EXHIBIT 10.24
TRANSLATED FROM THE FRENCH
CONTRACT CONCERNING THE SUPPLY OF TECHNICAL SERVICES
BETWEEN:
MMP, a stock corporation with a capital of FF 840,000, whose registered office
is at 00-00 Xxxxxx Xxxxxx, 00000 Xxxxx, Xxxxxx, listed in the Trade Register of
Paris under No. B 343 096 426, represented by its director, Xx. Xxxxx XXXXXX,
HEREINAFTER MMP,
PARTY OF THE FIRST PART,
AND:
ONYX TELEVISION GMBH, whose registered office is at Xxxx Xxxxx Xxxxxxx 00,
Xxxxxxxx, Xxxxxxx, represented by its General Manager, Xx. Xxxxxx XXXXXXXXX,
HEREINAFTER ONYX,
PARTY OF THE SECOND PART.
PREAMBLE
ONYX is a German company and the owner of a television channel specializing in
music programming ("the channel"), distributed by cable and by satellite and
broadcasting in the clear 18 hours a day.
MMP's activity includes, in particular, the supply of audiovisual services.
As a result, the parties have decided to transact an agreement under which MMP
will supply a number of services to ONYX, permitting the channel's transmission
and distribution.
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THE FOLLOWING WAS DECIDED AND AGREED ON
ARTICLE 1: PURPOSE
As of the effective date hereof (such as defined in article 3 below), MMP, or
any company in the AB Group that it elects to substitute for itself, shall
supply the following services:
1-1: A MASTER CONTROL ROOM operating at least 18 hours/day and possibly up to 24
hours/day, making it possible to broadcast the video items furnished by ONYX, as
described in the Technical Annex attached hereto.
It is understood that this Master Control Room will subsequently permit the
direct retransmission of certain programs. Said direct retransmission shall be
available to ONYX only two months after ONYX's request.
1-2: THE COMPRESSION OF THE SIGNAL TO THE DVB STANDARD [MPEG2].
1-3: MULTIPLEXING WITH THE AB BOUQUET.
1-4: THE PERMANENT TRANSMISSION OF THE ONYX PROGRAM MULTIPLEXED IN THIS MANNER
TO A SATELLITE OF THE EUTELSAT OR ASTRA TYPE.
1-5: THE DAILY ALLOCATION, 24 HOURS/DAY, OF THE NECESSARY FREQUENCY RANGE ON A
DIGITAL TRANSPONDER ABOARD A SATELLITE OF THE EUTELSAT TYPE.
THE SERVICES SUPPLIED BY MMP SHALL ALSO INCLUDE:
1-6: THE STORAGE OF THE CASSETTES needed for the operation of the channel from
the Control Room and of MMP's means of transmission.
1-7: THE MONITORING, CONTROL AND MAINTENANCE OF THE FACILITIES.
1-8: A PERMANENT EDP LINK OF THE ISDN TYPE making it possible to load the
PLAYLISTS from the premises of ONYX in Germany (the costs relating to the line
itself being borne by ONYX).
It is expressly understood that the detailed specifications of the service, as
well as the planned schedule of its provision, are annexed hereto and that said
annexes are an integral part of this instrument.
HOWEVER, THE PARTIES GRANT EACH OTHER A TIME EXTENSION, BETWEEN THE DATE OF
EXECUTION HEREOF AND JULY 31, 1998, FOR PURPOSES OF DECIDING WHICH OF THE TWO
PARTIES SHALL SUPPLY THE EQUIPMENT REQUIRED FOR THE SERVICES (AND WHAT TYPE OF
EQUIPMENT SHALL BE SUPPLIED), WHICH IS THE SUBJECT OF ARTICLE 3-1) OF THE
TECHNICAL ANNEX, EXCEPT PARAGRAPHS F), G) AND H).
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ARTICLE 2: COMPENSATION
In consideration of the services provided by MMP or by any company in the AB
Group it may elect to substitute for itself, such as detailed in article 1
hereof and in the annexes hereto, ONYX shall pay the net annual lump sum of
US$2,400,000 (two million four hundred thousand U.S. dollars, net of taxes),
payable monthly. This amount may be supplemented by the costs relating to MMP's
supply of the equipment mentioned in point 1-8 above. The parties shall jointly
determine the additional amount billed.
This service shall give rise to the issue, at the end of each month, by MMP or
by any other company in the AB Group it may elect to substitute for itself, of
invoices that shall be payable by ONYX upon receipt, and in any case not more
than 15 days following the receipt thereof.
It is expressly agreed that the compensation due to MMP or to any other company
in the AB Group it may elect to substitute for itself, such as set by the
parties, exclusively concerns the services listed in article 1 hereof and
specified in the Technical Annex.
