunder (collectively, the “Revenue
Share Records”).
Upon
not less than thirty (30) days’ prior written notice and not more than once in
any calendar year, Affiliate shall have the right, at its sole cost and expense,
during the Term and for one (1) year thereafter, to examine during normal
business hours the books and records of Network for up to the prior calendar
year and the then-current calendar year solely to the extent necessary to verify
the Revenue Share Records.
(ii) Any
audit
conducted pursuant to this Section 7(d) shall be conducted by an
independent public accounting firm or an independent auditing firm designated
by
Affiliate which shall not be the accounting or auditing firm retained by
Affiliate to complete its company wide audit (“Auditor”).
Any
such audit shall be subject to the confidentiality provisions of
Section 12, and the Auditor shall execute, in advance, a confidentiality
agreement that obligates it to maintain the confidentiality of the terms of
this
Agreement and the information acquired during the course of the
audit.
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(iii) If,
as a
result of an audit conducted pursuant to this Section 7(d), the Auditor
determines that Network has fully complied with its obligations pertaining
to
the Revenue Share Records provided by Network hereunder, then the Auditor shall
promptly provide written notice to the parties stating only that Network has
so
complied. If, as a result of an audit, the Auditor determines that Network
has
failed to comply with its obligations pertaining to the Revenue Share Records,
and which has caused an underpayment to Affiliate of greater than two percent
(2%) of the aggregate monies otherwise due Affiliate hereunder, then the Auditor
shall promptly commence good faith discussions with Network regarding such
non-compliance. If, after such good faith discussions, the Auditor concludes
that Network has in fact complied with its obligations hereunder, then the
Auditor shall promptly provide written notice to the parties stating only that
Network has complied. In the event that after such good faith discussions,
the
Auditor concludes that Network has not complied with its obligations pertaining
to the Revenue Share Records provided by Network hereunder, then, Network shall
have the option, at Network’s sole election (to be exercised by giving written
notice of its election to Affiliate within ten (10) business days following
the
Auditor’s conclusion), to either (A) comply with its obligations hereunder
or (B) authorize the Auditor to provide to Affiliate only that limited
information acquired during the course of the audit as is necessary for
Affiliate to pursue its claim or claims related to Network’s non-compliance with
its obligations pertaining to the Revenue Share Records provided by Network
hereunder. Under no circumstances, other than the limited circumstance set
forth
in clause (B) above, shall any information acquired during the course of the
audit be disclosed to Affiliate by the Auditor. Both Network and Affiliate
shall
use good faith efforts to resolve any claim or claims arising from an audit
conducted pursuant to this Section 7(d). Nothing herein shall prevent
Affiliate from exercising rights, if any, to receive full and complete financial
information regarding the Network in the event that Affiliate has a seat on
Network’s Board of Directors or is an equity holder of The Tube Media Corp. and
such rights are granted to other members of Network’s Board of Directors and/or
equity holders in The Tube Media Corp.
(iv) Any
claim
by Affiliate with respect to amounts owing by Network must be made within the
earlier of three (3) months after the Auditor provides Affiliate the results
of
the audit, or twelve (12) months after the close of the earliest month that
is
the subject of a claim, or Affiliate will be deemed to have waived its right,
whether known or unknown, to collect any shortfalls from Network for the
period(s) audited.
-
10 -
8. PROMOTION;
AFFILIATE ADVERTISING:
(a) Affiliate
shall use commercially reasonable efforts to have the Service listed in local
print and on-screen guides. Additionally, Affiliate will provide a link to
Network’s website (i.e.,
url
xxx.xxxxxxxxx.xxx or any replacement or supplemental URL) on the websites of
each of the Stations.
(b) Each
Station shall broadcast at least ten (10) thirty-second (0:30) cross-channel
promotions per week on the Primary Feed promoting Network and the Service
(“Cross-Channel
Promotional Spots”).
Network shall have responsibility to produce and deliver the Cross-Channel
Promotional Spots to each Station at least two (2) weeks prior to the air date
in a useable format and broadcast-ready state. The Cross-Channel Promotional
Spots shall be broadcast by each Station in a run-of-schedule
rotation.
(c) Network
shall provide to each Station that transmits the Service for local advertising
sales or promotion one (1) minute of commercial announcement time per hour
(“Local
Advertising”).
Affiliate shall have the right to retain for itself all the proceeds derived
from the sale of Local Advertising. Affiliate’s and each Station’s use of Local
Advertising shall be subject to Network’s then-current standard advertising
guidelines, provided that such guidelines are reasonably communicated to
Affiliate in advance of the sale by Affiliate or a Station of Local Advertising.
