Document:

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                                                                    Exhibit 10.2

                              AMENDED JANUARY 2002

                                  GENUITY INC.

                       2000 LONG-TERM STOCK INCENTIVE PLAN

                             Effective May 22, 2000

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                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                            <C>
1.      PURPOSE........................................................ 1
2.      EFFECTIVE DATE AND TERM OF THE PLAN............................ 1
3.      DEFINITIONS.................................................... 1
4.      PARTICIPATION.................................................. 2
5.      ADMINISTRATION................................................. 2
6.      TYPES OF AWARDS................................................ 3
7.      LIMITATIONS ON AWARDS.......................................... 4
8.      AWARD AGREEMENTS............................................... 5
9.      PAYMENT OF AWARDS.............................................. 5
10.     REVOCATION OR AMENDMENT OF AWARDS.............................. 6
11.     LIMITATION ON NUMBER OF SHARES................................. 6
12.     AMENDMENT OR TERMINATION OF THE PLAN........................... 6
13.     ADJUSTMENT PROVISIONS.......................................... 7
14.     NO REQUIRED SEGREGATION OF ASSETS.............................. 8
15.     COSTS.......................................................... 8
16.     RIGHT OF DISCHARGE RESERVED.................................... 8
17.     NATURE OF PAYMENTS............................................. 8
18.     SEVERABILITY................................................... 8
19.     GOVERNING LAW.................................................. 8
</TABLE>

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1.       PURPOSE

         The primary purpose of the Plan is to enable the Company to achieve
superior financial performance as reflected in the performance of the Common
Stock and/or other key financial or operating indicators by offering
Participants incentives to effect such results.

2.       EFFECTIVE DATE AND TERM OF THE PLAN

         The Plan became effective on May 22, 2000. Unless the Plan is
terminated earlier in accordance with Section 12 hereof, the Plan shall remain
in full force and effect until the close of business on the date of the
Company's annual meeting of shareholders in the year 2010, at which time the
right to grant Awards under the Plan shall terminate automatically unless the
shareholders of the Company approve an extension or renewal of the Plan.

3.       DEFINITIONS

         Except where otherwise indicated, the following terms shall have the
definitions set forth below for purposes of the Plan:

         "AWARD" means any award described in Section 6 hereof.

         "AWARD AGREEMENT" means an agreement entered into between the Company
and a Participant, in a form determined by the Committee in its sole discretion,
setting forth the terms and conditions applicable to the Award granted to the
Participant.

         "BOARD" means the Board of Directors of the Company.

         "CODE" means the Internal Revenue Code of 1986, as amended, or any
successor thereto.

         "COMMITTEE" means the Executive Compensation Committee of the Board.

         "COMMON STOCK" means the Class A common stock of the Company, including
both treasury shares and authorized but unissued shares, or any security of the
Company issued in substitution or exchange therefor or in lieu thereof.

         "COMPANY" means Genuity Inc.

         "EMPLOYEE" means an individual who is employed by the Company or a
Related Entity.

         "FAIR MARKET VALUE" means the average of the high and low sales prices
of the Shares on NASDAQ (or any other reporting system or market selected by the
Committee) or the average of the closing prices on the relevant date or dates,
as determined by the Committee, in its sole discretion, to be appropriate for
purposes of the valuation.

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 1

<PAGE>

         "GRANT PRICE" means the price per Share at which Shares may be
purchased under a stock option and the price per Share used as the base price
for measuring the appreciation, if any, under a stock appreciation right. Except
as provided in Section 6(a), below, the Grant Price shall not be less than the
Fair Market Value of the Shares covered by the stock option or stock
appreciation right on the date as of which the option or right is granted.

         "MARKET PRICE" means the price of a Share on NASDAQ (or any other
reporting system or market selected by the Committee) at the time a stock
appreciation right is exercised.

         "PARTICIPANT" means an Employee who has been granted an Award pursuant
to the Plan.

         "PERFORMANCE BONUS" means an Award described in Section 6(c) hereof.

         "PERFORMANCE CYCLE" means a period of three consecutive fiscal years of
the Company or such other period as the Committee may specify.

         "PLAN" means the Genuity Inc. 2000 Long-Term Stock Incentive Plan, on
the date of adoption hereof and as it may be amended from time to time.

         "RELATED ENTITY" means a corporation, partnership, joint venture or
other entity in which the Company has an ownership or other proprietary interest
of at least ten percent.

         "SHARES" means shares of Common Stock.

4.       PARTICIPATION

         Only those Employees designated from time to time by the Committee
shall participate in the Plan and receive Awards hereunder.

5.       ADMINISTRATION

         (a) The Plan and all Awards granted pursuant thereto shall be
         administered by the Committee. The Committee shall periodically
         determine, in its sole discretion, the Employees who shall participate
         in the Plan and the terms of the Awards to be granted to Participants.
         All questions of interpretation and administration with respect to the
         Plan, Awards, and Award Agreements shall be determined by the Committee
         in its sole and absolute discretion, and its determinations shall be
         final and binding upon all parties.

         (b) The Committee may delegate its authority under subsection (a),
         above, to persons other than its members to the extent it deems such
         action advisable. Any person to whom the Committee has delegated
         authority under subsection (a), above, may receive Awards only if the
         Awards are granted directly by the Committee without delegation.

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 2

<PAGE>

         (c) The Committee may, in its sole discretion, promulgate general
         regulations and guidelines governing the administration of the Plan and
         the Awards granted hereunder. The Committee also may establish
         regulations governing the deferred payment of Awards and may determine
         that deferred payments shall accrue interest at a rate or rates
         determined by the Committee and/or that deferred payments shall be
         deemed to be invested in Share equivalents or other hypothetical
         investments.

         (d) The Committee may not at any time adjust the purchase price, Grant
         Price, or Market Price specified by Section 3 hereof (except for
         adjustments pursuant to Section 13 hereof).

6.       TYPES OF AWARDS

         The types of Awards described in subsections (a) through (d), below,
may be granted or payable under the Plan, singly or in combination or in tandem
with other Awards (or with awards under other plans of the Company or a Related
Entity), as the Committee may determine. All Awards shall be in a form
determined by the Committee. No Award shall be inconsistent with the terms of
the Plan or fail to satisfy the requirements of applicable law.

         The Committee may, from time to time, grant dividend equivalents in
respect of Awards.

(A)      STOCK OPTIONS

         A stock option represents the right to purchase a specified number of
Shares, at a fixed Grant Price, during a specified term as the Committee may
determine. The term of a stock option shall not exceed ten years from the date
as of which the Grant Price is determined.

         The Grant Price shall be payable, at the discretion of the Committee,
by the payment of cash, the delivery of Shares, and/or any other means that the
Committee determines to be consistent with the Plan's purposes and applicable
law.

         The stock options that may be granted under the Plan include (but are
not limited to) incentive stock options that comply with the requirements of
Section 422(b) of the Code. Incentive stock options may not be granted under the
Plan after February 1, 2010. Incentive stock options may be granted only to
Employees who are employed by the Company or by a subsidiary corporation (within
the meaning of Section 424(f) of the Code), including a subsidiary corporation
that becomes such after the adoption of the Plan.

         The Committee also may grant a right to purchase additional Shares to a
Participant contingent upon the surrender of Shares owned by the Participant in
payment of the Grant Price of a stock option granted under the Plan or upon the
surrender of Shares by the Participant in payment of withholding tax liability
with respect to such a stock option.

         The Grant Price of the initial stock options granted to Participants
who were employees of the Company on or before the effective date of the
Company's initial public offering, shall be

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 3

<PAGE>

the initial public offering price per Share. All other stock options granted
under the Plan shall be exercisable at the Grant Price.

              Any stock option granted to a Participant under the Plan, or
any sub-plan thereof, with an effective grant date that is within 180 calendar
days of notification to the Participant of the Participant's termination from
employment with the Company or with a subsidiary corporation due to a reduction
in force, reorganization, or job elimination, shall not be subject to any
accelerated vesting upon termination. This provision shall supersede any and all
terms to the contrary in any Award Agreement, employment contract or other
document. This Amendment shall not, however, apply to the stock options to be
granted by the Company on or about July 2, 2002 pursuant to the Stock Option
Cancel and Re-grant Offer approved by the Committee.

