Document:

EX-10.05

EXHIBIT 10.05

THIRD AMENDMENT

TO PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS

THIS THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (“Amendment”)
dated effective as of September 29, 2005, is made by and between PS BUSINESS PARKS, L.P., a
California limited partnership (“Seller”), and TRIPLE NET PROPERTIES, LLC, a Virginia limited
liability company (“Buyer”).

RECITALS:

A. Seller and Buyer entered into that certain Purchase and Sale Agreement and Escrow
Instructions, with an effective date of July 1, 2005, as it has been previously amended
(“Agreement”) pertaining to those certain tracts or parcels situated in City of Beaverton, County
of Washington, Oregon, including Buildings 6, 7, 8, 12, 13 (the “Improved Parcels”) and certain
undeveloped land (the “Vacant Land”) within the project commonly known as Woodside Corporate Park,
as more particularly described in the Agreement. All capitalized terms not defined herein shall
have the same meaning given to them in the Agreement.

B. Seller and Buyer also desire to amend the Agreement on the terms and conditions set forth
below.

AGREEMENT:

NOW, THEREFORE, for and in consideration of the foregoing recitals, Ten and No/100 Dollars
($10.00) in hand paid, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Seller and Buyer hereby agree as follows:

1. Seller and Buyer agree that the date of Closing shall be extended to September 30, 2005.

2. At Buyer’s request, in satisfaction of Seller’s obligations under Section 4.2(a) of the
Agreement, Seller shall deliver to Buyer through Escrow (i) a Deed with respect to the Improved
Parcels (in the form attached as Exhibit G to the Agreement) naming NNN VF Woodside Corporate Park,
LLC, a Delaware limited liability company, as grantee (the “Improved Parcel Deed”) and (ii) a Deed
with respect to the Vacant Land (in the form attached as Exhibit G to the Agreement) naming NNN OF
Woodside Corporate Park, LLC, a Delaware limited liability company, as grantee (the “Vacant Land
Deed”).

3. At Buyer’s request, the Improved Parcel Deed will state consideration equal to $22,861,938
and the Vacant Land Deed will state consideration equal to $738,062.

4. Buyer and Seller shall execute a single closing statement at Closing. All other Closing
documents described in Section 4.2 and Section 4.3 of the Agreement shall be by and between Seller
and Buyer as provided in the Agreement.

5. Buyer, NNN VF Woodside Corporate Park, LLC, and NNN OF Woodside Corporate Park, LLC shall be
jointly and severally liable for all of the representations, warranties and obligations of Buyer
under the Agreement.

6. At Closing, Buyer shall reimburse Seller for its costs and expenses, including without
limitation attorneys’ fees, in connection with the above described accommodation in the amount of
Two Thousand Five Hundred Dollars $2,500.00.

7. This Amendment may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. This Amendment
may be executed and delivered by facsimile signature. In the event of any conflict or
inconsistency between the terms of this Amendment and the terms of the Agreement, the terms of this
Amendment shall govern and control. Except as expressly amended hereby, the Agreement is in full
force and effect and the terms and conditions thereof are ratified and reaffirmed in their
entirety.

IN WITNESS WHEREOF, each of the undersigned, by its duly authorized representative, hereby executes
and delivers this Amendment as of the date first above written.

SELLER:

PS BUSINESS PARKS, L.P.,

a California limited partnership

By:

Name:

Title:

BUYER:

Triple Net Properties, LLC

a Virginia limited liability company

By: /s/ Louis Rogers

Name: Louis Rogers

Title: PresidentEX-10.1

EXHIBIT 10.1

AMERICA ONLINE LATIN AMERICA, INC.

6600 N. Andrews Avenue, Suite 400

Ft. Lauderdale, Florida 33309

June 23, 2005

Time Warner Inc.

One Time Warner Center

New York, NY 10019

Attn: Senior Vice President, Mergers & Acquisitions

America Online, Inc.

22000 AOL Way

Dulles, VA 20166

Attn: Vice President, International Strategic Alliances

Aspen Investments L.L.C.

c/o Finser Corporation

550 Biltmore Way, Suite 900

Coral Gables, FL 33134

Attn: President

Atlantis Investments L.L.C.

c/o Finser Corporation

550 Biltmore Way, Suite 900

Coral Gables, FL 33134

Attn: President

Ladies and Gentlemen:

This letter agreement (this “Agreement”) sets forth certain terms and conditions
pursuant to which America Online Latin America, Inc. (“AOLA”) and certain of its direct and
indirect subsidiaries (collectively with AOLA, the “Debtors”) will propose their joint
chapter 11 plan of liquidation (the “Plan”) on a consensual basis with the support of (i)
Time Warner Inc. (“TW”), (ii) America Online, Inc. (“AOL”; and together with TW,
the “TW Parties”) and (iii) Aspen Investments L.L.C. and Atlantis Investments L.L.C.
(collectively, “ODC”).