Without limiting the foregoing, neither Affiliate nor any Station shall use
the
Local Advertising for advertising or promotion (i) for any direct competitor
of
Network, or (ii) for any product or services competitive with any advertiser
that has been granted exclusivity by Network (“Exclusive
Advertiser”);
provided, however, that with respect to Network’s right to grant exclusivities
to Exclusive Advertisers, such exclusivities shall be limited at any one (1)
time to no more than two (2) exclusive advertising categories (e.g.,
soft
drinks, beer/malt beverages, credit cards, athletic shoes) and shall apply
only
during time periods during which advertisements for such Exclusive Advertisers
are being broadcast. Network’s initial notification to Affiliate of exclusive
advertising categories shall be effective until Network gives Affiliate a later
notice that changes such categories; provided, however, that Network may change
such exclusive advertising categories no more frequently than once every
calendar year by providing Affiliate with at least sixty (60) days’ notice of
such change. In the event Network, in its sole but reasonable discretion, deems
any Local Advertising to be with a direct competitor of Network or for a product
or service that is competitive with an Exclusive Advertiser, Network shall
notify Affiliate of same, and Affiliate shall immediately cease such advertising
or promotion. Affiliate shall be solely responsible for all Local Advertising
and all liabilities associated therewith, including insertion, trafficking,
billing and collection activities relating to the Local Advertising and for
the
content of the material inserted into the Local Advertising. Network shall
properly “tone-switch,” using industry-recognized equipment, via audible or
inaudible signals, all commercial announcement minutes to enable each Station
to
insert its Local Advertising.
(d) Network,
from time to time, may undertake marketing tests and surveys, rating polls
and
other research in connection with the Service.
(e) Affiliate
acknowledges that the name and xxxx “The
TUBE”
(and
the names of certain programs that appear in the Service and any subsequently
selected names or marks for the Service and accompanying websites)
(collectively, the “Marks”)
are
the exclusive property of Network and its suppliers and that Affiliate has
not
and will not acquire any proprietary rights therein by reason of this Agreement.
Affiliate shall not directly or indirectly question, attack, contest or in
any
other manner impugn the validity of the Marks or Network’s rights in and to the
Marks. Affiliate shall at no time adopt or use, without Network’s prior written
consent, any variation of the Marks or any word or xxxx likely to be similar
to
or confused with the Marks. Any and all goodwill arising from Affiliate’s use of
the Marks shall inure solely to the benefit of Network. Affiliate shall submit
to Network for prior written approval any of Affiliate’s promotional materials
mentioning or using the Marks and publicity about Network or the products or
programming included in the Service (other than materials provided by Network
to
Affiliate, if any). Uses of the Marks in routine promotional materials such
as
program guides and program listings, once approved by Network, shall be deemed
approved for all subsequent uses unless Network specifically notifies Affiliate
to the contrary.
-
11 -
9. WARRANTIES
AND INDEMNITIES:
(a) Network
and Affiliate each represents and warrants to the other that (i) it is duly
organized, validly existing and in good standing under the laws of the state
under which it is organized; (ii) it has the power and authority to enter
into this Agreement and to perform fully its obligations hereunder;
(iii) except for contractual obligations with the Primary Network, if any,
it is under no contractual or other legal obligation that shall in any way
interfere with its full, prompt and complete performance hereunder;
(iv) the individual executing this Agreement on its behalf has the
authority to do so; and (v) the obligations created by this Agreement,
insofar as they purport to be binding on it, constitute legal, valid and binding
obligations enforceable in accordance with their terms.
(b) Network
further represents and warrants to Affiliate that Network holds or will hold
all
necessary rights and licenses (including music performance rights) in and to
the
materials transmitted to Affiliate as part of the Service and such rights and
licenses are sufficient to permit the transmission of the Service in the DMA
of
each of the Stations without infringing the copyright or other intellectual
property rights of any person, provided that Affiliate and each Station have
transmitted the Service in accordance with the rights granted to Affiliate
pursuant to this Agreement.
(c) Affiliate
further represents, warrants and covenants to Network (i) that it has the power
and authority to cause each Station, including any Acquired Station, to perform
fully its obligations hereunder; and (ii) that it holds and will continue to
hold all necessary rights and licenses (including music performance rights)
in
and to the Local Programming and Local Advertising and such rights and licenses
are sufficient to permit the transmission of the Local Programming and Local
Advertising in the DMA of each of the Stations without infringing the copyright
or other intellectual property rights of any person
(d) Affiliate
and Network shall each indemnify, defend and forever hold harmless the other,
the other’s affiliated companies and each of the other’s (and the other’s
affiliated companies’) respective present and former officers, shareholders,
directors, consultants, employees, partners and agents (“Network
Indemnitees”
and
“Affiliate
Indemnitees,”
respectively), against and from any and all Costs incurred as a result of
third-party claims arising out of any breach of any term of this Agreement
or
any warranty, covenant or representation contained herein.
-
12 -
(e) Without
limiting Section 9(d), Network shall indemnify, defend and forever hold
harmless the Affiliate Indemnitees from and against any and all Costs arising
directly or indirectly out of third-party claims that (i) the transmission
by
Affiliate of the Service in the DMA of any of the Stations infringes the
copyright or other intellectual property rights of any person but only if
Affiliate and each Station have transmitted the Service in accordance with
the
rights granted to Affiliate pursuant to this Agreement; and (ii) the content
of
the Service or any other promotional material provided by Network to Affiliate
(including the Cross-Channel Promotional Spots), as furnished by Network and
transmitted by Affiliate and each Station in accordance with this Agreement
(i.e.,
not
based upon any deletions, modifications or additions by Affiliate or any
Station), is indecent, obscene, libelous, or slanderous, or violates any right
of privacy or publicity, copyright, trademark or any other proprietary,
literary, or dramatic right of any person. Affiliate shall, to like extent,
indemnify, defend and forever hold harmless the Network Indemnitees for Costs
arising directly or indirectly out of third-party claims (A) that the operation
of one or more of the Stations or manner of transmission of the Service
infringes on the patent or other intellectual property rights of another person;
(B) relating to any deletion or addition of content, programming or other
material by Affiliate to the Service, including the Local Advertising and Local
Programming; and (C) relating to any contest, sweepstakes or other promotion
conducted by Affiliate in connection with Network and/or the
Service.
