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PfUMESTAR by LodgeNet Agreement
TIllS AGREEMENT Is en Ie red Inlo helween l.odgeNet Enlerhllnmehl Corpornlion, a Delt,,,are corporalion, or ils nsslgns ("l.NET"),
and Ihe enlhy Iderlllfied liS Ilolelon Ihe Fee Sch"do'u unllehed tOlhis Agreemenl (heruinnfler "lIolel"),
A, ~:NH provid~s PI,(IMESTAR Slncllite delivered dlgitlll lelevi,',:n,prog",mrning lollle lodging Induslry ("PRIMESTAR by
LOllgeN,' ) b) mellns 01 e'llIlpmcnl ,upplled, owned and malnlillned by I.NEl (,uch prngrumnling llud equlpmonl are referred 10 herein "'
the /lpt. Syslernfl).
(J, Iloleloperules Ihe lodging fncllity idenlified on the Fee Schedule (hcrclnllnnr, the "Preml,c,"),
C, 1I0lel dc,ircs 10 conlracl "ith l.NET for the In'tllllalion nnd ope "'lion of Ihe Pl. SySlern 01 lite Prcml,es and l.NET dosire, 10
provide Ihe same on the lem' and condillons set fonh hclo,,:
NOW, TIIEREFORE, In con,'der.tion of the foregoing and Ihe mUlual promise, "I forth belo", the p.nies, IUlendlng to "e
legally bound herehy, agree .s follo"s:
l. PRIM/;'STtIR by LodgeNet Service. .nd Fe",
1.1 l.NET grants 10 HOlel a license 10 I."fully
receive .nd exhlbil Ih. PRIMES1AR by LodgeNet s.lelllle
delivered dighal Ie levi, ion progrumming selecled by 1I01e1 (ns
Indicated nn the anached Fee Schedule, hereinaner the "PL
Procrammlnc"), LNET agrees to Install al Ihe Premises Ihe
,atellhe."gnal receiving equlpmenland related facllllies (Ihe "Pl.
Equipment") n.cessary to rec.lv.th. PL Procrammlna,
1.2 HOI.I shall p.y LNET for Ihe PL SySlem Ih.
momhly fee sp.clfied on Ih. Fee Schedul. ("PL Fee"), plu,
npplicable ,al., lax. Th. PL Fee ,hall be paynble on a monthly
basi" in advance. on Ihe firsl day of cach monlh (pro.rul.d for any
panlol period), l.ule paymem~ ,hall accru. Int.rcslunlil pnidat th.
rate of 1,' % p.r month, but nol more Ih"" the hlgh.sllawful ral..
I.J Subj.cllo S.ctlon 1.4, tho PL F.e I, subj.ct 10
chango by LNET in Ih. ev.nt of a chunge In ilS arrangemenls with
any programming soo".. In such ovonl, LNET 1'1111 glv. 1.101.1 30.
days advanced wrllt.n nolice ondlh. I'L Fee m.y be Incr.ns.d os
required in connc(jtion with such change, If said increase exceeds n
cumulutiv. 10% per yeot, Hol.1 shall h.ve Ih. rlghl to modify th.
select.d PL Procrammlng as provid.d in Sc:clion 1.4,
1.4 Hol.1 shall have Ihe right to add or ,ubstltul.
other PL Programmlna upon 90,days advanc. wrllt.n nolice 10
LNET; llW1ded. Irowever. thai Hnlel may nol dele I. any initially
seleeled premlom ,ervlce (e,g., UBO, DI,ney, Cin.ma" or other
non.adv."'s.r s"onsor.d programming) during the firsllh,.. years
of this Agreem.nt. Th. PL Fee will bo equllably Increas.d or
decr.nsed bns.d on Ih. additional or substitul. programming
selected and any required changes in Ih. PL EquipmcnI,
1. I'L Equipment In.tallallon ind Servl.e.
2, I Hol.1 ,hall p.nnh LNET 10 conduct a technlcai
inspection of the Premises to determine its adequacy for a standard
Installation of Ih. Pl. Equipm.n1, such In'pection to occur, al
L.NErs .'.ction, prior to or at the lime of installation, Such
inspection sh: 'I r.lale solcly 10 Ihe .Instailatlon of th. PL
Equipment, and l.NET assumes no. re'pon,'biIiIY lor any
inspection. rcpair or maintenance of Hotel's MA TV Syslem, If
LNET delennincs thlll the condition of th~ Premises is acccplnble.
REV: PBL97,OI ,Jon ,97
mod os: conlracl . mnthly
LNET 1'1111 p.rform a 't.ndllldlnSlallalion of th. PL Eqoipm.nl al
no additional chalg. to Holel. In th. .vent l.NET dutermincs Ihat
Ihe condition of Ihe Premls.s Is Inadequate, l.NET 1'1111 '0 notify
HOI.I specifying the d.fici.ncl", If HOlel el.clS nolto make th.
necessary repairs 10 lhe Premises according 10 LNET's
recomnu:ndalions, then either pnrty may leemlmne Ihls Agreement
wllh no liability 10 ohh.r pany,
2.2 HOI.I ,hnil provide LNET a mUlually
sallsfactory .xt.rlor location for th. inSlalllllion of Ih. sat.llit. dish
and r.laled .quipment and oblain n.cussnry building pennilS or
IIc.n,.s (if any), HOI.I 1'1111 make .vallable to LNET a '.cure non.
public ar.a on Ihe Pr.mls.s salisfactory to LNET for Ih.
installalion of Ih. Pl. Equipmenl. Hot.' ,hall provide such ar.a
with the .Iectrical pow.r n.c.ssary to op....t. II,. PL Equipm.m
and sufficl.nl HV AC 10 maintain a lemp.ratur. range of b.tw..n
SO" and 80" Fahrenh.it whll. th.Pl. Equlpm."tls In oporatlon,
2.3 LNET will install tho PL Sy't.m oa tho
Premises as soon as praclicable after receipt of Ihis signed
Agro.m.nt and the complellon of the ,ite Inspection, Following
Inslall.llon, LNET, 01 its .xpense, ,hall promplly repair, restor.
and replace all ponion' of Ihe Premises to Ihelr condition prior to
In'lallation, If LNET Is replacing an existing fr...to'lhe.gu.st
v.ndor at Ihe Premises, HOlel shall provide wrlnen nolioe to slloh
v.ndor, and LNET agr..s to coordlnal. and cooperate w!lh Hotel
and ,aid vendor to minimize any disruption, to HOl.I's op.ralions
and its gliOSIS, During the Installation period, HOI.I shaU provide
complimentlIl}' gu.st rooms, if necessary and if available, to LNET
for instailatlon personn.1 and eqlllpment storage.
J. Term of Agreement.
3. I Th. date upon which the PL System Is fuily
InSlall.d and op.rational shaU b.lh. "Tenn Commencem.nt Dale,"
This Agr.em.nt shail continue for an Initiallenn as lei fonh on th.
Fee Sch.dul. from and an.r Ihe first day of Ih. next cal.ndar
month following the T.m Commencemenl Date (Ihe "Iaitial
T.m"), At the .nd of Ih. Initial T.nn, Ihls Agreemenl shall
aUlomallcally continue and .Xlend 1'0" additional one year Ienns,
unless .llh.r party giv.s Ih. olh.r wrin.n nOlice of lIS desire to
teminale Ihe Agr.ement al lensl 90.days prior to Ih. .xplratlon of
the current Icnn.
EX~'
/,
3.2 If LNET lll~lC(lntillues ils rcllltton~hip with IInr
,uppller of programming r,ceived by Holol. I.NET will '''a bos!
efforcs to give Hotel 30 duys advnncc notice thereof lInd me best
efforll to provide .ub'lituto 1'1. J'rogrommlng Il"eploblo 10 HUIeI,
If occeploble lubSlllule pwgr",nmlng ,annal he ublolnod. lIoltl
.holl have the right 10 on oqullllble prioo ndjuSlmenl pursunnl 10
Section 1.4,
4, Operotion .nd Malotenan,e of I'L Equipment.
4, I LNET .,holl muimoin Ihe PL Equipmenl In
satisfactory operational condition "nd make all necessary repairs
and rcplacr.menlS allls expense. LNET agrees 10 mainlain 11 "good
quollly Ilgnal" for 011 1'1. I'rogrammlng; provi<!E!., l!!!.!f!w:. Ihot
LNET Ihall not be respon,'b!e for the los<. inlermpllon or poor
quality of Ihe 'olelllle slgnol for re~'onS beyond Ihe reosonoble
control of LNET, Including, bUI not limited 10, deOciencies in
HOIeI', MATY System or Ihe loss of use ofony required solellite or
tron'ponder. "Good quolilY ,ignal" ,holl meon 0 dlgitol signol of 0
quollly generolly o"epled in Ihe sotellite deliver,,1 television
programming industry os stondord nnd customory given local
technlc.' reception condllions, Should LNET detcrmlnc Ihat poor
pieture quolll}' Is due 10 0 faull in HOlel's MA TY System, LNET
will odvlse Ilotel and HOIOI ,holl promptly make the necessary
repolrs,
4,2 Routine mainlenonce of the PL Equipmenl will
be performed by LNET during stondard bu,iness hours (8:00 0,111.
aod 5:00 p,m.. Mooday through Friday. holiday' excluded), I.NET
,hall use be't effons 10 respond to Hotel's maimenonce requests
regnrdlng Ihe I'L Equipment wllhin limy-eighl (48) hours of such
request, but during the aforesaid hours, If HolOl is more thon Ofty
miles from the nearest LNET technical office ilnd if slIch visits
require overnight accommodotions, HOIeI ,hall furnish guesl rooms
on a compllmenlary basi,. if availoble, to LNET personoel. Hotel
,hall be respon,'ble~or moinlenonce of the MATY System and
maintaining proper tuning of the guest room television sol', HOlel
ogree' not to permit any Inmpering wllh_ nor abuse of Ihe I'L
Equipment. Any repairs or rcplncllmllnls made necessary because
of willful or negllgenl acts of Hotel, any of Its employees,
contractors, agents or guests, will be performed by LNET;
provided, /rowever, thai flotel sholl promptly reimburse LNET for
Ihe reasonable costs of such repair.
4.3 Hotel agrees not to chorge an admission lee to
the Propeny or Impose nny special chorge or fee for the privilege
of viewing the PL ProKrammlnK in any lodging room. including
without IImitotlon, any incremental charge in oddition to the usuol
fee or chorge attrlbwable to the lodging room for the privilege of
viewing the PL Programming, which is 10 be furnished on 0 "free
to.guest" basis, Hotel ogrees to exhibit and distribule the I'L
Programming as received without ony deloy. addition, deletion,
olterallon or editing,
4.4 Hotel agrees not 10 authorize or penn!t any
television setlocaled wilhln the Premises to receive any premium
service (e.g., HBO, Disney, Cinema.x or olher non.advertiser
sponsored programming) In any room or area which ;s not a
lodging room, Including wllhollllimitation. places of public access
_.-----"RI~E5TAR~y LodgeNet Agreement
or uccolTlmodullon, burs. luunges, reslnllrunls. lubbies, common
arcas, h..Uwu)'s or any l1rcu wht:re on admission fee is rllquircd.
Jlolelunderstands thut certain pmgrarnming IUllY be required 10 be
blacked-oul or deleled by the programming supplier (e.g, live
sporting Il\lcnt.'i nlld paY4per~vicw Illtructions) which shull noc
conSlltute II vlolOlion of Ihis Agreement. 1I0tel ocknowledges Ihat
Ihi, Agreemenl Is subject I,) lhe nppllcoble ndes, regulntion, and
policies of such progr"''' suppliers regarding distributioll nlld thai
the solelllte signal provider is ohligoled to perform any required
Ilblnck.otlt." HOlel agrees not 10 dislributc or show any
programming required to be blacked-ollt lit the Premises,
4.5 lIulelllcknowledges thot thc I'l. I'rogrammlng
is subject 10 cel'tllin copyright agreements and olher restrictions,
HOlel ogrees 10 use it, besl effon, nullo ollow ony taping or
copying of the I'L I'rogramllllng, If Holel becomes owore thllt a
Ihird pony is loping or copying any pan of such programming.
HOlel will take 011 approprlote measures to prevenl such
unaulhorized use, HOlel ocknowledges that LNET, Its ,ub,idiory
and nffiliiHed companies, Its dirllctors, officers, employees and
agenls do not have any responslbllhy or cOlllrol over the corltent of
the PL I'rogrammlng. In no evenl shall I.NET (or oay such
person) be liable for special, indirect, incidental 01' consequential
damages, whether based in contmcl, tort, negligence or any other
tbeory with respect 10 Ihe conlenl of such programming,
S. Ownership, Accoss, Compliance and Insurance.
5. I NOlwllhslOnding thai some pan ions of Ihe PL
Equipment may be afOxed to Ihe Premises, the PL Equipment shali
not become real plOpllrty or a lixlure to the Premises and it shall at
all times remllin thc property of cNET, HOIeI agrees Ihot any lien
or encumbrance upon Hotel's property or the Premises shall
exclude the 1'1. Equipment and Hotel shail insCl1 0 clause so
providing into any mortgage, security agreement or similar
documenl that it executes in favor of any third pony, and Hotel
,hoil prOlect and defend LNET's tille 10 the PL Equipment agoinst
any such lien or encumbrance, Hotel shall not removt. or defnce
any marking or labels affixed 10 Ihe PL Equipmenl by LNET,
Hotel agrees, at LNETs request, to exeCllle from time to time such
ioformalional documents or OIings which LNET deems reasonobly
oecessary or desirable 10 protect Its ioteresls In the PL Equipment
and conOrm the PL Equipment os Ihe sole nnd seporate propeny of
LNET, Holel granls LNET access 10 Ihe MA TV SyslCm nnd olher
areas of the Premi!les as may be reasonably necessary for the
installation, servicing, maintaining nnd removal of the I'L System,
LNET IVOIfonts that wheo lis personnel ore on the Premises for the
purpose of installing, servicing. mointoining or removing the
Equipment. said personnel will perform Ihelr duties in a
IVorkmnnllke and efficient manner and IVith 0 minimum of
Interferenc. and disruption of Ihe operalions of Hotel.