	 	1.	 	Proposed Plan of Reorganization

The Debtors propose to commence cases (the “Chapter 11 Cases”) under chapter 11 of
title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy
Court for the District of Delaware (the “Bankruptcy Court”). Shortly following the
commencement of the Chapter 11 Cases, the Debtors intend to file a disclosure statement and related
chapter 11 plan of liquidation, which will provide for, among other things, certain distributions
on account of the claims of TW arising under or in connection with the convertible notes (the
“Notes”) issued pursuant to the Note Purchase Agreement (the “Note Purchase
Agreement”) dated as of March 8, 2002, between AOLA and TW (the “TW Note Claims”), the
general unsecured claims of AOL against the Debtors (the “AOL Unsecured Claims”), the
interests of the TW Parties arising under or in connection with the Series B Redeemable Convertible
Preferred Stock of AOLA (the “Series B Preferred Stock Interests”), and the interests of
ODC arising under or in connection with the Series C Redeemable Convertible Preferred Stock of AOLA
held by ODC, the children of Gustavo A. Cisneros and the children of Ricardo J. Cisneros (the
“Series C Preferred Stock Interests”).

	 	2.	 	Due Authority

(a) TW represents and warrants to the Debtors that, as of the date hereof, (i) TW either (A)
is the beneficial owner of the TW Note Claims and 70,079,653 shares of Series B Redeemable
Preferred Stock of AOLA, or (B) has investment or voting discretion with respect to such TW Note
Claims and Series B Preferred Stock Interests, and has the power and authority to bind the
beneficial owner(s) of such TW Note Claims and/or Series B Preferred Stock Interests, as the case
may be, to the terms of this Agreement and (ii) TW has full power and authority to vote and consent
to matters concerning such TW Note Claims and Series B Preferred Stock Interests and to exchange,
assign and transfer such TW Note Claims and/or Series B Preferred Stock Interests, as the case may
be.

(b) AOL represents and warrants to the Debtors that, as of the date hereof, (i) AOL either (A)
is the beneficial owner of the AOL Unsecured Claims and 79,840,676 shares of Series B Redeemable
Preferred Stock of AOLA, or (B) has investment or voting discretion with respect to such AOL
Unsecured Claims and/or Series B Preferred Stock Interests, and has the power and authority to bind
the beneficial owner(s) of such AOL Unsecured Claims and/or Series B Preferred Stock Interests to
the terms of this Agreement and (ii) AOL has full power and authority to vote and consent to
matters concerning such AOL Unsecured Claims and/or Series B Preferred Stock Interests and to
exchange, assign and transfer such AOL Unsecured Claims and/or Series B Preferred Stock Interests,
as the case may be.

(c) ODC represents and warrants to the Debtors that, as of the date hereof, (i) ODC either (A)
is the beneficial owner of all of the Series C Preferred Stock Interests, or (B) has investment or
voting discretion with respect to all of the Series C Preferred Stock Interests and has the power
and authority to bind the beneficial owner(s) of such Series C Preferred Stock Interests to the
terms of this Agreement, (ii) ODC has full power and authority to vote and consent to matters
concerning such Series C Preferred Stock Interests and to exchange, assign and transfer such Series
C Preferred Stock Interests. ODC acknowledges and agrees that to the extent ODC holds a claim
against or interest in the Debtors other than the Series C Preferred Stock Interests, any such
claim and/or interest shall be deemed to be a Series C Preferred Stock Interest for the purposes of
this Agreement, the Plan Term Sheet (as defined below) and the Plan.