(f) A
party
claiming indemnity under this Section 9 must give the indemnifying party prompt
notice of any claim, and the indemnifying party shall have the right to assume
the full defense of any claims to which its indemnity applies. The indemnified
party, at the indemnifying party’s cost, will cooperate fully with the
indemnifying party in such defense of any such claim. If the indemnified party
compromises or settles any such claim without the prior written consent of
the
indemnifying party, then the indemnifying party shall be released from its
indemnity obligations with respect to the claim so settled.
(g) The
representations, warranties and indemnities contained in this Section 9
shall continue throughout the Term and the indemnities shall survive the
termination of this Agreement, regardless of the reason for such
termination.
(h) Network
has procured, and shall maintain during the Term, at its sole
expense, Commercial General Liability insurance at liability limits of not
less than $1,000,000 each occurrence and $2,000,000 in the aggregate, and an
umbrella insurance policy at liability limits of not less than $5,000,000 in
the
aggregate. Additionally, Network will procure on or before the Affiliate Launch
Date, and shall maintain during the Term, at its sole expense, Errors and
Omissions insurance that covers Network’s media activities at a liability limit
of $1,000,000 in any one (1) policy period.
10. EARLY
TERMINATION RIGHTS:
(a) Affiliate
shall have the option to terminate this Agreement as of March 31, 2007, with
no
liability associated therefor, upon written notice to Network no later than
December 31, 2006; provided that if Affiliate elects to terminate this Agreement
pursuant to this Section 10(a), then Affiliate’s exclusivity with regard to the
distribution of the Service shall terminate on February 1, 2007 and Affiliate
shall, on or before April 30, 2007, return to Network all Receiving Equipment
paid for by Network pursuant to Section 5(b) herein.
-
13 -
(b) Network
may, by providing Affiliate with thirty (30) days’ prior notice, terminate this
Agreement if Affiliate is in material breach of this Agreement, provided that
Affiliate shall have thirty (30) days from Network’s notice of such breach to
cure such breach; provided further, that if Affiliate is diligently pursuing
a
cure of such breach and such breach cannot reasonably be cured within a thirty
(30)-day cure period, then, provided Affiliate continues to diligently pursue
a
cure, the cure period shall automatically be extended for an additional sixty
(60) days; provided, however, if such breach is confined to a single breach
by a
Station or two (2) Stations during the Term, then Network shall have the right
to terminate this Agreement only as to such Station or Stations and if such
breach occurs in connection with three (3) or more Stations and/or a Station
breaches the Agreement on two (2) or more occasions, in each case at any time
during the Term, regardless of whether any such breaches occur simultaneously
(i.e.,
each
breach is counted separately regardless of when such breach occurs), then
Network, at its option, shall have the right to terminate this Agreement in
its
entirety or only as to such breaching Station or Stations. Network retains
the
right at all times during the Term to discontinue its distribution of the
Service in its entirety and to terminate this Agreement on at least ninety
(90)
days’ prior notice without any liability therefor to Affiliate. In the event
that a Station initially listed on Exhibit
A
does not
launch the Service by the Launch Date as required by Section 3(f), Network
shall
have the right to terminate this Agreement only as to such Station, but if
three
(3) or more Stations initially listed on Exhibit
A
do not
launch the Service by the pertinent Launch Date for each such Station as
required by Section 3(f), Network, at its option, shall have the right to
terminate this Agreement in its entirety or only as to such Station or Stations,
subject in each case to the thirty (30) day right to cure set forth above.
In
addition, in the event that any Station, for any reason other than as a result
of an FCC Preemption, preempts more than (i) two (2) consecutive hours of
Service programming, (ii) more than four (4) hours of Service programming in
the
aggregate in any consecutive sixty (60)-day period, and/or (iii) more than
ten
(10) hours of
Service programming in the aggregate in any consecutive twelve (12)-month
period, Network, at its option, shall have the right to terminate this Agreement
only as to such Station, but if three (3) or more Stations preempt programming
in amounts described in (i), (ii) or (iii) above and/or a Station preempts
programming in amounts described in (i), (ii) or (iii) above on three (3) or
more occasions, in each case at any time during the Term, regardless of whether
such preemptions are simultaneous among the Stations (i.e.,
each
preemption is counted separately regardless of when such preemption occurs),
Network, at its option, shall have the right to terminate this Agreement in
its
entirety or only as to such Stations. If contractual obligations with the
Primary Network interfere in any way with Affiliate’s full, prompt and complete
performance hereunder (including Affiliate’s exercise of its right to remodulate
and/or reduce the bit rate of the signal of the Service pursuant to Section
5(d)
if such technological manipulation degrades or adversely interferes with the
audio or video Signal of the Service in a manner perceptible by the average
Service viewer), Network, at its option, shall have the right to terminate
this
Agreement only as to any affected Station or Stations and if such interference
occurs in connection with three (3) or more Stations at any time during the
Term, regardless of whether any such interference occurs simultaneously
(i.e.,
each
interference event is counted separately regardless of when such interference
occurs), then Network, at its option, shall have the right to terminate this
Agreement in its entirety or only as to such affected Station or Stations.