Accordingly, any request for an additional service, i.e. a service that is not
included in the limited listing under article 1, shall be subject to an
additional invoice by MMP or by any company in the AB Group it may elect to
substitute for itself.
The amount of the additional services shall be defined jointly by the parties.
ARTICLE 3: TERM
3-1: This contract is entered into for an initial effective period of 24 months
("the effective period") as of the date on which this contract shall come into
force, such as shall be set definitively and jointly by the parties.
However, the parties agree, NUNC PRO TUNC, to set the date of October 1, 1998 as
the deadline for the coming into force of the effective period.
It is agreed that the date of October 1, 1998 is susceptible to be pushed back
within a reasonable limit and on the express condition that the party initiating
such modification informs the other party by registered letter 30 days in
advance.
Nevertheless, in the event that one of the parties should be unable to fulfill
its obligations by October 1, 1998 without having been in a position to inform
the other party of said impossibility at least 30 days in advance, the parties
agree to meet in order to find an alternate emergency solution, WHICH, IN ALL
CASES, SHALL COVER THE SERVICES SPECIFIED IN ARTICLE 3-1) G) AND 3-1 H) OF THE
TECHNICAL ANNEX.
In the latter case, the terms and the implementation of the alternate emergency
solution shall give rise to the execution of a rider for purposes of adjusting
the conditions of performance of this contract for a temporary period, i.e.
until the services initially specified are restored.
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3-2: At the end of the effective period, this agreement shall be deemed to be
renewed for new periods of 12 months each, subject to the rights of termination
mentioned in article 4 below.
3-3: It is otherwise expressly agreed that, as of the date of execution and
until the effective date hereof, the parties shall be engaged in a period of
preparation whose purpose is to organize the upcoming services.
During said period of preparation, the parties agree to provide help and
assistance to each other.
ARTICLE 4: TERMINATION
4-1: It is expressly agreed that this contract is concluded for an initial
incompressible effective period of 24 months.
Accordingly, in the absence of termination by registered letter with return
receipt requested sent six months prior to the scheduled date of expiration of
the 24 months of the initial effective period, this contract shall be deemed to
be renewed for another 12-month period.
4-2: Past the 24 months of the initial effective period, the parties shall have
the right to cancel this contract each year by means of a registered letter with
return receipt requested mailed at least six months before the anniversary date
of this contract.
4-3: In all cases, should ONYX fail to pay, even only in part, the compensation
due to MMP or to any other company in the AB Group it elects to substitute for
itself, after a formal notice from MMP served by registered letter with return
receipt requested has not produced any effect, this contract shall be
automatically terminated, without prejudice to the damages that MMP will have
the right to claim from ONYX.
4-4: Furthermore, should one of the parties fail to discharge its obligations
arising from the contract and abstain from correcting the situation one month
after a formal notice mailed by registered letter with return receipt requested
to the defaulting party has not produced its effect, this fact shall trigger the
automatic termination of the contract, without prejudice to the damages that may
be claimed.
4-5: Lastly, in case of bankruptcy of either of the contracting parties, this
contract shall be terminated automatically.
ARTICLE 5: OBLIGATIONS OF THE PARTIES
Once the effective period has begun, the parties agree to observe the technical
specifications that have been defined jointly.
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ONYX agrees not to ask MMP for modifications concerning the technical system put
into place at the end of the period of preparation, except if said modifications
are minor and have previously been approved by MMP.
MMP shall make its best efforts to ensure the satisfactory performance of the
services subject to this agreement, and may, as necessary, try to find another
solution well-suited to the needs and within the limits hereof. In the context
of the services subject to this agreement, MMP shall therefore have an
obligation of means.
As of the execution hereof, ONYX agrees to inform MMP of all changes that may
occur in its relations with third parties and that may have an effect on the
satisfactory performance of MMP's services.
In a general manner, the parties agree to comply with the laws and regulations
in force during their cooperation.
Accordingly, ONYX agrees to inform MMP of any legal rule, regulation or standard
that may affect the undisturbed performance of this agreement.
ARTICLE 6: LIABILITY
6-1: It is expressly agreed that, barring ill-intentioned actions or faulty
negligence, MMP may not be held liable for any direct or consequential damage,
or any direct or indirect loss of profit sustained by ONYX in the context of the
performance hereof.
Among other things, MMP's liability shall not be involved as a result of cases
of force majeure, including, in particular, natural disasters, riots, strikes,
electrical power breakdowns or dysfunctions that cannot be attributed to MMP,
equipment breakdowns or dysfunctions that cannot be attributed to MMP, and it is
understood that the present list is not exhaustive.
