Attachment redacted

redacted

REQUEST submitted by DIRECTV

redacted

2006-12-18

This document pretains to SAT-STA-20061213-00149 for Special Temporal Authority on a Satellite Space Stations filing.

IBFS_SATSTA2006121300149_540441

FOR PUBLIC INSPECTION
                                                                                        r   oanlNAL
                                                                                                                       3
                                              Before the                            FILED/ACCEPTED
                        FEDERAL COMMUNICATIONS COMMISSION
                                 Washington, DC 20554     DEC 1 8 2006
                                                                                   Federa! Communications Commission
                                                                                         Office of the Secretary




                                                   Cw in n n n n yz
In the Matter of

DIRECTV ENTERPRISES, LLC                                              File No. SAT—STA—20061213—00149

Request for Special Temporary Authority to
Relocate DIRECTV 1R to 72.5° W.L. and to
Conduct Telemetry, Tracking and Command
Operations for an Interim Period



                          REQUEST FOR CONFIDENTIAL TREATMENT

       DIRECTV Enterprises, LLC! ("DIRECTV") respectfully requests that, pursuant to

Sections 0.457 and 0.459 of the Commission‘s rules, 47 C.F.R. §§ 0.457 and 0.459, the

Commission withhold from public inspection and accord confidential treatment to redacted

portions of Amendment No. 1 to the Memorandum of Agreement between DIRECTV and

Telesat Canada and the documents attached as Exhibits thereto (collectively, "Amendment 1"),

submitted for the International Bureau‘s consideration in connection with the above referenced

request for special temporary authority ("S TA”)‘2 These documents contain sensitive trade

secrets, and commercial and financial information that fall within Exemption 4 of the Freedom

of Information Act ("FOIA")."




       DIRECTV Enterprises, LLC is a licensee in the high—power Direct Broadcast Satellite
       ("DBS") service and a wholly owned subsidiary of The DIRECTV Group, Inc.
       As noted below, these documents have also been submitted by Telesat to Industry
       Canada, with a request that they be accorded confidential treatment.
3      5 U.S.C. § 552(b)(4).


FOR PUBLIC INSPECTION


       Exemption 4 of FOIA provides that the public disclosure requirement of the statute "does

not apply to matters that are . . . (4) trade secrets and commercial or financial information

obtained from a person and privileged or confidential."" DIRECTV is voluntarily providing this

trade secret and commercial and financial information "of a kind that would not customarily be

released to the public" in conformance with the documentation requested by the Commission

staff in connection with similar applications filed previously by DIRECTV;" therefore, this

information is "confidential" under Exemption 4 of FOIA." Moreover, DIRECTV would suffer

substantial competitive harm if the Amended MOA were disclosed."

       In support of this request and pursuant to Section 0.459(b) of the Commission‘s rules,"

DIRECTV hereby states as follows:

1.     IDENTIFICATION OF THE SPECIFIC INFORMATION FOR WHICH CONFIDENTIAL
       TREATMENT Is SoucHtT
       DIRECTV seeks confidential treatment of those portions of Amendment 1 that were

redacted from the version that is being publicly filed in the above referenced proceeding. These

portions of Amendment 1 describe the ongoing plan and process of implementing a capacity

expansion of DIRECTV‘s Ku band DBS satellite system and therefore should be treated in the

entirety as a trade secret. In the context of FOIA, a trade secret is defined as "as secret,

commercially valuable plan, formula, process, or device that is used for the making, preparing,

compounding, or processing of trade commodities and that can be said to be the end product of



*      Id.
5      See, e.g., DIRECTV Enterprises, LLC, 19 FCC Red. 15529 (Int‘l Bur. 2004).
       See Critical Mass Energy Project v. NRC, 975 F.2d 871, 879 (D.C. Cir. 1992).
7      See National Parks and Conservation Ass ‘n v. Morton, 498 F.2d4 765 (D.C. Cir. 1974).
8      47 C.F.R. § 0.459(b).
°      47 C.F.R. § 0.459(b)(1).


FOR PUBLIC INSPECTION


either innovation or substantial effort. ""° The parties have extensively negotiated the terms of

Amendment 1, including capacity leases and terms of the development and construction of a new

DBS satellite. The arrangement is unique and competitively sensitive. Furthermore, certain

categories of confidential commercial and financial information appear throughout Amendment

1, including without limitation the disclosure of business plans and commercial and financial

terms negotiated between the parties.

2.      DESCRIPTION OF CIRCUMSTANCEs Givinc RisE To tHE Susmission‘‘
        Amendment 1 is being submitted to the Commission in conformity with requests for

documentation from the staff for purposes of processing nearly identical STA requests filed by

DIRECTV over the last two years. DIRECTV has submitted redacted versions of these

documents with its publicly filed application, but anticipates that the staff will request to review

the entire text as it did in connection with the prior applications.

3.      EXPLANATION OF THE DEGREE TO WHICH THE INFORMATION IS COMMERCIAL OR
        FINANCIAL, OR CONTAINS A TRADE SECRET OR Is PriviLEczED"

       The information for which DIRECTV seeks confidential treatment contains sensitive

commercial and financial information "which would customarily be guarded from

competitors.""" Amendment 1 documents the details of a process by which DIRECTV has

secured additional DBS capacity for the operation and expansion of its DBS system and intends

to continue that arrangement subject to certain adjustments. In this regard, DIRECTV competes

with its DBS competitors in the multichannel programming video distribution ("MVPD")


10     Public Citizen Health Research Group v. FDA, 704 F.2d 1280, 1288 (D.C. Cir. 1983);
       see also, AT&T Information Systems, Inc. v. GSA, 627 F. Supp. 1396, 1401 n.9 (D.D.C.
        1986).
it     47 C.F.R. § 0.459(b)(2).
12     47 C.F.R. § 0.459(b)(3).
13     47 C.FR. § 0.457.


FOR PUBLIC INSPECTION


marketplace in efforts to find such new satellite capacity for service expansion; Amendment 1 is

a unique arrangement to do so, and thus is very sensitive from a commercial standpoint. The

information contained in Amendment 1 would not customarily be released by the persons from

whom they are obtained and are therefore covered by Exemption 4 of FOIA when, as here, it is

submitted by such persons to the Government.

4.     EXPLANATION OF THE DEGREE TO WHICH THE INFORMATION CONCERNS A SERVICE
       THAT Is SUBJECT To COMPETITION"*
       DIRECTV competes in the MVPD marketplace and faces competition from terrestrial

and satellite MVPD competitors. U.S. DBS competitors to DIRECTV with deployed U.S. DBS

systems include EchoStar Communications Corporation, which appears to be actively in search

of new sources of radio frequency capacity that can be used to provide direct—to—home satellite

services. In addition, a number of foreign DBS systems have sought or may seek access to U.S.

consumers, which will further increase competition to DIRECTV and place further constraints

on DIRECTV system capacity.""

5.     EXPLANATION oF How DISCLOSURE OF THE INFORMATION COULD RESULT In
       SUBSTANTIAL COMPETITIVE Harm‘"*
       Because Amendment 1 details the inter—related steps of a plan and process of developing

a valuable source of additional DBS capacity for DIRECTV, the information for which

DIRECTV seeks confidential treatment could be used by its competitors in attempts to disrupt

the arrangement, causing substantial competitive harm to the DIRECTV business. In addition, if

these competitors obtained access to the information for which DIRECTV seeks confidential



14     47 C.F.R. § 0.459(b)(4).
       See, e.g., Amendment ofthe Commission‘s Policies and Rules for Processing
       Applications in the Direct Broadcast Satellite Service, 21 FCC Red. 9443 (2006)
       (discussing the proposed entry of foreign DBS systems into the U.S. MVPD market).
16     47 C.F.R. § 0.459(b)(5).