	 	3.	 	Support for a Qualified Plan

(a) Subject to the terms and conditions hereof and for so long as its obligations hereunder
have not terminated as provided herein, each of the TW Parties and ODC and each of their
affiliates, subsidiaries, representatives, agents and employees (A) shall support and take all
reasonable actions to facilitate the solicitation, confirmation and consummation of a chapter 11
plan of liquidation for the Debtors, incorporating the terms and conditions set forth on
Exhibit 1 annexed hereto (the “Plan Term Sheet”) and consistent in all material
respects with the Plan Term Sheet and this Agreement (a “Qualified Plan”), including, as
applicable, timely voting to accept such plan, (B) will not object to confirmation of, or vote to
reject, a Qualified Plan or otherwise take any action to commence any proceeding to oppose or to
seek any modification of a Qualified Plan, the disclosure statement related to a Qualified Plan
(the “Disclosure Statement”), or any other reorganization documents containing terms and
conditions consistent in all material respects with the Plan Term Sheet and this Agreement, and
(C) will not directly or indirectly seek, solicit, support, encourage, vote for, consent to,
participate in the negotiation or formulation of (x) any plan of reorganization, proposal, offer,
dissolution, winding up, liquidation, reorganization, merger, consolidation, business combination,
joint venture, partnership, sale of assets or restructuring for the Debtors other than a Qualified
Plan or (y) any other action that is inconsistent with, or that would delay or obstruct the
proposal, solicitation, confirmation, or consummation, of a Qualified Plan.

(b) So long as this Agreement has not terminated as provided herein, the Debtors (A) will
file a Qualified Plan, the related Disclosure Statement, and other necessary or appropriate
reorganization documents containing terms and conditions consistent in all material respects with
the Plan Term Sheet, such Qualified Plan and this Agreement, and (B) will take all reasonable
actions to achieve the confirmation and consummation of such Qualified Plan at the earliest
feasible date.

(c) Each of the TW Parties and ODC agrees to permit disclosure in the Disclosure Statement
and any filings by AOLA with the Securities and Exchange Commission and any other regulatory
agency to which the Debtors may be subject of the contents of this Agreement.

(d) Each of the TW Parties and ODC agrees to cause its respective representatives on AOLA’s
board of directors, subject to their fiduciary obligations, to take all necessary actions to
authorize the Debtors’ Chapter 11 filing and implement and execute the Plan.

	 	4.	 	Forbearance

So long as this Agreement shall remain in effect and is not otherwise terminated, TW agrees to
forbear from exercising any rights or remedies it may have under the Notes, the Note Purchase
Agreement and all related documents, applicable law or otherwise, with respect to any default under
the Notes or the Note Purchase Agreement.

	 	5.	 	Acknowledgment

This Agreement is not and shall not be deemed to be a solicitation of consents to the Plan.
The acceptance of the TW Parties and ODC will not be solicited until each of the TW Parties and ODC
has received the Disclosure Statement and related ballot, as approved by the Bankruptcy Court.

	 	6.	 	Transfer of Claims and Interests

(a) In addition to any applicable restriction on the transfer of claims and/or interests that
may be contained in any organizational document of AOLA or any other agreement to which the TW
Parties and/or ODC is a party, each of the TW Parties and ODC further agrees that, at any time
prior to the termination of this Agreement or confirmation of the Plan, it shall not (i) grant any
proxies to any person in connection with the TW Note Claims, the AOL Unsecured Claims, the Series B
Preferred Stock Interests and/or the Series C Preferred Stock Interests, as the case may be, to
vote on the Plan except as is consistent with the intention of the parties hereto as set forth in
this Agreement, or (ii) sell, transfer or otherwise dispose of its TW Note Claims, AOL Unsecured
Claims, Series B Preferred Stock Interests and/or Series C Preferred Stock Interests, as the case
may be, except to a party that agrees in writing to be subject to the terms and condition of this
Agreement, which writing must be in form and substance reasonably satisfactory to the Debtors.
Each of the TW Parties and ODC agrees to notify the Debtors in writing within one business day of
such transfer, sale or assignment of its TW Note Claims, AOL Unsecured Claims, Series B Preferred
Stock Interests and/or Series C Preferred Stock Interests, as the case may be, and to provide the
Debtors with a signed agreement of the transferee agreeing to be subject to the terms and
conditions of this Agreement within one business day of such transfer, sale or assignment.

(b) Each of the TW Parties and ODC agrees that if, at any time prior to the termination of
this Agreement, it acquires any claims against or interests in the Debtors, any such claims or
interests so acquired shall be deemed to be a TW Note Claim, AOL Unsecured Claim, Series B
Preferred Stock Interest or Series C Preferred Stock Interest, as the case may be, for the purposes
of this Agreement and the Plan.