(B)      STOCK APPRECIATION RIGHTS

         A stock appreciation right represents the right, denominated in Shares,
to receive, upon surrender of the right (or of both the right and a related
option in the case of a tandem right), in whole or in part, but without payment,
an amount (payable in accordance with Section 9 hereof) that does not exceed the
excess of the Market Price over the Grant Price for the number of Shares for
which the stock appreciation right is exercised. The term of a stock
appreciation right shall not exceed ten years from the date as of which the
Grant Price is determined.

(C)      PERFORMANCE BONUSES

         The Committee may, from time to time, grant Performance Bonuses to
Participants in accordance with such terms and conditions that the Committee in
its sole discretion may establish. Any such Performance Bonuses shall be payable
in the form of Shares only (except for cash in lieu of fractional shares).

(D)      OTHER STOCK-BASED AWARDS

         The Committee may, from time to time, grant Awards (other than the
Awards described above) under the Plan that consist of or are denominated in or
payable in, valued in whole or in part by reference to, or otherwise based on or
related to, Shares. These Awards may include Shares and/or hypothetical Shares.

         The Committee may subject these Awards to restrictions on transfer
and/or other restrictions on incidents of ownership as the Committee may
determine.

         The Committee may grant Awards under this Section 6(d) that do not
require the payment of additional consideration by the Participant (other than
services previously rendered or, as may be permitted by applicable law, services
to be rendered), either on the date of grant or the date any restriction(s)
thereon are removed.

         The term of an Award that grants a Participant the right to purchase
Shares shall not

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 4

<PAGE>

exceed ten years from the date as of which the purchase price is determined.

7.      LIMITATIONS ON AWARDS

          (a)  No Participant shall be granted options to purchase more than two
               million Shares in one calendar year.

          (b)  A Participant may receive one or more grants of Awards under the
               Plan at any time or times, subject to the Committee's approval as
               provided in subsection (c) below.

          (c)  A Participant may receive a grant or grants of Awards under the
               Plan if, in the discretion of the Committee, such grant or grants
               would advance the interests of the Company and its shareholders,
               including, without limitation, to provide incentive to persons
               that could contribute to the success of the Company, to provide
               incentive to persons consistent with a promotion or other
               increase in responsibility, or to provide appropriate
               comparability to Awards granted to other Participants.

          (d)  No Award shall be assignable or transferable other than by will
               or by the laws of descent and distribution. During the
               Participant's lifetime, an Award may be exercised only by the
               Participant or by the Participant's guardian or legal
               representative.

8.       AWARD AGREEMENTS

         An Award may be evidenced by an Award Agreement, the terms of which
have been approved by the Committee, setting forth the terms and conditions
applicable to the Award, including

          (a) terms and conditions governing the extent (if any) to which the
          Award may vest, become exercised, be exercised or paid, or be canceled
          or forfeited,

          (b) terms and conditions governing the disposition of the Award in the
          event of disability, death, or other termination of a Participant's
          employment,

          (c) a provision that a Participant shall have no rights as a
          shareholder with respect to any Shares covered by an Award until the
          date on which the Participant or his nominee becomes the holder of
          record of such Shares, and

          (d) terms and conditions governing tax withholding.

9.       PAYMENT OF AWARDS

          (a) All payments of Awards shall be made on a date prescribed by the
          Committee, unless the Participant has elected to defer payment in
          accordance with the rules and regulations established by the
          Committee.

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 5

<PAGE>

         (b) At the discretion of the Committee, a Participant may be offered an
         election to substitute an Award for another Award or Awards of the same
         or different type.

         (c) No fractional Shares shall be issued in connection with Awards
         under the Plan. The Committee shall determine whether cash, other
         securities, or other property shall be paid or transferred in lieu of
         fractional Shares, or whether fractional Shares or any rights thereto
         shall be canceled, terminated, or otherwise eliminated.

         (d) Except as provided in subsection (c), above, payments of Awards
         shall be wholly in Shares. The Committee, in its sole discretion, shall
         determine whether the Shares shall be subject to restrictions on
         transfer and/or provisions regarding forfeiture of said Shares.

10.      REVOCATION OR AMENDMENT OF AWARDS

         (a) Subject to any early termination restrictions imposed by the
         Committee in an Award Agreement and except as provided in subsection
         (b), below, the Committee may not, without the written consent of the
         Participant, revoke an Award Agreement, and may not without such
         written consent make or change any determination or change any term,
         condition, or provision affecting an Award if the determination or
         change would adversely affect the Award or a Participant's rights
         thereto.

         (b) The Committee may at any time and in any manner modify the terms of
         an Award that relate to the early termination of the option or Award
         period after the Participant's termination of employment; provided that
         such modification shall not apply to an Award to the extent that it has
         been previously exercised.

11.      LIMITATION ON NUMBER OF SHARES

         (a) The aggregate number of Shares that may be subject to all Awards
         shall not exceed:

                  (1)   Five percent of the outstanding Shares at the time of
                        the initial public offering of the Shares for Awards for
                        all individuals who were Employees on or before April 6,
                        2000, in the aggregate (except for Awards granted
                        pursuant to Section 7(c) hereof; plus

                  (2)   One percent of the outstanding Shares at the time of the
                        initial public offering of the Shares for Awards for all
                        individuals who first become Employees after April 6,
                        2000, and on or before January 6, 2001, in the aggregate
                        (except for Awards granted pursuant to Section 7(c)
                        hereof); plus

                  (3)   Three percent of the outstanding Shares at the time of
                        the initial public

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 6

<PAGE>

                        offering of the Shares plus any Shares that are
                        forfeited by a Participant or that are part of an Award
                        that expires unexercised, for Awards granted pursuant to
                        Section 7(c) hereof to all individuals, including any
                        individual who first becomes an Employee after January
                        6, 2001, in the aggregate; plus

                (4)     Two Million Seven Hundred Fifty Thousand (2,750,000)
                        Shares for all individuals who first become Employees as
                        a result of Genuity's acquisition of Integra S.A., in
                        the aggregate.

       (b) Subject to the limits imposed by subsection (a), above, no more than
       50,000,000 Shares shall be available to be issued pursuant to incentive
       stock options (within the meaning of Section 422(b) of the Code or any
       successor thereto).

12.      AMENDMENT OR TERMINATION OF THE PLAN

         The Committee may, from time to time, alter, amend, suspend or
terminate the Plan, as it shall deem advisable, subject to any requirement for
shareholder approval imposed by applicable law. The termination of the Plan
shall not cause any previously granted Awards to terminate. After the
termination of the Plan, any previously granted Awards shall remain in effect
and shall continue to be governed by the terms of the Plan, the Awards, and any
applicable Award Agreements. This Section applies regardless of whether the
termination of the Plan occurs pursuant to Section 2 hereof or pursuant to this
Section 12.

13.      ADJUSTMENT PROVISIONS

         If the Committee determines that any dividend or other distribution
(whether in the form of cash, Shares, other securities, or other property),
extraordinary cash dividend, recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares or other securities, the issuance of warrants
or other rights to purchase Shares or other securities, or other similar
corporate transaction or event affects the Shares with respect to which Awards
have been or may be issued under the Plan and that an adjustment is appropriate
in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, then the Committee shall,
in a manner that the Committee deems appropriate to prevent such dilution or
enlargement, adjust any or all of:

         (a) the number and type of securities that thereafter may be issued
         under the Plan,

         (b) the number and type of securities subject to outstanding Awards,
         and

         (c) the Grant Price, purchase price, or Market Price with respect to
         any Award, or, if deemed appropriate, make provision for a cash payment
         to the holder of an outstanding Award.

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 7

<PAGE>

       However, no adjustment shall be authorized with respect to incentive
       stock options to the extent that the adjustment would cause the options
       to violate Section 422(b) of the Code or any successor provision. In
       addition, the number of securities subject to any Award denominated in
       Shares shall always be a whole number.