>,2 LNET worranls thallhe PL System shall comply at
011 times with applicable laws and regulations. Ineluding those of
Ihe Federoi Communications Commission, The inSlallation and
mainlenonce of Ihe PL Equlpmenl ,holl conform to applicable
,afety regulations, LNET agrees to indemnify nnd hold Hotel
hannless from ony ood all claims relnled 10 the foregoing and to
copyrights. licenses ond retransmilSion consonts of Ihlrd parties
Poge 2 of 5
OPll!Mfak
rehlled 10 Ihe reeelpl by lIolelof Ihe PI, I'rocrammln~. 1I0lel
sholl beur no obligation for taxes resulting from ownership or
op.,olioll of Ihe pL E1lulpmelll IIl1d I.NET ,hllll be enlilled 10 1111
inveslmelll or simllllr IIIX credll, IIl1d dcpreclalloll bellent' relaling
Iherelo.
S.J I,NET ,hall malolnin dorillg Ih. lerm of Ihi,
agreement. at its sole cost Rnd c:\pense, adequate comprchensiv"
geneml liability III,uronce ogainsl IIny liability Ilri,lng "'II of
Injuries to or dcoth ofimy p~rSOIl or dlllllnge to property in any way
connected with the installation, mnlntcnuncej remuval. or
replacemellt of Ihe PL Equipmenl, I.NET sholl furnish 110lel
evidence of compliance with Iho provisions of this subparugraph
within 30 day, aner receipt of a wrillen request from flOlel for
such evidence. Inlhe eventuf any damagc to Ihe 1'1, Equipmenl,
flolel sholl promplly nollfy I.NET,
3,4 LNET waives any IInd all clallllS ogolns! 1I0lel
for any loss or damllge 10 allY property of LNET localed at Ihe
Premises, exccpl damages caused by Ihe willful rIIlsconducl or
gross negligence of flolel, lis agellts. or ils respecllve amploy.es.
In consideration orthe aforesaid waiver, Hotel likewise w'iJives any
and all claims againsl LNET for all)' loss or damage 10 any of ils
property, real aod personal, localed at Ihe Premises, except
damages caused by the willful mlsconducl or gross lIegllgence of
LNET, lis age ills or ils employees, Each party agrees 10 indemnify
and hold hamlle" Ihe olher from and againsl any and all damages
arising from the willful miscollduct or gross negligence of its
agents orreprescnlntivcs to the extent not covered by insurance,
5,3 Upon lermlnnlion of Ihls Agreemenl, LNET
shall have a period of90-days Ihereafter 10 remove the PL
Equipment. Upon removal, LNET shall restore any altered
ponions of the Premises to Iheir fanner condilion to Ihe extent
pracllcable except for normal wear and lear. During said 90,day
period, HOlel shall us. a reasonable degree of care In prolecting Ihe
PL Equipment and no rental shall be due and owing for any such
storage period, Neither Hotel nor any third party shall be entllled
10 use Ihe PL Equipmenl withoul paying _a reasooable renlal fee
eSlabllshed by LNET, Failure of LNET to remove Ihe PL
Equipmenl wilhin such 90-day period shull nol be construed as a
forfeiture by LNET of Ihe PL Equipment,
6. Assignment.
This Agreemelll shall bind nnd inure 10 Ihe benefit of Ihe
panics, Iheir permllled successors and assign" In Ihe event thai Ihe
party execuling Ihi, Agreemenl on behalf of HOlel lums over
management or ownership of Ihe Premises to anOlher party I such
party sholl assign Ihis Agreement on behalf of HOlel to the pellY
assuming managemenl or ownership of Ihe Premises, os the case
may be, Any such assignmenl shall be wilhoUI further liability 10
the assignor except as to previously accrued matters, so long as Ihe
assignee has rmanciai resources reasonably acceptable to LNET
and exeCUles a wril1cn assumption agreemenl in (\ fonn reasonably
sallsfaclory 10 I,NET prior Iherelo, LNET or II, assigns may,
withoullhe consenl of HOlel, assign ilS inlerest in this Agreemelll
10 any party wilhout liability except as 10 prevlousiy nccrued
moilers, Any allempled assignment in violallon of Ihis Seclion 6
shoil be null and void,
PRIMESTAR by LodgeNet Agreement
,. Iler.ull,
The occurrence of nny t'lllll or l1HHll of the following
evcnls will con Slit ute a default under Ihis Agreemcnt: (I) Ihe
failure of ehher party to perform any terrn. condl~j()n or covenanl
under Ihis Agreemcnl which defllult shail conlinue for a periud of
JO-day, following wrillell nolice thereof (IO-dIlYs in Ihe cas. of a
payment default), (i1) "n assigoment by either pllrty for the benefil
01' creditors, Ihe filing nf a voluntary or Involuluary petillon under
any bunkruptcy or Insolvency lnw, Ihe reorgllnilation of or
appolnlmenl of a Iru'lee for either party ullder any applicable
receivership or similnr IflW lIr the dissolution or ces~ation of
operallolls 01' either party, in ench of Ihe foregoing cases If' not
dismissed within 30-dDYs. Upun Ihe occurrence of [l default, lhe
non-defauiling pllrty IIlny term In ale Ihls Agreemenl by giving
notice of lermillallon 10 the defauiling POllY; orovlded , howev....
Ihaltermlnallon may nol occur if Ihe defaull is duo 10 no faull of
such party alld is tlie result of factors reasonabiy beyond lis control,
and all 'leI" necessa,>, to remedy such default have been duly
insliluled wllhin said JO-doy period olld said party dlllgenlly
prosecutes such sleps 10 ~omrletiol\ within a pllriod flol to exceed
00 additional 90 days (alld the defaulting party indemllifies the
lion-defaulting parly againsl any and all damage, Ihat may orise by
virtue of such delay In cure beyond Ihe Inlllal JO,day period), The
defaulting party shall pay the reasonable court coSlS and anomey
fees of the non-defaulting party and the non-defaulting party shall
be entitled to any and ail available legal and/or equitable remedle"
including specific performance and/or Injunctive relief, If Hotel is -
Ihe defaultlllg party, In addition 10 any olher available remedies, )
LNET may elect to discolllinue scrvlce immediately and shall be '"
entilled 10 receive It system removal charge of $1.500, plus a~~-.~
lennina1ion ,charge equn~ 1,0 Ihe net pl'e~cnt value of Ih7 PL Fe;. )/
payable dunng Ihe remalnmg lellll of IhlS Agreement (dlSeoullled ~
althe prime rOle Ihen in effect),
8. Exclusivity, CompaUblllty, Right 0' First Refusal.
8.1 During Ihe tcrm of Ihls Agreemenl, HOlel grants
LNET Ihe exclusive right I~ supply in-room, free-Io-guesl
telecasling ,ervices 10 the Premises, Includlllg any addilional free-
lo-guest telecasting services de,ired (any such additional services
10 be provided at rales equal to or lower Ihan Ihose generally
quoted in the lodging iodustry), In addition, subject to channel
availability, LNET may eleelto ,upply additional programming 10
HOlelwllhoul charge,
8,2 HOlel agrees Ihal any olher video or non-video
services added 10 Holel's MATV Syslem must be system-
compatible with the PL Syslem, In Ihe evenllhal HOlel wishe, 10
obloin olher in-room video or video-related services, Including, but
not IImllod to, guesl-pay programming, Inleraellve games and
,ervl,es, Inlernel access, teletext or in-house vld,o channels, HOlel
hereby gronls LNET " 60-day righl,of-nlSl-offer to provide such
services on an exclusive basis at a price, quality and on olher
lerms, in all ClLSes, compeUlive with Iho,e generally .vallable 10 Ihe
lodging industry. If LNET cannol provide Ihe desired services,
HOlel is free 10 procure such ,ervlces from a Ihird party,
Pagc J of 5
O~'Mf1.li~'
9, Gen"ol Provisions,
9, I Nolin.. Allnoli.es hereunder ,hnll he given
in wrlllng and sholl be deemed given: (i) when hand delivered, (ii)
when received If senl by fo.slmlle, (Iii) on Ihe ne" business day
when deposlled with a nallonol ovemlghl courier service or (iv)
flv. days oner deposil in the 1I,S, Re~lstered Moil, return receipl
requested, In eoeh CDse, wllh postage prepaid, Dddressed to the
applicable party otlhe address ondlor number set forth 01 end of
Ihi. Agreement. Ellher party hereto may change tho address for
notices hereunder by giving notice of such change 10 the other
party in the manner nbove p",vided,
9,2 Applloable Low ond Severoblllly. This
Agreement Is mode In the state In which the Premises ore located
(here Inaner referred 10 os the "Slate") and this Agreement sholl be
governed in all respects by opplleDble Federollows 0",1 regulations
ond Ihe lows of the Stale, If any portion of Ihis Agreemenl is found
or held to be Invalid, such invalidity sholl not offecl the
enfOl'eeoblllty and binding nature of any 01 her port of Ihis
Agreemenl, and the parties sholl endeavor in good foith
negotiations to replace such invalid portIon with one or more
provisions of similar lenor and economic effect,
9.3 Modlncallon and Wolver. This Agreemenl
shall not be modified, waived or amended except by an immument
In wrlling exeeuled by Ihe portles to Ihis Agreement. No waiver of
any provision or consent to any action shall be effective unless in
writing ond signed by Ihe party to be bound ond Ihen only to the
speelnc purpose. extent ond instonce so provided, No failure by a
party to insist upon stdct perfonnance of any lenTI or candllion of
this Agreement. or exercise any right or remedYt shall constitute a
waiver thereof.
9.4 Complete Agreemenl. This Agreemenl
(including ony oUnehmenls hereto), is Ihe eomplec' understonding
of Ihe parties with respect 10 tho subjecl moiler hereof, and no olher
representations or agreements not expressed In this Agreement
shall be binding upon the parties hereto, or sholl be effeClive to
interpret. change or restrict the provisions hereof.
9,5 Attorney Fee.. If any legol action or other
proceedings ore broughllo enforce or interprelthis Agreemen~ Ihe
prevailing party sholl be entitled to recover reosonable ollomeys'
PRIMESTAR by LodgeNet Agreement_
fees and other direct costs incurred in such ncthm or procccdll1g, in
addillolllO !lny other relief to which such party muy be crHitlcd.
9,6 Coollruetlon and Counterporu, The
partics agree lhat no provision of Ihis Agreement shull be
Inlerpreled ogainst any party b,couse such party or lIS legal
representative drafted slIch provision, This Agreement may be
executed in multiple counterparts, all of which shull constitute but
one and the same instrument. Following signature by Holal, this
Agreement shall become effective wt\tm one or more counterparts
have been accepted ond signed by LNET, In making proof of this
Agreement, il shall not be necessary to produce more than one
fully exe'\IIed counlerpart, and foesimil. signolures sholl be
deemed us originals.
9,7 Joinl Venture, NOlhing ,onlolned herein
shall be deemed to crtute a joint venture or partnership between the
parties hereto, and neither party shall represlHlt anything to the
contrmy to any other p~miOn.
9.8 Non-Common Corrler. The parties
hereto acknowledge that the services offered hereunder have been
privately offered and will be privately furnished on a non-common
carrier ba,is, Neilher LNET nor liolel ,.,gords any "presenlallons.
offers or undertakings made by the: other in connection with this
Agreement us being in the nature of offers of common carriage. So
long os the parties do nol subSlantlolly ,hange their manner of
offering the services hereunder, neithel' will attempt, now or in the
future, 10 ossert, Ihrough lego\ pro,ess, direelly 01' indlreclly, any
questions of common carriage regarding the relationship between
the parties, In addition, nothing ,omoined In Ihis Agreement shall
be deemed or construed by the porties hereto or any olher third
porty to creale any rights, obligations or intereSIS In Ihlrd 9anles,
9.9 Force MoJeure, NOlwilhstoodlng the
provisinns of Seclion 7, neither porty sholl have any Iiobillty for
the failure 10 perform or 0 deloy in performing ony of its
obllgolions, hereunder, if such failure or delay is the result of any
legal restricllon, labor dlspule, strike, boyeoll, nood, fire, public
emergency, revolulion, insurrectlon, riot, war, unavoidable
mechani,.1 lililure, interruption in Ihe supply of ele,trieol power,
loss or destruction of Bny necessary satellite, transponder,
transmission or other equipment, Act of God or MY other cause
reasonobly beyond the control of thai part)',
( Signalure page arid Fee Sehedllle jo/low )
Page 4 of 5
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Further. by sIgnIng this fann. you agree that the folloWing Item. are true ,ll1'\d that Ute
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. Thelnstaliat.lon personnel have Installed th~ satellite 9Y9te~tqy.our aaU~actJon aildlJ1
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ITEM QUANTITY PRODUCT DESCRiPtiON UNIT PfllCE PRICE
1 4 TV Recention Channels of Off-air eQuinment $ 400.00 $ 1.600,00
E'luipment includin~ Modulators, antenna, mast freight and installation
2 ABC, CBS, NBC, FOX.. ,," , "
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4 A minimum down payment o.f 25% required . . ................",..
5 pri.or to inst.allation. fP 4--''''
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SPECIAL INSTRUCTIONS: CREDIT APPROVAL SUB-TOTAL $ 1,600,00
. , Olher Charaes
TOTAL PRICE .. . . $ 1,600,00
SAI.ES APPROVAL LESSDOWN PAYMENT ".,...... ,.
. . BALANCE DUE (ore-Iaxl $ 1,600,00
Stato and Local taxes will be billed unless a copy 9' your Tax Exemption
ORDER SERVICE APPROVAL Cortlllcate Is on lIIe with Lodgenel Entertainment Corporation,
Cartlflcate No,:
THIS PURCHASE ORDER IS SUBJECT TO THE ATTACHED TERMS AND CONDITIONS.
" '
. PURCHASER'S SIGNATURE ., _ ,r_:.' ~
TITLE rtt( "^"" 'J I.. 'i '/'>: (L e- (. ........--
DATE ) //1/ 17 /_
LODGENET ENTERTAINMENT CORPORATION
BY
ClkU~ _
This order shall nol become a. binding Purchase Order until Customer Is notified of its acceptance by LodgeNet
J:ritertalnmenLCorporatlori ~"LNET.").aLits.oHices In Sioux Falls, South Dakota, and the banklng..negoJlatlon, or other
use of the initial paymeni'shall not constitute an acceptance hereof by LNET, .
F/Iod .s:rd02270210ff.Alr P.D,
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9, Admlllcd in part, Dcnicd in Part, It Is admitted that Plaintiff sent to Defendant the
leller Included as ElIhlblt 4 to Plaintiffs Complaint. It Is denied that Defendant failed to perform
the terms, conditions or covenants of the Agreement.