	 	7.	 	Termination of Obligations

The obligations of the TW Parties and ODC under this Agreement shall immediately terminate and
be of no further force and effect on the date that is two business days following any of the events
listed below, unless each of the TW Parties and ODC affirms in writing its obligations under this
Agreement within such two business day period:

(i) A Qualified Plan shall not have been filed with the Bankruptcy Court on or before
September 30, 2005, or such later date mutually agreed upon by AOLA, the TW Parties and ODC;

(ii) The Bankruptcy Court shall not have entered an order confirming a Qualified Plan on or
before January 31, 2006, or such later date mutually agreed upon by AOLA, the TW Parties and ODC;

	 	(iii)	 	A Qualified Plan shall not have been consummated on or before
June 30, 2006, or such later date mutually agreed upon by AOLA, the TW Parties
and ODC;

	 	(iv)	 	The Debtors shall publicly announce their intention not to
pursue a Qualified Plan, or propose a chapter 11 plan that is not a Qualified
Plan; or

	 	(v)	 	(a) An examiner with expanded powers or a trustee shall have
been appointed in the Chapter 11 Cases, or (b) any of the Chapter 11 Cases
shall have been converted to a case under Chapter 7 of the Bankruptcy Code.

No party hereto shall have any liability to the other or any other person as a result of the
termination of such party’s obligations hereunder in accordance with this paragraph.

	 	8.	 	Specific Performance

It is understood and agreed by the parties hereto that money damages would not be a sufficient
remedy for any breach of this Agreement by any party and each non-breaching party shall be entitled
to seek specific performance and injunctive or other equitable relief, including attorneys’ fees
and costs, as a remedy for any such breach, and each party agrees to waive any requirement for the
securing or posting of a bond in connection with such remedy.

	 	9.	 	Prior Negotiations

This Agreement supersedes all prior negotiations, and documents reflecting such prior
negotiations, between and among the Debtors, the TW Parties and ODC (and their respective advisors)
with respect to the subject matter hereof, it being understood that the Letter Agreement dated as
of May 25, 2005, between the TW Parties and ODC shall remain in full force and effect, except to
the extent the terms of such Letter Agreement are inconsistent with the terms hereof.

	 	10.	 	No Oral Amendments

No modification or amendment of the terms of this Agreement shall be valid unless such
modification or amendment is in writing and has been signed by each of the signatories hereto. For
the purposes hereof, immaterial changes to the Plan Term Sheet shall not constitute a modification
or amendment of this Agreement.

	 	11.	 	Independent Analysis

Each of the TW Parties and ODC hereby confirms that it has made its own decision to execute
this Agreement based upon its own independent assessment of documents and information available to
it, as it deemed appropriate.

	 	12.	 	Consideration

Except for the treatment of the TW Note Claims, the AOL Unsecured Claims, the Series B
Preferred Stock Interests and/or the Series C Preferred Stock Interests contemplated by the Plan
Term Sheet and as set forth in the Plan, it is hereby acknowledged by the Debtors and each of the
TW Parties and ODC, that no consideration shall be due or paid to the TW Parties or ODC, as the
case may be, for their execution of this Agreement or for their agreement to vote to accept the
Plan in accordance with the terms and conditions of this Agreement.

	 	13.	 	Governing Law

This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York, without regard to such state’s choice of law provisions.

	 	14.	 	Effective Date

This Agreement shall become effective when AOLA has received counterparts hereof duly executed
and delivered by each of the Debtors, the TW Parties and ODC.

	 	15.	 	Third Party Beneficiary

This Agreement is intended for the benefit of the parties hereto and no other person shall
have any rights hereunder.

	 	16.	 	Counterparts

This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original, and all of which together shall be deemed to be one and the same agreement. Execution
copies of this Agreement may be delivered by facsimile, which shall be deemed to be an original for
the purposes of this paragraph.

	 	17.	 	Headings

The section headings of this Agreement are for convenience of reference only and shall not,
for any purpose, be deemed a part of this Agreement.

1

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed and delivered by their respective duly authorized
officers, solely in their respective capacity as officers of the undersigned and not in any other
capacity, as of the date first above written.

AMERICA ONLINE LATIN AMERICA, INC.

	 	 	 
	By:

	 	/s/ Osvaldo Baños
	
 
	 	 
	Name:

Title:

	 	Osvaldo Baños

Executive Vice President

AOL PUERTO RICO MANAGEMENT SERVICES, INC.

	 	 	 
	By:

	 	/s/ Paulo T. Moledo
	
 
	 	 
	Name:

Title:

	 	Paulo T. Moledo

Treasurer

AMERICA ONLINE CARIBBEAN

BASIN, INC.

	 	 	 
	By:

	 	/s/ Osvaldo Baños
	
 
	 	 
	Name:

Title:

	 	Osvaldo Baños

President

AOL LATIN AMERICA

MANAGEMENT LLC

By: America Online Latin America, Inc., its sole member

	 	 	 
	By:

	 	/s/ Osvaldo Baños
	
 
	 	 
	Name:

Title:

	 	Osvaldo Baños

Manager

2

TIME WARNER INC.