         In the event of an acquisition by the Company by means of a merger,
consolidation, acquisition of property or stock, reorganization or otherwise,
the Committee shall be authorized to cause the Company to issue or to assume
stock options or stock appreciation rights, whether or not in a transaction to
which Section 424(a) of the Code applies, by means of substitution of new
options or rights for previously issued options or rights or an assumption of
previously issued options or rights, but only if and to the extent that the
substitution or assumption is consistent with the other provisions of the Plan
and with any applicable law.

         Subject to any required action by the Company's shareholders, if the
Company is a party to any merger or consolidation, a Participant holding an
outstanding Award valued directly or indirectly by Shares shall be entitled to
receive, upon the exercise of the Award, the same per Share consideration on the
same terms that a holder of the same number of Shares that are subject to the
Award would be entitled to receive pursuant to the merger or consolidation.

         Notwithstanding the preceding paragraph, upon the occurrence of either
of the following events, any unvested installment of any option shall
immediately vest and becomes exercisable without regard to the annual vesting
limitation contained in Section 422(d) of the Code or any language to the
contrary contained in any applicable stock option agreement:

         (1) if Verizon Communications ("Verizon") experiences a change in
         control during a period of time in which Verizon directly or indirectly
         (a) has majority voting control of the Company or (b) holds an option
         which, if converted, would give Verizon majority voting control of the
         Company; or

         (2) if Verizon, or any affiliate of Verizon, sells or otherwise
         transfers to a person or entity other than Verizon or its affiliates
         immediately prior to such transfer: (a) a sufficient number of shares
         of the Company's Class A or Class C Common Stock such that the transfer
         results in the transferee having majority voting control of the
         Company; or (b) transfers a sufficient number of shares of the
         Company's Class B Common Stock such that in the event the transferee
         exercised the conversion included in such shares, the transferee would
         exercise majority voting control of the Company,

14.      NO REQUIRED SEGREGATION OF ASSETS

         Neither the Company nor any Related Entity shall be required to
segregate any assets that may at any time be represented by Awards pursuant to
the Plan.

15.      COSTS

         The Committee may require a Participant or beneficiary to bear all or
part of the cost of

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 8

<PAGE>

exercising an Award or issuing Shares under the Plan.

16.      RIGHT OF DISCHARGE RESERVED

         Neither the Plan nor any Award or Award Agreement shall guarantee any
Employee continued employment with the Company or a Related Entity or guarantee
the grant of future Awards. Either the Company or the Employee may terminate the
employment relationship at any time and for any reason.

17.      NATURE OF PAYMENTS

         All Awards made pursuant to the Plan are in consideration of services
for the Company or the Related Entities. Any gain realized pursuant to Awards
under the Plan constitutes a special incentive payment to the Participant and
shall not be taken into account as compensation for purposes of any of the
employee benefit plans of the Company or any Related Entity except as may be
determined by the Board or by the board of directors of the applicable Related
Entity.

18.      SEVERABILITY

         If any provision of the Plan shall be held unlawful or otherwise
invalid or unenforceable in whole or in part, the unlawfulness, invalidity, or
unenforceability shall not affect any other provision of the Plan or part
thereof, each of which shall remain in full force and effect.

19.      GOVERNING LAW

         To the extent not preempted by federal law, the provisions of the Plan
will be construed and enforced in accordance with the laws of the Commonwealth
of Massachusetts, excluding any conflicts or choice of law rule or principle
that might otherwise refer construction or interpretation of this provision to
the substantive law of another jurisdiction, except that issues regarding the
rights attendant to stock ownership shall be governed by the laws of the State
of Delaware (excluding its conflicts or choice of law rules or principles) and
construed accordingly.

Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 9QuickLinks
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EXHIBIT 10.1    
  

EXECUTION COPY  

AMENDMENT NO. 7  

        AMENDMENT NO. 7 (this "Amendment"), dated as of April 29, 2002, among the following: 

        (a)  VTR
GLOBALCOM S.A. (formerly known as VTR Hipercable S.A.), a Chilean corporation (the "Company"), 

        (b)  the
subsidiaries of the Company listed on the signature pages hereto (the "Subsidiary Guarantors"), 

        (c)  TORONTO
DOMINION (TEXAS), INC., as agent for the lenders party to the Credit Agreement referred to below (in such capacity, together with its successors in such
capacity, the "Administrative Agent"), and 

        (d)  each
of the lenders party to the Credit Agreement (the "Lenders"). 

        The
Company, the Subsidiary Guarantors, the Administrative Agent and the Lenders are parties to a Credit Agreement, dated as of April 29, 1999 (as amended and in effect
immediately prior to the date hereof, the "Credit Agreement"). The parties hereto wish to enter into this Amendment to modify certain provisions of the
Credit Agreement. Accordingly, the parties hereto hereby agree as follows: 

        Section 1.    Definitions.    Except as otherwise defined in this Amendment, terms used but not defined herein
have the respective meanings given to them in the Credit Agreement. 

        Section 2.    Amendments.    Subject to the satisfaction of the conditions precedent specified in
Section 3 below, the Credit Agreement shall be amended as follows, effective as of the date hereof: 

        2.01.    New Definitions.    Section 1.01 of the Credit Agreement is hereby amended by adding the following new
definitions in the appropriate alphabetical location: 

        'Conversion Contributions' shall mean Post-Closing Equity, the proceeds of which are used solely to repay outstanding Closing
Date Debt and/or Post-Closing Debt." 

        'May 2002 Equity Contribution' shall have the meaning given to that term in Section 3(h) of Amendment No. 7 hereto." 

        'Post-Closing Debt Pledge' shall mean a Chilean public deed constituting an Acknowledgment of Debt, Mandate and Pledge on
Credits, among each holder of any Post-Closing Debt and any Closing Date Debt, the Company and Administrative Agent, substantially in the form of Exhibit D to Amendment No. 7
hereto, which creates a Lien upon all right, title and interest of such holder in and to all Post-Closing Debt and all Closing Date Debt." 

        2.02.    Amended Definitions.    The following definitions in Section 1.01 of the Credit Agreement are hereby
amended in their entirety to read as follows: 

        'Applicable Margin' shall mean the following respective interest rates per annum during the following respective periods: 

	Period
 
	 	Applicable Margin
	 
	April 29, 2002 through December 31, 2002	 	5.50	%
	January 1, 2003 and thereafter	 	6.50	%

provided that (a) for any day on which there is a balance in the Collateral Account (but only so long as such balance is not subject to any Lien
other than a Lien arising under the Cash Collateral Agreement), the "Applicable Margin" for such day for a principal amount of the Loans equal to the balance of the Collateral Account on such day
(applied ratably among the Loans of the 

 

Lenders) shall be equal to 0.75% per annum, and (b) the "Applicable Margin" is subject to increase as provided in Section 9.27(b) hereof." 

        'Cash Collateral Agreement' shall mean a Cash Collateral Agreement among the Administrative Agent, The Toronto-Dominion Bank and ULA,
substantially in the form of Exhibit A to Amendment No. 7 hereto, as the same shall be modified and supplemented and in effect from time to time." 

        'Pre-funded VTR Stock Option Obligations' shall mean, for any period, the aggregate amount of all contingent obligations
accrued during such period in respect of the VTR Stock Option Plan, but only to the extent that: 

        (a)  prior
to the effective date of Amendment No. 7 hereto, the Company shall have received, and deposited into the SOP Escrow Account, a Post-Closing
Contribution in an amount equal to the liability that the Company will accrue (in accordance with generally accepted accounting principles in Chile) for the first and second fiscal quarters of 2002 in
respect of the VTR Stock Option Plan, 

        (b)  prior
to July 1, 2002, the Company shall have received, and deposited into the SOP Escrow Account, a Post-Closing Contribution in an amount equal to
the liability that the Company will accrue (in
accordance with generally accepted accounting principles in Chile) in the third fiscal quarter of 2002 in respect of the VTR Stock Option Plan, and 

        (c)  prior
to October 1, 2002, the Company shall have received, and deposited into the SOP Escrow Account, a Post-Closing Contribution in an amount equal
to the liability that the Company will accrue (in accordance with generally accepted accounting principles in Chile) for the fourth fiscal quarter of 2002 in respect of the VTR Stock Option Plan." 