FOR PUBLIC INSPECTION


treatment, they could unfairly benefit from the time and resources that DIRECTV has expended

in working towards the implementation of this new source of capacity, and "piggyback" on

DIRECTV‘s efforts to negotiate similar arrangements.

6.     IDENTIFICATION OF ANv MEASURES TAKEN By THE SUBMITTING PaRTY To PREVENT
       UNAUTHORIZED Discu.osuRre""
       Amendment 1 contains provisions and Exhibits requiring both parties to maintain the

confidentiality of proprietary information, which includes the terms of Amendment 1 itself."®

Those materials include detailed procedures for use of proprietary information by representatives

of both parties and require written consent of the other party for the release of any proprietary

information. Upon termination of their agreement, the parties agree to cease use of all

proprietary information and return or destroy such proprietary information, including all copies

of such information in the possession of the other party.

7.     IDENTIFICATION OF WHETHER THE INFORMATION Is AVAILABLE TO THE PUBLIC AND
       THE EXTENT OF ANY PREvIOUS DISCLOSURE OF THE INFORMATION TO THIRD
       ParRTIES"
       The redacted portions of Amendment 1 submitted today have not previously been

disclosed to the public. Accordingly, DIRECTV requests that the Commission accord the

information covered by this Request confidential treatment under Sections 0.457 and 0.459 of

the Commission‘s rules.




17     47 C.F.R. § 0.459(b)(6).
       See, eg., Amendment 1, " 10 (ratifying and affirming all aspects of prior agreements not
       specifically amended) and Exhibit 1, DIRECTV 1R Lease, Schedule 1 4 1.2; Original
       MOA, § 8 and Exhibit A, Confidentiality and Nondisclosure Agreement; Original MOA,
       Exhibit B, DIRECTV 3 Lease, [ 8.1 and Exhibit B thereto; Amended MOA,             8
       (incorporating prior Confidentiality and Nondisclosure Agreement).
19     47 C.F.R. § 0.459(b)(7).


FOR PUBLIC INSPECTION


8.     JUSTIFICATION OF THE PERIOD DURING WHICH THE SUBMITTING PARTY AssERTS
       THAT MATERIAL SHOULD NOT BE AVAILABLE FOR PUBLIC DISCLOSURE*"
       DIRECTV requests that Amendment 1 be treated as confidential for a period of at least

five years. This period matches the nondisclosure commitment of the parties to the agreement,

which is market evidence of the time period necessary to protect the confidentiality of

competitively sensitive proprietary information contained therein. Therefore, DIRECTYV‘s

request for confidential treatment for a period of five years is reasonable.

9.     OTHER InFoRMATION THAT DIRECTV BeuigvEs May BE UsEFUL INn AssEssSING
       WHETHER ITS REQUEST FOR CONFIDENTIALITY SHOULD BE GRANTED®‘

       Amendment 1 has been submitted to Industry Canada, the Canadian regulator, for

purposes of obtaining the regulatory approvals contemplated by that agreement, including the

approval to operate the relocated DIRECTV 1R satellite at 72.5° W.L. Telesat has requested

confidential treatment for Amendment 1, further underscoring the competitively sensitive nature

of that agreement.

                                                  Respectfully submitted,




                                                 Airlhn,M.Pbbectis
                                                  William M. Wiltshire
                                                  Michael D. Nilsson
                                                  HARRIS, WILTSHIRE & GRANNIS LLP
                                                  1200 Eighteenth Street, N.W.
                                                  Washington, D.C. 20036
                                                  (202) 730—1300

                                                   Counselfor DIRECTYV Enterprises, LLC


December 18, 2006



20     47 C.FR. § 0.459(b)(8).
21     47 C.F.R. § 0.459(b)(9).


                                                                              Confidential


                               AMENDMENT No. 1
                                       To The
                     MEMORANDUM OF AGREEMENT



THIS Amendment No. 1           ("Amendment 1") to the MEMORANDUM OF
AGREEMENT dated 6 October 2005 (the “Agrecmem") is made in duplicate and
entered into as of the 22nd day of November 2006.

BETWEEN:              TELESAT CANADA, a company incorporated under the laws of
                      Canada, located at 1601 Telesat Court, Gloucester, Ontario K1B
                      5P4, Canada.                                     —
                                            (hereinafter referred to as "Telesat")

AND:                  DIRECTV ENTERPRISES, LLC., a limited liability company
                      incorporated under the laws of the State of Delaware, located at
                      2230 East Imperial Highway, El Segundo, California 90245, in the
                      United States of America.

                                            (hereinafter referred to as "DIRECTV")

Telesat and DIRECTV are hereinafter referred to individually as a "Party" or together as
the "Parties".

WHEREAS the Parties on December 23, 2003 entered into a Memorandum of
Agreement (the "December 2003 MOA") which was subsequently amended and restated
on March 10, 2005 (the "March 2005 MOA"), and further amended and restated on
October 6, 2005 (the "Agreement");

WHEREAS the Parties have agreed to amend the Agreement as specifically stated
herein;

WHEREAS, Telesat desires to lease the DIRECTV 1 Satellite for its use either at the 82
W.L. or 91 W.L. orbital location in order to support its operations and provide services
into Canada; and

WHEREAS, DIRECTV desires to extend DIRECTV‘s Transponder Rights Period
through December 31, 2009.


NOW THEREFORE for mutual consideration the receipt and sufficiency of which is
hereby acknowledged, the Parties do hereby agree to amend the Agreement as follows:
                                                                                       BMR


Amendment No. 1 to the Memorandum of Agreciment ~ DIRECTY and Telesat
                                                                            Confidentiat

1. New Paragraphs A.2 and A.3; The Parties agree to deletc Paragraphs A.2 and A.3
of the Agrosment and to replace it with the following new Paragraphs A.2 and A.3:

      "3.    Lease of DIRECTV Satellites.
                                        Redacted




       a.    DIRECTYV 3. The Parties have negotiated and executed the "Satellite
             Relocation & Lease Agreement", dated as of September 11, 2003, such
             agreement was superseded completely by a lease dated as of Decemmber 23,
             2003 a copy of which is attached hereto as Exhibit C (the "DIRECTV 3
             Lease Agreement").      The Partics agreed to amend the terms of the
             DIRECTV 3 Lease Agreement as sct out in the Amending Agreement
             attached to the Agreement as Exhibit D.

       i.    DIRECTY DIRECTY has relocated the DIRECTY 2 satellite to the 82°
             W.L. Telesat Orbital location. The parties shall co—operate to take all
             actions to maximize the useful life of DIRECTV 2 including but not
             limited to opersting the satellite in inclined orbit if Telesat‘s service
             requirements can be gchieved, Telesat‘s use of the DIRECTV 2 satellite
             shall be until the end of life of the satellite and is pursuant to the Icase
             attached to the Agreement as Exhibit E (the "DIRECTV 2 Lease
             Agreement"),

       c.    DIRECTYV 1. As soon as possible following the placement into service of
             a noew DIRECTY satellite to be known as DIRECTV 98 at the 101° W.L.
             orbital location, DIRECTY shall direct its satellite operator to relocate the
             DIRECTY 1R satellite to the 72.5° W.L. orbital location.         Then, after
             traffic transfer from DIRECTV 1 to DIRECTYV 1R, Telesat shali tuove the
             DIRECTY 1 satellite to a Telesat Orbital (82° W.L, or 91° W.L). The
             relocations of the DIRECTV 1 and DIRECTV IR sateflites shall be
             sabject to the prior approval of the United States and Canadian
              government authorities. Both Partics agree to use ressonable commercial
             offorts to obtain such approvals. The Parties shall co—operate to take all
             actions to maximize the useful life of DJRECTYV 1 including but not
             limited to operating the satellite in inclined orbit if Telesat‘s service
             requirements can be achieved. Telesat‘s use of the DIRECTV 1 satellite
             shall be, at a minimum, untit March 1, 2009, and shall be pursuant to the
             lease attached hereto as Exhibit 1 (the "DIRECTVY 1 Lease Agreement")
             which the Partics agree to executeconcurrently with this Amendment 1. gar