	 	 	 
	By:

	 	/s/ Robert Marcus
	
 
	 	 
	Name:

Title:

	 	Robert Marcus

AMERICA ONLINE, INC.

	 	 	 
	By:

	 	/s/ Steve Swad
	
 
	 	 
	Name:

	 	Steve Swad

Title: Chief Financial Officer

3

ASPEN INVESTMENTS L.L.C.

	 	 	 
	By:

	 	/s/ Cristina Pieretti
	
 
	 	 
	Name:

Title:

	 	Cristina Pieretti

Executive Vice President

ATLANTIS INVESTMENTS L.L.C.

	 	 	 
	By:

	 	/s/ Cristina Pieretti
	
 
	 	 
	Name:

Title:

	 	Cristina Pieretti

Executive Vice President
	 
	 	 

4

Exhibit 1

(Plan Term Sheet)

5

TERM SHEET FOR PROPOSED CHAPTER 11 LIQUIDATION

In order to maximize value for its creditors and equity holders, America Online Latin America, Inc.
(“AOLA”) and certain of its direct and indirect subsidiaries (collectively, the
“Debtors”1) have developed and implemented a plan to dispose of and wind-down
their businesses, initially through the attempt to sell their subsidiary business units as going
concerns and, to the extent those efforts are unsuccessful, through the termination of operations
at the respective business units and liquidation of assets. It is intended that this wind-down
process will continue following the Debtors’ filing for Chapter 11 and that distributions to
creditors of and interest holders in the Debtors would be made under the terms of a Chapter 11 plan
of liquidation. It is anticipated that AOLA’s direct and indirect subsidiaries that are not
Debtors will sell and/or otherwise liquidate their businesses in accordance with applicable
non-bankruptcy law.

The following is an outline of the principal terms and conditions for such a Chapter 11 plan of
liquidation (the “Plan”) for the Debtors that, subject to the execution of a definitive
support agreement, the Debtors, Time Warner Inc. (“TW”), America Online, Inc.
(“AOL”; and together with TW, the “TW Parties”), Aspen Investments L.L.C.
(“Aspen”) and Atlantis Investments L.L.C. (“Atlantis”; and collectively with Aspen
and all affiliates of Aspen and Atlantis, “ODC”) would agree to support.

This term sheet is for discussion purposes only and does not, and shall not be construed to,
indicate the agreement of any party to support a plan providing for the classification and
treatment of claims and interests described below; any such agreement would be evidenced by the
execution of definitive documentation relating to the support of the Plan. Additionally, the
liquidation proposed hereby remains subject to review for, among other things, tax implications and
efficiency. This term sheet and all related communications shall be deemed to be settlement
negotiations and subject to Federal Rule of Evidence 408.

Classification and Treatment of Claims Under the Plan

(Including Treatment of Unclassified Claims)

Unclassified Claims

	 	1.	 	Administrative Claims To the extent not paid during the Debtors’ Chapter 11 cases and to the
extent not Assumed PR Liabilities (as defined below), paid in full on the latest of the
effective date of the Plan (the “Plan Effective Date”), the date on which such claim
is allowed or the date that such claim will become due pursuant to its terms.

	 	2.	 	Priority Tax Claims To the extent not paid during the Debtors’ Chapter 11 cases and to the
extent not Assumed PR Liabilities, paid in full on the later of the Plan Effective Date or the
date on which such claim is allowed.

Classified Claims

	 	1.	 	Class 1 — Priority Non-Tax Claims Unimpaired. To the extent not paid during the Debtors’
Chapter 11 cases and to the extent not Assumed PR Liabilties, to be paid in full by the
Debtors on the later of the Plan Effective Date or the date on which such claim is allowed.

	 	2.	 	Class 2 — Non-TW Unsecured Claims “Non-TW Unsecured Claims” means all general
unsecured claims against the Debtors, but excluding the TW Party Claims (as defined below).

“Series A-1 Beneficial Interests” means the
beneficial interests in the Trust (as defined below)
distributed in accordance with the Plan to the
holders of Accepting Class 2 Claims (as defined
below) representing the right to receive the
distributions provided for below.

“Series A-2 Beneficial Interests” means the
beneficial interests in the Trust distributed in
accordance with the Plan to the holders of allowed
Non-TW Unsecured Claims representing the right to
receive the distributions provided for below.