10, Denied. It is denied that Defendant failed to perform the terms, conditions 01'
covenants of the Agreement. By way of further answer, Defendant states that it performed all
terms, conditions or covenants on its part due until such time as Plaintiff failed to perform all
terms conditions or covenants on its part due under the Agreement. By way of further answer,
Defendant states that as Defendant made no such failure, Defendant owed no duty under the
Agreement to make correction within thirty days of any notice,
II, Denied. As above. it is denied that any failure on the part of the Defendant
occurred, and that Defendant defaulted under the Agreement,
12, Admitted in part, Denied in part. It is denied that Defendant defaulted its
obligations under the Agreement, It is further denied that Defendant is liable to pay Plaintiff a
system removal charge of 51.500.00, plus a termination charge equal to the net present value of
the PL Fee payable during the remaining term of the Agreement, as Defendant has not defaulted
under the Agreement. It is admitted that Defendant would be so liable under the Agreement had
Defendant defaulted,
13, Denied, After reasonable investigation, Defendant Is without sufficient knowledge
to form an opinion or belief as to the veracity of the averments contained in paragraph 13 of
Plaintlfl's Complaint, Such averments are, therefore. denied and strict proof thereof Is demanded
at trial.
,
14, Admilled,
IS, Admilled in part, Denied in part, It is admitted that Plaintiff delivered services and
equipment, It Is denied that services and equipment were delivered in accord with the terms of
the Agreement,
16, Denied, It is denied that the balance due for such additional services and
equipment is $5,384,00, By way of further answer, Defendant states that as Plaintiffd~faulted on
its obligations under the terms of the Agreement, Defendant is not liable to Plaintiff for any sum
of money,
17, Admilled in part, Denied in part, It is denied that the total balance due on PL fees,
system removal charge and additional services and equipment amounts to $36,480,00 as Plaintiffs
default eliminates any and all liability Defendant may owe to Plaintiff. It is admitted that Plaintiff
makes averments,
18, Denied, It is denied that Plaintiff is entitled to interest at a rate of 1.5% per month
as Defendant has in no way defaulted on its obligations under the Agreement,
19, Denied, It is denied that Defendant incurred interest charges of $4,924,80 to May
), 1998, as Defendant has in no way defaulted its obligations under the Agreement.
20, Denied, It is denied that the Agreement provides that Defendant will pay Plaintiffs
reasonable attorneys' fees, By way of further answer, Defendant states that the Agreement
provides, in Paragraph 7 that the defaulting party shall pay the non-defaulting party attorneys'
fees, By way of further answer, Defendant states that Plaintiff, as the defaulting party, is
obligated to pay Defendant's reasonable attorneys' fees incurred in defense of the instant matter,
By way of further answer, Defendant states that Paragraph 9,5 of the Agreement provides that the
.
prevailing party In proceedings to enforce the Agreement shall be entitled to receive attorneys'
fees from the non-prevailing party, By way of further answer. Defendant states that Plaintiff has
not yet prevailed In any action to enforce ils rights under the Agreement and has not met a
condilion precedent for an award of such fees,
21, Denied, After reasonable investigation. Defendant is without sufficient facts to
form an opinion or belief as to the veracity of the averments in Paragraph 2] of Plaintlfl's
Complaint, Such averments are, therefore, denied and strict proof thereof is demanded at trial,
22, Admitted.
WHEREFORE, Danlodge, Inc" Defendant in this action, respectfully urges the Honorable
Court to dismiss Plaintifl's Complaint.
NEW MA TTIill.
FIRST AFElRMATIVE DEFENSE - M.ISTAKE
23, Paragraphs I through 22 of this Answer with New Matter and Counterclaim are
hereby restated and reincorporated by reference as though fully set forth,
24, Plaintifl's sales agent represented to Defendant that the signal transmitted by the
Primestar system is stronger than the signal transmitted by cable television service,
25, As a result of the above-mentioned representation by Plaintifl's sales agent to
Defendant. Defendant mistakenly believed that the signal transmitted by the Primestar system is
stronger than the signal transmitted by cable television,
26, The signal transmitted by the Primestar system is weaker than the signal
transmitted by cable television
27, Phlintiff knew of Defendant's mistaken belief that the signal transmitted by the
"rimestar system is stronller than that transmitted by cable television.
28, Plaintiff, in the exercise of reasonable care, should have known of Defendant's
mistaken bolief that the slllnal transmitted by the Primeslar system is stronger than that
transmitted by cable tlJlevision.
29, Based on a unilateral mistake, of which Plaintiff knew, or should have known,
Defendant entered inlo an allrecment with Plaintiff,
30. As the agreement was entered into as a result of a unilateral mistake of which
Plaintiff knew, or shollld have known, there was no meetinll of the minds between the parties,
J I, As their was no meeting of the minds between the parties. the agreement must be
rescinded,
WHEREFORE. Danlodge. Inc, Defendant herein, respectfully requests that the
Honorable Court dismiss the Plaintifl's Complaint.
SEm~D AFFIRMATIVE DEFENSE - FRAUD
32. Paragraphs I through J I of this Answer with New Matter and Counterclaim are
hereby restated and reincorporated by reference as though fully set forth,
33, Plaintiff, by and through its agent and/or employe represented to Defendant that
the signal transmitted by the Primestar System Is stronger than that transmitted by the cable
television,
34, The signal lI'ansmitted by the Primestar system is weaker than the signal
transmitted by cable television.
3S, Plaintlll'misrepresented to Defendant the signal quality delivered by the Primestar
system,
36, Plaintill's agent and/or employe fraudulently uttered the misrepresentation that the
signal transmitted by the I~rimestar is stronger than that transmitted by cable television,
37, Plaintiffs agent and/or employe made the fraudulent utterance with the intent that
Defendant would rely upon the utterance and enter into an agreement with Plaintiff,
38, Defendant has no technical knowledge of broad cast media,
39, Defendant reasonably relied on Plaintill's misrepresentation that the signal
transmitted by the Primestal' system is stronger than that transmitted by cable television,
40, As a direct and proximate result of Plaintill's fraudulent utterance. Defendant has
incurred damages in fees paid to Plaintiff for Plainlill's inadequate services.
41, As a further direct and proximate result of Plaintiffs fraudulent utterance,
Defendant has been forced to incur attorney's fees in the amount of$12,362,OO,
WHEREFORE, Danlodge, Inc., Defendant herein, respectfully requests that the
Honorable Court dismiss plaint ill's Complaint,
THIRD AFFIRMATIVE DEFENSE. IMPOSSIBILITY OF PERFQRMANCE
42, Paragraphs I through 41 of this Answer with New Malter and Counterclaim are
hereby restated and reincorporated by relerence as though fully set forth,
43. Under paragraph 4, I of the Agreement between the parties, Plaintiff is obligated to
provide good signal quality.
44, The signal quality provided by Plaintiff is weaker than the signal quality provided
by cable television,
45, The slllnal quality provided by Plaintiff is not Ilood,
46, Plaintiff Is unabl", to provide good sillnal quality,
47. Plaintiff cannot possibly perform the obligations due on its part under the
Allreement,
WHEREFORE, Danlodlle, Inc" Defendant herein, respectfully requests that the
Honorable Court dismiss Plaintifl's complaint,
rnll.NLfiliUAIM
CQ:lllII.T I - BREACli..Qf:.~NTRACT
48, Parallraphs I through 47 of this Answer with New Matter and Counterclaim are
hereby restated and reincorporated by reference as though fully set forth,
49, On April 28, 1997. Defendant entered into an Agreement with Plaintiff.
50, A true and correct copy of the Agreement is attached hereto as Exhibit I,
51, Under the terms of the Agreement, Plaintiff was obligated to provide Defendant
with television service to Dllfendant's hotel. See Exhibit 1.
52, Section 2, I of the Agreement entitled Plaintiff to conduct a "technical inspection"
of the premises prior to installation of equipment, See Exhibit I,
53, Under Section 2.1 of the Agreement, Plaintiff was to install equipment only after it
determined that the "condition of the premises is acceptable," See Exhibit I,
54, Plaintiff. its allents and/or employees conducted a technical inspection of
Defendant's hotel.
55, Plaintiff, its agents and/or employees determined that the hotel was acceptable,
56, Plaintiff, its agents and/or employees represented to Defendant that the signal
transmitted was as good as cable, and that the hotel needed no work other than Installation of
()lalntil1's equipment to use the Primestar service,
57, Plaintiff. its agents and/or employees Installed satellite reception equipment at the
hotel,
58, Section 4, I of the Agreement obligated Plaintiff to maintain "good signal quality,"
See Exhibit I,
59, Plaintiff failcd to maintain good signal quality as required by the Agreement,
60, Defendant used the Primestar service for approximately two weeks.
61. During the two week period, signal quality degraded,
62, Degradation of signal quality rendered the television service in Defendant's rooms
unusable,
63, During the two week period, Defendant received numerous complaints from
customers about the quality of the television service,
64, Prior to installation of the Primestar system, Defendant received no complaints
about the quality of the television service,
65, Defendant brought these complaints to Plaintill's attention,
66, Plaintiff dispatched a service technician to inspect the Lodgenet equipment
installed for Defendant,
67, The service technician told Defendant that cable sends a much stronger signal than
Primes tar,
68, The service technician further told [)efendant that the ['rlmestar signal was not
stronll enough to transmit through the hotel's television system,
69, The hotel's television system is in no way defective,
70, Plaintiff was and now is incapable remedying the low signal quality of the
Prlmestar service.
71, As 11lalntiIT was and is incapable of meeting its obligations under the Agreement,
Defendant canceled the Agreement by note dated May 4, 1997, a true and correct copy of which
is attached hereto as Exhibit 2,
72, As a direct and proximate result of Plaintitl's fraudulent utterance, Defendant has
Incurred damages in fees paid to PlaintilT for Plaintiffs inadequate services,
73, As a direct and proximate result of Plaintiffs breach of it's obligations under the
Agreement. Defendant has been forced to incur attorney's fees in the amount of$12,362,OO,
WHEREFORE, Danlodge, Inc" respectfully requests that the Honorable Court enter
judgment against the Plaintiff.
C..Q.!lNT II . FR.Mill
74, Paragraphs I through 73 of this Answer with New Matter and Counterclaim are
hereby restated and reincorporated by reference as though fully set forth,
75, Plaintiff, by and through its agent and/or employe represented to Defendant that
the signal transmitted by the Primestar System is stronger than that transmitted by the cable
television,
76, The signal transmitted by the Primestar system is weaker than the signal
transmitted by cable television.
77. Plaintiff misrepresented to Defendant the signal quality delivered by the Primestar
system,
78, Plaintiff's agent and/or employe fraudulently uttered the misrepresentation that the
signal transmitted by the Primestar is stronger than that transmitted by cable television,
79, Plaintiff's agent and/or employe made the fraudulent utterance with the intent that
Defendant would rely upon the utterance and enter into an agreement with Plaintiff.
80, Defendant has no technical knowledge of broadcast media,
81, Defendant reasonably relied on Plaintiff's misrepresentation that the signal
transmitted by the Primestar system is stronger than that transmitted by cable television,
82, As a direct and proximate result of Plaintiff's fraudulent utterance, Defendant has
incurred damages in fees paid to Plaintiff for Plaintiff's inadequate services,
83. As a further direct and proximate result of Plaintiff's fraudulent utterance,
Defendant has been forced to incur attorney's fees in the amount 01'$12,362,00,
WHEREFORE, Danlocige, Inc, Defendant herein, respectfully requests that the
Honorable Court enter judgment against Plaintiff.
COUNT III . PUNITIVE DAMAGES
84, Paragraphs I through 83 of this Answer with New Matter and Counterclaim are
hereby reslated and reincorporated by reference as though fully set forth.
85, Plaintiff, by its fraudulent utterance, did willfully defraud Defendant.
86, Plaintiff, by its fraudulent utterance. did wantonly defraud Defendant,
87, Plaintiff, by its fraudulent utterance, defrauded Defendant with reckless disregard
for the truth,
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Ihe (,'uIIJi,iulI of lIu; I'lclllbl.:s is illJdclIU..ll.:. tNU j' \\Jll ~u nulif)'
Jluh:1 sl'cdf)'illU IlIe Jclkh:lIl;ics. If lIulel CICl;hi Iml h~ 11I1.11-,..: Ihe
llCl,;CSSllI)' fCjliliu Iu the I'ICllIi:.c) ul,;\,;uIJiuj tu I.Nl':I's
IlOl:UIIIIIICllduliulIS, 111":11 cilher 11U1I)' lIIiJ)' tCllniniJh.: Ihb ^lIlcCIUCUI
willi Ill) Iiiloilil)' Iu l.:illil.:l jlillly
2,2 11"1.' ,1,011 I,,"'i~. I.NI: I' . 1Il1l1ll0lly
sillislul:hllY c,\Il.:liur IUl:l.IliulI fur Ihl.l imlulhlliuu uf II,,: ~~Iullitu "'ish
1I11J rclillcd C~llliplUCIII 111111 uLlili.. IICl,;CS)IU)' lmihJillil p'IlU;la 01
IkClIl'>CS (if u~), Iluh:1 \\IIII1h1~C a\luiluLI~ 10 I.Nlr a S(l;UU: nUn~
IHllJlic IlIca 1111 Ihe l'Il.:llliscs ~ulisfu"hll)' Iu I.Nl::'I' fur tha:
iu:.lallilliull ul' Ilu; III. blllil'llIclIl. lIul..:1 :.hall PW\lhJc ,ul.:h ,....:a
Willi the ch:cllkal IJUwcr IlCl,;CS!liUY 10 ulll.:l"h: Ih~ Ill. ~qlli,)mClII
UlhJ SUUh:il;IIII1V ,\C III lIIaillH.ill U ICIIII)clulln~ run"u uf lIC:IW":'1l
5U" allJ BU" hlllcuhdl "hili; Ilu; 1'1. blUIIIlIll:lll i:t in uperatiun,
2) I,Ni:T will IlISlolI Ih. 1'1. SrSlem 1111 Iho
Il,cllliscs us SUUI! us IUaclil.;ubh: IIRcr ICl,;cipt uf Ihis silUl:tI
^YII,a':lllcIII Ulltl I',C I.:Ulllplcliull uf Illc silc iUSIJccliun, ':ullo\\"iu&
il,llIlIlIli,,", INt 1', al II> .'1'.11'., ,holl 1IlU1IlI'Ily ,opolr, rcslllre
uut! H:phu;c Ull,lultiulls uf lilt.: I'rcmises 10 Iheil cUlu.lhiun prior lu
ill,IOIIIIIIIIII. If I,NH I, r.I,lodllW 011 .xl'liIlJl 1"".'III'lh.'Jlu."