Amendmert No. 1 to the Memorandum of Agreement — DIRECTV and Telesat
                                                                              Cenfidential


       3.     Relocation and Use of Satollites at 72.5.. In order to preserve Canada‘s
ITU prority for the modification to the TTU Plan related to the use of BSS frequencies at
the 72.5 Location and thereby permit the use of the 72.5 Location for service into all of
Canada and into the United States, Canada was required to moct certain conditions
related to the 72.5 Location by July 14, 2005, including having a sateilite with certain
technical parameters in operation at the 72,5 Location by July 14, 2005, DIRECTV
relocated the DIRECTYV 5 satellite to the 72.5 Location in order to meet the TTU
requirements and subsequently replaced the DIRECTV 5 satellite with the DIRECTY 1
satellite at the 72.5 Localion. Pursuant to this Amendment 1, it is the Parties‘ intention
that DIRECTYV will replace the DIRECTV 1 satellite at the 72.5 Location with the
DIRECTV 1R satellite, and that the DIRECTV 1R satellite will be used by DIRECTY at
such location until the end of the Transponder Rights Period as set forth in Section B.
Paragraph 2.
It is in an effort to accomplish the foregoing transactions (the "Transactions") that the
Parties agree to their individual and joint undertakings described hercin, Each Party
understands and agrees that neither Party will be required to continue pursuing the
Transactions if cither Party fails to obtain, or it becomes reasonably certain that a Party
will not obtain, the necessary regulatory approvals, licenses and authorizations from
various governmental enfifies in the United States and Canada for the applicable
Transaction, as more fully described herein ("Regulatory Approvals") and comply with
all applicable requirements of law.    Each Party shull be solely responsible for obtaining
all of its respective Regulatory Approvals in a timely manner and at its expense {except
where otherwise expressly provided for herein) to enable completion of the Transactions,
and cach Party shall provide the other Patty with necessary information and coopetation
in the processof seeking Regulatory Approvals."


2. New Paragraphs B.l.c.: The Partios agree to delete Paragraph B.1.¢ and replace it
with the following new Paragraph B.1.¢:
       s

        &                             Redacted




                                                                                         BA


Amendment Mo. 1 to the Memorandum of Agreement —DIRECTY and Telesat
                                                                     _ Conflidential

3. New Paragraph B.2.a: The Parties agree to delete Paragraph B.2.a of the Agreement
and to tcplace it with the following new Paragraph B.2.a:
       "q,




                                       Redacted




                                      Redacted


Amendment No. I to the Memorandum of Agreement — DIRECTV and Trlesat
                                                                            Confidenttal


                                      Redacted




4. New Paragraph B.2.d: The Parties agree to delete Paragraph B.2.d of the Agreement
and to replace it with the following new Paragraph B.2.d¢;

       "d.

                                      Redacted




8. New Paragraph B.3: The Parties agreo to delete Paragraph B.3 of the Agreement
and to replace it with the following new Paragraph B.3:

       "3.     Regulatory Corcspondence and Assistance. Telesat agrees that, if, in any
fubire application(s) to regulatory authoritics or cortespondence or other communications
with such authorities about the use of, DIRECTY 2, or DIRECTY 3, or DIRECTY 1, or
DIRECTV 1R at a Telesat Orbital, Telesat mentions DIRECTV, Telesat shall obtain the
prior written approval of DARECTYV before filing or submitting such material to the
regulatory authonty."


6. New Paragraph C.1; The Parties agroc to delete Paragraph C.1 of the Agreoment
and to replace it with the following newParagraph C.1:

        "L.   Lease of DIRECTYV Satellites. As set out in Section A. Paragraph 2, the
Parties have negotiated and agreed to the DIRECTV 3 Lcasc Agreement and the
DIRECTY 2 Lease Agreement and the DIRECTYV 1 Lease Agreement."


7.   Paragraph C.S5 Deleted:     The Parties agree to delete Faragraph C.S from the
Agreement.


8. New Paragraph D.1: The Parties agree to delets Paragraph D.1 of the Agreement
and to replace it with the following new Paragraph D.1;
       41,                              Redacted

       A                                Redacted

                                                                                            gak


Amendment Mo. L to the Memorandum ofAgreement = DEBECTYV and Telesat
                                                                       Confideatial



                                Redacted




                                Redacted




9, New Paragraph D.2: The Pattics agree to delete Paragraph D.2 of the Agreement
and to replace it withthe following new Paragraph 13.2;
      «3


                                Redacted




                                 Redacted




                                                                                gmk


Ameudment No. 1 to the Mempranduzs of Agreement — DIRECTY and Telesat
                                                                            Confidential

                                      Redacted



16        Entire Agreement,   This Amendment 1, including the Exhibit aftached herceto,
constitutes the entire agreement between the Parties, and supersedes and terminates all
previous understandings, commitments or representations, concerning the subject matter
hereof, Except as otherwise expressly stated in this Amendment 1, the Parties agree that
the Agreement remains in full force and effect, and the Partics hercby ratify and affirm
the Agreetient.




IN WEFNESS WHEREOF, each Party has cxocuted this Amendment | to the
Agreement in duplicate originals, through persons duly authorized to do so on their
behalf, as of the date indicated above, notwithstanding the actual dates of execution.

TELESAT CANADA                              MRECTYV ENTERPRISES, LLC



                                         By#
                                                  chael W. Palkovic
           ul     D. Bushk
Its: \H’.‘_ Grcq‘dc«-.shofl [A            Hté:    Executive Vice President & CFO
      Cm&+¢ Deve { *!fli'
                     .
                                         pate:      [lea 12. 2006




Date: _     Nov, 22, 28046


        EXHIBIT 1


DIRECTV 1R LEASE AGREEMENT


&Telesat
                                                                             D IR EC T V



                                       TELESAT CANADA

                                                — and —


                                DIRECTV ENTERPRISES, LLC.




           SATELLITE RELOCATION AND LEASE AGREEMENT
                                                For
                                          DIRECTV 1




                                  Dated as of November 22, 2006


                                           CONFIDENTIAL                                                 +
 All information contained in or disclosed by this documentis confidential and proprietary to Telesat
 Canada and DIRECTV Enterprises, LLC.      By accepting this material the recipient agrees that this
 material and the Information contained therein will be held in confidence and will not be
 reproduced in whole or in part except for purposes of this Agreement. It is understood that no
 right is conveyed to reproduce or have reproduced any Item herein contained without express
 written permission from Telesat Canada or DIRECTV Enterprises, LLC, as the case may be.




