Document:

EX-4.17 Parent Company Agreement

 

Exhibit 4.17

PARENT COMPANY AGREEMENT

This PARENT COMPANY AGREEMENT (“Parent Company Agreement”) dated as of December 15, 2006, is
entered into by and among:

GLOBOSAT PROGRAMADORA LTDA., a Brazilian limited liability company, with headquarters at Rua
Itapiru 1209, Rio Comprido, Rio de Janeiro, RJ, Brazil, (hereinafter referred to as “Globosat”);

CLAXSON INTERACTIVE GROUP, INC., a British Virgin Island corporation, with offices at 1550 Biscayne
Boulevard, Miami, FL, 33132, USA (hereinafter referred to as “Claxson”); and

PLAYBOY ENTERTAINMENT GROUP, INC., a Delaware corporation with headquarters at 2706 Media Center
Drive, Los Angeles, CA, 90065, USA (hereinafter referred to as “PEGI”);

Globosat, Claxson and PEGI hereinafter jointly referred to as “Parties” or, individually, as
“Party”;

WHEREAS:

	 	(i)	 	Claxson and PEGI have recognized worldwide expertise in the business of adult
entertainment, including the development and production of Adult Content for Television
and Other Media;
	 
	 	(ii)	 	Claxson and PEGI combined own 100% of the interest in PVTLA;
	 
	 	(iii)	 	Globosat and PTVLA have executed on this date the MOU, copy of which is attached
hereto as Exhibit (iii), regarding an association to develop and exploit Adult Content in
Television and Other Media in Brazil, through a corporation, with a purpose of the
development and exploitation of business; and
	 
	 	(iv)	 	Claxson and PEGI, as parent companies of PTVLA, and Globosat desire to outline the
rights and obligations of the Parties (additionally to those provided for in the MOU)
regarding conduct of the business and non-
competition provisions, among other issues, that shall rule the Venture’s business and
activities.

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NOW, THEREFORE, in consideration of the mutual promises made herein, the Parties execute this
Parent Company Agreement to set forth their full understanding as follows:

SECTION I

DEFINITIONS

1.1.     All definitions used herein shall have the same meaning ascribed to them in the MOU, except as
otherwise set forth herein.

1.2.     Reference in this Parent Company Agreement to Sections are sections to this Parent Company
Agreement, unless the context otherwise requires. The recitals to this Parent Company Agreement
shall be deemed to form part hereof.

1.3.     Headings are inserted for convenience only and shall not affect the interpretation of this
Parent Company Agreement.

SECTION II

PURPOSE OF THE PARENT COMPANY AGREEMENT

2.1.     Subject to the terms and conditions set forth herein, the purpose of this Parent Company
Agreement is to rule and regulate the terms and conditions of the additional rights and obligations
of the Parties in connection with the MOU, including, but not limited to, the non-competition
provisions set forth in Section IV.

SECTION III

REPRESENTATIONS AND WARRANTIES

3.1.     Each of PEGI and Claxson hereby represent and warrant to Globosat, for themselves and not with
respect to the other, that the following statements are materially true, accurate and complete with
respect to the representing party (i.e. PEGI is only representing with respect to itself and not
any facts related to Claxson and vice versa) and shall remain true, accurate and complete until and
as of the Closing Date:

	 	(i)	 	PEGI and Claxson (a) are corporations duly incorporated and validly existing
in accordance with the Laws of their jurisdictions, (b) are in regular operation, (c)
have full corporate power and authority to own or

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	 	 	 	hold, and operate their properties, business and assets, and to carry out their
business as it is now being conducted, (d) are substantially in compliance with any
and all material Laws of the United States of America or BVI, respectively,
applicable to them or to the conduct of their business, and (e) have obtained all
the material required approvals, licenses, authorizations, registrations and
permits from relevant federal, state and municipal authorities for carrying out of
their business and activities;
	 
	 	(ii)	 	PEGI and Claxson have full corporate power and authority to execute and
deliver this Parent Company Agreement, to perform their obligations hereunder and to
consummate the transactions contemplated hereby. The execution and delivery of this
Parent Company Agreement, and the performance of their obligations hereunder, have
been duly authorized by all corporate bodies of PEGI and Claxson to the extent
necessary, as the case may be. The legal representatives of PEGI and Claxson who sign
this Parent Company Agreement are duly empowered to execute the present Parent Company
Agreement, without any restriction;
	 
	 	(iii)	 	except as provided for in Section 12.3 below, no registration, declaration
or filing with, and no consent, authorization or approval of, any Governmental
Authority or other Person is required for the execution or delivery by PEGI or Claxson
of this Parent Company Agreement, or for the assumption by PEGI and/or Claxson of the
obligations contemplated herein;
	 
	 	(iv)	 	neither the execution or delivery of, nor the performance or consummation by
PEGI and/or Claxson of their obligations under this Parent Company Agreement (a)
violate, conflict with or result in a material breach or termination of, or otherwise
give any other contracting party additional rights or compensation under, or the right
to terminate, or constitute a default under the terms of, any agreement to which PEGI
and/or Claxson are a party or by which PEGI and/or Claxson are bound or subject to,
(b) violate any judicial order against, or binding upon, PEGI and/or Claxson, or (c)
constitute a material violation by PEGI and/or Claxson of any applicable material Law
of the United States of America or BVI, respectively, or of any organizational
documents of PEGI and/or Claxson;

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	 	(v)	 	To the best of their knowledge, PEGI and/or Claxson have all rights necessary
to enter into and comply with the terms and conditions of this Parent Company
Agreement with respect to its licensing of Trademarks and Content to the Venture, and
have the power and authority necessary to enter into the terms set forth herein;
	 
	 	(vi)	 	the representations and warranties contained in this Section 3.1 do not
contain any untrue statement of a material fact and do not omit any material fact the
omission of which would make the statements made herein misleading. To the best of
PEGI and/or Claxson’s knowledge, there is no fact that materially and adversely
affects the Content licensed to the Venture hereunder, or any conditions, liabilities
or operations of PEGI and/or Claxson that has not been set forth herein; and
	 
	 	(vii)	 	Except with respect to the Playboy Brazil Magazine Assets and its existing
agreement with PTVLA, PEGI is not a party to any Preexisting Agreements regarding
Playboy Branded Adult Content and Playboy Unbranded Content for distribution in
Brazil.