        'Principal Payment Date' shall mean April 29, 2003." 

        'Security Documents' shall mean, collectively, each Agreement to Grant a Pledge Without Conveyance, the Commercial Pledge Agreement, each
Real Property Mortgage, each Pledge Without Conveyance, the Stock Pledge Agreement, each Conditional Assignment, the Cash Collateral Agreement and the Post Closing Debt Pledge." 

        'Senior Debt to EBITDA Ratio' shall mean, as at any date, the ratio of the following: 

        (a)  for
any of the following dates: 

          (i)  March 31,
2002, the aggregate amount of Senior Debt on such date, minus the amount of the prepayment of the Loans
made pursuant to Section 3(h) of Amendment No. 7 hereto, 

        (ii)  June 30,
2002 and September 30, 2002, the aggregate amount of Senior Debt on such respective dates, minus
the balance of the Collateral Account on such respective dates, 

        (iii)  December 31,
2002 and any date thereafter, the aggregate amount of Senior Debt on such date, plus the maximum
amount of contingent obligations in respect of the VTR Stock Option Plan (determined in accordance with GAAP) existing on such date (without regard to whether or not any of such obligations are
Pre-funded VTR Stock Option Obligations), minus the balance of the Collateral Account on such date,  to

        (b)  the
product of (x) EBITDA for the two consecutive fiscal quarters ending on, or most recently ended prior to, such date  times (y) two." 

2

 

        'Total Debt to EBITDA Ratio' shall mean, as at any date, the ratio of the following: 

        (a)  for
any of the following dates: 

          (i)  March 31,
2002, the aggregate amount of all Indebtedness of the Company and its Subsidiaries on such date (other than any Closing Date Debt and any
Post-Closing Debt), minus the amount of the prepayment of the Loans made pursuant to Section 3(h) of Amendment No. 7 hereto, 

        (ii)  June 30,
2002 and September 30, 2002, the aggregate amount of all Indebtedness of the Company and its Subsidiaries on such respective dates (other than
any Closing Date Debt and any Post-Closing Debt), minus the balance of the Collateral Account on such respective dates, 

        (iii)  December 31,
2002 and any date thereafter, the aggregate amount of all Indebtedness of the Company and its Subsidiaries on such date (other than any Closing
Date Debt and any Post-Closing Debt), plus the maximum amount of contingent obligations in respect of the VTR Stock Option Plan (determined
in accordance with GAAP) existing on such date (without regard to whether or not any of such obligations are Pre-funded VTR Stock Option Obligations),  minus the balance of the Collateral Account on such
date, to

        (b)  the
product of (x) EBITDA for the two consecutive fiscal quarters ending on, or most recently ended prior to, such date  times (y) two." 

        2.03.    Mandatory Prepayments.    

        (a)  Section 2.09
of the Credit Agreement is hereby amended by replacing clause (e) thereof with the following: 

        "(e)
November 30, 2002 Prepayment. On or prior to November 30, 2002, the Company shall prepay the Loans in an aggregate
amount such that, after giving effect to such prepayment, the aggregate principal amount of the Loans is equal to or less than U.S.$144,000,000." 

        (b)  Section 2.09
of the Credit Agreement is hereby amended by inserting the following new clause (f): 

        "(f)
January 31, 2003 Prepayment. On or prior to January 31, 2003, the Company shall prepay the Loans in an aggregate amount
such that, after giving effect to such prepayment, the aggregate principal amount of the Loans is equal to or less than U.S.$138,000,000." 

        2.04.    Capital Expenditures.    Section 9.10 of the Credit Agreement is hereby amended in its entirety to
read as follows: 

        "9.10
Capital Expenditures. The Company will not permit the aggregate amount of Capital Expenditures by the Company and its Subsidiaries
to exceed the following: 

        (a)  for
the fiscal year ending December 31, 2002, the sum of the following: 

        (w)  U.S.$11,000,000
representing Post-Closing Contributions made in December 2001, plus

        (x)  U.S.$50,000,000
(but only to the extent that, on each day during such year, the aggregate amount of payments made in respect of Capital Expenditures made pursuant to
this clause (a) (x) during the period commencing on January 1, 2002 and ending on such day does not exceed the aggregate amount of proceeds received by the Company during such
period from the incurrence of Post-Closing Contributions (other than SOP Post-Closing Contributions, Conversion Contributions, the May 2002 Equity Contribution 

3

 

and, unless the Majority Lenders otherwise agree, any other Post-Closing Contribution the proceeds of which are used to repay Loans)), plus

        (y)  U.S.$12,000,000
(but only if the aggregate amount of proceeds received by the Company during such period from the incurrence of Post-Closing Contributions
(other than SOP Post-Closing Contributions, Conversion Contributions, the May 2002 Equity Contribution and, unless the Majority Lenders otherwise agree, any other
Post-Closing Contribution the proceeds of which are used to repay Loans) is equal to or greater than U.S.$50,000,000 (which amount includes, and is not in addition to, the $50,000,000
requirement set forth in clause (x) above)), plus

        (z)  an
amount equal to the aggregate proceeds received by the Company during 2002 from the incurrence of Post-Closing Contributions (other than SOP
Post-Closing Contributions, Conversion Contributions, the May 2002 Equity Contribution and, unless the Majority Lenders otherwise agree, any
other Post-Closing Contribution the proceeds of which are used to repay Loans), but only to the extent that (i) such proceeds exceed U.S.$50,000,000, and (ii) on each day
during such year, the aggregate amount of payments made in respect of Capital Expenditures made pursuant to this Section 9.10(a)(z) during the period commencing on January 1, 2002 and
ending on such day does not exceed the aggregate amount of proceeds in excess of U.S.$50,000,000 received by the Company during such period from the incurrence of Post-Closing
Contributions (other than SOP Post-Closing Contributions, Conversion Contributions, the May 2002 Equity Contribution and, unless the Majority Lenders otherwise agree, any other
Post-Closing Contribution the proceeds of which are used to repay Loans); and 

        (b)  for
the fiscal year ending December 31, 2003, an amount equal to the aggregate proceeds received by the Company during 2003 from the incurrence of
Post-Closing Contributions (other than SOP Post-Closing Contributions, Conversion Contributions, the May 2002 Equity Contribution and, unless the Majority Lenders
otherwise agree, any other Post-Closing Contribution the proceeds of which are used to repay Loans), but only to the extent that, on each day during such year, the aggregate amount of
payments made in respect of Capital Expenditures made during the period commencing on January 1, 2003 and ending on such day does not exceed an amount equal to 150% of the aggregate amount of
proceeds received during such period from the incurrence of Post-Closing Contributions (other than SOP Post-Closing Contributions, Conversion Contributions, the May 2002
Equity Contribution and, unless the Majority Lenders otherwise agree, any other Post-Closing Contribution the proceeds of which are used to repay Loans)." 

        2.05.    Total Debt to EBITDA Ratio.    Section 9.11 of the Credit Agreement is hereby amended in its entirety
to read as follows: 

        "9.11  Total Debt to EBITDA Ratio. The Company will not permit the Total Debt to EBITDA Ratio, as at the last day of any fiscal quarter of
the Company, to exceed the ratio set forth below opposite the period in which such day occurs: 

	Period
 
	 	Ratio
	 
	January 1, 2002 to March 31, 2002	 	5.00 to 1	 
	April 1, 2002 to June 30, 2002	 	4.50 to 1	 
	July 1, 2002 to September 30, 2002	 	.00 to 1	 
	October 1, 2002 and all periods thereafter	 	3.50 to 1	"

4

 

        2.06.    Limitation on Certain Principal Payments.    Section 9.12 of the Credit Agreement is hereby amended by
adding the following at the end thereof: 

"and
nothing in this Section 9.12 shall prohibit the Company from repaying Closing Date Debt and Post-Closing Debt with the proceeds of Conversion Contributions." 