CONFIDENTIAL


               ONe
                      Satellite Relocation and Lease Agreement —
                                       DIRECTV 1


                                                 F      TE




Article 1.0    Definitions

Article 2.0    Relocation and Operation of Satellite

Article 3.0    Service Commitment

Article 4.0    Representations and Warranties

Article 5.0    Additional Covenants and Termination

Article 6.0    Miscellaneous                                                                10




SCHEDULES:
Schedule 1     Standard Terms and Conditions For Sateilite Relocation and Lease Agreement




                                                  (1)


CONFIDENTIAL


                                &Telesat
               SATELLITE RELOCATION AND LEASE AGREEMENT — DIRECTV 1


This Satellite Relocation and Lease Agreement dated as of November 22, 2006, between TELESAT
CANADA (CCUSTOMER"), a corporation continued and existing under the laws of Canada, and DIRECTV
ENTERPRISES, LLC (CDIRECTV"), a limited liability company incorporated under the laws of the State of
Delaware.


WHEREAS
      CUSTOMER has agreed to lease, and DIRECTV has agreed to furnish to CUSTOMER, the DIRECTV 1
      Satellite at the rates and the other terms and conditions specified herein;


NOW THEREFORE in consideration of the mutual agreements contained in this Agreement and other good
and valuable consideration (the receipt and adequacy of which are hereby acknowledged), the Parties agree
as follows:

                      ARTICLE 1.0 — DEFINITIONS AND CONDITION PRECEDENT

1.1      As used in this Agreement and the recitals hereto, the followmg terms shall have the following
         meanings:
         "Agreement" means this Satellite Relocation and Lease Agreement and all schedules,
         appendices and instruments in amendment or confirmation of it; *hereof", "hereto", "herein"
         and "hereunder" and similar expressions mean and refer to this Agreement and not to any
         particular Article or Section; "Article" or "Section" of this Agreement followed by a number
         meansandreferstodtespecfledAmdeorSecbonofthIsAgmement
         "Authorization" means, with respect to any Person, any authorization, order, permit, approval,
         forbearance decision, grant, licence, consent, right, franchise, privilege or certificate of any
         Governmental Entity having jurisdiction over such Person, whether or not having the force of
         law.
         "Bell ExpressVu" means Bell ExpressVu Inc., in its capacity as general partner of Bell
         ExpressVu Limited Partnership.
         "CUSTOMER" means Telesat Canada, a corporation incorporated under the laws of Canada,
         and its successors and permitted assigns.
         "Designated Orbital Location" means either the 82° W.L. orbital position or the 91° W.L.
         orbital position as determined pursuant to Article 3.3.
         "DIRECTV 1 Satellite" means the satellite owned by DIRECTV and operating at the date of
         this Agreement at the 72.5° W.L. orbital position.
         "Effective Date" has the meaning ascribed thereto in Article 1.7.
          "Governmental Entity" means any (i) multinational, federal, provincial, state, municipal,
         local or other government, governmental or public department, central bank, court, commission,
         board, bureau, agency or instrumentality, domestic or foreign; (if) any subdivision, agent,
         commission, board, or authority of any of the foregoing; or (iil) any quasi—governmental or
         private body validly exercising any regulatory, expropriation or taxing authority under or for the
         account of any of the foregoing, in each case In the proper exercse of its governmental
         authority.                                                                                           ,smfl
CONFIDENTIAL


Satellite Relocation and Lamse Agromment — DIRECTV 1 Bobween Talesat Canada and DIRECTY Enterprises, LLC
Page 2 of 10

         "Operations Agreement" means the agreement between the Parties for Satelite Operational
         Services dated June 23, 2004.
         "Parties"® means DIRECTV, CUSTOMER and any other person who may become party to this
         Agreement and "Party" means any one of them.
         "Person" means an individual, partnership, limited Hability company, corparation, joint stock
         company, brust, unincorporated association, joint venture or other entity of Governmmental Entity
         and pronouns have similarly extended meaning.
          "Required Authorizations" means, with respect to each Paity, all Authorizations and other
         notifications, licenses, permits, authorizations, approvals and consents of other Persons required
         for such Party to consummate the transactions contemplated by, and to perform its obligations
         under, this Agreement.
         "Service Commencement Date" has the meaning ascribed thereto in Article 3.2(b).
         "Standard Terms and Conditions" means the standard terms and conditions for the Sate|Re
         Relocation antd Lease Agreement set forth in Schedule 1.
         "Term" has the meaning ascribed thereto in Artice 3.2(a).

1.2      Capitalized terms used in this Agreement and not otherwise defined in this Agreement have the
         same meanings as in the Standard Terms and Conditions.

1.3      Gender and Number, Any reference in this Agreement to gender shall indude ail genders, and
         words importing the singular number onlyshail include the plural and vice versa.

14       Entire Agreement.        This Agreement, including Schedules 1 to 3 attached hereto, and the
         @greements referred to herein or delivered pursuant hereto, supersedes all prior agreements, term
         sheets, letter of Intent, understandings, negotlations and discussions, whether oral or written, of the
         Parties pertaining to the subject matter hereof, except that this Agreement shall not supersede the
         Parties‘ amendment bo the Memorandum of Understarding, dated                     2006, that addresses
         Telesat‘s lease of the DIRECTV 1 satellite, There are no representations, warranties, conditions or
         other agreements, express or implied, statutory or otherwise, between the Parties in connection with
         the subject malter of this Agreement, except as specifically set forth in this Agreement and the
         agreements referred to herein or delivered pursuant hereto.

1.5      Amendments, This Agraement may only be amended, modified or supplemented ty a written
         agreemenit signed by each of the Partiec.

1.6      Incorporation of Schedulas, The schedules attached hereto shall for all purposes hereof form
         an integral part of this Agreement.

1.7      Condition Precadent. Notwithstanding anything to the contrary contained herein, indluding
         execution of this Agreement by both Parties, this Agreement shall not become effective until both
         Parties have executed an amendment tothe curtent Memoraridum of Agreement, dated 6 October
         2005, (the "MOA") with such amendmeant providing for Telesat‘s lease of the DIRECTV 1 Satellite
                                     C             Redacted         .       sn T                           .
                                                                                                               gmk




CONFIDENTIAL


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                                                                                                  6T ® t s6eg
      911 ‘#eepdisquy ALDFYI uO epeues mmsareL usoageg T ALYIHIQ —Wewwssuby Miveq pus uopreney cyjers


Sateilite Relocation and Lease Agreement — DIRECTV 1 Between Telesat Canada and DIRECTV Enterprises, LLC
Page 4 of 10



         (e)    Customer shall be responsible for the provision, installation, operation, maintenance and for
                securing all necessary licenses and/or Authorizations for all earth station facilities and
                equipment for transmitting signals to, or receiving signals from, the Satellite. Any provision
                by DIRECTV to Customer of earth station or other terrestrial facilities or services shall be the
                subject of a separate agreement.



                                                                                                           gut,




CONFIDENTIAL


Sutailite Relocation and Lease Agreement — DIRECTY 1 Setwean Tolesat Canada and DERECTV Enterprisas, LLC
Page 5 of 10
                                 ARTICLE 3.0 — SERVICE COMMITMENT

3.41     Service Commitment

         (a)    CUSTOMER hereby agrees to subscribe for, and DIRECTV hereby agrees to fumish to
                 CUSTOMER, subject to the terms and conditions of this Agreement, all RF channel services
                 of the DIRECTV 1 Sateflite, Such services shall be used by Customer in any manner, as
                 determined by CUSTOMER (hereinafter collectively referred to as "Customer RF Channel
                 Services") on the DIRECTV 1 Satefite in accordance with this Agreement commendng
                 immediatelyupon the Service Commencement Date.
         (b)    The DIRECTYV 1 Satellite will be operated in fixed station orblt mode uniess CUSTOMER in
                 its sole discration wishes to operate the satailite in inclined orbit in order to maximize fuel
                 Hfe.