3.2.     Globosat hereby represents and warrants to PEGI and Claxson that the following statements are
materially true, accurate and complete and shall remain true, accurate and complete until and as of
the Closing Date:

	 	(i)	 	Globosat (a) is a private corporation duly incorporated and validly existing
in accordance with the Laws of Brazil, (b) is in regular operation, (c) has full
corporate powers and authority to own or hold, and operate its properties, business
and assets, and to carry out its business as it is now being conducted, (d) is
substantially in compliance with any and all material Laws of Brazil applicable to it
or to the conduct of its business, and (e) has obtained all the material required
approvals, licenses, authorizations, registrations and permits from relevant federal,
state and municipal authorities for carrying out of its business and activities;
	 
	 	(ii)	 	Globosat has full corporate power and authority to execute and deliver this
Parent Company Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery of this Parent Company
Agreement, and the performance of its obligations hereunder, have been duly authorized
by all corporate

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	 	 	 	bodies of Globosat, to the extent necessary. The legal representatives of Globosat
who sign this Parent Company Agreement are duly empowered to execute the present
Parent Company Agreement, without any restriction;
	 
	 	(iii)	 	except as provided for in Section 12.3, no registration, declaration or
filing with, and no consent, authorization or approval of, any Governmental Authority
or other Person is required for the execution or delivery by Globosat of this Parent
Company Agreement, or for the assumption by Globosat of the obligations contemplated
herein;
	 
	 	(iv)	 	neither the execution or delivery of, nor the performance or consummation by
Globosat of its obligations under this Parent Company Agreement (a) violate, conflict
with or result in a material breach or termination of, or otherwise give any other
contracting party additional rights or compensation under, or the right to terminate,
or constitute a default under the terms of, any agreement to which Globosat is a party
or by which Globosat is bound or subject to, (b) violate any judicial order against,
or binding upon, Globosat, or (c) constitute a material violation by Globosat of any
applicable material Law of Brazil or of any organizational documents of Globosat;
	 
	 	(v)	 	To the best of its knowledge, Globosat has all rights necessary to enter into
and comply with the terms and conditions of this Parent Company Agreement with respect
to its licensing of Trademarks and Content to the Venture, and has the power and
authority necessary to enter into the terms set forth herein; and
	 
	 	(vi)	 	the representations and warranties contained in this Section 3.2 do not
contain any untrue statement of a material fact and do not omit any material fact the
omission of which would make the statements made herein misleading.

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SECTION IV

NON COMPETITION

4.1.     Except as otherwise provided herein or in the MOU, any exploitation and/or development of
Adult Content in Television and/or Other Media in Brazil by the Parties
or by PTVLA shall be made jointly through the Venture and in accordance to the provisions set forth
herein and in the MOU.

4.2.     Claxson shall not, and shall cause each of its Affiliate Companies, not to, directly or
indirectly (whether individually or jointly with any other Person) engage in, own an interest in,
or manage any Adult Content business for Television or Other Media in or specifically targeted to
Brazil.

4.3.     Except with respect to Playboy Brazil Magazine Assets and as otherwise permitted hereunder,
PEGI shall not, and shall cause each of its Affiliate Companies (except Club Jenna, Inc. and its
subsidiaries) not to, directly or indirectly (whether individually or jointly with any other
Person) engage in, own an interest in, or manage any Adult Content business for Television and the
Other Media in or specifically targeted to Brazil. Nothing in this paragraph will prevent PEGI or
its Affiliated Companies from entering into affiliate website agreements permitted under Section
5.1.7 herein.

4.4.     Globosat shall not, and shall cause each of its Affiliate Companies, not to, directly or
indirectly engage in, own an interest in, or manage any Adult Content business for Television or
Other Media in or specifically targeted to any country of the world (except for the activities of
the Venture in Brazil). Globosat shall exercise its voting rights in any of Globosat’s Ventures and
shall use its best efforts to exercise its rights and powers to cause Globosat’s Ventures not to
engage in the Adult Content business for Television and the Other Media worldwide.

4.4.1.     The non-competition provisions set forth in Section 4.4 above shall not apply to the
exploitation, by Globosat and its Affiliate Companies, of Adult Content through Wireless,
Internet and print media; provided that: (i) any such exploitation is not branded with a
United States based Adult Content magazine (including, but not limited to, Penthouse,
Hustler and Playgirl); (ii) exploitation through Internet and Wireless shall only be in
connection with print media; and (iii) the Venture shall be provided with any and all
benefits, revenues, direct costs and rights from such exploitation through Internet and
Wireless.

4.4.2.     For the avoidance of doubt, the non-competition provisions set forth herein shall
not be applied to the distribution of Adult Content to consumers by Globosat and its
Affiliate Companies through companies whose purpose is the distribution of: (i) linear
services, whether on subscription, pay-per-view, video-on-demand, a la carte, free basis; or (ii) DVD/Home Video; including, but no limited to,
Sky Brasil Serviços Ltda., Net Serviços S/A, GloboFilmes and SIGLA — Sistema Globo de
Gravações Audiovisuais Ltda.

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4.5.     For the avoidance of doubt, the non competition provisions shall not be applied to the Playboy
Lifestyle Channel or any similar programming. For further avoidance of doubt, nothing in this
Parent Company Agreement nor in the MOU may be construed as a limitation to the Venture’s capacity
in competing with Club Jenna, Inc. and its subsidiaries, in Brazil.

SECTION V

PEGI’S ADDITIONAL OBLIGATIONS

5.1.     In addition to the obligations undertaken by PTVLA in the MOU, on its behalf and on behalf of
its Affiliate Companies (including PEGI), PEGI, hereby, undertakes, unconditionally and
irrevocably, the following obligations toward Globosat and the Venture:

5.1.1.     Except as to media rights currently licensed to Abril and its Affiliated Companies
(print media, Internet and Wireless), PEGI undertakes and commits to provide a right of
first negotiation and a right of first refusal to the Venture with respect to any license
or negotiation involving the Playboy Branded Adult Content and Playboy Trademarks for the
Other Media in Brazil. To the extent the media rights currently licensed to Abril and its
Affiliated Companies (print media, Internet and Wireless) become available, due to either
the termination or the non-renewal of the existing Agreement with Abril, PEGI undertakes
and commits to provide a right of first negotiation and a right of first refusal to the
Venture in connection with such media rights. PEGI will notify the Venture within fifteen
(15) days of any of the above referenced rights becoming available in the Territory.
PEGI and the Venture will negotiate the Venture’s acquisition of such rights for a
minimum of thirty (30) days. If PEGI and the Venture do not agree upon terms for PEGI to
license the applicable rights to the Venture, PEGI will be free to negotiate an agreement
with a third party for such rights; provided that prior to execution of any agreement
with a third party for such rights, PEGI will give the Venture the right to match all,
but not less than all, material terms of the agreement with the third party for a period
of ten (10) days.