'.II~II' 0111>< 1"<11I;'<" 11111.1 ,holl pfu,I~. IlIillell 1I0lico 10 loch
'1CIIlJur. uni! I.NE r uKua:s tu l.;uuriJillilh.: UlltI cunpe'''lc wilh lIuh:1
umJ said VCUJul Iu 1II11lillliLC UII)' L1isllll'liulIS 10 11011.:1', upcluliullli
1I11~ II, 11,,<,15. DurillW II,. illilllllolllJlI II.lill'l. 11111.1 illolllllOVI~.
l.:llllllJliull.:lIlmy KucsIIUU1IIS. if IICCC!lSlU)' ..111.1 if u\lullablc, lu I.NE'I'
fUl' iIISlllllulhlllIJCI:JUIUIl.:1 ulId C~llilllllCIII )lululI,e,
J, 'I'crlll or AlInallll'nt.
31 H.. ~"'< "1"'" "hid. Ih. 1'1. Syll.lI. II fully
illslulll.lo Ulld UI'CIUIIUIIUI :.lIull bi; tin: '11'1.:1111 Cuullu.:nunuml OUI"',"
'1'lIis 1\!lrc~:IIIt.:11l :.llalll.:llluilluc fUl '"I hlllial h:lln us licl furth on .hc
1'<. Sd'<~lJ'. hlllll o,,~ all<I III. Ii", ~IIY III' Ih. 110" ..lonJur
1I111111h 1'01l1l"ill" Ih< ""III CIIII",i<II.<III<nl I)olc (Iho 'Inltlol
I <II""). ^I Ih. .II~ of Ill. Initiol "./11" Ihl. AWI.olll""1 111011
UlJllllllolkolly COIIIIIIUO and ..I<II~ I'll' o~~itillllol 1111. y.ur lonlll,
ullk>> .i111<1 llillly Mil <, Ih. IIIIIcr 111111.11 IIllli<. of ill de.i.e 10
halllinlllc Ille I\YII':CIIICIII ullcu:.1 9U.da)')ji I'liu. 10 du~ cxplrudun 4.1,'
IlIe CIlHl.:1l1 ham,
________......._____!~'!!~~~!~~y_~~~~~~!. Agr.lmlnl
l.2 II' I,NET ~IS,,"IIiIlIl'S lis "IUIIII",hll' II IIh .11)'
"'1'1,11., 01' proMII,"llilM ,.,.II,.J by 11111,1, I,Nt I \\111 'he he 'I
Ollolls 10 Mlvu 11111.1 30 JIlYs UJYIIII" Ill1l1ce Ihe,"ol 1I111111SC besl
.mlllS III p'OY hi. slI"slillIl, l'I.I',uMIIIIIIIIIIIM ."'l'llIhl, 11111111"
II' au:clJlltubh: ~llbSljlUII.l IIIl,I"'lIllllllillK ~lIIlllul III,: "IIIUIIII.:II, Ilullll
.huU haw" till: fiUIU .U UII c1luilahhl ,uh:l.l IhljusllllClI1 IIIIfSUiUII h)
8,,111111 lA,
.. 1I.ltraUUII MIIJ MollIl.".".. ull'l, 1:'1',11/111"'1,
4,1 I.Ntl shull IlIl1i"I.11I II" 1'1. hlllil'llIelll ill
,uU>>IUt;IUI)' UIH,I!UUulIul l;umlillun ..1Il1 lIIa~c "II m:l:C~)iill)' ,,-cllUhs
1m) fl:phu,a:nu:Uhi ulll~ C:<lllllUll:, I.NtT UWU:Cif lU tlUllillal1l U ""11\111
qll.llly .IM".I" fu, 11111'1, l'rug...ullllluM; l!!J!!:It!;:1{. IW!ll:M, 11".1
',NET slll"" f10' he n:sl1UlIslhlu fur llie luss, illlCIfUlllilJll ur IlUlll
qll.llly o/' Ih. >>oI.UII. oIM1I1I1 fu, 'Oll'UIIS b,)ulI,1 lh, ,,,,S!,,,"I,I.
CUIlIIOI uf I,NET. IlIeIIlJIIIW, bill 11111 1I111110~ Iu, ueU,lolI"" ill
lIu14;l1'1I MA1V Systelll m ,lie loss ur lISlJ tlf IIUY fClllIilcd SlIh:llhlJ ill
I"tmlpoluJcr, "(JUOlJ qUlllhy slKlml" Shlllllllt.:llJl u .Ji"ilulsiUllal ulll
qOllllly Me"ol.lIy OCCOI'lo~ III Ihe '.Ielllle ~ell"",J 1,1",'i>hlll
plUMrwltlllitlM ImJuslry U$ shuuJard "lid l:UslUlIlIlI y Kln.:n IUl.:ul
hu.:llnicul rcccpliulI cumUllulI!. Shuuld LNEllh:h:llllillt.: Ihlll IllJilr
'''011110 q,,"l1ly I. ~II' III . fllllll ill 110"'" ~I^ I V S)'IClII, I.NE 1
will ouvlse lIuIlI1 III1U lIul,1 .11011 1'lIlIlIl'lly 1II0~' IlIe lIece"olY
101,.1"
4.2 ItouIlnc UlulnlclUlnl.:c uf lI,u )11. l:llUlllll1CIlI will
b. ,.."lo'lII'u by I.NET uII,llIM Sl.II~or~ bll,llIe" lIulIIS (8,1)0 . III
1I11~ ,,00 Pili" MOIIJllY 1Il/01lMh I'rhluy, lIulhll,y. ..c10~0~). I,NE r
sludl usu bcSI cfrolt$ II) n:sl'ulIlJ 10 lIulcl's IlIUlllh.:nUIIf,;C rClIUC)IS
'OW.,~IIIM Ihe PI. Eqllilllllelll wllhill 1011)"018"1 H8) hUlllS uf ,"ch
"'1""1, bOI ~lIrlllM Ih, ofolo..iJ hlllllS, If 1101.1 is 1111'" Ihllll !illy
mil" fWIlI II.. 11.....1 I.NET leelllli,ol ullice 11",1 if ,"e1, vislls
require uverlllMhl DCCUlUlIIUtJUllollS, Ilulul!ihull huuish UlIl.:Si 'UUIIIS
OllllCOIllI'IIIl1'n1I1'y bll.I., If IIvullllbl" IU I.NI'.TI"lSulIIlCl, Ilulel
.1,1111 b. "'l'o".lbl, Ii" 1II.1"loIIU.IO. uf III. ~1^lV Sy,lolII III1J
fUlIllIIUhlhlK l'fOllcr tUIIIII& of Ihe "uCSllUlIllllclcvisjulI seb. Uu"':1
.~Illll'~ 1101 lu pcrmh L1ny UUllpcriuV Willi nur UhtbC uf 1111,: III.
~lIuilillu.:nl. Any repulu ur rClllllcclIlClIlS lIUIlJc Ihll.'e::.:tiUY lHll.;uu)C
of willful or "cMIIK"1I .clS uf lIulel, UIlY uf il. ""I"uyces,
oonl..elo,", owonls 0' MlloSlS. will II. I'Clfu'"ICJ by I,NEr:
U/'lIl'irlCJ, 1L!llilIm. Ihul lIulel .hulll"uIlIl'lly "illlblllse l.Nt'l IUI
the rcu:mllublc l.:uSls uf su~h rCfJuir.
4.J IIUlclui:ICeS lIul tu charGe un Utllllissillll feu tu
Ihe .truJH:rI)' Uf ImlJoSc UIIY Sllcl,;iu' 1,;11I1l~e U( fee fur llie (Jlivlll,:i:c
of vlcwillK the ...~ IlrolralllluluM iu allY hul~illK (OUIlI, iudUlliuK
whlloul IhnlHUiun. un)' Incrclllclllult.:llufKC III UtMilillll lu Ihe uS~UlI
f.~ 0' ehu'M' IIl1dbnlllbl. 10 Ih. luJKillK 11I1111I fUI Ihe 1'llIil080 ul
vl~\Vlnl till: P...troaulllluhIM, which is 10 b\l hllubfu.nl UII a "free
IU-KIIOSI" b..ls, lIul.1 08"e. Iu ",hibll ,"J ,lh.II11I1I. Ih. 1'1.
ProluuUltil111 us received wilholll UII)' uclu)', u~Miliull, delel,un,
.h".Uun 0' edilillM
4,4 Uulel agrees lIul 10 DUllullilC \I' IHlllllh UIl)'
Ich:vlsion sCllucJllcl1 \\'jlhiullu: l'u:lIliscs lu feechc all) IlllllUium
service (e".. lillO, 1>isUC)', Cinelllu,\; or ulher lIUIHlthcnlscr
SIJoUsurcd IJru>>uullluillg} in uny lOum nr Ulea \\hil.'h is nul II
ludUhlK roum, Im.:lutJillG whhuullilllililllull. I,lul,;c:i of IlulJlic lICl.'IlSS
ur u~t:lIl1llnudijllulI, lJillS. IUllllYt.:~. 'C:tI"UflHlI~, lullblt:S, t.:UlIIlIIOIl
lucils"hllll\\lI)~ \If 1111)' WC,I ,..hCIC all illllIllS~llIlI 11.:..: il tCI,liir~lI.
IIl1lel U1l1ICI:tlulIlh 1I1i11 \:CI!tUll IlluYllilllllllllY lllll) he 1t:~uhclJ lu 'i~
hl"'~'IJ.ulll III ",Ie"" Ii> Ih. jlll'MlilllllllillW SlII'I,lIer (. K Iii.
:tll\lllill~ CVlJub iIIlll 1111)111.:1 ucw UIlIiILlh'II~) wllldt shall nul
l;1IIl:.lllIIlC U 'fiulilllulI ullhb 1\1lICCllu:1I1 lIuh:llIl;llllmlcducli llilll
Ihh ^UhICIfIClIl h :tuhJcl.'1 lu Ihc 11111,II\:ll"'C fIllcs. IcuuhuiullS !lull
Ilulll.h:~ uf slllh IIlUUlilll1 !llIl'l'llcls 1I:1111Hliuy Ih)l,ilJllIIUII aut! 111111
Ihc )i1lcllihl ~IWlliJIIlllJVjtJC' h ullliyahaJ III pc,fu,m WIY '~lluiultJ
""lih;~ '1I1Il " 1I\lId aUI!.:cs fwl In JI~llillllllJ ur shuw au)'
I'IUY'llllllllillW fCIllllh:tJ lu llc Illill.~Cthllll..llllc JllclIli:ual,
4 S lIul,I.'~lIu"I"lwcs llilllll.. "I.I',o,rI""IlIIlW
b :mhjcf,;1 hi l.Clluill cU'I)fl~hl UYIC~IlICllb umJ olllcr rUUicllull>>.
lIulcl UU'CC~ In II:tC lis besl cll'ulhi utll 10 1I110w BlIY ."IIing or
elll'yill~ uf Ilu~ I'I. l'I'UMnUumlulI If lIulI:1 bcculIu:s aW4Ih: Ih.., II
1lil,J IWllY is 1111"118 III "'I')i1" u"y 11U11 of s",h 1"OK'Ulllllli"l,
lIulcl will lil~\l llll 1l1'JlIlIl1liulC U1lli.l)tue:i III IlIlvelll ,ul;h
uUllullUlIitctJ use, Ilutel UdULlWlcJwcli lhul J.NI~I'. hi ,ub:ihlliUY
ullIJ allilhll~J LUlllllllllic.'i, lh tJilCl.'hllS, oUil:cn, cmplo)'cc:i anll
lI",CIlIS tJu lIul hUH: 1I11)' IC)lhlllsilJilily Uf I.'UIlIIOI mCI the &;Ollh:nl uf
Ihl.: 1'1. l'Ull&uUUlIIluK III lIu laclll :.110111 l.NEl (ur W1Y lIth:h
11l,1ISUIl) 1.11,: Ii.,blc 1~1I spcl.'lUl, hnlilecl. III\,;li.lculal ur CUUiCljlll:lllhal
tJiHlIUWCS, \\111:1111.:' tmscJ III l;uulHu.:I, llllt, ,,,.:yll.CII~:~ ur any ollu:r
IIICUI)' wilh IC~'jlCLlllllhc C11lllclIIlI!' slIt:h IIWHflllllllllll",
.5. UWlItlnhll'. I\U'IlU, Cuml,UliIllt;C wnd Ituurlnn,
'.1 NulwhhslumllllW Ih~'1 sUllie IJurliunll uf Ihe 1)1.
l~lJui"IIICIIIIII.y hc ulil,'\clllo .hc 111l:llliscs, lIu: 1'1, l(ljulpuu:lU shjjll
11111 bCClJIIII': llJilll'rupCII)' or a Jhlult: 10 Ihe II'ClIliStO:i ilud il shull III
lllllilll~'S rClllain 1111: l"llIICII)' of I.NEI'. Ilulcl UKlCC5 Ihill all)' lieu
ur cllcllllllJlillll':C llllUlI lIull:I's luuPI.:r1Y or 1111: J1rcmbcs lhall
c;'1duJc.: Ihl,) 1'1. blUilllllClII am! 11011.:1 shall ills!.:11 I clulIS\: 5U
Illuvii.linK IIIIU uny lIIU1IHUKC, sct;u,ily uH,cClllcUI OJ similllf
t1ul.:ullIclll Ihul il \l,'\Cl,:llh:s in fUHJl 01' uny Ihiul')UlI)', and lIolcl
,h"IIII111I"IIIII~ ~oJCIIJ I.NEI', lille Iu 1100 1'1. E~lIil"'''"II1MUIISI
uny !iud, IIclI Ul I.:lh':lIl1lbllllll.'U. Huh,l :thlllluuI n:lllovc Uf dduce
II11Y IIIU.~iIlM u, IIIhel. ulIi..u III 110. 1'1, lO~IIIJIIII'". by I,NEr,
1111101 UWIC.., 1I11,Ntl 's 'O'I"esl, Iu .."ul. f'U,"l1l11o 10 lim. ,",h
illfulIllilliulII.tI t.hu;ulIll:llls III liIilllJ~ whh.:h I.NIH 4.lt:UlnSfCa,"OlUlbly
lICl.:IJS!lill y or tlc:.i. ilLlu lu IlfUha;1 ils lllh:lcsb ill Ihu IlL. EquilJlucnl
llll~ l.'UlIfUlIIllie 1'1. E111lil'lIlclII U:i Ihe suh: 1.111'" SCIUIU.lc PIUIICII)' uf
I,NlOl, 11111,1 Mlall" l.NlOl IIecess Iu lire M,\ I V S)'SIOIlI Wid ulh..