3.2      Term and Service Commencement Date

         (a)     The term of this Agreement shall commente upon the date of execution of this Agreement
                 and, subject to the earlier termination in accordanice with the terms hereof, terminate on
                 March 1, 2009 (the "Initial Term"), Following expiry of the Initial Term, the tarm shall be
                 subpmatically extended
                                                 Redacted             and continuing to the end of Iife of the
                 DIRECTY i Sawflhs(filewtfilmmuusalwm\sbnsshaflberefmmher&asthe
                "Term"). As used herein, the "end of life" shall be the point in time at which the satellite is
                taken out of commercial operation when there is no longes sufficient fuel to operate the
                 DIRECTV 1 Sateilite , whether the satellite is operated in inclined or fixed station ortit, and
                 de—orbited to a location at least three hundred kilemetres (300 lon) above geostationary
                 orbit. This and of life date,                       Redacted
                                             , is contemplated to be March 31, 2009,
                                                  Redacted                                meict n
                                          mcwmnmmamammmmmwma
                 Mulmifiwmwmnmm&nmmemdmwwww
                 mapdmizing fuel life to extend end—of life for as long as possible.
         (6)     DIRECTY acknowledges that CUSTOMER                             © Redacted

                                 _ The date of arival of the DIRECTV 1 Setellite at the Designated Orbital
                 Location shall be the "Service Commencement Date".
          (c)    The CUSTOMER may terminate this Agreement,          _

                                                   Redacted



          (d}    If Customer does not wish to use the DIRECTV 1 Satellite after March 1, 2009, but before
                 th_e Sateifite‘s end uf Jfie“,


                                                  Redacted




3.3       Designated Orbitat Location, TheCUSTOMER shall notify DIRECTV in vediting                     Redacted
                                          as to the location of the DIRECTV 1 Satedlite and such location shalt
CONFIDENTIAL                                                                                                       gak.


Sateflita Relocation and LeaseAgreement < DIRECTY 1 Betweon TelesatCanada and DERECTV Entarprises, LLC
Page 6of 10
         be referred to as the Designated Orbital Location. ‘Testing of the DIRECTY 1 Satellite shall be
         completed at such position.

3.4      Payments

         (a)




                                                      Redacted




         (b)
                                                      Redacted



         (c)
                                                      Redacted


3.5      Rtresale. The Customer RF Channel Services may not be resoid or subleased for use by an entity or
         for service to or within the United States without CARECTV‘s prior written consant and in no event
         may the Customer RF Channel Services be used directly or indirectly to provide direct—to—home
         services to or within the United States,

3.6     Standard Terms and Conditions, in addition to the terms of this Agreement, the Stendard
        Terms and Conditions, sttached hereto as Schedule 1, are incorporated by reference in this
        Agreement and consttute an itegeal part of this Agreement.

3.7     Exclusion of Warranties, The DIRECTV 1 Satelite is expressly leased to Customer on an "as
        ts" basls. EIRECTV makes no representation or warranty regarding the Satefiite, and any such
        warranties are expressly exduded and disdaimed, including any warranty of merhantability or
        fitness for a particufar purpose, and any other warranty implled by statubte or rule of law,
                                                                                                              wat.
CONFIDENTIAL


Satellité Relocation and Lease Agreament —DIRECTV 1 Botwoon Tolseat Canadp and DIRECTY Enterpriges, LLC
Page 7 of 10

3.8

                                               Redacted




CONFLDENTIAL


Satellite Relocation and Lease Agreement—DIRECTV 1 Between Telesat Canada and DIRECTV Enterprises, LLC
Page 8 of 10



                       ARTICLE 4.0 — REPRESENTATIONS AND WARRANTIES

4.1      Representations and Warranties.          Each Party represents and warrants to the other Party, as of
         the date hereof and as of the Service Commencement Date, as follows and acknowledges and
         confirms that each other Party is relying thereon without independent inquiry in entering into this
         Agreement:
         (a)     Organization and Qualification, |It is a corporation, duly incorporated, continued or
                 amalgamated, and validly existing under the laws of the jurisdiction of its Incorporation,
                 continuance or amaigamation, as the case may be, and is duty qualified, ficensed or
                 registered to carry on business under the laws applicable to it in all jurisdictions in which the
                 nature of its assets or business as currently conducted makes such qualification necessary or
                 where the failure to be so qualified would have a material adverse effect on its ability to
                 perform its obligations hereunder.
         (b)     Corporate Power, It has all requisite corporate power and authority to execute and
                 deliver this Agreement, to perform its respective obligations hereunder and to consummate
                 the transactions contemplated hereby.
         (c)     Authorizations, etc. The execution and delivery by it of this Agreement and the
                 performance of its respective obligations hereunder, and the consummation by it of the
                 transactions contemplated hereby, have been duly authorized by all requisite corporate
                 action and no Authorization under any applicable Law and no registration, qualification,
                 notification, designation, declaration or filing with any Governmental Entity is or was
                 necessary therefor except such as are in full force and effect, unamended, with the
                 exception of those Authorizations required to fuifil the Relocation Condition Precedent.
          (d)    Execution and Binding Obligation, This Agreement has been duly executed and
                 delivered by it and constitutes legal, valid and binding obligations of it, enforceable against it
                 in accordance with Its terms, except insofar as enforceability may be affected by applicable
                 Laws relating to bankruptcy, insolvency, reorganization, moratorium or similar laws now or
                 hereafter in effect affecting creditors‘ rights generally or by principles governing the
                 availability of equitable remedies.
          (e)    No Breach or Violation. The execution and delivery of this Agreement and performance
                 of its respective obligations under this Agreement and compliance with the terms, conditions
                 and provisions hereof will not conflict with or result in a breach of any of the terms,
                 conditions or provisions of: (i) its constitutive documents or by—laws; (if) any applicable law;
                 ) any contractual restriction binding on it or affecting it or its properties (without regard to
                 requirements of notice, passage of time or elections of any Person}; or (iv) any judgement,
                 Injunction, determination or award which is binding on it.
          (f)    Legal Proceedings. There is no judgement or order outstanding, or any action, suit,
                 complaint, proceeding or investigation by or before any Governmental Entity or any
                 arbitrator pending, or to the best of its knowledge, threatened, which, if adversely
                 determined, would be reasonably expected to have a material adverse effect on its ability to
                 consummate the transactions contemplated hereby or perform its obligations hereunder.
          (g)    No Broker. It does not know of any broker, finder or intermediary involved in connection
                 with the negotlations and discussions Incident to the execution of this Agreement, or of any
                 broker, finder or intermediary who might be entitled to a fee or commission upon the
                 consummation of the services contemplated by this Agreement.
                                                                                                                  gmk




CONFIDENTIAL


Sabellite Relocation and Loase Agrosment — DIRECTY 1 Rabween Telesat Conade and DIRECTV Enterprimas, LLC
Page 9 of 10