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5.1.2.     Simultaneously with the execution of the Definitive Agreements, PEGI shall grant
an exclusive license or sub-license to the Venture of all of the currently or in the
future owned libraries of Adult Content, broadcast Agreements, Trademarks and the
distribution rights for the use and exploitation of the Playboy Unbranded Adult Content
and an exclusive license or sub-license to the Venture for the Playboy Unbranded
Trademarks in Television and Other Media in the Territory during the Term; excluding
content owned or controlled by Club Jenna, Inc. and its subsidiaries. For the
implementation of the provisions of this Section, PEGI shall execute license Agreements
with the Venture in order to set forth the terms and conditions by which PEGI shall make
available, on an exclusive basis, to the Venture, to the extent PEGI has or controls
those rights, without any additional charge other than the fees owed to PEGI set forth in
Section 6.1.1 below, all the Playboy Unbranded Adult Content for the Television and Other
Media businesses already produced and/or distributed and/or to be produced and/or
distributed by PEGI or PTVLA in Latin America and/or targeted for exploitation in Latin
America by means of Television and the Other Media, provided that PEGI will be permitted
to create Content customized for customers outside Brazil for distribution on exclusive
basis in a single country in language other than Portuguese.

5.1.3.     PEGI shall grant to the Venture exclusive right to use and exploit in the
Territory the PEGI’s currently or in the future owned and/or licensed trademarks,
including (i) the Playboy Trademarks and Playboy Unbranded Trademarks, in connection with
the Adult Content for Television and (ii) the Playboy Unbranded Trademarks for Other
Media, subject to PEGI’s rights to use or license the Playboy Trademarks and Playboy
Unbranded Trademarks in connection with the licensing of Adult Content to third parties
permitted under the MOU and/or herein, and the limitations, scope and extent of rights
held by the PEGI for such trademarks (for example, the use of the Playboy Trademarks is
limited to Television).

5.1.4.     PEGI shall not, by any means, sell, assign, transfer, pledge or otherwise dispose
of or encumber any of its current or future Playboy Trademarks and Playboy Unbranded
Trademarks, or any interest therein, to any Person, to the extent that such action would
have a material negative effect to the rights to be licensed to the Venture.

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5.1.5.     In the event that PEGI has a veto right to prevent third parties from exploiting
linear transmission of a programming services with Playboy Branded Adult Content on Other
Media in the Territory, PEGI will use best efforts to exercise such veto right.

5.1.6.     In the event of the expiration or termination of PTVLA’s rights with regards to
PEGI’s Adult Content currently licensed or in any other way assigned to PTVLA, and that
were sub-licensed or in any other way assigned to the Venture, PEGI shall license or in
any other way assign such rights directly to the Venture on the same terms and conditions
as set forth in the MOU and/or in the Definitive Agreements.

5.1.7.     Nothing in this Parent Company Agreement will prevent PEGI from operating websites
outside Brazil in languages other than Portuguese, nor will the provisions of this Parent
Company Agreement apply to affiliate programs aimed at directing traffic to any PEGI
operated website; provided that none of the applicable websites may be in the Portuguese
language.

SECTION VI

PEGI’S ADDITIONAL RIGHTS

6.1.     In addition to the rights of PEGI and/or PTVLA under the MOU, Globosat, on its behalf and on
behalf of the Venture, hereby, undertakes, unconditionally and irrevocably, to grant the following
rights to PEGI:

6.1.1.     In consideration for the licensing of Playboy Unbranded Adult Content rights to
the Venture pursuant to this Parent Company Agreement, PEGI shall receive during the
Term, 9.5% (nine point five percent) of the Other Media Net Revenues for such relevant
period, paid on a quarterly basis at the same time called for the Venture to pay
quarterly dividends under the MOU.

6.1.2.     PTVLA and PEGI shall be the exclusive distributor for the Venture’s Original
Content outside Brazil, being certain that PEGI shall be the exclusive distributor for
the Venture’s Original Content worldwide outside of Latin America and Iberia. PTVLA shall
inform to the Venture whether PTVLA or PEGI shall be the exclusive distributor for the
Venture’s Original Content in Latin America (outside Brazil) and Iberia. Whenever
applicable, PEGI or PTVLA and the Venture shall negotiate in good faith the terms and
conditions for such distributor agreements including the commissions to be paid to PEGI.

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6.1.3.     In the event any Playboy Branded Adult Content and/or Playboy Unbranded Adult
Content is created as Venture’s Original Content during the Term, then PEGI shall have
the right to, up to 30 (thirty) days prior to the end of the Term or the Extended Term,
as the case may be, notify the Venture informing its intention to acquire such content
for a price equal to 25% (twenty-five percent) of the aggregate amount of actual out of
pocket productions costs incurred by the Venture. In the event such right is not
exercised by PEGI, the Venture shall remove from such contents all Playboy Branded and
Playboy Unbranded Trademarks and any look and feel contained therein which is reasonably
associated with such brands.

6.1.3.1.     In any event, the enforceability of the notification provided for
previous Section shall be contingent upon the effective end of the Term or
the Extended Term, as the case may be.

6.1.4.     During the initial 3-year period of the Venture, PEGI shall have the right to
include as Playboy Unbranded Adult Content, on irrevocable terms, all or any of its
rights arising from, or in connection with, Club Jenna, Inc., and any Content contributed
under this Section will become Playboy Unbranded Adult Content.

6.2.     As between Claxson and PEGI, regardless of other distribution provisions contained in
agreements between PTVLA and PEGI, Claxson will cause PTVLA to distribute one hundred percent
(100%) of all amounts received by PTVLA with respect to content by means of distribution methods
for which PTVLA did not have the right to distribute on prior to execution of this Agreement.