        2.07.    Senior Debt to EBITDA Ratio.    Section 9.13 of the Credit Agreement is hereby amended in its entirety
to read as follows: 

        "9.13
Senior Debt to EBITDA Ratio. The Company will not permit the Senior Debt to EBITDA Ratio, as at the last day of any fiscal quarter
of the Company, to exceed the ratio set forth below opposite the period in which such day occurs: 

	Period
 
	 	Ratio
	 
	January 1, 2002 to June 30, 2002	 	4.50 to 1	 
	July 1, 2002 to September 30, 2002	 	4.00 to 1	 
	October 1, 2002 and all periods thereafter	 	3.50 to 1	"

        2.08.    Interest Coverage Ratio.    Section 9.14 of the Credit Agreement is hereby amended in its entirety to
read as follows: 

        "9.14
Interest Coverage Ratio. The Company will not permit the Interest Coverage Ratio, as at the last day of any fiscal quarter of the
Company, to be less than the ratio set forth below opposite the period in which such day occurs: 

	Period
 
	 	Ratio
	 
	January 1, 2002 to March 31, 2002	 	1.50 to 1	 
	April 1, 2002 to June 30, 2002	 	2.40 to 1	 
	July 1, 2002 to September 30, 2002	 	3.00 to 1	 
	October 1, 2002 and all periods thereafter	 	3.50 to 1	"

        2.09.    Minimum Telephony Revenue.    Section 9.20 of the Credit Agreement is hereby amended in its entirety
to read as follows: 

        "9.20
Minimum Telephony Revenue. The Company will not permit the aggregate amount of Telephony Revenue, as at any date set below, to be
less than amounts set forth below opposite such date: 

	Date
 
	 	Amount

	March 31, 2002	 	U.S.$40,000,000
	June 30, 2002	 	U.S.$40,000,000
	September 30, 2002	 	U.S.$40,000,000
	December 31, 2002	 	U.S.$40,000,000
	March 31, 2003	 	U.S.$40,000,000

        2.10.    Post-Closing Debt Pledges.    Section 9.23 of the Credit Agreement is hereby amended by
adding the following new clause (h): 

        "(h)
Post-Closing Debt Pledges—The Company agrees that it will, concurrently with the incurrence of any
Post-Closing Debt that is not subject to the Post-Closing Debt Pledge, furnish to the Administrative Agent a Chilean public deed (or an amendment to the
Post-Closing Debt Pledge) among the holder of such Post-Closing Debt, the Company and the Administrative Agent, substantially in the form of the Post-Closing Debt
Pledge, with respect to such Post-Closing Debt." 

5

 

        2.11.    Post-Closing Contribution in 2002.    The language in Section 9.26 of the Credit Agreement
is hereby deleted in its entirety and replaced with the phrase "Intentionally Omitted", and the following new Section 10(r) shall be added to Section 10 of the Credit Agreement: 

        (r)
The Company shall not have received net cash proceeds from the incurrence by it of Post-Closing Contributions (other than SOP Post-Closing Contributions,
other than Conversion Contributions and other than the May 2002 Equity Contribution) in the following amounts: 

        (a)  during
the period commencing on January 1, 2002 and ending on May 29, 2002, at least U.S.$40,000,000; or 

        (b)  during
the period commencing on January 1, 2002 and ending on December 31, 2002, at least U.S.$50,000,000 (including, and not in addition to, the amount
required by clause (a) of this Section 10(r));" 

        2.12.    Force to Market.    A new Section 9.27 shall be inserted after Section 9.26 of the Credit
Agreement to read as set forth on Schedule 9.27 hereto. 

        2.13.    Events of Default.    

        (a)  Section 10(d)
of the Credit Agreement is hereby amended by adding the phrase "(other than Section 9.27(a)(vii) hereof)" immediately after the words
"any of its other obligations under this Agreement or any other Basic Document." 

        (b)  Section 10
of the Credit Agreement shall be amended by adding the word "or" at the end of clause (p) thereof and by adding the following new
clause (q): 

        "(q)
Either of the following shall occur on or prior to July 31, 2002: 

        (x)  the
Company shall not have received proceeds from Conversion Contributions in an aggregate amount at least equal to U.S.$150,000,000, or 

        (y)  the
Company shall not have applied such proceeds to repay Closing Date Debt and/or Post-Closing Debt in an aggregate amount at least equal to
U.S.$150,000,000; or" 

        (c)  The
failure of the Company to furnish to the Administrative Agent, by no later than June 15, 2002, evidence of (a) the due publication and registration of
the Post-Closing Equity contributed pursuant to Section 3(h) hereof or (b) the remedy of any defect in the collateral security (including any defect by
reason any assets not being covered by the Security Documents) disclosed in the perfection certificate delivered pursuant to Section 3(n) hereof (other than with respect to the Pledge Without
Conveyance), shall constitute an immediate Event of Default under the Credit Agreement. 

        (d)  The
failure of the Company to furnish to the Administrative Agent, by no later than July 15, 2002, evidence of the remedy of any defect in the collateral security
(including any defect by reason any assets not being covered by the Security Documents) disclosed in the perfection certificate delivered pursuant to Section 3(m) hereof, with respect to the
Pledge Without Conveyance, shall constitute an immediate Event of Default under the Credit Agreement. 

        (e)  The
failure of the Company to furnish to the Administrative Agent, by no later than June 15, 2002, the Post-Closing Debt Pledge, duly executed and
delivered by the parties thereto, together with opinions of Chilean counsel to the Administrative Agent and Chilean counsel to the Obligors, in form and substance satisfactory to the Administrative
Agent, with respect thereto, shall constitute an immediate Event of Default under the Credit Agreement. 

        Section 3.    Conditions Precedent.    This Amendment shall be effective, as of the date hereof (except that
the amendments in Sections 2.04, 2.05, 2.07 and 2.08 (and all amendments of defined 

6

 

terms used in such Sections) shall be effective as of March 31, 2002), upon the satisfaction of the following conditions precedent: 

        (a)  the
execution and delivery of this Amendment by the Company, each other Obligor, each of the Lenders and the Administrative Agent; 

        (b)  the
Company shall have paid to the Administrative Agent (i) for account of each Lender, a fee in an amount equal to 75 basis points of the aggregate outstanding
amount of such Lender's Loans on the effective date of this Amendment No. 7 (after giving effect to the prepayment contemplated by Section 3(h) hereof), and (ii) the reasonable
expenses of the Administrative Agent (for which the Company shall have been presented with statements) in connection with this Amendment No. 7; 

        (c)  the
Administrative Agent, The Toronto-Dominion Bank and ULA shall have entered into the Cash Collateral Agreement; 

        (d)  UGC
Holdings, Inc. shall have executed and delivered to each of the Lenders a letter substantially in the form of Exhibit B; and UGC Holdings, Inc.
and ULA shall have executed and delivered to each of the Lenders a letter substantially in the form of Exhibit C hereto; 

        (e)  the
Administrative Agent shall have received evidence satisfactory to it that the maturity of all Post-Closing Debt is a date no earlier than the date six
months after the Principal Payment Date (as amended by this Amendment No. 7). 