                    ARTICLE 5.0 — ADDITIONAL COVENANTS AND TERMINATION

5.1

                                                    Redacted




5.2      General Rights and Remedies, Subject to the exdusions and fimitations of liability in the
         Standard Terms and Conditions, in the event any representation or warranty of any Party contained
         in this Agreement shall prove bo have been incorrect in any material respect when made or deemed
         to have been made or if any Party falls to perform, observe or comply with any of its covenants or
         ayreements contained in this Agreement, the other Party will be entitied to pursue all of its rights or
         remedles that are available at low or in equity. Nothing herein shall be deemed to preclude either
         Party from seeking injunctive rellef, i necessary, in order to prevant the other from wilfully or
         intertfonally breaching its obligations under this Agreement or to compel the other to perform its
         gbligations under this Agreament

5.3


                                                      Redacted




54       Additional Termination Rights,

         (a)     The Satellite shall be taken out of commercial operation at the Designated Orbital Location if
                 CUSTOMER and DIRECTV reasonably determine and mutually agree thatthere is less than Redacted
                    of usable fuel remaining on the DIRECTV 1 Satellite and therefore there is no longer
                 sufficent fuel to operate the DIRECTY 1 Satellite and maintain geosynchronaus orbit of the
                 Designated Orbital Location within plus or minus 0.1 degress, as wel as allowing sufficent
                 fuel for de—orbiting the Satellite at least 300 km above geostationary arbit. In this event,
                 DIRECTV wilt provide such supporting analysis to CUSTOMER and the Parties shall mutualiy
                 agree to an operational plan to deosbit the DIRECTV 1 Sateilite. This Agreement shall
                 terminate effective the date of the DERECTV 1 Satellite aend of fife.

         (b)     DIRECTV may terminate this Agreement                                                          %



                                                      Redacted




CONFICENTIAL


Satelite Relocation and Lease Agreement — DIRECTV 1 Between Telesat Canada and DIRECTV Enterprises, LLC
Page 10 of 10



                                              ARTICLE 6.0 — MESCELLANEOUS

6.1      Parties Obligated and Benefitted.              This Agreement will be binding upon the Parties and their
         respective permitted assigns and successors in Interest and will enure solely to the benefit of the
         Parties and their respective permitted assigns and successors in Interest, and no other Person will be
         entitled to any of the benefits conferred by this Agreement or to rely on the provisions hereof in any
         action, suft, proceeding, hearing or other forum. Without the prior written consent of the other
         Party, no Party will assign any of its rights under this Agreement or delegate any of its duties under
         this Agreement, provided that either Party may, without the consent of the other Party, assign its
         rights and obligations hereunder to:
         (a)          any Affiliate or successor Person in connection with any reorganization of its business;
                      provided that: (i) the non—assigning Party is given 30 days‘ prior written notice of the
                      proposed assignment or reorganization, as the case may be; and (}i) the proposed assignee
                      has similar or better finandal creditworthiness and executes and delivers an assumption
                      agreement pursuant to which the assignee assumes the obligations of the assigning Party
                      hereunder in form and substance satisfactory to the other Party acting reasonably.
                      Notwithstanding any such assignment of this Agreement or of a Party‘s rights and
                      obligations hereunder, unless the other Party otherwise agrees, the assigning Party shall
                      remain liable hereunder to the other Party to the same extent as if such assignment had not
                      occurred in the event that and to the extent that the assignee fails to fully perform the
                      assignor‘s obligations hereunder.

6.2      Notices, Any notice, request, demand, waiver or other communication required or permitted to be
         given under this Agreement will be in writing and will be deemed to have been duly given only if
         delivered in person or by first class, prepaid, registered or certified mail, or sent by courier or by
         overnight delivery service or by email, or, if receipt is confirmed, by fax:
         Telesat Canada                                          DIRECTV Enterprises, LLC
         1601 Telesat Court                                      2230 E. Imperial Highway
         Ofttawa, ON KIP5B4                                      B Segundo, CA 90245
         Canada                                                  U.SA.
         Telephone:       (613) 748—0123                         Telephone:   (310) 964—3982
         Faceimile:       (613) 748—8784                         Facsimile:   (310) 964—4883
         Attention:       Paxt D. Bush                           Attention:   Chief Financial Officer
         Copy:            Vice President, Law                    Copy:        General Counsel
         Email:           p.bush@telesat.ca                                   Senior Vice President, Engineering
                                                                 Emalls       bmregan@directv.com Jrbutterworth@directv.com


         Either Party may change the address to which notices are required to be sent by giving notice of
         such change in the manner provided in this Article. All notices will be deemed to have been received
         on the date of delivery or on the third Business Day after mailing or the next Business Day, If sent by
         overnight courler, in accordance with this Article, except that any notice of a change of address will
         be effective only upon actual receipt.

6.3      Expenses. Except as otherwise expressly provided herein, all costs and expenses (induding the
         fees and disbursements of legal counse}, investment advisers and auditors) Incurred in connection
         with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring
         such expenses,

6.4      Non—Merger.         Except as otherwise expressly provided in this Agreement, the covenants,
         representations and warranties of the Parties contained in this Agreement shall not merge on and
         shall survive the Service Commencement Date and, notwithstanding any investigation made by or on
         behalf of either Party, and shal} continue in full force and effect throughout the Term.

6.5      Governing Law/Compliance. This Agreement shall be governed by and Interpreted and enforced
         in accordance with the laws of the State of Michigan, U.S.A., (without giving effect to its conflict of
CONFIDENTIAL


Satellite Relocation and Lease Agreement—— DIRECTV 1 Between Telesat Canada and DIRECTV Enterprises, LLC
Page 11 of 10

        law principles) and the Parties Irrevocably submit to the exclusive jurisdiction of the courts thereof.
        The Parties agree that in carrying out their respective activitles hereunder, all actions and those of
        the Parties‘ respective employees and/or agents shall be in compliance with all applicable faws and
        regulations, including, but not limited to, export laws and regulations.

6.6     Order of Precedence, In the event of a conflict between the provisions of this Agreement and
        the Standard Terms and Conditions of Schedule 1, the provisions of this Agreement shall take
        precedence over the terms contained in Schedule 1.

6.7     Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
        be deemed an original and all of which, taken together, shall constitute one and the same
        Instrument.


        IN WITNESS WHEREOF each of the parties hereto has duly executed this Agreement under the
hands of its proper officers duly authorized in that behalf as of the day and yearfirst above written,

                                                   TELESAT CANADA




                                                   Name:       _Faul D. Bush

                                                   Tite:_ .L Broadcashae 3 Colfibed

                                                   By:,

                                                   Name:_JenaiSer E. Perkins
                                                   Title:     \I-P., Law

                                                   DIRECTV E

                                                   By:

                                                   Name:        Michael W, Palkovic

                                                   Title:       Executive Vice President & CFO

                                                                                                                  sn nye




CONFIDENTIAL


                                          Schedule
                                Standard Terms And Conditions
                              For Lease of the DIRECTV 1 Satellite




          (This is Schedule 1 to the Satellite Relocation and Lease Agreement —— DIRECTV 1
                                             between
                                        TELESAT CANADA
                                                and
                                  DIRECTV ENTERPRISES, LLC


                                  dated as of November 22, 2006)




CONFIDENTIAL


i Telesat
                                                                                                          ds
                                                              SUCHEDULE 1

STANDARD TERMS AND CONDITIONS FOR
Sateilite Relocation and Lease Agreament
                                                                            me