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SECTION VII

VENTURE’S ADDITIONAL OBLIGATIONS

7.1.     In addition to the obligations provided for the Venture in the MOU, Globosat undertakes to,
unconditionally and irrevocably, cause the Venture to comply with the following obligations toward
PEGI:

7.1.1.     The Venture shall only exploit Playboy Branded Adult Content solely with respect
to Television and Other Media subject to the restrictions set forth in the MOU.

7.1.2.     Venture shall comply with the brand and trademark guidelines, quality standards
and content standards of PEGI (as set forth in Exhibit 6.2 (vi) of the MOU).

7.1.3.     PEGI, hereby, gives to Globosat, PTVLA and the Venture permission to gratuitously
use the tradename “Playboy” as part of Venture’s corporate name. Globosat acknowledges,
accept and agree that it and the Venture have no rights to the tradename “Playboy” not
specified herein, in the MOU or in the Definitive Agreements and will not incur any
rights and will retain no rights whatsoever to the tradename “Playboy” during and after
the Venture’s use of such tradename other than as specified herein, in the MOU and in the
Definitive Agreements. In addition, immediately following the expiration or termination
of the Venture’s right to use the Playboy Trademarks, the Venture will change its name so
that the tradename “Playboy” is no longer part of the Venture’s name and the Venture will
immediately destroy all stationery, business cards and other materials containing the
tradename “Playboy”.

7.1.4.     In the event that PEGI enters into an Agreement with a third party integrator with
respect to the distribution of Adult Content in Brazil, by means of Wireless
distribution, including the Playboy Branded Adult Content and Playboy Unbranded Adult
Content, the Venture will honor the terms of the Agreement with such third party
integrator; provided that such Agreement shall be analyzed case by case according to the
following: (i) target the distribution of such media in, at least, one or more of Latin
America, Asia or Europe; and (ii) set forth equitable provisions with respect to Brazil
in comparison to any other country in Latin America in regard to the terms and conditions
in such integrator’s Agreement; and (iii) not limit the Venture’s capacity of exploiting
Adult Content (except for Playboy Branded Adult Content and Playboy Unbranded Adult
Content) through Television and Other Media in the Territory; and (iv) be on commercially
reasonable terms; and (v) be in compliance with current Brazilian Law, if existing at the
time; and (vi) be in compliance with Globosat and its Affiliate Companies policies and
practices at the time in regards to its interpretation of Brazilian Law; being agreed
that the Venture shall be provided with any and all of PEGI’s benefits, revenues, direct
costs and rights from such agreement.

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SECTION VIII

ADDITIONAL UNDERTAKINGS

8.1.     For the purposes of this Parent Company Agreement and the MOU, it shall be understood that (a)
either Claxson or PEGI Controls PTVLA, (b) PEGI and/or Claxson shall not materially diminish
PTVLA’s line of business related to its Adult Content business, and (c) PEGI undertakes to maintain
in full force and effect the License Agreements even in the event it ceases to hold equity
participation in PTVLA.

SECTION IX

CLOSING

9.1.     Subject to the provisions of this Parent Agreement Agreements and the MOU, the closing of the
transactions contemplated herein shall occur on or before the Closing Date and shall take place at
the offices of Globosat, or in such other place as may be agreed upon in writing by the Parties.

9.2.     At the Closing Date, the Parties shall:

	 	(i)	 	execute the Definitive Agreements;
	 
	 	(ii)	 	confirm that all the representations and warranties provided
for in Section III above are still true, accurate, valid and complete; and
	 
	 	(iii)	 	shall deliver legal opinions in English language, by law
offices legally authorized to practice law at their respective jurisdictions,
attesting that (i) each Party, as the case may be, has full corporate power
and authority to execute and deliver this Parent Company Agreement, (ii) each
Party, as the case may be, is able to perform its obligations herein and to
consummate the transactions contemplated hereby, (iii) the execution and
delivery of the Parent Company Agreement, and the performance of its
obligations provided herein, have been duly authorized by all requisite
corporate actions of the relevant Party, and (iv) the legal representatives of
the relevant Party who sign this Parent Company Agreement are duly empowered
to execute such documents, without any restriction.

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SECTION X

DEFINITIVE AGREEMENTS

10.1.     Besides the Definitive Agreements set forth in the MOU, the Parties shall also execute and
deliver — or cause the execution and delivery of — any and all documents regarding the licensing or
sub-licensing to the Venture of all of the currently existing or acquired in the future libraries
of Adult Content, broadcast Agreements, Trademarks and the distribution rights for the use and
exploitation of the Playboy Unbranded Adult Content and exclusive licensing or sub-licensing to the
Venture for the Playboy Unbranded Trademarks in Television and Other Media in the Territory during
the Term; subject to all limitations and other provisions hereunder.

SECTION XI

CONFIDENTIALITY

11.1.     Each Party undertakes to the other Parties that it (i) will not at any time, either during or
after the term of this Parent Company Agreement, and/or the MOU, and/or any of the Definitive
Agreements, use or divulge to any Person nor publish, or disclose or permit to be published or
disclosed, any secret or Confidential Information relating to the Venture or any other Party which
it has received or obtained, or may receive or obtain (whether or not, in the case of documents,
they are marked as confidential), except in the proper course of the provision of services on
behalf of the Venture; and (ii) will not at any time, either during or after the term of this
Parent Company Agreement, except as required by the Venture or by the other Parties, retain,
duplicate or remove from the Venture’s premises Confidential Information relating to the Venture or
any other Party in whatsoever form, which is supplied by the Venture or any other Party to it or
which comes to its notice during the period of this Parent Company Agreement, the MOU and/or any of
the Definitive Agreements; except to the extent disclosure is required as a matter of law or
regulation (including the rules and regulations of a stock exchange or a regulatory agency) or such
information is in the public domain by means not contrary to this confidentiality provision.

SECTION XII

TERM AND EXCLUSIVITY PERIOD

12.1.     With exception of the provisions set forth in Section XI above, which shall remain in full
force and effect for the period therein established, this Parent Company
Agreement shall be in full force and effect upon its execution and shall be valid until the later
of (i) the term of the MOU, or (ii) the term of the Shareholders’ Agreement.