Impaired and entitled to vote. Each holder of an
allowed Non-TW Unsecured Claim shall receive from
the Debtors on account of such Claim its pro rata
share of the Series A-2 Beneficial Interests, which
Series A-2 Beneficial Interests shall entitle such
holder to its pro rata share of Available
Cash2, as determined by the ratio the
claim of such holder bears to the aggregate amount
of allowed Class 2 and Class 3 Claims on each
Distribution Date pursuant to the Plan, until such
allowed Non-TW Unsecured Claims are paid in full;
provided, that each holder of an allowed
Class 2 Claim that votes to accept the Plan (an
“Accepting Class 2 Claim”), which vote shall
constitute such holder’s release of the TW Parties
and their affiliates, ODC and its affiliates and the
Debtors’ and their respective subsidiaries directors
and officers serving as of the Petition Date (as
defined below), as more fully provided in the Plan,
shall, in addition, receive on account of such Claim
its pro rata share of the Series A-1 Beneficial
Interests, which Series A-1 Beneficial Interests
shall entitle such holder to receive on each
Distribution Date until such Accepting Class 2 Claim
is paid in full, supplemental distribution(s) from
amounts that would have been distributed to the TW
Parties on account of the TW Party Claims. Such
supplemental distributions shall be distributed
ratably to holders of Accepting Class 2 Claims based
on the proportion that the claim of each such holder
bears to the aggregate amount of Accepting Class 2
Claims unpaid on such Distribution Date. The TW
Parties shall be subrogated to the Class 2 Claims of
Accepting Class 2 holders to the extent such Claims
are paid pursuant to the terms of the foregoing
proviso.

	 	3.	 	Class 3 — TW Party Claims “TW Party Claims” means (i) the TW Note Claims (as defined
below), (ii) all general unsecured claims of the TW Parties against the Debtors and (iii)
after satisfaction of the allowed Class 2 Claims of the holders of Accepting Class 2 Claims,
the subrogation rights described above; provided, that the TW Party Claims shall not
include the claims of the TW Parties arising from the Debtors’ rejection of the AOL License
(as opposed to claims arising under the AOL License prior to the Debtors’ rejection thereof),
as the TW Parties agree to release the Debtors on account of such rejection claims.

“TW Note Claims” means all claims arising
under or in connection with those convertible notes
issued pursuant to the Note Purchase Agreement dated
as of March 8, 2002 between AOLA and TW, as amended,
supplemented or otherwise modified. The allowed
amount of TW Note Claims shall be $160 million,
before giving effect to the distribution of the PR
Assets (as defined below).

“Series B Beneficial Interests” means the
beneficial interests in the Trust distributed in
accordance with the Plan to the TW Parties on
account of the TW Party Claims representing the
right to receive the distributions provided for
below.

“Series C Beneficial Interests” means the
beneficial interests in the Trust distributed in
accordance with the Plan to the TW Parties on
account of the TW Party Claims representing the
right to receive the distributions provided for
below.

“Net Available Cash” means the pro rata
portion of Available Cash, as determined by the
ratio that the TW Party Claims then outstanding bear
to the aggregate amount of allowed Class 2 and Class
3 Claims, less amounts necessary to fund the
following (in order of priority): (x) distributions
on account of the Series A-1 Beneficial Interests
and (y) the amount payable under clause (b)(1) in
the next following paragraph.

Impaired and entitled to vote. The TW Parties, as
the holders of the TW Party Claims, shall receive
(i) on account of TW Party Claims in an amount equal
to the Net PR Value (as defined below), the PR
Assets, as provided below, and (ii) on account of
the balance of the TW Party Claims, (a) the Series B
Beneficial Interests, which Series B Beneficial
Interests shall entitle the TW Parties to receive
60% of Net Available Cash and (b) the Series C
Beneficial Interests, which Series C Beneficial
Interests shall entitle the holder thereof to
receive: (1) 100% of Available Cash less an amount
necessary to pay or reserve for the payment on
account of the Series A-1 Beneficial Interests and
the Series A-2 Beneficial Interests, up to an amount
equal to 40% of the difference between (x) the Net
PR Value and (y) the amount of the general unsecured
claims of the TW Parties against the Debtors, plus
(2) 40% of Net Available Cash.