        (f)    the
Administrative Agent shall have received evidence satisfactory to it that the Company shall have received proceeds of Post-Closing Contributions (other
than SOP Post-Closing Contributions, other than Conversion Contributions and other than the May 2002 Equity Contribution) during 2002 in an amount at least equal to U.S.$40,000,000; 

        (g)  the
Administrative Agent shall have received evidence of the deposit into the SOP Escrow Account of the amounts contemplated by the definition of "Pre-funded
VTR Stock Option Obligations" to be deposited with respect to the first and second fiscal quarters of 2002; 

        (h)  the
following: (i) the Administrative Agent shall have received evidence satisfactory to it that the Company shall have received proceeds of
Post-Closing Equity during the period commencing on May 15, 2002 and ending on May 29, 2002 in an aggregate amount equal to U.S.$26,000,000 (the
"May 2002 Equity Contribution"); and (ii) on or prior to May 29, 2002, the Company shall have used the proceeds of the
May 2002 Equity Contribution to repay principal of Loans in an aggregate amount equal to U.S.$26,000,000; 

        (i)    the
Administrative Agent shall have received an opinion of Carey y Cia. Ltda., Chilean counsel to the Obligors, substantially in the form of
Exhibit D-1 to the Credit Agreement, but with respect to this Amendment No. 7, an opinion of Holme Roberts & Owen LLP, substantially in the form of
Exhibit D-4 to the Credit Agreement, but with respect to (x) ULA and the Cash Collateral Agreement and the letter delivered by it pursuant to Section 3(d) (in the form
of Exhibit C hereto), and (y) UGC Holdings, Inc. and its obligations under the letter delivered by it pursuant to Section 3(d)
(provided that the opinions referred to in the foregoing clause (i)(y) may be furnished by internal counsel to UGC Holdings, Inc.) and an
opinion of Mayer, Brown, Rowe & Maw with respect to the enforceability of the Credit Agreement as amended by this Amendment No. 7; 

        (j)    the
Administrative Agent shall have received documents of the type described in Section 7.01(a)(ii)(B) of the Credit Agreement, but with respect to this Amendment
and the transactions contemplated hereby, and documents of the type described in Section 7.01(a) with respect to ULA and the Cash Collateral Agreement; 

7

 

        (k)  each
Lender requesting the same shall have received a modification to the Note or Notes held by it reflecting the amendment to the definition of Principal Payment Date
effected by this Amendment No. 7 and duly executed and delivered by the Company; 

        (l)    the
Administrative Agent shall have received evidence satisfactory to it that the Process Agent shall have agreed not to terminate its appointment as such without prior
notice to the Administrative Agent; and 

        (m)  the
Administrative Agent shall have received from its Chilean counsel the results of a collateral audit (and a perfection certificate of the Company related thereto and
a list of unencumbered assets (other than assets to be covered by the Pledge Without Conveyance) prepared by the Company related thereto) with respect to the collateral security for the obligations of
the Company under the Credit Agreement and the Notes. 

        Section 4.    Approval of Post-Closing Debt; Etc.    

        (a)  Each
of the Lenders hereby confirms that, for purposes of incurring Post-Closing Debt pursuant to Section 9.10 of the Credit Agreement (Capital
Expenditures) or Section 10(r) of the Credit Agreement (Events of Default), and for purposes of the definition of "Pre-funded VTR Stock Option Obligations," the terms and conditions
of such Post-Closing Debt will be satisfactory to the Lenders if they are substantially the same as the terms and conditions of the Post-Closing Debt incurred by the Company in
2001, but only so long as (a) the holder of such Post-Closing Debt is a party to the Post-Closing Debt Pledge, and (b) the incurrence of such
Post-Closing Debt on such terms and conditions is not contrary to the recommendations of the Local Arranger. 

        (b)  Upon
the satisfaction of the conditions set forth in Section 3(h) hereof, the letter agreement dated April 29, 2002 (relating to the obligation to
contribute U.S.$14,000,000) among the Administrative Agent, UGC Holdings, Inc. and the Company shall be terminated and of no further force or effect, and all obligations of UGC
Holdings, Inc. and the Company thereunder shall be deemed to have been satisfied in full. 

        (c)  The
Administrative Agent and Citibank, N.A. agree that the Cash Collateral Agreement referred to in Amendment No. 6 has been terminated. 

        (d)  The
Administrative Agent and the Lenders hereby waive any prohibition in the Effective Subordination Documents on the making of the payments in respect of Closing Date
Debt and/or Post-Closing Debt contemplated by Section 10(q) of the Credit Agreement. The Administrative Agent shall take such action as the Company may reasonably request to effect
such waiver, including by giving appropriate instructions to US Bank National Association, as payment agent. 

        Section 5.    Representations and Warranties.    Each of the Obligors represents and warrants to the Lenders
that: 

        (a)  the
representations and warranties set forth in Section 8 of the Credit Agreement are true and complete in all material respects on the date hereof as if made on
and as of the date hereof (unless such representation and warranty is expressly stated to be made as of an earlier date) and as if each reference in said Section 8 to "this Agreement" included
reference to this Amendment; 

        (b)  on
the date hereof, and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing; 

        (c)  the
aggregate amount of scheduled payments of principal in respect of senior indebtedness (other than the Loans) that the Obligors are required to make during the period
commencing on April 29, 2002 and ending on the Principal Payment Date does not exceed U.S.$4,000,000; 

8

 

        (d)  the
execution, delivery and performance by each Obligor of this Amendment and any other Basic Document to be executed by it in connection with this Amendment are within
such Obligor's corporate powers, have been duly authorized by all necessary corporate action, and do not 

        (1)  contravene
such Obligor's organizational documents (estatutos sociales); 

        (2)  contravene
any contractual restriction, law or governmental regulation or court decree or order binding on or affecting such Obligor; or 

        (3)  result
in, or require the creation or imposition of, any Lien on any of such Obligor's properties; 

        (e)  other
than the actions contemplated by Sections 3(c), 3(e), 3(f), 3(g), 3(h), 3(l) and 3(n) hereof (all of which actions shall have been taken prior to, or concurrently
with, the effectiveness of this Amendment), and the actions contemplated by Sections 9.23(h), 9.27, 10(q) and 10(r), no authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or other Person is required for the due execution, delivery or performance by any Obligor of this
Amendment or any other Basic Document to be executed by it in connection with this Amendment; and 

        (f)    this
Amendment constitutes and each other Basic Document executed by the Obligors in connection with this Amendment will, on the due execution and delivery thereof,
constitute, the legal, valid and binding obligations of each Obligor enforceable in accordance with their respective terms, except as such enforceability may be limited by general principles of equity
and by bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors' rights. 

        Section 6.    Ratification of and References to the Credit Agreement.    This Amendment shall be deemed to be
an amendment to the Credit Agreement, and the Credit Agreement, as amended hereby, is hereby ratified, approved and confirmed in each and every respect. All references to the Credit Agreement in any
other document, instrument, agreement or writing shall hereafter be deemed to refer to the Credit Agreement as amended hereby. 

        Section 7.    Governing Law; Execution in Counterparts; Etc..    This Amendment shall be governed by, and
construed in accordance with, the law of the State of New York, United States of America. Each of the Obligors hereby agrees that the provisions of Sections 12.13, 12.14 and 12.15 of the Credit
Agreement, including (without limitation) the submission by the Obligors to the jurisdiction of the Supreme Court of the State of New York, County of New York, and the United States District Court for
the Southern District of New York, shall apply to this Amendment. This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all
of which shall constitute but one and the same agreement. Each reference to the Credit Agreement in any Basic Document shall be deemed to be a reference to the Credit Agreement as amended hereby.
Except as herein provided, the Credit Agreement shall remain unchanged and in full force and effect. 

9

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written. 

	 	 	COMPANY:
	

 	
 	

VTR GLOBALCOM S.A.
	

 	
 	

By	
 	

/s/  BLAS TOMIC E.      
 Title: C.E.O
	

 	
 	
SUBSIDIARY GUARANTORS:
	

 	
 	
VTR NET S.A.
	

 	
 	

By	
 	

/s/  BLAS TOMIC E.      
 Title: C.E.O
	

 	
 	

VTR BANDA ANCHA S.A.
	

 	
 	

By	
 	

/s/  BLAS TOMIC E.      
 Title: C.E.O
	

 	
 	

VTR GALAXY CHILE S.A.
	

 	
 	

By	
 	

/s/  BLAS TOMIC E.      
 Title: C.E.O
	

 	
 	

VTR GLOBALCARRIER S.A.
	

 	
 	

By	
 	

/s/  BLAS TOMIC E.      
 Title: C.E.O
	

 	
 	

VTR INGENIERIA S.A.
	

 	
 	

By	
 	

/s/  BLAS TOMIC E.      
 Title: C.E.O
	

 	
 	
LENDERS:
	
 	
 	

THE TORONTO-DOMINION BANK
	

 	
 	

By	
 	

/s/  JIMMIE BRIDWELL      
 Title: Mgr. Credit Admin.
	