In
the event that Network terminates this Agreement as to a particular Station
or
several Stations, or in its entirety pursuant to this Section 10(b), Affiliate
shall, within thirty (30) days of termination, return to Network all Receiving
Equipment related to such Station(s) paid for by Network pursuant to Section
5(b) herein.
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14 -
(c) In
addition to Affiliate’s other rights to terminate this Agreement, Affiliate may,
by providing Network with thirty (30) days’ prior notice, terminate this
Agreement if Network is in material breach of this Agreement, provided that
Network shall have thirty (30) days from Affiliate’s notice of such breach to
cure such breach, provided further, that if Network is diligently pursuing
a
cure of such breach and such breach cannot reasonably be cured within a thirty
(30)-day cure period, then the cure period shall automatically be extended
for
an additional sixty (60) days. In addition, if Network terminates this Agreement
as to three (3) or more Stations during the Term pursuant to its rights under
Section 10(b), then, upon at least ninety (90) days’ prior written notice,
Affiliate shall have the right to terminate this Agreement in its
entirety.
11. NOTICES:
Any
notice or report given under this Agreement shall be in writing, shall be sent
postage prepaid by certified mail, return receipt requested, or by hand
delivery, or by Federal Express or similar overnight delivery service or by
facsimile transmission, to the other party, at the following address (unless
either party at any time or times designates another address for itself by
notifying the other party pursuant to the provisions of this Section 11, in
which case all notices to such party thereafter shall be given at its most
recently so designated address):
To
Network:
|
The
TUBE Music Network, Inc.
0000
Xxxx Xxxxxxx Xxxxx Xxxx, Xxxxx 000
Xx.
Xxxxxxxxxx, Xxxxxxx 00000
Attn:
Xxxx X. Xxxxxx, CFO
Facsimile
Number: (000) 000-0000
cc:
Xxx Xxxxxxx, President and CEO
Facsimile
Number: (000) 000-0000
|
To
Affiliate:
|
Xxxxxxxx
Television Group, Inc.
00000
Xxxxxx Xxx Xxxx
Xxxx
Xxxxxx, Xxxxxxxx 00000
Attn:
Xxxxx X. Xxxxx, President and CEO
cc:
Xxxxx X. Xxxxx, Vice President and General Counsel
Facsimile
Number: (000) 000-0000
|
Notice
or
report given by hand delivery shall be deemed received on delivery. Notice
or
report given by mail shall be deemed received on the earlier to occur of actual
receipt or on the fifth day following mailing if sent in accordance with the
notice requirements of this Section 11. Notice or report given by Federal
Express or similar overnight delivery service shall be deemed received on the
next business day following delivery of the notice or report to such service
with instructions for overnight delivery. Notice or report given by facsimile
transmission shall be deemed received on the day of transmission (with
electronic confirmation) if a business day, or on the next business day after
the day of transmission (with electronic confirmation) if not transmitted on
a
business day.
-
15 -
Notwithstanding
the foregoing, Affiliate may provide the completed Launch Notice by means of
electronic mail (“e-mail”).
Each
e-mail notice shall be sent by Affiliate utilizing “confirmation of delivery”
tracking to the satellite coordinator at xxxxxxxxxx_0000@xxxxx.xxx
or any
successor email address designated by Network in accordance with the provisions
of this Section 11 from time-to-time, and if any e-mail notice is returned
as undeliverable, such notice shall be supplemented with notice by any other
means permissible under this Agreement.
12. CONFIDENTIALITY:
Affiliate,
Network, WNUV Licensee, Inc. and Bay Television, Inc. shall not disclose
(whether orally or in writing, or by press release or otherwise) to any third
party (other than their respective officers, directors and employees, in their
capacity as such, and their respective auditors, consultants, financial
advisors, lenders, potential investors and attorneys; provided, however, that
the disclosing party agrees to be responsible for any breach of the provisions
of this Section 12 by any of such parties and Affiliate agrees to be
responsible for any breach of the provisions of this Section 12 by WNUV
Licensee, Inc. and Bay Television, Inc.) any information with respect to the
terms and provisions of this Agreement (other than the existence and Term hereof
or the fact that Affiliate has received an equity position in Network) except:
(a) to the Auditor as provided in Section 7(d); (b) as required by
applicable law; (c) in accordance with the regulations of any securities
exchange; (d) in order to enforce its rights pursuant to this Agreement; or
(e) if mutually agreed by Affiliate and Network, in advance of such
disclosure, in writing. This Section 12 shall survive the termination of
this Agreement. The parties agree to issue a mutually agreeable press release
concerning this Agreement immediately upon execution of this
Agreement.