The TW Parties agree to assume the ownership of the
Debtors’ Puerto Rico assets (the “PR
Assets”) in partial repayment of the TW Party
Claims, such repayment to be in an amount (such
amount, the “Net PR Value”) equal to $15
million less any third-party liabilities expressly
assumed by the TW Parties in connection with such
assumption (the “Assumed PR Liabilities”),
plus or minus, as the case may be, the “Net
Subscription Income” accrued and unpaid under the
Letter Agreement between AOL and AOLA dated December
1, 2000, regarding the PR Assets (the “PR
Agreement”) as of the date of such assumption.
Under no circumstances will the TW Parties or any of
their affiliates make any cash capital payment or
other cash or non-cash investment or expenditure for
the benefit of AOLA (as opposed to forgiveness of
obligations and other than with respect to the TW
Parties’ assumption of the Assumed PR Liabilities)
on account of the TW Parties’ assumption of the PR
Assets.

As provided below, subject to the occurrence of the
Plan Effective Date, the effective date of such
transfer of ownership of the PR Assets shall occur
on or about June 30, 2006.

	 	4.	 	Class 4 Shall receive no distributions under the Plan and are

	 	 	 	Series B Preferred Stock Interests deemed to reject the Plan. “Series B Preferred Stock
Interests” means all right, title and interest arising under or in connection with
the Series B Redeemable Convertible Preferred Stock of AOLA.

On the Plan Effective Date, all Series B Preferred
Stock Interests shall be deemed cancelled.

	 	5.	 	Class 5 Impaired and entitled to vote. “Series C Preferred 

	 	 	 	Series C Preferred Stock Interests Stock Interests” means all right, title and
interest arising under or in connection with the Series C Redeemable Convertible
Preferred Stock of AOLA.

On the Plan Effective Date, all Series C Preferred
Stock Interests shall be deemed cancelled. On the
Plan Effective Date, the TW Parties agree to turn
over to the holders of the Series C Preferred Stock
Interests the Series C Beneficial Interests.

	 	6.	 	Class 6 To be released, to be contributed to capital, to be

	 	 	 	AOLA Intercompany Claims dividended or to remain unimpaired, depending on tax
consequences.

	 	7.	 	Class 7 Shall receive no distributions under the Plan and are

	 	 	 	All Other Equity Interests in AOLA deemed to reject the Plan. Class 7 Interests
includes all equity interests of any kind that are not separately classified above,
including common stock and options, warrants or other agreements to acquire the same
(whether or not arising under or in connection with any employment agreement),
including without limitation, any claim against the Debtors that is subordinated
pursuant to section 510(b) of the Bankruptcy Code, which shall include any claim
arising from the recission of a purchase or sale of any equity interest, any claim for
damages arising from the purchase or sale of any equity interest, or any claim for
reimbursement, contribution or indemnification for such claim.

On the Plan Effective Date, all Class 7 Interests
shall be deemed cancelled.

For the avoidance of doubt, Class 7 Interests does
not include the Series B Preferred Stock Interests
or the Series C Preferred Stock Interests.

Other Provisions

	 	1.	 	Execution of Wind-down The Plan shall provide for the Debtors to execute their sale/
wind-down plan as outlined in AOLA’s presentation dated June 16, 2005 to the AOLA Board of
Directors, with such changes as shall be directed by the AOLA Board of Directors, to the
extent such sale/ wind-down plan is not completed prior to the Plan Effective Date. Without
limitation, for so long as such AOLA Board of Directors remains in existence, all asset
transfer agreements and retention/ severance arrangements must be authorized specifically by
the AOLA Board of Directors.

	 	2.	 	Liquidating Trust The Plan shall provide for the establishment a liquidation trust (the
“Trust”) to effectuate the liquidation of the Debtors’ remaining assets pursuant to
the Plan. The affairs of the Trust will be managed by a liquidator appointed pursuant to the
Plan, subject to the oversight of the Advisory Board (as defined below). The Expense Reserve
may be replenished from time to time, as necessary, out of Available Cash (in the discretion
of the Trust liquidator subject to the oversight of the Advisory Board).

On the Plan Effective Date, the Debtors shall assign
and transfer to the Trust all of their respective
then owned tangible and intangible real and personal
property, which shall be distributed pursuant to the
Plan, as set forth above.

	 	3.	 	Advisory Board Equal number of representatives of the TW Parties and ODC.

	 	4.	 	AOL License The Plan, or an order of the bankruptcy court entered prior to the order
confirming the Plan, shall provide for the rejection by the Debtors of the license (the
“AOL License”) granted by AOL to AOLA pursuant to that certain AOL License Agreement
dated as of August 7, 2000, and all related sublicenses, operating and service agreements.
AOLA will otherwise relinquish any rights or interests in any AOL intellectual property and
trademarks.

AOL shall offer prospective purchasers of AOLA
country services license terms in accordance with
the AOL License and Operating Agreement Services
Term Sheet attached hereto as Exhibit A.