IIIt:US uf Ihc Illl;jllh~s Ib 11l1l)' bu ICIJ:tUlIlIlJIy 1lt:":l:~~Y fur 1111:
ImllUlll.lliulI, sc.vidllH, lIIUillluiuillil uud hmlu.t'1I1 of Ihe I't SyslClU.
I.NET WUHUllls Ihut whcn ils I'CISUlIIll:1 UIC unlhu 1'.lJlllbci rur Itu:
11t1'I'U5C uf ill~lUlIllIK, ltcl\.t\liIlK, llIUilllUiuiuK ur fCIUOyjue u,,:
l~llllilllllClIl, .\lUIlI III.lI:tullm:1 will IH:ll'urm ahclr dulh:>> in It
\VUI klllillllikc illll) dlidlllll "'llIlIIcr UlUJ wilh II minimum uf
illlclfclClIl.:U umlllbltllJliUll uf IlIu ul'crllliulIs uf 1101..:1.
U I.NlOl "'"11111' 111111 lIoc 1'1, Slil.1lI sh.1I <umply ..
IIl1lillles lIillo "1'1,II,uhl. lUllS UII~ "8"luliulI'. l"oludlllM Ihu.. of
Ih. hJoI.1 l'1I1111111111icuIIIIII' ('UllIli"i,," lh. III"Allutioll ...~
III11ill'"I1I" ur Ihe 1'1. 1"llIil"""'1I ,hllll cUllfulII1 10 IIpplI,.bl~
suroly ICMllluli,,".. I,NET u~oc", Iu iIlJolllIIU)' 1I11~ holu 110101
llilllllles, lilllll III1Y unJ 1111 ctulIlIS oclul,J lu II.. 10ICloillK 1I11~ 10
CUI))" iulllS, lh,cnsc~ uml fell umlllb~iull COII$ulllj ",I' U"ul puni":li
---------Tiag.-2uf S.-----'---.-.-
o "'MfMM'
....--___H_~___.._._._._____.__,___..__.__.._....., 0.. ~.,_ __0 _~..._.,..__"
fllhlluiJ 141 11110: H:Cl.lifll b)' Ittlll:! ul' UI': If I. l'u"nlllIlIIllIlI lIulcl
"uaU ~ur 110 obllUiululI fur IU:~lJi IlJlIUllill" IIUlU HWIl\,'llIhijl "I
upIllallulI ul Iht 1'1, "'llIil""OIlI Oll~ I.Nt: I shull ho .111111,,11" 1111
invl:SUIU:nl Uf >>Imilllr liI,\ L'1l:l.Iils uuJ dCl'llll.'hdlulI lI":lldHs ".:Illlill"
Iho'OIll,
U I.NEI ~hlllllllllllllllill ~IIIII1V Ih. 1.'"1 ul IIIIi
Dlrl.lClIu:n1. ul lis ~ul~ COlU LUlU CSI11:llSC, utlc1lllilh: l,'UIIIIIIIJIH:II:.>h'lJ
MCllo,ol Ii.bllily h""'.II.. IIVllllli1 IIIIY hllhilily .d,III" 11111 ..I'
Injuries lu ur 1IIJulh uf any I'lJrSlJII 0' IlulIIll~C hi 1IIIII'cII)' III UII)' \\uy
I,;unm:~h:~ wilh Ihl: ImlullilliulI, 1I1ll11lhlllll1lLC, 1L'lIIuvill. Uf
'.1,10..'".111 ul Ih. 1'1. "'1..11'11I.111, I.NIi I ,h,,1I """i,h 1I..ld
evllllJlll:C of CUlIll'lIullcC wUh Ihc IUUYlslUIl:i III' Ihb :illhPillilYllI11h
within JU ,.hl)'i uflcf feceipl uf U \HiuClI 11.:111IC~1 hUIII lIuh:1 fur
~uch lilyiJclICC:. IlIlh..: cvcnl uf 11I1)' JUlIliIU": Itl Ihc 1'1. 1';11"1111111':111,
1101.1 ,h.1I Pru'"I,lIy IIulll)' I.NIi r.
M I.N"l wulv.. .IIY .II~ ull d"illl' "v.imlll..I.1
fur UII)' lo>>~ ur uUUluyc lu iUl)' ,"uII\:II)' uj' LNE I IU~i1lell ill 1111':
I'rumis,,>>. UKc"I'1 UUlIllIKCS l:UIISCU by Ihc \\iIIful 11I1:iWlltlm:1 u,
IrollS IIcyliKcma: uf lIulel. its UKl.:lIIS, Ut ils rC)jlcl,;lh'\: Clllplu)IlCS,
In cOllshhlt.ltliuu uflhe i1,Ii.ucsui..J w/Jiyef, Iluh:llit..c\\'isu wui\cs UIIY
aUlI ull dullns lIMllin>>t l,NET fUI UII)' luss UI' IlawlIKe lu allY uf i1s
prolJC,aYt .cul alllJ pCl':iOnul. lot.:!IIIJJ ul the 111~llIlses, e;o;cl.illl
dumaiClll:UII!tCd b)' Ihe willl'ullllisculIllucl ur i;IUSS IlC"IiGCIlC~ uf
"NEI, ils aKellls ur ihi CIIII)lo)'l.:e:.>, Euch l'ulI)' lll:ICCS 10 lllJelllllif)'
"111.1 huld hU'lIllcS5 Ihe ulher fronl UIllI uUlliusl 1.111)' umlull ~lullluGc~
alishlM (rolll the wllll'ul IIItscuuJucl UI glOss nq;liHClIl.'C uf its
uHellls or .up.escllluIlvcs lu Ihc C;'(ICIIIlIUII;u\'cr+.aJ b)' inslllunce.
U lI1I011 1.lll1ll1l1liOIl or Ihb ,\V'..III.III, I.NEI'
jludl IU1Yl: II pel,ud of 90.du)'li Ih':lcu!"h.:r Iu 'CIIlUYC till: 1'1,
EqolplII'"1. lIpoll '.IIIUVIlI, I,NET .hall ,.>1"'. UIIY .1t...oI
pofliullli uf the Pnanises lu lheir formcr l.'LIluJiliulI 10 tin: c~I":1I1
puuah:ublc CXl.:CIJI fUI IIUIIIIUI weuI uml tcur, DUlinK suid !)u.lIu)'
p.,lu~. Ilulol ,h.1I ",. a ,.II.oll.bl. ~.MI.. uf ..,. 1III'!l'I..IIIIW Ih.
I'L ElIUi'llm:n1 wuJ no rental sllilU blS due: Dud uwillY l'uI UIl)' stich
!ihm'II" Ilcrlod. NlljtlU:f lIutelnor uti)' Ihiulllilll)' ~hilll bu clllhlclJ
Iu U:i': Ilu: I'l. EtIUI,lllll:Ulwilhuul pu)'illil U h:llsuuul,lc 1":lIlal l"..:c
....bli.h.~ by I,NET. falh". ur I.NH I" '.11I'''. lb. 1'1.
Eqllipmenl \Villain such 90.du)' JhHiud slmlllluI be cUlIsIlll..:J us U
IUlfoilll'. by I.NET ul Ih. 1'1. Eqllll"Il.III.
6. Anl.lIl11.n'.
Thl. AMI..III.1I1 ,h.lI bl,,~ o,,~ illlll. lu Iho b.".lil uf Ih.
plll1ics, Iheil pcrmillcd SUl.:Cl:SSUIS wlil ussiKIIS. 111111..: CYl.:Hllhullhc:
pany .x..ulln. Ihi. AV,o."'.II' 0" b.h.U uf 11..1.1 "'Ill' uV.,
mllua..cnuml or uwm:rshiJI or Ihe I'remises lu Ullolhcf Ilally. slIl,;h
p.ny .holl ...IW" Ihls AWI..III.111 UII b.h.11' uf llolld 'u Ih. I'.IIY
~sulUlllK nUUluiclIlClI1 ut uWIIClshilJ ul' Ill..: ItllJlllbcs, ~ Ih..: ca~c
IUD)' blS, An)' such ussl"muclll shaUbe \\ Ilhulll fUlllu.:r Iiallilll)' 'U
ahe usslKllor excclll u~ In I'rc~ iuusl)' uCl:fucdlllulh:rs. s,u IUIlM, us Ih..:
IssiKnclS hus finunclal fcsuun:cs ,cusullilbly ucccl'lublc lu I.NET
wuJ CX&:l.:Uh:5 Q wriUlln USSUlUllliulI UHICCIIICIlIIIl U fUll I! rcasulIul.ll)'
sull.lo"hll)' 10 I.NE'l' pliur Ih.,.III. I,NET "I' its usslWIlS III1lY,
wilhuUllllc consent uf IItllI.:l. lIS::.iHII its illl":lesl in this I\l;reclllcnl
10 allY pUlly wilh",,, II.bllily .'..1" os lu I"O,'iuusly I"."'.~
mallclS. Any tlllclllplcd USS,Wlllllcllt in \'iululiun uf Ihh SecliulI 6
.hall b. null .II~ ,'ui~.
____n!'~l~~~~'!'_~ ~Y!:~~ll!~ol Agr..,,!.enl
),IM.ull.
Ille UI,;L'uHCIIl.'C ur all)' tIlIC ut uwu: uf Ihe fullu\\ !"Ii
C\\I111~ will \:ull~lltu'.: a 11.:l'uull ,uHlef Illl::' ^UICClIllJIU: (I) Un:
liilhlllJ ut' CIIIICI Ihllly hi 11":1111111I UII) 'CIIII, \;onJIUull ur l:uvcmml
U"~.I Ihi. ,IYI.."""1 whi.h ~.I.llh .hulI ",,"i,,". lur u p,liu~ ul'
JII.~.p I'ulhllli"u \111".11 "..Ii.. Ih<I.III' (1U'~.)i illlh. <II" ul'.
l'''rlll.,,1 ~~IIIIIIIl, (II) 0" ."IV"II.11 by ."h<'lliIlIY 1'0' ill. b.".lil
UIl:h~lhllll~, till': IHIIl" ul' a \'UIUillill)' Ul Ill\ulllllliU)' IhJllllon uudcr
.my ""ukllllll!.;)' u, lll~uh'eul.:)' law. Ihe u:uty.mi~;dlun of ur
ill'Puillum:1I1 uf u IllIst..:C fur cilhl:l pUll)' llllih:r till)' Uf111Ih;ubh:
h!l.'ch'f,,'l sldl) ur SilllilJI law UI llle Jlssl.hlllUII or LCssuliun uf
Ulll;lilllllll~ uf dlh~1 llilll)', III CLtdl uf thc fUICMuillK cu.~cs it' nul
dhllli~~CiJ \\ilhill }lJ.,ltl):o. 11)11111 IlIc Ul.l:UIlCII~e uf.. ucl'l1ull. ahe
lIU1hh:lillllljua; jllIriy IlIIlY ICllllillilh: Illis ^W'CCIIlClIl Ly IlyillK
lIulll:C uf ICflllilllUiulI Itl IIl..:lI..:hUlllillK pilll)'; lllll\'h/flJ .l!l!.ll~n~!,
llIlal h:lll1iuUliull Illay litH Ul:I,;UI if II,,: ,lcf/JuU is till': Iu IIU fuuh or
Sudll'all)' 41111l is lIu~ Ic:o.lIlI ul' hU.;!I"ll (I,:I.l!:.UlIilhiy lh:)'ulld 'b cUluwl,
illIJ ull ~lcl's 1It.:l:Cli~iU)' III lellledy lim" Jduuh lum~ bcen July
11I'lilt".~ withill ,.i~ JII.~uy 11.llu~ .II~ .ai~ jI,orly ~iIlV.,"I)'
lllUliCl:uh;s stll.h ~ICI)S lu cUllllllellulI wilhin u pCliud lIot 10 l.l:\craal
111I u1.hlilhllllll 1)0 tJa)'s (ulId Ihc 1I1J1Ullhill~ P~III)' illJ":lIllliU'::i Ih..:
llUlI.ucflluhillM 1IIIIIy laHuln:.1 Ulli' 1I1111 all "'''UIlIYCS llnu IIUl)' lube h)'
,hili. or ,,.,.h delay ill .,,,.t,.) 1I11~ Ih. IlIitlal JII.~.y po,lu~). lh.
lIcfuuhiuK llinty lihulllmy Ill..: 'cl.l~ullubl..: l;llllll co:.ls unl.J illlUIlU':y
f..:cs ut' III..: IIUII.lIt:l'lIl1llill~ Pilll)' l.lmllhlJ lIuu.iJ..:ful.lhluM PUll)' shull
lIc cIlIIll..:J In till)' uml illIl.lYl.lilulJh: Jcuuf IUlJ/ur cljuilabh: rCllll:Jics,
illchuJillU sjlcdllt.: Ilcrli.mllullr.:~~ aml/Uf Injllllt.:liYc IcUd. If lIoh.:l is
III..: Jclimlliuu 111111)', ill I.lJllilion Iu UII)' ollicr UYl.lilublc u:ul1:tlics,
LNE11II1l)' ~Cl.-l lu lIisl.'onlilllu: :il.:l yke.: 1IIIIIIl:tlil.lIl.:ly IUJ llhun bl.l
clllill.:J Itl Iccci\c " :i)'Slcm 'ClllU\ul dlUljU 01' $1,500. IIIu5 u
ICllllillUlhlll dlillUIf I.HllIlIl lu thc IIIJI IIICSClll Vl.lhu: of 1111: 1'1. ree
l'Il)'ulJle ~hllill':' Ihu (ClllLtIIlIIl~ ICi'lll of Ihis '\WICl.:UlllUl (tliscuunh:tI
IU Ihe IlIilllu I..lc IhclI in cffc!;!).