13. MISCELLANEOUS:
(a) Assignment;
Binding Effect; Reorganization.
This
Agreement shall be binding on the respective transferees and successors of
the
parties hereto, except that neither this Agreement nor either party’s rights or
obligations hereunder shall be assigned or transferred by either party without
the prior written consent of the other party, which consent shall not be
unreasonably withheld. Affiliate agrees that, upon Network’s request, Affiliate
shall procure and deliver to Network, in form and substance satisfactory to
Network, the agreement of any proposed assignee or transferee of the FCC license
of one or more of the Stations that, upon consummation of the assignment or
transfer of control of the FCC license for such Station(s), such assignee or
transferee shall assume and perform all obligations otherwise required of
Affiliate with regard to such Station(s) under this Agreement in their entirety
without limitation of any kind.
(b) Entire
Agreement; Amendments; Waivers; Cumulative Remedies.
This
Agreement, including the Exhibits attached hereto and the letter from Network
and The Tube Media Corp. to Affiliate of even date herewith, contains the entire
understanding of the parties hereto and supersedes and abrogates all
contemporaneous and prior understandings of the parties, whether written or
oral, relating to the subject matter hereof. This Agreement may not be modified
except in a writing executed by both parties hereto. Any waiver of any provision
of this Agreement must be in writing and signed by the party whose rights are
being waived. No waiver of any breach of any provision hereof shall be or be
deemed to be a waiver of any preceding or subsequent breach of the same or
any
other provision of this Agreement. The failure of Affiliate or Network to
enforce or seek enforcement of the terms of this Agreement following any breach
shall not be construed as a waiver of such breach. All remedies, whether at
law,
in equity or pursuant to this Agreement shall be cumulative.
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16 -
(c) Governing
Law.
The
obligations of Affiliate and Network under this Agreement are subject to all
applicable federal, state and local laws, rules and regulations, and this
Agreement and all matters or issues collateral thereto shall be governed by
the
laws of the State of New York applicable to contracts to be entirely performed
therein. In any action or proceeding hereunder, service of process upon a party
may be accomplished by sending such process in the manner specified herein
for
the giving of notice to such party. In case of any controversy or claim arising
out of or related to this Agreement, the parties agree to meet to attempt to
resolve such dispute in good faith.
(d) Relationship.
Neither
party shall be, or hold itself out as, the agent of the other or as joint
venturers under this Agreement. Nothing contained herein shall be deemed to
create, and the parties do not intend to create, any partnership, association,
joint venture, fiduciary or agency relationship between Affiliate and Network,
and neither party is authorized to or shall act toward third parties or the
public in any manner which would indicate any such relationship with the
other.
(e) Force
Majeure.
Neither
Affiliate nor Network shall have any rights against the other party hereto
for
the non-operation of facilities or the non-furnishing of the Service if such
non-operation or non-furnishing is due to an act of God; inevitable accident;
fire; weather; lockout; strike or other labor dispute; riot or civil commotion;
act of government or governmental instrumentality (whether federal, state or
local); failure of performance by a common or private carrier; material failure
in whole or in part of technical facilities which are material to the
transmission of the Service; or other cause beyond either party’s reasonable
control.
(f) Severability.
In the
event of any order or decree of, or any other action or determination by, an
administrative agency or court of competent jurisdiction, including any material
change in or clarification of FCC rules, policies or precedent that would cause
one or more provisions of this Agreement to be invalid or unenforceable, in
whole or in part, or that would violate applicable law in any respect, such
invalidity, unenforceability or violation shall not affect any other provision
of this Agreement, and this Agreement shall be construed as though such invalid
and/or unenforceable provision(s) or provision(s) that violate applicable law
had never been contained herein. Notwithstanding the foregoing, if such deletion
constitutes a substantial deviation from the general intent and purpose of
the
parties hereto, then Network and Affiliate shall negotiate in good faith to
modify this Agreement to the extent necessary to render it valid, legal and
enforceable while preserving the original intent of the parties as closely
as
possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest
extent possible.
(g) No
Inference Against Author.
Network
and Affiliate each acknowledge that this Agreement was fully negotiated by
the
parties and, therefore, no provision of this Agreement shall be interpreted
against any party because such party or its legal representative drafted such
provision.
-
17 -
(h) No
Third-Party Beneficiaries.
The
provisions of this Agreement are for the exclusive benefit of Network and
Affiliate and their permitted assigns, and no third party shall be a beneficiary
of, or have any rights by virtue of, this Agreement.
(i) Headings.
The
titles and headings of the sections in this Agreement are for convenience only
and shall not in any way affect the interpretation of this Agreement. Any
reference in this Agreement to “Section” or an “Exhibit”
shall,
unless the context expressly requires otherwise, be a reference to “Section” in,
or an “Exhibit”
to,
this Agreement. Forms of the word “include” mean “including without limitation;”
and references to “hereunder,” “herein,” “hereof,” and the like, refer to this
Agreement.
(j) Non-Recourse.