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12.2.     The Parties agree to work on an exclusive basis for the Exclusivity Period. During the
Exclusivity Period, except with respect to the Playboy Brazil Magazine Assets, the Parties agree
not to contact any third party, or solicit or entertain any offers for purpose of entering into any
transaction related directly or indirectly to the development and exploitation of Adult Content in
Television and Other Media in Brazil. The Exclusivity Period can be extended by the mutual written
consent of all Parties.

12.3.     The Parties shall be jointly responsible and shall take all necessary measures for the timely
submission of the transactions contemplated herein to CADE, as well as to endeavor to obtain such
authority’s full approval of the transactions contemplated herein.

12.3.1.     The Parties shall be jointly represented before CADE by one (01) Brazilian law
firm, which shall be contracted by consensus among the Parties.

12.3.2.     PEGI is not responsible for any expenses, costs and/or fees relating to the filing
of documents with CADE (including attorney’s fees), other than fees incurred for the
retention of counsel to represent PEGI in this transaction.

12.3.3.     All the documents related to the Venture shall be filed before the CADE by the
Parties within 15 (fifteen) days after the signature of this Parent Company Agreement.

12.3.4.     The Parties will jointly determine who shall lead all filings and conversations
with, responses to, and all other communication with the Governmental Authorities in Brazil
relating to the consummation of the transactions contemplated by this Parent Company
Agreement.

12.3.5.     Each of the Parties shall (i) provide the law firm in charge of the filing before
CADE, as established in Section 12.3.1 above, with any and all information required to
prepare the necessary documentation to obtain the approval from the antitrust authorities,
subject to the failure to comply with such obligation pursuant to Section 12.3.6 below;
(ii) consult with each other prior to any filing or application relating to the
transactions contemplated by this Parent Company Agreement or any other Agreement; (iii)
share all relevant information relating to such filings and conversations, to the extent
that the information

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provided is not confidential to such Party; (iv) allow the law firm in charge of the filing
to provide the other Parties copies of all filings supplied by such Party or any of its
Affiliate Companies to any Governmental Authority, in connection with this Parent Company
Agreement or any other Agreement and the transactions contemplated hereby, to the extent
that the information provided is not confidential to such Party; and (v) provide each other
with advance notice of any meetings regarding such filings or other communications and, at
any other Party’s request, the opportunity to participate in such meetings and
conversations. Notwithstanding the foregoing, nothing in this Section 12.3 and its
sub-items shall be construed to restrict the ability of any Party or any of its Affiliates
to comply with applicable Laws, provided that the other Parties, as far as
practicable, are given reasonable notice and reasonable ability to consult before any such
compliance is effected.

12.3.6.     The Parties further agree that each Party is fully and solely responsible for the
supply of any information relating to such Party or any of its Affiliate Companies
requested by CADE (or any other Governmental Authority) in connection with the filings
hereunder, and that any penalty imposed by CADE under Brazilian Federal Law no. 8.884 of
June 11, 1994, as amended from time to time, or by any other Governmental Authority for
failure to provide such information shall be borne by the Party that failed to comply with
such Law, and, accordingly, such Party shall indemnify, promptly defend and hold the other
Parties harmless from any penalty or liability arising therefrom.

12.3.7.     The Parties shall take all measures in order to contribute to CADE’s prompt and
full approval and to ensure the practical results intended by CADE’s decision, preserving
the full intent of the terms agreed to pursuant to this Parent Company Agreement.

12.3.8.     If CADE imposes any conditions or restrictions to the Venture or imposes amendments
of any terms and conditions set forth in this Parent Company Agreement, the Parties shall
make their good-faith efforts, at their own exclusive costs, to reach a joint and mutual
agreement with regard to the restrictions and/or orders imposed by CADE. If, upon mutual
agreement by the Parties, the conditions, restrictions and/or amendments to the Parent
Company Agreement are considered to materially affect the Venture, any Party may terminate
this Venture without any liability. The Parties agree that, in such case, no
indemnification or payments of whatever nature shall be due by any Party to the others.

15

 

12.3.9.     Notwithstanding anything to the contrary in this Parent Company Agreement or any
other Agreements, Globosat shall not be required to agree to any restrictions on its
business or that of any of its Affiliate Companies in order to gain any governmental
approval necessary for the consummation of the transactions contemplated hereby or by any
other Agreement. In the event that any Governmental Authority proposes to impose any such
restrictions or requires concessions on the business of Globosat, GCP and/or any of its
Affiliate Companies in order to gain any governmental approval and such restrictions and
concessions, individually and in the aggregate, do or will, in Globosat’s good-faith view,
directly or indirectly adversely affect or otherwise affect in any respect any of Globosat,
GCP and/or any of its Affiliate Companies (including any position inconsistent with any
interest of any of Globosat, GCP and/or any of its Affiliate Companies to any Governmental
Authority) (collectively, the “Globo Restrictions”), Globosat shall have the right to
determine, in its reasonable discretion, whether or not to accept such Globo Restrictions,
and shall negotiate such Globo Restrictions — but only so long and to the extent that such
restrictions and concessions continue, individually and in the aggregate, to constitute
Globo Restrictions — with the relevant authorities on behalf of the Parties, provided
that Globosat shall determine, in its sole discretion, whether or not to accept such
Globo Restrictions and/or to terminate the Venture without any liability. The Parties
hereby agree that, in such case, no indemnification or payments of whatever nature shall be
due by Globosat, GCP and/or any of its Affiliate Companies to any other Party, nor shall
any other Party be required to indemnify or pay Globosat hereunder.

SECTION XIII

TERMINATION OF THE SHAREHOLDERS’ AGREEMENT

13.1.     In the event of a termination of the Shareholders’ Agreement pursuant to a Termination Event
caused by PTVLA, PEGI will have the right to acquire PTVLA’s Shares for a period of 60 (sixty) days
counted from the Termination Event, and adhere irrevocably to the Shareholders’ Agreement on the
same ongoing terms and conditions.