8, t.d".lvlly, (:UIIIII.lIblllty, IllWhlof t'l,.. Kefu..I,
tU Ihlli"K IhlJ 11J1l1l uf Ihi~ AMlccmcnl, IIt.'.:1 Ilanlli
I,NET Ihu \:;o;dll:.jyl.l II~hl III Slllll'ly ill.IUUIII, (ICIHo'lIIucsl
h:l,,:cuslln>> sl.:,ylu:s lu Ihe I'lcmisu~, IllclullillK 1111)' addhioutll frce-
IU-llucsll..:lcl:liSlillK sClvh:L') dcshcd (un)' such udJilIUUl1lscrvh,::cli
10 he Illu\lillcJ "I Iillcs CII\lllI lu ur luwer Ihun IhuIl: Mcncrully
'IIIIII.~ I" ,h. lu~VillV 1o'~II'''Y). I" .~~i1ioll, .ubj."1 10 d,w",.1
uv.il"bility, I.NL r lII"y .1.,'111 "'Wi)' ",I~itI0".II"oM'alllllll"8 lu
Ilnh.:1 wilhulll dI111"C,
8.2 lIuh:1 1l~I':CS Ihul any olhcr vidl:u ur uUII.vitJ.:u
,.,vi... .~,,"~ 10 lIl1I.I'i MAlV S)i'.1II IIIUil be 'y...m-
l.iulIlpillihl\.l wilh Ihe 1'1. S)'slclIl. In Iln: t.:\'clllllu.l& lIoacl whhe>> 10
ollluiulllllcf 11I'IUUlll viltcu UI viJl.lu'lcl\th.:J sClvh;'::i. im:ludilll. bUI
lIul Iimi'cJ hJ, KlIc:iI.l'a)' IHll&:IUUlluiIlK. Interul.:liu IOlU!:J &lnd
sCI'viccs, IlllclIlt:l iII.:CCSS., Iclclu~1 UI ill-huu~t.: vidt.:o &:hUUllllb.lIoh:1
h...hy VIII"!> J.NEI 0 611.~.y liWhl.uH"".urhll lu p,ovl~. suoll
SC,yil,':t::. 011 UII cM.:lu:o.!\c LII~is ul u price, qUlIlh)' and un olher
I.""" i".1I ~.'.', <UIIIII<lillvu \Vith III..,. H,,,.,ally .vullablo lu Iht:
11I~VI"W i"~,,,")', II ,J.NLl ..'lIIul 11Io\I~. Iho ~..ir.~ i.rvl.n,
Ilulcl is flee lu IUUl.'UlC su..;h SCI\'h;clIr frolll a Ihird IJ....,y.
--pa-ge-]<,{ S----....-.-----.-
Or~lMfHlM.
---..--~~~~.._--- _._--~-~------- --..- --~._---~--~-.~---, "-----'.-.-'
. uf>I!!ME~!~_~ !!Y.~~~1l!~81 Agreemenl
V. Cia"lr'IIIII"uvl.tuln,
IJ' NuU\:\lI. Allllulh.:cs IIl:U1Ullllcl )lIull bc .:i'iCII
In wdUUM umJ >>huUlJe ~cclllel) "i)'en: tl) \\111.:11 h,lIhl Jdi\ClcJ. tilj
",,111m UJCIJivl:tJ if !'feul by 'ilcsimile, ~iiil !HI the IIll." uusillc:,;s dit),
when lielll)shclJ willi il IIUtlUllll1 ovcllIiylillluuficl SIH\'Il:C tJf (hi
pvo ~.YI "Il., ~el'o.h III ,h. U.S. Iteulsle,.,1 ~1.1I1. I.'UIII I.,ell"
,u~uesh:d, III cu~h ~.UCI nilh pUSluUC 11ICf'uhJ. IIlllllcsscll tu IlIc
"l'IIUl,;ulJlu purly Ullhu UIIJU':SS ulhlhu lIUlllbcl scl fUllh 1I1 Clhl III
Ihli ^IH:t.:numl, Wlhcl' I'ully lu.:relu 11111)' I.;h"lI~e the UI.hlll,;ss fUI
(lUlle,:e! hetculuJer lIy .:Ivlll" nulicc uf :mdl dlilll~C II) the ulhcr
~L1HY III the IIUUlIler uluJVI,lllru't'hJcJ
9.2 AflIIlI,.Me I.ow '"~ S.\....bJllly. His
^MrcclllclIl " llIud..: III Ihe Sltlle ill \\'hl..;h thc I'Ulllliscs UIU Im:alt.:J
(Il~rcillllflcr lcJcm:LI lu U:i Ihe "Slule") IlIut lhl~ I\YIl':CIIIClII ~hulllJc
.UVCIIII:~ III ""lc."eel> by "l'1'"c"bl. 1'..lelUlllI\\" "uJ ,,""I"lill";
,"L1 1111.: luwlI 01' 1111: Shih:, If uny pullioll ul' Ihis I\~I ,:ClUclll is fUUlUl
III huM 'U '"' IlIvulitl. ""h illv"IIJily .h,,1I 11111 IIlfe,,1 ,he
~lIfu'ee"bilily .,111 billJillU ""hIlO uf ""Y ulllel 1'"" ul' Ihi>
^Mrcunll.1llt, Ifill Ilu: II1IIlies shull ulldcavor in ~lJud fuilh
,leKo.Julions 'U '''place stich invulill pull lUll willi oUU ur IIlUIC
pruvisiuns uf shllilur tClIur lInd cf.:ullulllh.: cffC~I.
9.3 MudlllullulI oud W.lv.,.lhi. ^u,eellleul
.ball IIOItH.: mmJIOcll, waivcll ur UlllclliJcJ ct\l.:lJpllJy illl imllllllU':1I1
in w,hlllM U1U,:culctJ by lilt: ,HUlit.:s 10 Ihis "l:IUClIIclIl. Nu waillcr ul'
IIUY IJwvJ:,lull ur c(llIscnllu 'lilY uClloll shall he clfcl.ain: unlc:t:i ill
wrhillK lIUtJ slMllc'" hy Ilu: IJUrI)' lu hc hUlIlIl'lIlh) IhclI ulIl)' lu IIlc
"',Icciflc 1)oIII1I::1C. ..:xh:n, un.J iusliUICI: SU flIUVidc~l, NO' fuihuc lJy 11
Illn'.y 10 insisl ulmn lilrlcllJcrllUIIIUUl,;C uf illl) hJ11I1 ur cumJiliuu uf
Ihls ^Mreenu:Ul. ur cxcrclsc Imy Ii~hl ur ll':lIll:dy, ~hilll cUlIslilule u
Wlltver Ihcn.:of,
9.4 CUIII"I... AMI..Ill.II.. '1 hi> ^M,celllclIl
(Induf.Jiua allY ullal,;lullcnls hcrclu), is llic CUlIIlJlclC uutlcrshmJilli:
urah\': pnrlicli whh resllccllO the subjCi.:llUUUCI hCIl.:uf, ilUJ 1111 ulhc'
replCsculallulls or UgfCUIIIl.:nIS nul CXllrl;)ScIJ ill Ihis ^tpcclIIclll
,h.1l be blll~illM UPUII Il,e 1'II11ies hc,c,". u, .1",11 be en,e.iv. lu
'Ulcrplcl, ehauKc ur restricllhe p,uvishlllS hmcuf.
9.5 Allullley...... If UIIY leu;.1 "eliulI 01 o,h.,
prucuutJIlI&S ale bruuuht Iu enfUlee ur iUlcll'rl;llhis ^UU:UIIlCIII. UU~
p,,",vallhIK IIIII'Y shull be cll'hllaJ It!. rcl.:over ICilSUllUbh: UIIUlIIC)'S'
lcc~ illllt ullu.:r IJUI.:I.I LlI~h IIILulIc,lm ~ul.h ULllvlI u, IllUCClJlHIIII, III
ihlllllftllllu 11I1) HIllcl IcHd lu \\ 1111.11 ~lldlf""l) 11111) be l'ulitli:iJ
l) (I ('ulnll uf:liulI allll CuuuhJlluul$. I h..:
1llll1lcS UYIl.'IJ th.1I IIn Illuvbillll III Ihis I\WlcelllcUI ~hulI blJ
illlcljllCh:11 II)JillIl~1 ilIl)' IIUlly hCCIUhC ~llLh lJilII)' 0' till 11:11..1
ICI'IC~ClIlulh'e ~JlilncJ !Iud I 1"U't'biun Illis Alfll.:CIIIl:U1 ilia)' b~
l,,,...cl,:ulcll ill HlulllJllc 1.;\H1I1IC'IhUb. illlu!' \\hi~h shllll COIlSUlule bUI
UIlC 1lI1l1lhc !I;IIIIC ill:.llullh:lIl- fulluWllIll SiUlIillllle by IIl1lel. Ihi~
^"I\Jl.'IIIClll ~Ililllll\:wllic t.:llcl.;l....c \\hclI III1C or 11I'"1: ~U\llll~'llathi
!line IlcCII Ul;UI"Lil lUIIJ ~iUIlt.:i.I h)' "Nt I. Illll"l~ill" ptuut. ur Ihh
^~ICCIlICIII, il SIIiIU nul Lc lICLCSSUI)' 10 IIluJllce U1UH~ Ihuu onc
full)' c,'(cl,;lIlcil t.IHlIllc'llilll, unJ Ii.lLsilllih: Si"lIl.1ll1ll;$ shall bc
IJCCIIICll us llIi~ilhlls
lj,7 Jutu' VtUlun:. NulhillM cUillalnc:lJ he,ein
sh:JlIlJc dt;clllcd Iu l.,;ll.:ilh: u juiul \'ellltll~ UI I)1Ulllc(~hil) lIt:l\\'e~n tin:
pallics IICIUhl, I.Iml IIdlhcl (Jilll)' sh.11I 1i':j)le:'clll ulI)'lhlllM 10 1111)
l;UlIIIiUY hi UU)' ulhcll't.:l~uU,
9~ NUll CUlllllIUIl (:0/110.. 1 h. I'""i.s
IUlrelu nl.;klluwlcJ~c Illllllllc ~cl't'i~\lS ullclcu hClculIlIc:r tUlle bel.:1l
lllivulel)' ufh.:lCil .1111.1 will he llli\'ah:l)' hUlIbhl.:J Ull U llUU'COlIlIllUll
clIllicr tHISis. Ncillu,:! I.HI; f lIUI J lull:1 rCM~~rJs allY ICIUCSClllulions,
uncls Ul IIIldl.:lIil"'ill~S lIlullc IJ,y llie ulhllr ill LUIUlcCliulI wilh Ihis
^"ICCIIIl.:llt il~ IJ~jll~ i1llllc lIululC uf ulh:ls uf f..lIllllliulI clIuillYC. Su
luug liS 1111.: IHlllh:s ilu lIul sUhslullliilll)' dlOUlKc IhIJir mllllllcr ul"
ulll.:lill,l; Ihl.: SCI\kcs hCICUlldl;l, IIcillu:r will Ulh:lllfll, nuw ur in Ihe
JUIIIIC, III il.'i~cll, 1IIIlIugh IcllUI,Hl.ll:css, lIiIC..;II)' ill IlltJi"lcll)', UII)'
4UIJslillllS uf ..U111l11UII l',lIlia~1o: IC"iIItJiUM III\: 11lluliuIISlllp b-:I\\~Cll
Ihc IIUllies, III i1lldiliull, lilllhillK, l.:UlltilillCd ill'his ^llrctJlllclIl shull
Lc llcl.'lIIcll Ul CHll~IIUC~1 Ii)' 1111; lliulicS hCll.:lu ur un)' ull1l1l Ihi.lJ
IJiIlI)' In ~h:lIlc iill)' li~hls, IIhliililliull~ UJ illtell.JSIS ill thinJ IJilIlICS.
IJ lj FOHll Majeure. NUlwilhslall~illll 1111:
JllUvbiulIs ul' SCl.'tiulI 7, IIdllll.:r 1'1111)' shall ha\'!,: an)' UulJUily Cur
llll.: luihuc Iu Jlcllilllll III U ..kill)' in ~"afulllliIlK WIY of tis
ubliYillium, hlJlCulIJl.:r, if slIch fuihllc ur dl.lliJ)' is Ihe ,c:iult of uny
ICKill,c~lriL'ljulI, lahur ~Ii~tlllle, Sllikl.l, bu)"~oll, J1outl, fl(~. I)ut.lic
UIIICIKCIIt:y, lc't'ullllillll, iIlSIUICt:lhlll, ,iul, \\ar. unu't'uitJablc
IllCdHlllil:1I1 filihuc. illlllllllJllitiU in Un: ~IlJlltly of clceUlcal pU\\I.:r,
luss lIr dCSIIUl.liulI uf UII)' 1II.;CCSSUI)' salcllilc. UUllSllulltJer.
IlulISlllhsiun UI ulhcr e~llIil'lIItJIII. ACI uf OutJ ur uny ulhcr cuuse
rlJilloUllabl)' IiC)'uIlJ Ihe I.;UlIlllllllf Hldl,lilll)'.
( .\'iNIlU/ll" J1111J:11 w,d Ft:e Sdu:duI.: jollulY )
(
-~-jlllge':jofs'~--~~
O'~'MfMM'
.
agreements not expressed in the written agreement are binding upon the parties, nor ars
they effective to interpret, change or restrict the provisions of the written A.greement.
25,
Specifically denied,
To the contrary, Plaintiff's sales agents made no
representation that the signal transmitted by the Pdmestar rJyotslI\ in otronger than the
signal than the signal tranomitted by cable televiuion oervice.
By way of further
reply, by way of Paragraph 9.4 of the writ.t.en A.greell\ent. between tho pa>:l:ies, no other
represent.ations or agreements not expressed in the written agreement are binding upon
the parties, nor are such representations or agreements effeotj,ve to interpret, change
or restrict the provisions of the written Agreement. As way of: further denial, after
reasonable investigat.ion, Plaintiff is without. knOWledge of Defendant's beliefs, as any
alleged belief by the Defendant. regarding the relative strengths of t.he Pdmestar and
cable systems was not caused by any representations, written or otherwise, made by
representatives of the Plaintiff.
Furt.herll\ore, Plaintiff has no knowledge of which
specific 'cable television services the Defendant refers, or the signal characteristics
t.hereof.
26. Specifically denied. Plaintiff denies that the signal provided by Primestar
is weaker than the signal provided by cable television, and would demand strict proof
to the contrary at trial. By way of furt.her reply, Plaintiff has made no representation
to Defendant as to the rel.ativ~ sig!',al strength between the two systems, as Plaintiff
has no knowledge of which specific cable television services the Defendant refers, or
the signal characterist.ics thereof. By way of further reply, purOllant to Paragraph 9.4
of the written Agreement. between the parties, no other representations or a9reements not
e.xpre9ssd in the written agreement are binding -L\pon the parties, nor are such
53SB061B,C
2
29. Denied as stated. Plaintiff admIts that Defendant entered into an agreement
with the Plaintiff. As to Defendant's allegations of unilateral mistake referred to in
Paragraph 29 of its New Matter, Plaintiff, after a reasonable investigation is without
sufficient knowledge or information to form a belief as to the t.ruth of Defendant.' s
allegations, the exclusive means of proof being within the cont.rol of hostile parties,
and therefore the Dame Rre denied and strict proof thereof i!J d€.!Tllanded at the trial
hereof. Plaintiff had no knowledge of Defendant's allegedly mistaken beliefs. It is
further specifically denied that any basis upon which the Defendant. alleges a mistake
has any meri t .