Notwithstanding anything contained in this Agreement to the contrary, it is
expressly understood and agreed by the parties hereto that each and every
representation, warranty, covenant, undertaking and agreement made in this
Agreement was not made or intended to be made as a personal representation,
undertaking, warranty, covenant, or agreement on the part of any individual,
and
any recourse, whether in common law, in equity, by statute or otherwise, against
any individual is hereby forever waived and released.
(k) LIMITATION
OF LIABILITY.
NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT TO THE CONTRARY, NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INCIDENTAL, CONSEQUENTIAL OR
SPECIAL DAMAGES (INCLUDING LOSS OF PROFITS OF REVENUES, OR DAMAGES TO OR LOSS
OF
PERSONAL PROPERTY) IN ANY CAUSE OF ACTION ARISING OUT OF, RELATED TO, OR IN
CONNECTION WITH A DEFAULT UNDER OR A BREACH OF THIS AGREEMENT.
(l) Taxes.
Network
shall not be liable for, and Affiliate shall pay and hold harmless Network
from,
any federal, state or local taxes, surcharges, levies or any other charges
which
are based upon revenues derived by operations of Affiliate or each
Station.
(m) Change
in Operations.
Affiliate represents and warrants that each Station is operating with facilities
specified in its FCC license. In the event that any Station’s transmitter
location, power, height of antenna, Licensed Community, frequency, or hours
of
operation are materially reduced or changed at any time so that such Station’s
value to Network as a telecaster of the Service is materially less than as
existed on the Effective Date, and such reduction or change has not been cured
by Affiliate within thirty (30) days after such occurrence, Network shall have
the right to terminate this Agreement with respect to such Station upon thirty
(30) days’ prior written notice to Affiliate.
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18 -
(n) Counterparts.
This
Agreement may be executed in counterparts, each of which will have the full
force and effect of a fully-executed original. This Agreement may be executed
by
each or either party by delivering signed signature pages thereof to the other
party by facsimile. Any party delivering an executed counterpart of this
Agreement by facsimile shall also deliver to the other party an original
executed counterpart of this Agreement, but the failure to do so does not affect
the validity, enforceability or binding effect of this Agreement.
[Remainder
of page intentionally left blank.]
-
19 -
The
parties hereto have executed this Agreement to be effective as of the Effective
Date.
AFFILIATE:
|
NETWORK:
|
Xxxxxxxx Television Group, Inc. |
The
Tube Music Network, Inc.
|
By: /s/ Xxxxx X. Xxx | By: /s/ Xxx Xxxxxxx | ||
Name:
Xxxxx X.
Xxx
Title:
Chief Financial
Officer
|
Xxx Xxxxxxx, President and CEO |
ACCEPTED
AND AGREED AS TO WNUV-TV BY WNUV LICENSEE, INC.
By: /s/ Xxxx Xxxxx | |||
Name:
Xxxx
Xxxxx
Title: Chief Financial Officer |
ACCEPTED
AND AGREED AS TO WTTA-TV BY BAY TELEVISION, INC.
By: /s/ J. Xxxxxx Xxxxx | |||
Name:
J. Xxxxxx
Xxxxx
Title: ___________________________ |
[Signature
page: Charter Affiliate Affiliation Agreement by and between
The
TUBE Music Network, Inc. and Xxxxxxxx Television Group, Inc.]
-
20 -
EXHIBIT A
To
Affiliation Agreement By and Between
Xxxxxxxx
Television Group, Inc. and
The
TUBE
Music Network, Inc.
Dated
as
of March 22, 2006
STATION
IDENTIFICATION
DMA
|
Call
Letters*
|
Launch
Date
|
Street
Address
|
Baltimore
|
WNUV
|
May
15, 2006
|
0000
Xxxx 00xx
Xxxxxx
Xxxxxxxxx,
XX 00000
|
Birmingham
(Xxx and Tuscaloosa)
|
WABM
|
May
15, 2006
|
000
Xxxxxx Xxxx X.
Xxxxx
000
Xxxxxxxxxx,
XX 00000
|
Champaign
- Springfield - Decatur
|
WICD/
WICS
|
July
15, 2006
|
000
X. Xxxxxx Xxxx Xx.
Xxxxxxxxx,
XX 00000
0000
X Xxxx Xxxxxx
X.X.
Xxx 0000
Xxxxxxxxxxx,
XX 00000
|
Charleston
- Huntington
|
WCHS
|
July
15, 2006
|
0000
Xxxxxxxx Xxxx
Xxxxxxxxxx,
XX 00000
|
Charleston,
SC
|
WMMP
|
July
15, 2006
|
0000
Xxxx Xxxx
Xxxxxxxxxx,
XX 00000
|
Columbus,
OH
|
WSYX
|
May
15, 2006
|
0000
Xxxxxx Xxxx
Xxxxxxxx,
XX 00000
|
Dayton
|
WKEF
|
May
15, 2006
|
0000
Xxxxxxxx Xxxx Xx
Xxxxxx,
XX 00000
|
Des
Moines - Ames
|
KDSM
|
July
15, 2006
|
0000
Xxxxx Xxxxx
Xxx
Xxxxxx, XX 00000
|
Xxxxx
- Xxxxxxx Xxx - Xxx Xxxx
|
XXXX
|
July
15, 0000
|
X-0000
X. Xxxxxxx Xx
Xxxxx,
XX 00000
|
Greensboro
- High Point - Winston-Salem
|
WUPN
|
June
15, 2006
|
0000
Xxxx Xxx Xx.