A. GENCRAL                                                            conditions of this Schedule, as such sgreemert May be
                                                                      amendéd, modified, supplemented, restated or replaced
This Schadule contains the standard terms and conditions              from time to time;
which are applicable to the lease of the CIRECTV 1 Sateilite.
References to the satelite shaft mean the DIRECTY i                   "CUSTOMER® has the same meaning set forth in t Laose
Sabeilite. Al amounts quoted are in Linited States otlars.            Agreement;
                                                                      "Term" means the duration for which Customer leases the
6. DEFLINIHIONS                                                       DIRECTV 1 Satelite, Induding aty extensions thereof, as
"Alfiiate" means with respect to any Persori, any Gther               specified in the Lease Agreement; and
Person {i) directly: or indirectly: controfling. {Including: aft
                                                                      "User" means any user and/or reseifer of the DIRECTV 1
drectors, officers, members and partriers of such Person),            Sateilite capacity furvished by DIRECTY under the Lease
controlted by, or under direct or indirect ommmern control            Agreement.
vaith, such Pergon, or (@) that directy or Indiractly pwns
more than 50% of any class of vating or equity secunties of           Othercapitailzed terms used and not otherwiise defingd in\
such Person, A Person shall be deemed to control another              this Schedule have the some rheanings as in the Lease
Person if sudy Person posseises, directly or indrectty, the           Agrcement.
power to drect ar cause the direction of the management
and poliges of the ather Persan, whether Ihrough the                  C. Reserved
ownership of voling securitles or woting. Interests, by
contract or otherwise;
                                                                       D. PAYMENT
"Busingss Day" meansany day other than a Saturday, Sunday
or a day on which banking institutions in Toronts, Ontarie or          $.
Montreal, Quebec are required as autherined to be diosed;
                                                                                                Redacted
"Channg" means a path for signal brangmission;
"CUSTOMER® has the masning set forth in the Service
Agreement,
"Laws" meang alt valld, duly enacted or promuigated
statutes, codes, ordinances, decress,. rules, requiations,
munigpal bydaws, jJudclal or artitral or admintstrative or
rninistenad or departmental or regulatoryjudgments, orders,            2.
deasions, rulings or awards, policies having the force of lsw                                   Redacted
or any provisians. of the foregoing, Including. general
princigles of common and oi taw and equity, binding on
the Person refered to in the context in which such word is             3.
used; and "Law" means any one of foregoing;
                                                                                                Redacted           C
*Parky® means the parties to the Service Agrosment and
their respective Succetsors and permitted assigns;                    4.
*Payment Account" means the account of| DIRECIV                                                 Redacted
designated by notice In writing from fime to tme by DIRECTV
to the CUSTOMER;
*Proprietary Information" mearg atl |iformation with respect           E. PERFORMANCE OF THE DIRECTV 1 SATELUTE
to this Agreement that is disclosed Iy either CUSTOMER or              1. As stated in the wasalvusmsmmemflscw
                                                                                                                               ee§




DIRECTV, induding: any technical speoifications, system                   Sateiite & being provided to the Customer, for
designs, data or material which contains.. proprietary                    Customar‘s use, on an "as is" basis. Except for
information and which is either:                                          pmaedn?aawapn&xc)dmemmc
1/ in witten form clearly labelled              as "Proprietary",         the CUSTOMER shall bear all risks associated with the
    "Confidential® or sinilar designation; or                             performance of the DIRECTV 1 Sateilite, The Customer
                                                                            shatt niot be entitled to caim, and DIRECTV shall fot
2} if decieaed qrally, is identified as confidentiat at the time            pay, any damages, losses, fines, fees, perialtics, otc.
   of oral disclosure and within twenty (20) days after such                assoated with or related to the perfomnance of the
    @sdosire is furished to the recipient in & written                      DIRECTV 1 Sabeliite
    summary lnbelied "Proprietary", "Confidential® or sitilar
    designation;
"Leits Agreement‘ means the Satelite Recation and
Leese Agreemasnt entered into between the Partes herain,
the terms and condiions of which include the tems and

Telesat T&C #200—F                                                                                                      Puge t of ?
Rovemnber 2006


                                                                             SYANDARL TERMS AND CONDITIONS
                                                                  FOR FULL PEREOD WHOLE RF CHANNEL SERVICES
                                                                                mamnsttvtintmenenensintinintom
F. EXCLUDED
The amounts due and paysble to DIRECTV are exdusive of
all federal, provincal, state and municipal taxes directly
related to the DIRECTV 1 Sateiite provided by DIRECTV.
The CUSTOMER shall be responsible for the payment of any
such taxes, fees or other charges impcsed by aty
Governmert Entty {or any poiittical subdivision thereof) with
reapect to the DERECTV 1 Sateliite, including but not limited                                      Redacted
to any fees or licanse costs impased by Industry Canada (or
any smilar regulatory body) to allow the Sateflite to operate
in the Designatad Orbitat Location andjor broadcast into
Canada or ather country.         For the purposes of this
paragraph,      Govenmental         Entty      maans       any
{i) muttinational, federal, provincial, state, muricipal, tocal
or other government, gaverndrental or public depatment,
central bank, court, commission, board, bureau, agency, or
                                                                         b}   If the CUSTOMER terminates the Lease Agreesnent
instrurentality, domestic or Foreiqn; ) any subdvision,
                                                                              in any tnanner Other than as set forth in Paragraph
agent, commission, beard, or suthority of any of the
foregoing; or {i#) any quas—governmental or private body                      3.2(c), or If DIRECTV terminates the Leass
valty exerosing any: regutatory, expropriation or. taxing
                                                                              Agreement in accordance with Section G.3 a)
                                                                              above,
authority under or for the account of any of the foregoing,
in each case in the proper exerdse of its governmnental
outhority. Nobwithstanding the foregoing, DIRECTY shait be
responsible for all taxes imposed by the United States
Government Entty on the payments made by Customer for
use of the DIRECTV 1 Satellite,

5. CONDITIONS
1.. tise of the DIRECTV 1 Satellite by the CUSTOMER:
                                                                                                   Redacted
   a)    The CUSTOMER is prohibited from usng the
         DIRECTY 1 Sateiite or permitting these gervices to
         be used, for a purpose or in a mander that is
         contrary to Laws} and
    b)   If the continaed use of the Sateilite would breach
         any order of & court of competent jurtsdiction, then
         DIRECTY shall have, in addibon to all other rights
         hargunder, the immediate fight to prevent the
         CLISTOMER from using the Sateilite to the extent,
         but only to the extent, nemessary and for the time
         necessary, as reasonably determined by DIRECTVY
         to peevent such breach from contriutng.                         dJ   Termination rights under this Schedule shoHl be
                                                                              addtional to the terminabon rights set forth in the
3. Termination                                                                Lease Agreement.
   ) DIRECTY may terminate the Lease Agreement If:
                                                                    H. GENERALUIMITATIONS
                                                                    1.    Each of DIRECTV and the CUSTOMER shaif promptty
                                                                          notify the other upon Jearning. of any. anomiblies
                         Redacted                                         associated with the DIRECTV 1 Sateliite,
                                                                   &.     DIRECTV does not represent nor warrant that
                                                                          Customer use of the DIRECTY 1 Sateilite wil be
                                                                          capubile of achieving any specific resuits in the
                                                                          CUSTOMER‘s business. CUSTOMER covenants
                                                                          indaumsflmmlndlflmwinflu
                                                                          warstanties or conditions with respect to the
                                                                          Suteilite, or any part thereof, its condition,
                                                                          durabliity or sultability for any particular use
                          Redacted                                        Including       warranties             or   candittons    of
                                                                          merchantability or fitness for any purpose or
                                                                          use, whether expressed or implled ty contract,
                                                                          tort (includiag negligonce and strict Kability},
                                                                          statute or other legal theory, are axpressly
                                                                          excuded ind disclalimed.                    The CUSTOMER
                                                                          exprassly agrees that it waives all remodies
                                                                          ond/or claime    of uny    kind  ngainst the
                                                                          manufacturar(s) of the Satailite, the operator of
                                                                          the    sateilite,  thei      affiliates   and/or

Tolesal T&C #200—F                                                                                                          Page 2 of 8   gmk
Noverbar 2006


                                                                           STANDARD TERMS AND CONDITIONS
                                                                FOR FULL PERTOD WHOLE RF CHANNEL SERVICES

      subcontractors and/or the owner of tha                          provisions of this Section 1. Each Party‘s obligation to
      Satoliito, its afiliates and/or sub—contractors.                hald information in confidence wil be satsfed if it
                                                                      exercses the came care with respect bo such
1. OF                                                                 Information as it would exerdse in preserve the
                                                                      corfidenilality of its own similar information, but with no
1.                                                                    less than a resgonable standard of care.
                                                                 2.