 	
 	

BANKBOSTON N.A.,(1) NASSAU BRANCH
	

 	
 	

By	
 	

/s/  PAULINA VALDES      
 Title: Authorized Officer

	(1)
	BankBoston,
N.A., a FleetBoston Financial company, is the corporate name under with Fleet National Bank operates in Latin America and the Bahamas. 

10

 

	

 	
 	

JPMORGAN CHASE BANK
	

 	
 	

By	
 	

/s/  MANOCHERE ALAMGIR      
 Title: Vice President
	

 	
 	

CITIBANK, N.A.
	

 	
 	

By	
 	

/s/  JULIE SISKIND      
 Title: Vice President
	

 	
 	

CREDIT LYONNAIS, NEW YORK BRANCH
	

 	
 	

By	
 	

/s/                                
	 	 	 	 	
 Title: Senior Vice President
	

 	
 	

EXPORT DEVELOPMENT CANADA
	

 	
 	

By	
 	

/s/  SEAN MITCHELL      
	 	 	 	 	
 Title: Manager, Special Risks
	

 	
 	

By	
 	

/s/  D. KOVAS      
	 	 	 	 	
 Title: Loan Asset Manager
	

 	
 	

ING BANK N.V., CURAÇÃO BRANCH
	

 	
 	

By	
 	

/s/                                
	 	 	 	 	
 Title: Senior Vice President
	

 	
 	

By	
 	

/s/                                
	 	 	 	 	
 Title: Senior Vice President
	

 	
 	

CANADIAN IMPERIAL BANK OF COMMERCE
	

 	
 	

By	
 	

/s/  DANIEL D. MCCREADY      
 Title: Managing Director, CIBC World Markets Corp.
	

 	
 	
ADMINISTRATIVE AGENT:
	

 	
 	
TORONTO DOMINION (TEXAS), INC.
	

 	
 	

By	
 	

/s/  JIMMIE BRIDWELL      
 Jimmie Bridwell
 Vice President

11

   SCHEDULE 9.27  

[Qualified
Local Financing Provisions] 

        9.27    Qualified Local Financing.    Each of the Company, the Administrative Agent and each of the Lenders agrees as
follows: 

        (a)    Engagement of Local Arranger; Consummation of Qualified Local Financing; Etc.    The Company shall do each of
the following: 

          (i)  The
Company will engage a Local Arranger by no later than July 31, 2002. 

        (ii)  The
Company will enter into an engagement letter or similar agreement with the Local Arranger that expressly provides that the Local Arranger agrees to perform the
functions described in clauses (a)(iii) and (a)(v) below, and that the Local Arranger will, as soon as practicable, recommend to the Company in writing (the
"Recommended QLF"): 

        (A)  whether
the Qualified Local Financing should be a bank financing or a bond financing (or a combination thereof), 

        (B)  what
the structure and terms of such Qualified Local Financing should be, 

        (C)  what
modifications are necessary to this Agreement to consummate such Qualified Local Financing (including a modification to permit the incurrence by the Company of the
Recommended QLF, the "Credit Agreement Modifications"), and 

        (D)  what
other steps (the "Related Recommendations") are necessary to consummate such Qualified Local Financing (such as
receiving Conversion Contributions and obtaining a rating from one or more Chilean rating agencies). 

Promptly
after the engagement of such Local Arranger, the Company will furnish to each of the Lenders copies of each such engagement letter or similar agreement entered into between the Company and
such Local Arranger (provided that the compensation terms in such letter or agreement may be omitted). 

        (iii)  The
Company will authorize and direct the Local Arranger to discuss with the Administrative Agent (after notice to the Company and with, at the Company's option, the
participation of the Company) at any time following receipt of a monthly report as provided in clause (v) below, and will direct the Local Arranger (and the Local Arranger shall agree in
writing) to notify the Administrative Agent promptly upon the occurrence of any Open Market Date. 

        (iv)  The
Company will cooperate with the Local Arranger to the extent reasonably requested by the Local Arranger to enable the Local Arranger to carry out its duties,
functions and responsibilities in connection with a Qualified Local Financing. Such cooperation will include: (A) assisting the Local Arranger in completing the work required to enable the
Local Arranger to understand the financing alternatives available to the Company in the Chilean financial markets, (B) making members of its senior management available for meetings with
investors relating to the marketing of a Qualified Local Financing, and (C) applying for, obtaining and maintaining in effect all regulatory approvals and other third party consents necessary
or desirable to complete a Qualified Local Financing (if applicable). 

        (v)  No
later than the last day of each month (commencing with the last day of August 2002), the Company will furnish to each of the Lenders a written report of the
Local Arranger setting forth (A) its activities during the preceding month, (B) whether or not it has notified (and if it has not, when it expects to notify) the Company of its
Recommended QLF, and (C) whether (and if so, when) an Open Market Date has occurred. 

12

 

        (vi)  The
Company shall, with the cooperation and support of the Local Arranger, use commercially reasonable efforts to implement the Related Recommendations. 

      (vii)  The
Company shall: 

        (A)  no
later than 30 days after the Open Market Date, either (1) commence the Recommended QLF or (2) notify the Lenders that it intends to consummate an
Alternative International Financing instead of the Recommended QLF (the "AIF Notice"), and 

        (B)  either
(1) consummate the Recommended QLF no later than the date 90 days (or, if the Local Arranger shall recommend a longer period of time, such longer
period of time) after the date that the Recommended QLF is commenced or (2) consummate an Alternative International Financing no later than the date 90 days after the date of the AIF
Notice. 

        (b)    Increase in Applicable Margin.    If both of the following conditions are satisfied: 

          (i)  the
Company shall have defaulted in the performance of its obligations under Section 9.27(a)(vii) hereof (commence and consummate the Recommended QLF),
and 

        (ii)  no
Market Change shall have occurred during the period commencing on the Open Market Date and ending on the date 120 days thereafter (or such later date in
accordance with the terms of Section 9.27(a)(vii)(B)), 

then, during the period commencing on the first date that the Company shall have defaulted in the performance of its obligations under
Section 9.27(a)(vii) hereof and ending on the earlier of the following: 

        (x)  the
consummation of a Qualified Local Financing or an Alternative International Financing, and 

        (y)  the
Company making a prepayment of the Loans pursuant to Section 2.08 hereof (optional prepayments) in an aggregate amount, funded solely from the proceeds of
Post-Closing Equity, at least equal to U.S.$13,000,000 (less the amount of any prepayments made pursuant to Section 2.09(e) hereof or
Section 2.09(f) hereof). 

the
"Applicable Margin" shall be increased to a rate per annum equal to the "Applicable Margin" as provided in Section 1.01 hereof plus 4.00%;  provided
that, if the Company shall have defaulted in the performance of its obligations under Section 9.27(a)(vii)(A) hereof and a Market Change
shall occur during the period commencing on the date of such default and ending on the date 120 days after the
Open Market Date (or such later date in accordance with the terms of Section 9.27(a)(vii)(B) hereof), the "Applicable Margin" shall be reduced, effective as of the date of such Market Change,
to the rate provided for in Section 1.01 hereof. 

        (c)    Collateral Release.    All of the funds in the Collateral Account shall, at the request of ULA, be released to
ULA upon the satisfaction of all of the following conditions precedent: 

          (i)  the
Company shall have consummated a Qualified Local Financing or an Alternative International Financing, 

        (ii)  such
Qualified Local Financing or such Alternative International Financing does not prohibit such release, 

        (iii)  the
Company shall have made a prepayment of the Loans pursuant to Section 2.08 hereof (optional prepayments) in an aggregate amount at least equal to
U.S.$50,000,000, and 

        (iv)  no
Default shall be continuing. 

13

 

        (d)    Certain Definitions.    As used in this Section 9.27, the following terms shall have the following
respective meanings: 

        "AIF Notice" shall have the meaning given to that term in Section 9.27(a)(vii)(A) hereof. 