Xxxxxxx-Xxxxx,
XX 00000
|
Greenville
- Spartanburg - Asheville - Xxxxxxxx
|
WLOS
(Affiliate may add WBSC in this market also.)
|
June
15, 2006
|
000
Xxxxxxxxxx Xxxxx
Xxxxxxxxx,
XX 00000
|
Las
Vegas
|
KVWB
|
July
15, 2006
|
0000
X. Xxxxx Xxxx.
Xxx
Xxxxx, XX 00000
|
___________________________
*
Provided
that the channel upon which the Service is displayed does not change
and the
Service is not deleted from any MVPD systems, upon written notice to
Network,
Affiliate may substitute another station that Affiliate owns and/or programs
for
the designated Station on this Exhibit
A
if such
other station is licensed to a Licensed Community in the same DMA as
the Station
it is replacing.
-
21 -
Lexington
|
WDKY
|
May
15, 0000
|
Xxxxx
Xxxxx Xxxxx
000
Xxxxxx Xxx
Xxxxxxxxx,
XX 00000
|
Madison
|
WMSN
|
July
15, 2006
|
0000
Xxx Xxx Xxxxx
Xxxxxxx,
XX 00000
|
Milwaukee
|
WCGV
|
June
15, 2006
|
0000
X 00xx
Xxxxxx
Xxxxxxxxx,
XX 00000
|
Minneapolis
- St. Xxxx
|
KMWB
|
July
15, 2006
|
0000
Xxxx Xxx
Xx.
Xxxx, XX 00000
|
Mobile
|
WEAR
|
May
15, 0000
|
0000
Mobile Highway
Pensacola,
FL 32506
|
Nashville
|
WUXP
|
May
15, 2006
|
000
Xxxxxxxxxx Xx.
Xxxxxxxxx,
XX 00000
|
Norfolk
- Portsmouth - Newport News
|
WTVZ
|
July
15, 2006
|
000
Xxxxxx Xx.
Xxxxxxx,
XX 00000
|
Oklahoma
City
|
KOCB
|
July
15, 2006
|
0000
X. Xxxxxxxx Xxxx
Xxxxxxxx
Xxxx, XX 00000
|
Peoria
- Bloomington
|
WYZZ
|
June
15, 2006
|
0000
X. Xxxxxxx
Xxxxxxxxxxx,
XX 00000
|
Pittsburgh
|
WCWB
|
May
15, 2006
|
000
Xxxxx Xxx.
Xxxxxxxxxx,
XX 00000
|
Portland
- Auburn
|
WGME
|
June
15, 2006
|
0000
Xxxxxxxxxx Xxx.
Xxxxxxxx,
XX 00000
|
Raleigh
- Durham (Fayetteville)
|
WRDC
|
June
15, 2006
|
0000
Xxxxxxxxx Xxxx.
Xxxxx
000
Xxxxxxx,
XX 00000
|
Rochester,
NY
|
WUHF
|
July
15, 2006
|
000
X. Xxx.
Xxxxxxxxx,
XX 00000
|
San
Antonio
|
KRRT
|
July
15, 2006
|
0000
XX Xxxx 000
Xxx
Xxxxxxx, XX 00000
|
Springfield
- Holyoke
|
WGGB
|
July
15, 2006
|
0000
Xxxxxxx Xx.
Xxxxxxxxxxx,
XX 00000
|
Tallahassee
- Thomasville
|
WTWC
|
June
15, 2006
|
0000
Xxxx Xxxx Xx X.
Xxxxxxxxxxx,
XX 00000
|
Tampa
- St. Xxxx (Sarasota)
|
WTTA
|
June
15, 2006
|
0000
Xxxx Xxxxxxx Xx.
Xxxxx,
XX 00000
|
-
22 -
EXHIBIT B
To
Affiliation Agreement By and Between
Xxxxxxxx
Television Group, Inc. and
The
TUBE
Music Network, Inc.
Dated
as
of March 22, 2006
LAUNCH
NOTICE
BROADCAST
LAUNCH FORM
STATION
NAME:
|
STATION
GROUP OWNER:
|
||
STATION MAILING ADDRESS:
|
|||
PHONE
NUMBER:
|
FAX
NUMBER:
|
||
GENERAL
MANAGER:
|
MARKETING
CONTACT:
|
||
ENGINEER
|
PHONE
(IF DIFFERENT):
EMAIL
ADDRESS:
|
||
AREAS
SERVED (PLEASE INCLUDE ZIP CODES):
|
|||
DMA:
|
|||
FILL
OUT THE LINE BELOW FOR ONE EARTH STATION RECEIVE SITE (EACH ADDITIONAL
SITE REQUIRES A SEPARATE FORM)
|
|||
Do
you have an antenna capable of receiving a C band feed from AMC-3
Transponder 17 located at 87 degrees west?
YES __NO
__
|
|||
Do
you have space for an additional antenna on your roof or in your
antenna
farm? YES __ NO __
|
|||
Does
this space have a good southern exposure looking at 95 degrees?