6-2: For its part, ONYX shall be liable vis-a-vis MMP for any third-party's
claim concerning the content or character of the programs furnished by ONYX with
a view to their transmission and broadcast, including, in particular,
infringements of other persons' copyrights.
Since MMP is not liable for the editorial line of the channel, ONYX shall make
its personal business of the content of the programs that it delivers to MMP
with a view to their transmission and broadcast.
ONYX shall bear all the costs sustained by MMP in ensuring its defense against
claims relating to the character and content of the programming, including, in
particular, other persons' copyrights.
Moreover, ONYX shall bear the cost of any judgments handed down against MMP.
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Therefore, the parties agree to report to one another all the claims emanating
from third parties alien to this contract that may undermine the undisturbed
performance of the latter.
6-3: It is agreed, NUNC PRO TUNC, that ONYX shall make its personal business of
the transportation of the equipment intended for MMP in connection with the
performance of this contract, and that it shall as a result bear all the costs
pertaining to said transportation and to the insurance of the transported
equipment.
Likewise, ONYX shall bear the cost of the transportation and transportation
insurance made necessary by the return of technically unusable recordings to
ONYX.
MMP shall check all the recordings delivered by ONYX and shall have the right to
modify the programming if it is impossible to broadcast the projected recording
furnished by reason of its poor quality.
Otherwise, MMP's liability may not be involved in the event of any apparent or
hidden defect that affects the equipment supplied by ONYX hereunder and damages
the quality of the service provided by MMP.
6-4: ONYX shall insure, at its own cost and to an adequate extent, the equipment
and the recordings of any kind entrusted to MMP.
ONYX shall subscribe a multi-risk insurance contract, which shall cover, in
particular, without limitation, the risks of fire (and connected risks), water
damage and theft, and its civil liability as operator and professional.
MMP may never be implicated in case of inadequate coverage.
ONYX and its insurers acknowledge that MMP (or any other company in the AB Group
that it may substitute for itself) shall be exempt from any liability within the
limit of the contract's purpose, and agree never to xxx or implicate it as
regards:
the physical injuries sustained by persons working on behalf of ONYX on MMP's
premises or by persons introduced on MMP's premises by ONYX;
the accidents that may be caused to movable or physical objects, including
automobiles belonging to ONYX, to third parties introduced on MMP's premises by
ONYX, or to persons working on behalf of ONYX on MMP's premises.
ONYX and its insurers acknowledge that MMP shall also be exempt, within the
limit of the contract's purpose, from any liability concerning theft,
deterioration or damage of any kind, with no exception or reserve, that may
affect, in particular, the apparatus, accessories, recordings or any other
objects or animals brought to, or introduced on, MMP's premises by ONYX or by
the personnel working on behalf of ONYX on MMP's premises.
6-5: Lastly, ONYX certifies that there does not exist any contract with third
parties susceptible to undermine MMP's performance of its services such as are
specified herein.
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ARTICLE 7: TRANSFERABILITY
This contract is concluded in consideration of the person.
Consequently, the parties hereto shall refrain from assigning the benefit of
this contract to a third-party company without the other party's prior approval.
However, it is agreed that MMP may transfer the benefit of this contract to any
company in the AB Group with no prior formality being required.
ARTICLE 8: CONDITION PRECEDENT
This contract shall take effect on the express condition that it shall have been
accepted by the Board of Directors of MMP's parent company, the AB Group, which
Board shall meet by August 15, 1998 at the latest.
In the absence of such acceptance, the parties shall meet for the purpose of
adapting the present contract in accordance with any recommendations made by
said Board.
ARTICLE 8: CONFIDENTIALITY
Each party shall refrain from disclosing the content of this contract to third
parties, and agrees to treat as strictly confidential all the business,
technical and financial information received from the other party within the
framework of this contract, unless otherwise previously agreed to in writing by
said other party.
This prohibition may not apply to the requests made by any administration,
particularly the tax administration, and to the court authorities which make
valid demands to this effect.
ARTICLE 9: DISPUTES
The laws applicable to this contract are the laws of France.
Any dispute concerning the creation, performance or interpretation of this
contract shall be within the jurisdiction of the French courts, and shall be
referred to the courts of Paris, in particular.
ARTICLE 10: ELECTION OF DOMICILE
Each of the parties agrees to elect domicile at the address of its registered
office.
However, for purposes of simplifying communications between the parties, it is
agreed that any correspondence useful to ONYX shall be sent both to the address
of its registered office and to its legal representative, Xx. Xxxxxx XXXXXXXXX,
at the following address: 0 Xxx xx Xxxxxxx Xxxxx, 00000 Xxxxxxxxx-xx-Xxxx,
Xxxxxx.
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Done at Paris on July 27, 1998 in two original copies
/s/ /s/
For ONYX For MMP
(signature) (signature)
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