Plaintiff specifically denies that relative signal strength bet.ween
Primes tar and cable companies was material t.o the Defendant's contractual agreement with
Plaintiff,
30. Denied as stated. Plaintiff admits that Defendant ent.ered into an agreement
with Plaintiff.
Plaintiff denies the remaining allegations of Paragraph 30 of
Defendant's New Matter for the reason that, after a reasonable investigation, Plaintiff
is wit.hout sufficient knowledge or information to form a belief as to the truth of
Defendant's allegations of unilateral mistake, and if pertinent, strict proof thereof
is demanded at the trial hereof. Plaintiff had nc knowledge of Defendant's allegedly
mistaken beliefs.
Plaintiff furt.her denies that any oasis upon which the Defendant
alleges a mistake has any merit. Plaint.iff further specifically denies that relative
signal strength between Primestar and cable companies was material to the Defendant1a
contractual agreement with Plaintiff.
As there was no mistake as to any material
element by either of the parties, Plaintiff further denies Defendant's allegation that
there was no meeting of the minds between the parties.
53580618,C
4
31. Specifically denied, Plaintiff denies that there was a lack of meeting of
the minds beLween the parties, To the contrary, no repres""tlltionfJ aD to the "elative
signal strength between Primest<<r and cllble CJo1l'panieo waD part of' the Agreement or baeio
of the bargain, and as by way of further reply, pursuant to Paragraph 9,4 of the written
Agreement between the partieD, no other reproElentationEl or agreemsntn not expreofJed in
the written agreement are binding upon the parties, nor shall such representations or
agreements be effect.ive to interpret, change or rest.rict the provisions of the written
Agreement,
32, Denied as st.ated. The multiple allegations of Paragraph 32 of Defendant's
New Matter are denied to the extent they contradict Paragraphs 1 through 22 of
Plaintiff's Complaint and Paragraphs 23 through 31 of Plaintiff's Reply to New Mat.ter,
which are incorporated herein by reference thereto.
33, Spocifically denied. To the contrary, Plaintiff's agents or employ",es made
no representation that the signal transmitted by the Primestar system is stronger than
the signal transmitted by cable television servIce, and no such rep~'esentation exists
in the written Agreement.
Furthermore, pursuant to Paragraph 9.4 of the written
Agreement between the partieo, no other representations 01" agreements not expressed in
the written agreement are binding upon the parties, nor are they effective to interpret,
Change or restrict the provIsions of the written Agreement.
34, Specifically denIed. Plaintiff denies that the signal provided by Primestar
is weaker than the signal provided by cable talevision, and demands stelct proof to the
contrary at trial. By way of further reply, Plaintiff has no knowledge of which
!)358061S,C
5
specific cable television serviceu the Defendant refern, or the signal char'ucteristico
thsreof, and Plaintiff has made no representation as to the relat.ive oignal strength
between the two systems.
Furthermorel no such r:epresentatlon exiLlts in the written
Agreement, and pur"uant to Paragraph 9.4 of the written Agreement. between the parties,
no other repreBentatiol1a or agreements not expressed in the "'1~itt8n agreement are
binding upon the partie", nor shall ouch repre"entations or agreementu be effective to
interpret, change or restrict the provisions of the written Agre~ment.
35. specifically denied. To the contrary, Plaintiff' 9 agents or employees made
no representation as to the relative signal strength transmitted bl' the Primestar and
cable systems, The only contractual provision regarding signal quality or strength is
set forth in the written Agreement paragraph '1.1, which states that the Plaintiff agrees
to provide a good-quality signal. The term "good qual it l' signal" i.s d..fined under the
agreement an, "a digital signal of a quality generally accepted in the satellite
delivered television programming industry as standard and customary given local
technical reception conditions,lI
Plaintiff has at all timos while providing service
to Defendant provided a good quality signal. Accordingly, the Plaintiff has in no way
provided any false representation as to the signal strength provided by the Primes tar
system.
36.
specifically denied.
Plaint.iff's agents or employees made no utterance,
fraudulent or otherwise, as to the relative signal strength transmitted by the Primestar
and cable systems. The only contractual provision regarding signal quality or strength
appears in the written Agreement paragraph 4.1, which states that the Plaintiff agrees
to provide a good-quali ty signal.
Plaintiff has at all times while providing service
6
5J580618.C
,
to Defendant provided a good quality signal, and th~ Plaintiff has in no way provided
any false representation as to the signal strength provided by the Primestar system.
37. Specifically denied, To the contrary, Plaintiff's agents or employees made
no utterance, fraudulent or otherwise, as to the signal strength transmitted by the
Primes tar and cable systems.
Plaintiff incorporates herein by reference thereto the
averments of Paragraphs 35 and 36 above.
38. Denied. After a reasonable investigation, Plaintiff is without sufficient
knowledge or information to form a belief as to the truth of allegations regarding
Defendant.' s technical knowledge of broadcast media, the exclusive means of proof being
within the control of hostile parties and if pertinent, strict proof thereof is demanded
at the trial hereof,
3~. Specifically denied. To the contrary, Plaintiff's agents or employees made
no representation, frltudul.ent or otherwise, as to the relative signal strength
transmitted by the Primes tar and cable systems.
Plaintiff incorporates herein by
reference thereto the averments of Paragraphs 35 and 30 above.
40,
Denied as stated.
To the contrary, PlaintHf has not provided, nor' has
Defendant. received inadequate service. Plaintiff has provided adequate services and good
quality signal to the Defendant, and has performed in accordance with the terms of the
contract, It is furt.her denied that Plaintiff's agents or employees made any utterance,
fraudulent or otherwise, as to the signal strength transmitted by the Pdmestar and
cable systems.
Plaintiff admJ.ts that Defendant has paid fees to the extent of $400,00,
7
53590618, C
however it is denied that Defendant hatl suffered any damage", Under the terms of the
IIgreement, if the Deh1l1dant believed that the plaintiff waB in defnul.t under the
Agreement, Defendant wae, under the term" of paragraph 7 of: the Agreement, to give the
Plaintiff a thirty-day notice of failure to perform a condition, term or covenant. The
Defendant instead chone to unilaterally and wrongfully terminate the contract./ without
providing a thirty day notice of default, written or otherwiBe.
41. Specifically denied. '1'0 the contrary, Plaintiff's agents or employeee made
no utterance, fraudulent or otherwise, as to the signal strength transmitted by the
Primestar and cable systems, or any other matter. It is further denied that Plaintiff
is responsible for any attorneys' fees allegedly incurred by Defendant. As to whether
Defendant incurred the alleged fees, Plaintiff, after a reasonable investigation, is
without sufficient knowledge to form a belief as to the truth of Defendant's allegation,
the same is therefore denIed, and strict proof thereof is demanded at the trial hereof,
42. Denied as stated, The multiple allegations of Paragraph 42 of Defendant's
New Matter are denied to the extent they contradi.ct Paragraphs 1 through 22 of
Plaintiff's Complaint and Paragraphs 23 through 41 ofl"laintiff' s Reply to New Matter.
43,
Denied as stated .
The Plaintiff is under no obligatIon, Implied or
expressed, to provIde "good signal qualJ.ty",
To the cont.rary, under the written
IIgreement between the parties, PlaIntIff 113 to provide "good CjualJ.ty signal". By way
of further reply, the Plaintiff has at all Umes provided Defendant with a "good quality
signal"; any of the Defendant's picture quali ty problems have been due to inadequacies
53590618,C
8
of the Defendant' 0 MATV System and the tuning of the television oets at the Defendant' a
location,
not lese than that provided by cable television. By way of further reply, Plaintiff is
44, Specifically denied. 1'he Pl'imestar ,lignal pt'ovideFJ 9ignal quality that ia
has at times prior to Vefendant' s disconnection of Plaintiff's system provided Defendant
only required to provide a "good quality signal", not "signal quality"/and Plaintiff
with "good quality Bignal". Any al.l.eged problems that the Defendant experienced wIth
picture quality have been dlle to the Defendant's inadequate MATV System and failure to
the Defendant is contractual.l.y responsible under the terms of the Agreement,
tune the television sets at the Defendant's location, both of which are items for which
way of further reply, Plaint.iff Was only required t.o provide a "good quality signal",
45. Specifically denied. The Primes tar signal provides good quality signal, By
not "signal qualit.y"; and Plaintiff has at times prior t.o Defendant's disconnection of
Plaintiff's system provided Defendant with "good quality signal". Any alleged problems
that the Defendant experienced wit.h picture quality have been due to t.he Defendant's
inadequate MlITV Syst.em and failure t.o tune the television sets at the Defendant's
locatIon, both of which are items for which the Defendant is cont.ractually responsible
under the terms of the Agreement.
46, Specifically denied. The Primes tar signal provides good quality signal. As
signal", not "signal quality"; and Plaintiff has at times prior to Def.!hdant' s
way of additional denial, Plaintiff was only required to provide a "good quality
disconnection of Plaintiff's system provided Defendant wHh "good quali tl' signal". By
535806a.C
9
Ii
I.
MATV system, as SeCJtion 2.1 of the Agreement states, "Such 1nspection shall relate
solely to the installation of the PI. b;quipment, and I.NET 'wsumes no re/lponsibility for
any inspection, repair or maintenance of Hotel's MATV System,"
54,
Denied as stated.
It is admitted, to the extent that the Plaintiff had
rusponsibility for inspecting the physical premises, as Section 2.1 of the Agreement
states, "Such inspection shall relate solely to the installation of the PI. Equipment,
and I.NET assumes no responsibility for any inspection, repair or maintenance of Hotel's
MA'fV System," It is denied that Plaintiff had any obligation as to the reliability of
the Hotel's MATV System.
55.
Denied as stated.
It is admitted that the Plaintiff determined that the
hotel was acceptable, to the extent that the Plaintiff had responsibIlity for making a
determination of the physical suitability of installation, based on inspecting the
physical premises, as Section 2.1 of the Agreement states: "Such inspection shall r"late
solely to the installation of the PI. Equipment, and I.NET assumes no responsibility for
any inspection, repair or maintenance of Hotells MATV System. n
It is denied that
Plaint.iff had any obligation for the inspection, repair, maintenance or reliability of
the Hotel's MATV system.
56. Specifically denied. Plaintiff denies t.he Defendant's allegation that the
Plaintiff represented to the Defendant that the signal transmitted was as good as oable,
To the oontrary, Plaintiff did not make such representation as to the relative strength
between satellite and cable provided services to the Defendant, ilS the terms of the
agreement specify the signal that is to be provided by the Plaintiff, which is defined
S3580618,C
12
agreemel/lt, the nnf'nlldl1111 II1.dlllllllll;<I II "llood 'Ill<lUty II JglIl\ I " . PIII.Llltiff prOVided such
a. signal nl aU ILm"" In III<, 11,,"""<111"1, By WflY of lul'th,ll.' ;1I1SWt,r, Ihe terms of the
agresment fUl'th",' fif'ov I d" I hili, "I.NII:'I' Ilhlll J 1101' be t,'e"poIHI:lbl" for the los",
interruptIolI (!I' I""'" '/u,.III\' ", lh" 11111,,11110 nl'lll<ll 10,. 1'8M'on" beyond the control of
L,NE1', inclUdlll'l, hili n,,' Ilfnll"d I.n, d"II,'I""OI,", III flotol'n I~^,l'\l SYfJtem or the loos of
UOe of <1rIY 1'0qlll"I\<lIIIIIIIIII.I" 0,. 1'"l1nl''''''1r1l,'' I'I{lLIII:I[['8 fJel.'v:loe repI:eoentativeo have
tested thu 1'1,,1111:11/"11 '''llIil'm''''1: {llId II", /)""'''''d{lIlI:'lI "y"tem, and have advised Defendant
that inadl.1'1Ullol"lI 0/ tho 11I1'Olldlllll:'lI MA'I'V !ly.,t"m w",'o tho ealwe of any p:loture problems.
62, n""l,,d. MI "',' {I ,'O{lIlOIl{lhlo inV""U9nUon, Plalnt:.iff io without sufficient
knowledge 01' lnl'o"I1I."Ilon 10 f011l\ II t",l.lof 1\11 10 I:ho I:ruth of DOfBnd,'nt's allegation that
the teJevilllon flN'vi"" ill '"'/'''"<I{lnl''' 1'001l\'J Wall unlwable, the exelusive means of proof
being within Ihil 1'01111'01 of hOfH:llo pal.'tJ.eo, and if pertJ.nent, strict pn)ot thereof is
demanded at tht, 1:,'1,,1 h''I.'llol'. U)I w{ly 01 further anower, any problem with the picture
was not a nwult: 01' IlInk of "'load qualil:y lllgnal" {IS required of the Plaintiff in
accordanee with Lho I"I'lI\fI 01' I:ho IIgt'€lfJnl8nt/ Pla:lntiff provided such a signal at all
timee 1:0 the l1efelldillll P.lIIllIIHI"fI uervloo representatives have tested the Plaintiff's
equipment tllld l.ho nuf.olld",!!'" flYfll:em, and have advised Defendant that inadequacies of
the Defendallt' II MII'I'V fJ\'III:f111\ WO,'e the e"use of any picture problems.
63. Pell.iod. After i1 rellllonable illvestigation, Plaintiff is without know,ledge to
form II beUef 11/1 to the truth of Defehdant's allegations, the exclusive means of proof
be:Lng wlthill the control of hoatUe parties, al!d if pertinent, otrict proof thereof is
demllndod III: I:he tl:llll hereof',
!i:lfjfHlfllrf,t'
15
64, Denied, After a reaDonable investigation, Plaintiff is without knowledge to
form a belief as to the truth of Defendant's allegations, the exclusive means of proof
b..ing within the control of hostile parties, and if pertinent, strict proof thereof is
demanded at the trial hereof.
65.
Denied as stated.
It is admitted that the Defendant provided a verbal
complaint of the picture quality for certain rooms on April 30, 1997. It is denied that
Defendant relayed any information as to complaints lodged by Defendant's customers, nor
does Plaintiff have any knowledge as to complaints by Defendant's customers regal'ding
picture quality.