13.2.     In the event PEGI does not exercise its option pursuant to Section 13.1 above, PEGI
undertakes not to, and shall cause its Affiliate Companies not to compete, directly and/or
indirectly, with the activities of the Venture, specifically related to the exploitation,
development, operation, distribution, production and commerce of Adult Content in Television and
Other Media, except for Playboy Brazil Magazine Assets. This non-competition covenant is valid
within Brazil, and shall be fully enforceable, and
in full force and effect as of the date of the Termination Event and for a period of 2 (two) years
counted from the date PTVLA ceases to own any Shares in the Venture.

16

 

SECTION XIV

GENERAL PROVISIONS

14.1.     The Parties agree that this Parent Company Agreement is entered into between them and will be
performed by each of them in a spirit of mutual co-operation, trust and confidence. Each Party
undertakes to use all means reasonably available to achieve the objectives of this Parent Company
Agreement and to ensure compliance by such Party’s Affiliate Companies with its obligations.

14.2.     The Parties acknowledge that this Parent Company Agreement constitutes extrajudicial title
for enforcement for all the purposes of articles 461, 466-A and following of the Brazilian Code of
Civil Procedure.

14.3.     Except as provided for under this Agreement or the MOU, no Party shall assign, transfer,
encumber or otherwise dispose of its rights and duties under this Parent Company Agreement, in
whole or in part, to any Person, without the prior written consent of the other Parties. This
Parent Company Agreement shall be binding upon and shall inure to the benefit of the
Parties and their respective administrators, successors and permitted assigns.

14.4.     This Parent Company Agreement together with any document referred to herein constitutes the
whole agreement between the Parties and supersedes any prior agreements, understandings or
arrangements between them, whether oral or in writing, relating to the subject matter hereof and no
representations, undertaking or promise shall be taken to have been given or be implied from
anything said or written in negotiations between the Parties prior to this Parent Company Agreement
except as set out in this Parent Company Agreement.

14.5.     No amendment to this Parent Company Agreement shall be effective unless in writing and signed
by duly empowered representatives of all Parties.

14.6.     All notices and other communications required or permitted hereunder shall be made in
writing. Such notices shall be delivered personally, sent by facsimile transmission, confirmed in
writing, courier or registered mail, return receipt requested, postage prepaid, to the addresses
and facsimile numbers below, unless notice of change of addresses and/or facsimile numbers has been
given in writing in accordance with this

17

 

Section, in which case any notices shall be sent to such new addresses and/or facsimile numbers.
The Party giving notification or communication as provided for in this Parent Company Agreement
shall obtain dated evidence of delivery and the notification or communication shall be deemed to
have been given on the date indicated in the proof of delivery.

If to Globosat, to:

Globosat Programadora Ltda.

Rua Itapiru 1209 — parte

Rio Comprido, RJ

Rio de Janeiro — Brazil

Attn: Sr. Alberto Pecegueiro

Tel:     55-21-2503-3535

Fax:     55-21-2273-2770

If to Claxson, to:

Claxson Interactive Group, Inc.

1550 Biscayne Boulevard,

Miami, Florida, USA 33132

Attn: General Counsel

Tel.:     1-305-894-3500

Fax:     1-305-894-4803

If to PEGI, to:

Playboy Entertainment Group, Inc.

2706 Media Center Drive

Los Angeles, CA 90065

Attn: Managing Director, International

cc: Legal Department

Tel:     1-323-276-4000

Fax:     1-323-276-4500

14.7.     The failure of any Party to enforce or exercise, at any time or for any period of time, any
term of or any right or remedy in connection with or arising pursuant to or under this Parent
Company Agreement does not constitute, and shall not be construed as, a waiver of such term or
right or remedy and shall in no way affect that Party’s right later to enforce or exercise it.

18

 

14.8.     If any provision or part of a provision of this Parent Company Agreement shall be, or be
found to be by any court of competent jurisdiction to be, invalid or unenforceable, such invalidity
or enforceability shall not affect the other provisions or parts of this provision or of this
Parent Company Agreement, all of which shall remain in full force and effect.

14.9.     This Parent Company Agreement and the obligations and rights established herein, the
Definitive Agreements and any other documents and Agreements that shall be executed by the Parties
as a result of the incorporation of the Venture, shall be construed in accordance with and shall
always be subject to the Laws of Brazil.

14.10.     Any dispute, controversy or claim arising out of, relating to, or in connection with, this
Parent Company Agreement, the Definitive Agreements and any other documents and Agreements that
shall be executed by the Parties as a result of the incorporation of the Venture, or the
performance, breach, termination or validity thereof, shall be submitted to the central courts of
the district of Rio de Janeiro, State of Rio de Janeiro, excluding any other, however privileged it
may be.

14.10.1.     Claxson and PEGI hereby irrevocably waive any immunity from jurisdiction of any
kind to which it may be or may come to be entitled, be it for the purposes of service of
process, performance, pledge, granting of a judicial or non-judicial warranty, performance
warranty (garantia de execução) or any other acts regarding negotiations, arbitration,
lawsuits or other kinds of judicial or non-judicial proceedings, hereby undertaking never
to allege in its favor such immunities from jurisdiction in any negotiation, arbitration,
lawsuit or any other kind of judicial or non-judicial proceeding related to its
obligations, liabilities or other matters related to this Parent Company Agreement or the
transactions contemplated hereby (including any liability for the payment of money).

14.10.2.     On or before the Closing Date, Claxson and PEGI, respectively, shall present to
Globosat certified copies of valid powers-of-attorney, each appointing a natural person
resident in Brazil to receive service of process on behalf of each of Claxson and PEGI in
all judicial or non-judicial proceedings related to this Parent Company Agreement.

14.11.     This Parent Company Agreement was originally drafted and negotiated in English and it shall
be executed in English, provided, however, that the Parties shall provide a sworn translation of
this Parent Company Agreement to the Portuguese language as soon as practicable; provided further
that the English version shall prevail.

19

 

IN WITNESS WHEREOF the Parties have caused this Parent Company Agreement to be executed in 04
(four) counterparts of like form and content, for one sole effect, in the presence of the 02 (two)
undersigned witnesses.

Rio de Janeiro, December 15, 2006

/s/ Alberto
Pecegueiro          /s/
Rosana Codaro

GLOBOSAT PROGRAMADORA LTDA.

/s/ Amaya Ariztoy

CLAXSON INTERACTIVE GROUP, INC.

/s/ Steve Smith

PLAYBOY ENTERTAINMENT GROUP, INC.