                        Redacted




                                                                      Exceptions
                        Redacted                                      Notwithetanding the above but subject to Section J.4, no
                                                                      Party shall be liable for disciasure of any such
                                                                      Progrietary Infortnation if the same:.
                                                                      a}   is now or hereafter becomes avaiable to the public
                                                                           other than by way of distiosure by the redpient
                                                                              Party or any affilate thereof, or
                                                                      b}   can be dameonstrated by recorded data #n its own
                                                                           files to be actuafly nown by the reciplent Party
                                                                           prior to being obtaned from the disclosing Party
                                                                           and such other sourcer are not beund by sinitar
                                                                          non—disclosure restrictions; or
                                                                      ¢)  becomes availtable from other sources through no
                                                                          fault of the recipient Party; or
                                                                      d)} was dsdosed with, and in accordance with the
                        Redacted                                          terms of pror written approval of the Party
                                                                          daiming proprietary rights; or
                                                                      €)   is required by Law.
                                                                      Compelied Disdosure
                                                                      In the event that a receiving Party becomes legaty
                                                                      compelled to. disciose         Proprietary Information, such
                                                                      Porty     will,   to   the   extent   practicable   under   the
                                                                      crcumstiarices, provide the disdesing Party with witten
                                                                      rotice thereof so that the diaclosing Party may seelc 3
                                                                      protective order or other appropriate remedy. In any
                                                                      such event, the recelving: Party weill disdose only such
                                                                      information as is legally required and will evertise
                                                                      ressongble efforts to obtain proprietary treatment of any
                                                                      Proprietary Information being disdlosed.
                                                                      Injunctive Reliet
J3, USE OF INPORMATION                                                The Parties agree that, in the event of a breach or
                                                                      thraatened breach af the terms of these non—disdiasure
1. Oisclosure of Information                                          obligations, the disdosing Party shail be entitied to seek
     It is recognized that technicat or other information may         an injunction probibiting any such breach, The recaiving
                                                                      Party acknowledges that in the event that it breaches
     be discosed by ane Party to the other in the course of
     the activibes contemplated by the Lease Agreementand             the terms of these non—dsdosure oblgations, the harm
     that the disdosing Party may desre to protect such               suffered by the disdosing Party may not be adequataly
     Information against unrestnicted use or dsdosure. to             compensated by manetary damages and, accordingly,
     others, To provide protection for such information, gadh         the diedosng Party shall be entitied in seek a court
     Party agrees to      respect such    propratary and/or           infunction in addition to any other remadies avatable at
     confidentlal   information in   accordance with the
Tolesat TAC #200—F                                                                                                        Page 3 of 6
November 2006


                                                                              STANDARD TERMS AND CONDITIONS
                                                                   FOR FULL PERIOD WHOLE RF CHANNEL SERVICES

    law or In equity specifically enforcing the non—disclosure         The Partles will execute and deliver to the other, from
    provisions herein.                                                 time to time during the Term, for no additional
                                                                       consideration, such further certificates, Instruments,
    Rights to Information                                              records, or other documents, assurances or things as
    It is expressly understood by the Parties hereto that,             may be reasonably necessary to give full effect to the
    except for the right to use Proprietary Information for            Lease Agreement or this Schedule and to allow each         i
    the purposes contemplated herein, neither Party has                Party fully to enfoy and exercise the rights accorded by   |
    granted to the other Party any other rights whatsoever             it under the Lease Agreement or this Schedule, If such     i
    in such information. In no case shall either Party                 requested further action will not impose any expense or    1
    acquire any ownership rights and/or proprietary Interest           material additional obligations on the Party from whom
    in the other Party‘s Proprietary Information,                      such further action is requested,
    Upon expiration or termination of the Lease Agreement,           . Severability
    or any other time, all Proprietary Information in the
    possession of a Party shall, If requested in writing by the        Any Artice, Section, Item or other subdivision of the
    Party that disclosed such Information, be either returned          Lease Agreement or this Schedule or any other
    to the disclosing Party or, at the recelving Party‘s option,       provision of the Lease Agreement or this Schedule
    destroyed provided certification        of destruction is          which is, or becomes iMlegal, Invalid or unenforceable
    provided. In all events, the receiving Party mayretain a           shall be severed from the Lease Agreement or this
    single copy of all Confidential Information, as an archive         Schedule, as the case may be, and be Ineffective to the
    record of the contents hereof, accessed solely in the              extent of such Illegality, invalldity or unenforceabilty
    event of a dispute between the Parties concerning such             and shall not affect or Impair the remaining provisions
    contents.                                                          hereof or thereof.
                                                                     . Resulting Contract
    GENERAL TERMS AND CONDITIONS
®




                                                                       The terms and conditions contained in this Schedule,
    Non—Performance                                                    shall form part of and be incorporated in the Lease
    Any delay or omission of a Party in the enforcement of             Agreement,
    any provision of the Lease Agreement or this Schedule
                                                                                            ——00000——
    shall not affect the right of such Party thereafter to
    enforce the same provision, Nor shall the walver by a
    Party of any breach of any provision of the Lease
    Agreement or this Schedule be taken or held binding by
    such Party, uniess in writing, and such waiver shall not
    be taken or held to be a waiver of any future breach of
    the same provision or prejudice the enforcement of any
    other provision.

    Rights Cumulative
    Alf rights and remedies of each of the Parties under the
    Lease "Agregment or this Schedule will be curmulative,
    and the exerdse of one or more rights or remedies will
    not predude the exerdise of any other right or remedy
    available under the Lease Agreement or applicable Law.
    The Parties agree that each of them shall have the right
    to seek injunctive rellef, if necessary, in order to prevent
    the other Party from willfully breaching its respective
    obligations under the Lease Agreement or this Schedule
    or to compel the other Party to perform its respedtive
    obligations under the Lease Agreement or this Schedule.
    Joint Venture
    The provision of service by DIRECTV does not establish
    any foint undertaking, joint venture or partnership with
    the CUSTOMER or its agent, contractors, any other
    persons, firms, corporation or entity providing service or
    facilities to the CUSTOMER
    Time
    Time is of the essence under the Lease Agreement. If
    the last day permitted for the giving of any notice or the
    performance—of any act required or permitted under the
    Lease Agreement falls on a day which is not a Business
    Day, the time for the giving of such notice or the
    performance of such act will be extended to the next
    succeeding Business Day,
5. Further Actions


Telesat T&C #200—F                                                                                                  Page 4 of 6
November 2006



Document Created: 2006-12-20 11:26:49
Document Modified: 2006-12-20 11:26:49

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