        "Alternative International Financing" shall mean a debt financing of the Company outside of the Chilean bank market and the Chilean bond
market that: 

        (a)  is
either secured or unsecured, 

        (b)  is
in an aggregate principal amount at least equal to the amount of the Recommended QLF, 

        (c)  has
an interest rate less than or equal to the Interest Rate (or, in the event that the issue price of such financing is less than par, the imputed interest rate of such
financing reflecting the original issue discount), 

        (d)  has
other terms and conditions that are no less favorable to the Lenders than the terms and conditions of the Recommended QLF, and 

        (e)  has
a tenor of four or more years. 

        "Credit Agreement Modifications" shall have the meaning given to that term in Section 9.27(a)(ii)(C) hereof. 

        "Interest Rate" shall mean (a) with respect to any Qualified Local Financing in Pesos or Unidades de
Fomento, the swap equivalent of the three-month London inter-bank offered rate for Dollar financings at the time of commencement of such financing (as reasonably
determined by the Administrative Agent) plus 650 basis points, and (b) with respect to any Alternative International Financing, the three-month
London inter-bank offered rate at the time of commencement of such financing (as reasonably determined by the Administrative Agent) plus 650
basis points." 

        "Lenders' Consent" shall mean an irrevocable written consent by the Lenders (or, if applicable, the Majority Lenders) to the Credit
Agreement Modifications, reasonably satisfactory to the Local Arranger. 

        "Local Arranger" shall mean a recognized and reputable financial institution, consented to by the Majority Lenders (such consent not to be
unreasonably withheld), that will act as the Company's advisor in connection with a Qualified Local Financing. Each Lender agrees to respond to the Company's request for approval of a specific Local
Arranger or Local Arrangers within seven Business Days after receipt of a request therefor." 

        "Market Change" shall mean a change that has occurred in the relevant financing markets in Chile such that (a) the Recommended QLF
cannot be consummated substantially on the terms and conditions expected at the time that the Local Arranger recommended the Recommended QLF, and (b) the Recommended QLF, if consummated, would
not constitute a Qualified Local Financing. 

        "Open Market Date" shall mean the first date on which both of the following conditions has been satisfied: 

        (a)  the
Local Arranger shall have notified the Company and the Administrative Agent that a Qualified Local Financing can (subject to reasonable qualifications) be
consummated in the applicable markets in Chile, and 

        (b)  the
Administrative Agent shall have notified the Company that the Lenders' Consent has been obtained. 

14

 

        "Qualified Local Financing" shall mean a debt financing of the Company in the Chilean bank market or the Chilean bond market (or a
combination thereof) that: 

        (a)  is
either secured or unsecured, 

        (b)  is
in an aggregate principal amount at least equal to U.S.$50,000,000, 

        (c)  has
an interest rate (i) less than or equal to the Interest Rate (or, in the event that the issue price of such financing is less than par, the imputed interest
rate of such financing reflecting the original issue discount), and (ii) such that the amount of interest payable on the first interest payment date of such Qualified Local Financing (if the
principal amount thereof were denominated in Dollars and if such amount of interest were payable in Dollars, in each case calculated at such exchange rate as the Administrative Agent may reasonably
select), would be an amount less than or equal to the amount of interest that would have accrued on such Qualified Local Financing during the period ending on such first interest payment date if the
interest rate thereon was equal to the three-month London inter-bank offered rate plus 650 basis points, 

        (d)  has
other terms and conditions that are customary for similar financings in the Chilean bank markets or the Chilean bond markets (as the case may be), and 

        (e)  has
a tenor of four or more years. 

        "Recommended QLF" shall have the meaning given to that term in Section 9.27(a)(ii) hereof. 

        "Related Recommendations" shall have the meaning given to that term in Section 9.27(a)(ii)(D) hereof. 

15

EXHIBIT A  

[Form
of Cash Collateral Agreement] 

   EXHIBIT B  

[Form
of UGC Holdings, Inc. Comfort Letter] 

April
[    ], 2002 

	To:	 	the Lenders Party to the

Credit Agreement referred to below	 	 
	

 	
 	

 	
 	

Re: VTR GlobalCom S.A.

Ladies
and Gentlemen: 

        We
refer to (a) the Credit Agreement dated as of April 29, 1999 (as amended from time to time, the "Credit Agreement") and
(b) Amendment No. 7 thereto, dated as of April 29, 2002. Terms used herein that are not defined shall have the respective meanings given to those terms in the Credit Agreement. 

        This
is to confirm to you that it is our current intent that we will contribute, or cause to be contributed, equity or structurally subordinated junior capital (on terms consistent with
the Post-Closing Debt) to: 

	•
	ensure
that the Company is at all times in compliance with the maximum Senior Debt to EBITDA Ratio under Section 9.13 of the Credit Agreement; and

	•
	provide
liquidity to United Latin America, Inc. ("ULA") in support of ULA's obligation under
Section 2.2 of the Cash Collateral Agreement. 

        Although
this letter sets forth our current intent, this letter is not, and is not intended to be, a legally binding commitment on our part. 

	 	 	UGC HOLDINGS, INC.
	

 	
 	

By	
 	

 
	 	 	 	 	
 By:

Title:

2

   EXHIBIT C  

[Form
of UGC Holdings, Inc. Commitment Letter] 

April 29,
2002 

	To:	 	the Administrative Agent

and the Lenders Party to

the Credit Agreement

referred to below	 	 
	

 	
 	

 	
 	

Re: VTR GlobalCom S.A.

Ladies
and Gentlemen: 

        UGC
Holdings, Inc., a Delaware corporation ("UGC"), and United Latin America, Inc., a Colorado corporation
("ULA"), refer to (a) the Credit Agreement dated as of April 29, 1999 (as amended form time to time, the "Credit
Agreement") and (b) Amendment No. 7 thereto, dated as of April 29, 2002 ("Amendment No. 7"). Terms used
herein that are not defined shall have the respective meanings given to those terms in the Credit Agreement. 

        Section 1.    Post-Closing Contributions in 2002.    UGC and ULA jointly and severally agree to
make Post-Closing Contributions, or to cause Post-Closing Contributions to be made, to the Company to the extent necessary to allow the Company to avoid a Default under
Section 10(r) of the Credit Agreement. 

        Section 2.    July 31, 2002 Conversion Contributions.    UGC and ULA jointly and severally agree to make
Conversion Contributions, or to cause Conversion Contributions to be made, to the Company to the extent necessary to allow the Company to avoid a Default under Section 10(q) of the Credit
Agreement. 

        Section 3.    Additional Conversion Contributions.    Each of UGC and ULA agrees to use its best efforts to
make Conversion Contributions, or to cause Conversion Contributions to be made, to the Company (to the extent consistent with the Company's obligations under Section 9.27(a)(vi) of the
Credit Agreement) to the extent necessary to permit the Company to comply with its obligations under Section 9.27(a)(vi) of the Credit Agreement. 

        Section 4.    Governing Law.    This letter shall be governed by and construed in accordance with the law of
the State of New York. 

        Section 5.    Submission to Jurisdiction.    Each of UGC and ULA hereby agrees that the provisions of Sections
12.13, 12.14 and 12.15 of the Credit Agreement (including, without limitation, the submission to the jurisdiction of the Supreme Court of the State of New York, County of New York, 

3

 

and the United States District Court for the Southern District of New York, and the waiver of a right to trial by jury) shall apply to each of UGC and ULA for purposes of this letter. 

	 	 	Very truly yours,
	

 	
 	

UGC HOLDINGS, INC.
	

 	
 	

By	
 	

 
	 	 	 	 	
 Frederick G. Westerman III
 Chief Financial Officer
	

 	
 	

UNITED LATIN AMERICA, INC.
	

 	
 	

By	
 	

 
	 	 	 	 	
 Frederick G. Westerman III
 Vice President and Treasurer

	ACCEPTED:	 	 
	

TORONTO DOMINION (TEXAS), INC.,

as Administrative Agent	
 	

 
	

By	
 	

 	
 	

 
	 	 	
 Jimmie Bridwell
 Vice President	 	 

4

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EXHIBIT 10.1

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