	 	 	 	 	 
	Witnesses:

 	 
	1.  	 	 
	Name:  	 	 
	ID no.: 	 
	 

	 	 	 	 	 
	Witnesses:

 	 
	2.  	 	 
	Name:  	 	 
	ID no.: 	 
	 

20EX-4.18 Share Purchase Agreement

 

Exhibit 4.18

SHARE PURCHASE AGREEMENT

BY AND AMONG

CLAXSON CHILE, S.A.

as “Seller”

AND

CLAXSON INTERACTIVE GROUP, INC.

as “Guarantor”

AND

GRUPO LATINO DE RADIODIFUSIÓN CHILE LIMITADA

AND

GLR SERVICES, INC.

as “Buyers”

dated December 22, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	PARTIES
	 	 	4	 
	 
	 	 	 	 
	RECITALS
	 	 	4	 
	 
	 	 	 	 
	OPERATIVE PROVISIONS
	 	 	5	 
	 
	 	 	 	 
	ARTICLE ONE — SALE OF SHARES
	 	 	5	 
	 
	 	 	 	 
	ARTICLE TWO — PRICE AND PAYMENT TERMS
	 	 	6	 
	 
	 	 	 	 
	ARTICLE THREE — ESCROW ACCOUNT
	 	 	6	 
	 
	 	 	 	 
	ARTICLE FOUR — BANK CREDITORS’ CONSENT
	 	 	8	 
	 
	 	 	 	 
	ARTICLE FIVE — CONDITION PRECEDENT
	 	 	8	 
	 
	 	 	 	 
	ARTICLE SIX — EFFECTIVE DATE
	 	 	9	 
	 
	 	 	 	 
	ARTICLE SEVEN — PROCEEDINGS FROM THE DATE OF EXECUTION OF THIS
AGREEMENT TO THE EFFECTIVE DATE
	 	 	10	 
	 
	 	 	 	 
	ARTICLE EIGHT — REPRESENTATIONS AND WARRANTIES OF CLAXSON CHILE AND
THE GUARANTOR
	 	 	11	 
	 
	 	 	 	 
	ARTICLE NINE — REPRESENTATIONS AND WARRANTIES OF BUYERS
	 	 	18	 
	 
	 	 	 	 
	ARTICLE TEN — INDEMNITY
	 	 	19	 
	 
	 	 	 	 
	ARTICLE ELEVEN — EXPENSES
	 	 	22	 
	 
	 	 	 	 
	ARTICLE TWELVE — NOTICES
	 	 	23	 
	 
	 	 	 	 
	ARTICLE THIRTEEN — PENALTY
	 	 	24	 
	 
	 	 	 	 
	ARTICLE FOURTEEN — NON-COMPETITION
	 	 	24	 
	 
	 	 	 	 
	ARTICLE FIFTEEN — RELEASE
	 	 	24	 
	 
	 	 	 	 
	ARTICLE SIXTEEN — CONFIDENTIALITY
	 	 	25	 
	 
	 	 	 	 
	ARTICLE SEVENTEEN — SEVERABILITY
	 	 	25	 
	 
	 	 	 	 
	ARTICLE EIGHTEEN — ANNEXES
	 	 	25	 
	 
	 	 	 	 
	ARTICLE NINETEEN — JOINT AND SEVERAL GUARANTY
	 	 	25	 
	 
	 	 	 	 
	ARTICLE TWENTY — NO ASSIGNMENT
	 	 	25	 
	 
	 	 	 	 
	ARTICLE TWENTY-ONE — GOVERNING LAW
	 	 	25	 
	 
	 	 	 	 
	ARTICLE TWENTY-TWO — DISPUTE RESOLUTION
	 	 	25	 
	 
	 	 	 	 
	ARTICLE TWENTY-THREE — JOINT AND SEVERAL LIABILITY
	 	 	26	 
	 
	 	 	 	 
	ARTICLE TWENTY-FOUR — POWERS OF ATTORNEY
	 	 	26	 

2

 

LIST OF ANNEXES

Annex 1.- Corporate Structure Chart. (IARC and Affiliates)

Annex 2.- Breakdown of the purchase price of the shares.

Annex 3.- Escrow Agreement.

Annex 5.- “Avales” and Guaranties.

Annex 8.6.- Financial Statements.

Annex 8.9.- Taxes.

Annex 8.10.- Contracts, Agreements and Practices.

Annex 8.12.- Real and Personal Property.

Annex 8.13.- Trademarks.

Annex 8.15.- Broadcasting Licenses.

Annex 8.16.- Employment and Service Contracts.

Annex 8.19.- Insurance.

Annex 8.20.- By-laws.

Annex 16.- Syndicated Banks’ Consent (Syndicated Loan)

3

 

This share purchase agreement (the “Agreement”) is entered into on December 22, 2006, by and among
(i) CLAXSON CHILE, S.A., a corporation organized and existing under the laws of Chile, with a
registered office at Avenida Eliodoro Yáñez No1783, Providencia, Santiago, Chile, Tax
Identification (“RUT”) No. 96.863.830-0, represented by José Antonio Ituarte (hereinafter referred
to as “SELLER” or “CLAXSON CHILE”); and (ii) CLAXSON INTERACTIVE GROUP, INC., a corporation
organized and existing under the laws of the British Virgin Islands, with a registered office at
1550 Biscayne Boulevard, Ground Floor, Miami, FL 33132, United
States, represented by _______________________ (hereinafter referred to as “CLAXSON INTERACTIVE” or the “GUARANTOR”), party of
the first part; and (i) GRUPO LATINO DE RADIODIFUSIÓN CHILE LIMITADA or GLR CHILE LIMITADA, a
limited liability company organized and existing under the laws of Chile, with a registered office
at Avenida Los Leones 2255, Oficina 604, Providencia, Santiago, Chile, Tax Identification (“RUT”)
No. 8.572.890-4, represented by Jaime de Polanco Soutullo (hereinafter referred to as “GLR CHILE”),
and (ii) GLR SERVICES, INC., a corporation organized and existing under the laws of Delaware,
United States, authorized to act in the State of Florida, United States, with a registered office
at 4770 Biscayne Boulevard, Suite 700, Miami FL 33137, United States, Identification No.
F00000002088, represented by Augusto Delkader Teig (hereinafter referred to as “GLR”); GLR CHILE
and GLR are hereinafter jointly referred to as the “BUYERS”; and the SELLER and BUYERS are jointly
referred to as the “Parties” and individually as a “Party”, subject to the following terms and
conditions.