By way of further answer I Defendant I s verbal complaint on or about
April 30, 1997 was responded to by Plaintiff's service representatives, who have advised
Defendant that inadequacies of the Defendant's HATV System were the cause of any pict.ure
problems. Plaintiff further denies Defendant's allegation to t.he extent. that it implies
that notice of default has been given to Plaintiff, as (1) Plaintiff was at no time in
default, (2) the verbal communication was insufficient notice of default under the terms
of the agreement., and (3) Defendant. was and remains the part.y in default.
66.
Admitt.ed.
By way of further answer, Plaintiff' B service representatives
tested the Plaint.iff' s equipment and the Vefendant's system, and have advised Defendant
t.hat inadequacies of the Defendant's HATV System were t.he cause of picture problems.
The terms of the agreement provide that, "LNET shall not be responsible for the loss,
interruption or poor quality of the satellite signal for reasons beyond the control of
LNET, including, but not limited to, deficiencies in Hotel's HATV System or the loss of
use of any required satellite or transponder. II
53580618.C
16 .
67. Deni5d, 'fo thl;\ contrary, 'l'hl;\ service technician made no repr:e'Jentlltionn an
to the relative eigna1 strength provIded between cable provIders and 'the PlaIntHf' e
system. Plaintiff's service representatives tested the Plaintiff's equipment and the
Defendant' e nystsm, and have advised Defsndant that Inadequacies of the Defendant's MATV
Syetem were the caUse of picture problems.
68. Denied. To the contrary, the servIce technician did not tell the Defendant
that the primostar signal was not strong enough to transmi t through the hotel's
television systemi however J the service representative did advise the Defendant that the
Defendant's MATV System was inadequate, and was the cause of picture problems.
69.
Denied.
To the contrary, Plaintiff's service representatives tested the
Plaintiff's equipment and the Defendant's system, and have advised Defendant that
inadequacies of the Defendant's MATV System were the cause of picture problems.
70. DenIed. plaintIff donies the allegation that the PlaIntiff has provIded a
10\~ signal quali.ty. The PlaIntiff has at all times provIded the Defendant with a "good
quality sIgnal" as required under the termS of the agreement.
Plai.ntiff's service
representatives tested the Plaintiff's equipment and the Defendant's system, and have
advised Defendant that the Plaintiff's system was performing within the standards set
forth in the agreement, and that inadequacies of the Defendant's MATV System were the
cause of picture problems. Accordingly, there was no 1l1ow signal qualityll provided by
the plaintiff for either party to remedy. To the contrary, the item that needed to be
remedied to eliminate problems with picture quality was the inadequacies of the
17
S35B06UI,C
Defend..nt' u MA'l'V !Iyutem, wh teh, lllldet: the "\freement between the P" leUe!!, the Defendant
wall obl igatEld to con.""t,
71, Denied. '1'0 the contrary, Plaintiff WafJ "apable of and in fact did meet its
obligations under the agreement, Au required under the termfJ of the agreement, the
Defendant maintained a "good qualIty fJignal", and Plaintit'f provided such a signal at
all. times to the Defendant, Furthermore, Plaintiff's service reprefJentatives tested the
Plaintiff' [J equipment and t.he Defendant.'!1 !Iyatem, and have advi!led Defendant that the
Plaintiff's aystem was performing within the standarda set forth in the agreement, and
that inadequacies of the Defendant's MATV System were the cause of picture problems.
Under the terms of t.he written agreement, the Defendant is responsible for promptly
making repairs of the Defendant '8 MATV System if it i8 the cause of poor picture
Cjuali ty.
Accordingly, it. was the Defendant was the party in default at the time in
question, and the Plaintiff was not only capable of, but in fact was fully fulfilling
its obligations under the agreement. Additionally, under the terms of the agreement,
the Defendant was required to give the Plaintiff notice of any claimed default and a
thirty (30) day opportunity to cure the default. The Defendant's cancellation was done
without the required 3D-day written notice of lack of compliance and opportunity to cure
prior to cancellation, and in addition, Defendant cancelled only one week after verbal
not.ification of pict.ure quality problems being experienced by the Defendant.
Accordingly, the Defendant's wrongful cancellation constituted a default under the terms
of the agreement.
72.
Denied.
TO the cont.rary, Plaintiff has made no fraudulent utterances,
Plaintiff has not provided inadequate services, the only fees received by the Plaintiff
535B061&. C
1B
Plaintiff'" equipment and the Defendan\:'" fJy"tem, and hilve adviaed Defendant that the
Plaintiff's system was perfo,:mJ.ng wI thin the fltandardfJ flat forth in the ..greement, and
that inadequacies of the Defendant'" MA'I'V Syntflm were the C1<llFJa of any picture problem".
76, Denied. PlaintIff denieFJ that the fJJ.gnal tl'allfJmitted by the pdmestar "YfJtem
is weaker than the signal transmitted by cable television. By way of further ans'1er,
Plaintiff has no knowledge of which specific cable television services the Defendant
refers, or the signal characteristics thereof.
77, Denied. To the contrary, The only representations made by the Plaintiff or
the Plaintiff's representatives or agents regarding signal quality are found within the
written agreement, which states that the Plaintiff agrees to provide a "good quaHty
signal", not "signal quality".
The term "good qualJ.ty "ignal" is defined under the
agreement as, "a digital signal of a quaUty generally accepted in the satellite
accepted in the satel!.ite delivered television programming industry as standard and
customary given local technical recepti.on conditions." Plaintiff provided such a signal
at all times to the Defendant.
78.
Denied.
To the contrary, neither the Plaintiff, nor the Plaintiff's
representatives or agents have made any representaticn or utterance as to the relative
strength of the signal as provided by Primestar and cable systems,
79, Denied as stated. It is admitted that the parties entered into an Agreement,
It is specifically denied that the Plaintiff or the Plaintiff's representatives or
agents have made any fraudulent utterances, 01' have made fraudulent utterances with the
535B061B,C
20
intent t.hat the Defendant would rely upon the utteranoes and/or: <'Inter into an agreement
with the Plaintiff. To the oontrary, no such utteranoes were made by Plaintiff or its
agents or employees,
80. Denied. After a reasonable investigation, Plaintiff is without sufficient
knowledge or information to form a belief as to the truth of Defendant's allegation, the
exolusive means of proof being within the control of hostile parties, and if pertinent,
strict proof thereof is demanded at the trial hereof.
81.
Denied.
It is specifically denied that Plaintiff or any of Plaintiff's
representatives or agents have made any representations as to the relative strength of
the signals between the cable and Plaintiff's systems. To the contrary, Plaintiff has
made no misrepresentations to Defendant.
82.
Specifically denied.
To the contrary, Plaintiff has made no fraudulent
utterances to Defendant, Plaintiff has not provided inadequate services to Defendant,
and the only fees received by t.he PlainUff from t.he Defendant to date has been $400.00
received as payment for the installation of off -ail' channels. It is therefore denied
that. Plaintiff has caused Defendant to incur any damages.
83.
Specifically denied.
To the contrary, Plaintiff has made no fraudulent
utterances to Defendant, and any alleged incurrence of attorneys' fees by the Defendant
are a direct and proximate result of Defendant's breach of the terms of the written
agreement.
As to whether Defendant actually incurred said fees, Plaintiff, after a
reasonable investigation,
is without sufficient knowledge or information to form a
21
53580618 .C
93. Denied. After reasonable investigation, Defendal1l is withoul sumcient informlltion
to form all opinion as 10 the veracity of tl1l1 statemcnt tlmt Plaintit1's rcprcsentatives advised
Plaintiff that Defendant's MATV system is inadequate and strict proof thereof is demanded al
trial. By way of further reply, PlaintilllCounterdefcndant's reprcsentatives nevcr madc any such
representation to DetcndllntlCounterplaintifl' either.
94. Denicd as statcd. DefendantlCounterplaintiff did not repair the MA TV system as
the MArV system is not faulty and Detcndant/CounlerplaintitTwas never advised to repair it.
95. Admitted.
96. Denied. Defendant/Counterplaintiff did not provide Plaintiff/Counterdefendant
with oral notice of immcdiate tcrmination of the Agreemcnt on or aboul May 7, 1998. By way of
further reply, Defendant/Counterplaintifl' provided Plainlilf/Counterdefedant with wrillen notice
of request tor cance/lItion of the Agreement on May 4, ] 997. A true and correcl copy of the
notice is attached hereto as Exhibit J.
97. Admilled.
98. Admitted.
99. Denied. Defendant/Counterplaintiff provided written notice of default as by
memorandum daled May 4, 1997, a true and correct copy of which is all ached hereto as Exhibit
I.
] 00. Denied. It is dcnied that Defendant/Counterplaintiff tcrminated the Agreement
wilhout adequate notice. It is further denied that Defendanl/Counterplaintiff defaulted under the
Agrecment.
101. Adrnittcd.
102. Admittcd in part, Dcnicd in part. It is admitled thai thc paragraph 9.4 rcads as
averrcd in paragraph 102. It is dcnied that the tcrms of paragraph 9.4 rctlccl the understanding
bctwecn thc partics. It is fUl1her denied that thc tcrms of paragraph 9.4 bar any of thc aflirmativc
defenscs and/or countcrclaims raised by thc Dcfcndant/Countcrplaintiff.
103. Paragraph 103 contains conclusions of law and no responsivc plcading is required.
To thc cxtcnl a ploading may be requircd, thc avcrments in Paragraph 103 arc dcnied and strict
proof thcrcof is dcmanded at trial.
104. Paragraph 104 contains conclusions of law and no responsive pleading is requircd.
To the extcnt a plcading may be rcquired, the avcrmcnts in Paragraph 104 are denied and slrict
proof lhereof is demandcd at trial.
105. Paragraph 105 contains conclusions of law and no responsivc pleading is required.
To the extent a pleading may be required, the averments in Paragraph 105 are denied and strict
proof thereof is demanded at trial.
106. Admitted
107. Paragraph 107 contains conclusions of law and no responsive pleading is required.
To the exlent a pleading may be required, the averments in Paragraph 107 are denied and strict
proof lhereof is demanded at trial.
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2. Defendant f.iled an Answer, New Matter and Counterc1l!im, admitting entering
into't.he underlying agreement, but denying liability to Plaintiff on the alleged basis
t.hat the equipment and/or the television programming was defective and not of good
quality, alleging fraud committed by Plaint if f' s representatives, and alleging
counterclaim damages in the amount of $12,362.00, representing the Defendant's
incurrence of attorneys' fees in said amount as a result of Plaintiff's alleged breach
of the agreement.
3. The Defendant also included a Count for Punitive Damages, but other than the
Court for Punitive Damages, Defendant's entire Counterclaim damages consist of alleged
attorneys' fees incurred in the amount of $12,362.00.
4, After the pleadings were closed, Plaintiff served upon Defsndant's counsel
Plaintiff' B First Set of Inte.rrogatories.
A true and correct copy of Plaintiff's
Interrogatories and Defendant's answers thereto is attached hereto, marked Exhib.i.t "1",
and made a part hereof.
5. In Interrogatory No.5, Plaintiff requested the Defendant to set forth, with
regard to the damages alleged in Paragraphs 73 and 83 of its Counterclaim, a
chronological itemization showing each fact relied upon and the computations used in
determining liability and fIxing the amount of damage, identi f ication of each person
having first hand knowledge Df the discovery of and the computation of each item of
53581005
C. An identification of any writings evidencing or embodying said alleged
misrepresenlations, and a description of their contcnts.
ANSWER: No such writings arc prescntly In the control and/or custody of Defcndant,
Defcndant's agents and/or employees.
D. A chronological recap of who said what to whom 111 making said alleged
misrepresentations.
ANSWER: During the course of negotiations, Plaintiffs sales agent, whose identity is
currently unknown to Defendant, told Defendant's Managing Director, Rosa Un, that the signal
transmllled by the Primestar system is stronger than the signal transmitted by cable. The
conversation was made via telephone. The conversation occurred prior to execution of the
contract between the parties. This Answer will be supplemented when Defendant learns the
identity of Plaintiff's sales agent.
InterrogatolY #2
Concerning the alleged complaints alleged In Paragraph 63 of your Counterclaim, state:
A. The identity and address of each person making the alleged complainls.
ANSWER: Complaints were made by Mike Krebs, Mary E. Lopez, BD Osbourne and
other guests whose signatures are not legible on a memorandum given to Lee Leidigh,
Defendanl's employe at lhe front desk. Mike Krebs resides at 9711 Britanny Lane, Baltimore,
Maryland, 21234. Mr. Krebs's telephone number is (717) 790-7313. After diligent search,
Defendant Is unable to provide more precise identification of the persons who made complaints.
This Answer will be supplemented.
expects to discover .the name and address of lhe. representalive in lhe course litigation. This
Answl1r will be supplemented.
l!iliJ.JIQiatory #4
Wi\h regard to the matters alleged in Paragraphs 67 through 68 of your Counlerclaim,
please set forth the specific identity of the service technician from Plaintiff who inspecled the
Lodgenel equipment installed for you.
ANSWER: The name and precise address of the service technician are currently
unknown to Defendant. Defendant expects to discover the name and address of the service
technician in the course litigation. This Answer will be supplemented.
Inlerrogatory #~
With regard to the damages alleged in Paragraphs 73 and 83 of your counlerclaim, state:
A. A chronological ilemization showing each fact relied upon, and the computations
used, in determining liability, and fixing the amount of damage.
ANSWER: Objection. Defendant objects to this Interrogatory as work product and
violation of attorney-client privilege.
B. An identification of each person having firsthand knowledge of the discovery of,
and computation of each item of damage.
ANSWER: Objection. Defendant objects to lhis Interrogatory as work product and
violation of attorney-client privilege.
.
LODGE NET .
ENTERTAINMENT
CORPORA TlON,
Plaintiff
IN THE COURT or COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
v.
CIVIL ACTION. LA W
DAN LODGE, INC"
tJd/b/a COMFORT INN.
WEST,
Defendant
NO. 98.2462 CIVIL TERM
AND NOW, this
QIIDER..QE COUB.I
~ tl day of November, 1998, upon consideration of the attached
letter from Nicholas 0, Krawec, Esq., attorney for Pla/ntiff, the discovery conference
previously scheduled in this matter fol' November 6, 1998, is CANCELLED,
BY THE COURT,
,.
iL oiL
esley Olet,..Jr., J.
J,
Nicholas D. Krawec, Esq,
II33 Penn Avenue
Pittsburgh, PA 15222
Aitorney for Plaintiff
Timothy Bowers, Esq,
The Brittain Building
319 Mill Street
Danville, PA 17821
Attorney for Defendant
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