The Debtors shall, promptly following the
commencement of their Chapter 11 cases, file and
prosecute a motion for an order authorizing and
approving the rejection of the AOL License and all
related operating and service agreements, effective,
as to each country, upon the earlier of (i) the
transfer of that country’s operations or final
wind-down of operations and (ii) June 30, 2006.

	 	5.	 	PR Agreement The transfer of the PR Assets to the TW Parties and the rejection of the PR
Agreement and all related operating and service agreements shall be effective, subject to the
occurrence of the Plan Effective Date, on or about June 30, 2006. Unless the TW Parties agree
otherwise, the Debtors shall, at all times prior to the effectiveness of such transfer,
continue to operate the PR Assets in the ordinary course of business and consistent with past
practices, including without limitation, the payment when due of all ordinary course
liabilities.

The Plan, or an order of the bankruptcy court
entered prior to the order confirming the Plan,
shall provide for the transfer of the PR Assets to
the TW Parties and/ or the rejection by AOLA of the
PR Agreement and all related operating and service
agreements, as shall be determined by the Debtors
and the TW Parties. Following the transfer of the
PR Assets and rejection of the PR Agreement, the
Debtors will otherwise relinquish any rights or
interests in the PR Agreement and the PR Assets.

	 	6.	 	No Capital Infusion None of TW, AOL or ODC shall be required to make any cash capital payment
or other cash or non-cash investment or expenditure to fund the Plan, the Debtors’ Chapter 11
proceeding, or otherwise (except for the TW Parties’ assumption of the Assumed PR
Liabilities).

	 	7.	 	Releases The Plan shall provide for customary exculpation and release provisions, including:

(a) exculpation of the TW Parties and their
affiliates, ODC and its affiliates, and the Debtors’
and their respective subsidiaries’ directors and
officers serving as of the commencement of the
Debtors’ Chapter 11 cases (the “Petition
Date”), in respect of any and all claims
relating to actions taken by such parties in good
faith in connection with the formulation,
negotiation and implementation of the Plan and the
Debtors’ Chapter 11 cases;

(b) releases by the Debtors of any and all claims
against the Debtors’ and their respective
subsidiaries’ directors and officers serving as of
the Petition Date;

(c) in exchange for the agreements and concessions
of TW, AOL and ODC contemplated hereby, releases of
the TW Parties and their affiliates, ODC and its
affiliates, and their respective representatives and
advisors, and the Debtors’ and their respective
subsidiaries’ directors and officers serving as of
the Petition Date, by all holders of Accepting Class
2 Claims and all of the Debtors’ key employees who
receive a Retention Bonus (as defined in the Motion
of the Debtors for Order (I) Authorizing the Debtors
to Pay Certain Accrued Prepetition Wages, Salaries,
Other Compensation and Other Employee Obligations
(II) Directing the Debtors’ Banks to Honor all
Checks Presented for Payment and Funds Transfer
Requests Relating to the Foregoing and (III)
Authorizing the Debtors to Pay Retention Bonuses to
Certain Secured Key Employees (the “Wage
Motion”)) pursuant to any order of the
Bankruptcy Court approving the Wage Motion, with all
such releases to take effect as of the Plan
Effective Date; and

(d) in exchange for the agreements and concessions
of TW, AOL and ODC contemplated hereby, the mutual
release of all claims relating to the Debtors
(except with regard to the treatment of claims and
interests under the Plan) between and among (i) the
Debtors and their direct and indirect subsidiaries,
(ii) the Debtors’ and their respective subsidiaries’
directors and officers serving as of the Petition
Date, (iii) TW and AOL and their affiliates and
subsidiaries (other than the AOLA parties), and (iv)
ODC and its affiliates.

	 	8.	 	D&O Insurance Policies The TW Parties and ODC agree not to object to the payment by the
Debtors of the premium payment due on July 31, 2005 in respect of the Debtors’ directors’ and
officers’ insurance policies, on terms and conditions approved by the AOLA Board of Directors.

1 The “Debtors” will
include AOLA, AOL Latin America Management LLC, America Online Caribbean Basin
Inc. and AOL Puerto Rico Management Services Inc.

2 “Available
Cash” means the Debtors’ aggregate cash on hand as of any
distribution date set forth in the Plan (each, a “Distribution
Date”), less an amount necessary to (i) pay or reserve for the
expenses of the Trust established pursuant to the Plan (the “Expense
Reserve”), (ii) pay or reserve for the payment of Administrative
Claims, (iii) pay or reserve for the payment of Priority Tax Claims and (iv)
pay or reserve for the payment of Class 1 Claims.

6

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