YES __ NO __
|
|||
Do
you have the resources to install the antenna? YES __ NO
__
|
-
23 -
STREET
ADDRESS (Shipping Address):
|
|||
CITY/STATE/ZIP:
|
COUNTY:
|
||
LAUNCH
DATE: __________________
|
CHANNEL
NUMBER: __________________
|
||
SIGNATURE:
|
TITLE:
|
DATE:
|
Email
COMPLETED FORM to xxxxxxxxxx_0000@xxxxx.xxx
24
EXHIBIT C
To
Affiliation Agreement By and Between
Xxxxxxxx
Television Group, Inc. and
The
TUBE
Music Network, Inc.
Dated
as
of March 22, 2006
RECEIVING
EQUIPMENT
·
|
3.0
meter C-Band antenna, single port feed with digital-ready LNB, if
necessary (Network, in its discretion, may furnish a larger
antenna)
|
·
|
150
Feet of RG6 Coaxial Cable, if
necessary
|
·
|
Integrated
receiver/decoder
|
25
EXHIBIT D
To
Affiliation Agreement By and Between
Xxxxxxxx
Television Group, Inc. and
The
TUBE
Music Network, Inc.
Dated
as
of March 22, 2006
REVENUE
SHARE
Commencing
on the date upon which a Station initially transmits the Service and thereafter
throughout the Term, Network shall pay to Affiliate the following
amounts:
I.
Affiliate
Advertising Share.
1.
|
Determining
Affiliate Advertising Share.
Commencing with the calendar quarter beginning on April 1, 2006 and
for
each calendar quarter thereafter during the Term, Network shall pay
to
Affiliate the Affiliate Advertising Share. For purposes hereof, the
“Affiliate
Advertising Share”
shall be determined by multiplying fifteen percent (15%) of Network’s
Advertising Revenue for such calendar quarter by a fraction, the
numerator
of which is the total number of Cable Subscriber Households in the
DMA of
the Station(s) transmitting the Service pursuant to this Agreement,
and
the denominator of which is the total number of Cable Subscriber
Households in all of the DMAs in which the Service is being transmitted.
If a Station commences transmitting the Service on other than the
first
day of a calendar quarter, then the Affiliate Advertising Share for
such
quarter shall be further prorated based on the number of days in
such
quarter that such Station transmitted the Service. For purposes of
this
Exhibit
D,
The number of Cable Subscriber Households shall be determined by
the
certified report supplied by each MVPD distributing the service,
described
in Section 7(a) of the body of this Agreement. In the event that
such
report is not received by Network with respect to each and every
MVPD that
carries the Service, then, for purposes of this Exhibit
D,
the number of Cable Subscriber Households shall be equal to the number
of
cable TV households served by the applicable Station in such Station’s DMA
as published in the most recent Television
& Cable Factbook
(Xxxxxx Publishing, Inc.) or, if an independent source for determining
the
number of television households that receive the Service through
a
subscription to cable service is or hereafter becomes publicly available,
the parties agree to use such source in lieu of the foregoing.
|
2.
|
Payment.
The Affiliate Advertising Share, if any, shall be payable quarterly
and
shall be due no later than forty-five (45) days following the end
of each
calendar quarter, for which a payment is
due.
|
-
1 -
II.
|
Affiliate
Transactional Share.
|
1.
Determining
Affiliate Transactional Share.
Commencing with the calendar quarter beginning on April 1, 2006 and for each
calendar quarter thereafter during the Term, Network shall pay to Affiliate
the
Affiliate Transactional Share. For purposes hereof, the “Affiliate
Transactional Share”
means
fifteen percent (15%) of Network’s Transactional Revenue for the pertinent
calendar quarter.
2.
Payment.
The
Affiliate Transactional Share, if any, shall be payable quarterly and shall
be
due no later than forty-five (45) days following the end of each calendar
quarter, for which a payment is due.
2
EXHIBIT E
To
Affiliation Agreement By and Between
Xxxxxxxx
Television Group, Inc. and
The
TUBE
Music Network, Inc.
Dated
as
of March 22, 2006
ADDITIONAL
TERMS AND CONDITIONS
Rights
and Copyright Indemnification
Without
limiting Network’s indemnification obligations as set forth in the body of this
Agreement, Network agrees to indemnify the Affiliate Indemnitees against any
and
all Costs arising out of any (i) third-party claims that Network’s music
performance rights licenses with ASCAP, BMI and SESAC do not cover music
performances through to the viewers of the Service, or (ii) written agreement
between Affiliate and an MVPD for the retransmission of the Service (together
with the Primary Feed as provided in Section 3(a) of the body of the Agreement)
solely within the Station’s DMA pursuant to which Affiliate is obligated to
indemnify such MVPD against any Incremental Copyright Cost (as defined below)
resulting directly from the retransmission of the Service by such MVPD in the
Station’s DMA. For purposes hereof, “Incremental
Copyright Cost”
shall
mean the difference, if any, between (A) the copyright royalties that would
be
payable by the MVPD in the Station’s DMA without carriage of the Service, and
(B) the copyright royalties that would be payable by such MVPD in such DMA
with
the carriage of the Service.
3