The Parties acknowledge one another’s capacity to enter into this Agreement, and agree as follows:

RECITALS

One) SELLER owns all the shares of IBEROAMERICAN RADIO CHILE, S.A. f/k/a “Iberoamerican Radio
Holdings Uno Chile, S.A.”, (hereinafter “IARC”), a corporation organized and existing under the
laws of Chile, with a registered office at Avenida Eliodoro Yáñez No1783, Providencia, Santiago,
Chile, Tax Identification (“RUT”) No. 96.867.990-2, except for one share owned by El Sitio Chile
S.A.

Pursuant to the relevant by-laws, the capital stock of IARC amounts to 20,501,956,953 Pesos,
represented by 20.468.208 registered shares held as follows:

(a) CLAXSON CHILE owns 20,468,207 shares; and (b) El Sitio Chile S.A. owns one share.

Two) IARC in turn owns:

(i) 8,855,314 shares of Radiodifusión Iberoamerican Chile S.A.;

(ii) 2,680,500 shares of Iberoamerican Radio Holdings Chile S.A.;

(iii) 568,676 shares of Abril S.A.;

(iv) 1 share of Blaya y Vega S.A.; and

(v) 0.1% of the capital stock of Sociedad de Radiodifusión El Litoral Limitada.

Three) Additionally, SELLER owns:

(i) 1 share of Aurora S.A.;

(ii) 1 share of Abril S.A.;

(iv) 1 share of Compañía de Radios S.A.; and

4

 

(v) 1 share of Radiodifusora Transitoria S.A.

Four) El Sitio Chile S.A. owns one share of stock of each of the following companies:

(i) 1 share of Radiodifusión Iberoamerican Chile S.A.; and

(ii) 1 share of Iberoamerican Radio Holdings Chile S.A.

All of the abovementioned companies are hereinafter jointly referred to as the “Affiliates”.

The corporate structure of IARC and Affiliates, and the respective interests in their capital
stock, is enclosed as Annex 1 hereto.

Five) IARC and the Affiliates operate FM radio broadcasting stations in several cities in Chile,
currently known as “Imagina”, “Rock and Pop”, “Concierto”, “Futuro”, “FM Dos”, “Corazón”,
“Pudahuel” and “FM Hit” (the “Radio Business”);

Six) SELLER wishes to sell, transfer and assign to BUYERS, and BUYERS wish to buy and acquire from
SELLER, all of the shares of IARC held by SELLER, and all of the Affiliates’ shares held by SELLER.
BUYERS further wish to buy from El Sitio Chile S.A. all of the shares of IARC and the Affiliates
owned by El Sitio Chile S.A.

Now, therefore, in consideration of the premises and further in consideration of the
representations, warranties, covenants and other agreements contained herein, the parties enter
into this Share Purchase Agreement, in accordance with the following

OPERATIVE PROVISIONS

ARTICLE ONE — SALE OF SHARES

In accordance with the terms of this Agreement and subject to the Condition established in Article
Five below, CLAXSON CHILE hereby sells, assigns and transfers to GLR CHILE, and GLR CHILE buys,
accepts and acquires, 20,468,207 IARC shares, recorded in the name of CLAXSON CHILE on page 002 of
the Stock Record Book of IARC, as evidenced by share certificate No. 007.

Likewise, and subject to the Condition established in Article Five below, CLAXSON CHILE hereby
sells, assigns and transfers to GLR CHILE the following shares: (i) one share of Aurora S.A.,
recorded in the name of CLAXSON CHILE on page 4 of the Stock Record Book of Aurora S.A., as
evidenced by share certificate No. 4; (ii) one share of Abril S.A., recorded in the name of CLAXSON
CHILE on page 004 of the Stock Record Book of Abril S.A., as evidenced by share certificate No. 11;
(iii) one share of Compañía de Radios S.A., recorded in the name of CLAXSON CHILE on page 07 of the
Stock Record Book of Compañía de Radios S.A., as evidenced by share certificate No. 13; and (iv)
one share of Radiodifusora Transitoria S.A., recorded in the name of CLAXSON CHILE on page 06 of
the Stock Record Book of Radiodifusora Transitoria S.A., as evidenced by share certificate No. 12;
all of which is bought, accepted and acquired by GLR CHILE.

The shares referred to above, along with the shares referred to above in 6.3 below, make up the
whole “Radio Business”.

The shares owned by SELLER and referred to in this Article One, have been fully paid and are sold
free and clear of any and all liens, charges, options, pledges and third-party claims (“Liens”),
except for certain pledges and prohibitions to encumber and sell as established in accordance with
the terms of the Syndicated Loan (as defined in Article Two below) and listed in Annex 5 hereto.

5

 

ARTICLE TWO — PRICE AND PAYMENT TERMS

The purchase price of the shares (the “Purchase Price”) referred to in Article One above shall be
the amount that results from deducting the amount of the financial liability (hereinafter the
“Financial Liability”) outstanding as of the Effective Date (as defined below) under the IARC
Syndicated Loan evidenced in a public deed dated April 26, 2000 recorded in Santiago by Eduardo
Pinto Peralta, a Notary Public, under No. 8.799-2000, as amended by a public deed dated December
12, 2002 recorded in Santiago by José Musalem Saffie, a Notary Public, under No. 14.261-2002, and
as further amended by a public deed dated June 25, 2004 recorded in Santiago by Patricio Zaldívar
Mackenna, a Notary Public, under No. 10.671-2004, executed with Corpbanca, Scotiabank and Bank
Boston (hereinafter the “Syndicated Loan”), from the amount of seventy five million United States
dollars (US$75,000,000). The agent under the Syndicated Loan is Corpbanca. For purposes of the
calculation referred to in this paragraph, the amount of the Financial Liability outstanding as of
the Effective Date shall be converted into United States Dollars at the exchange rate published on
the Effective Date.

In order to calculate the Purchase Price, at least five (5) business days before the Effective Date
(as defined below) CLAXSON CHILE shall send to GLR CHILE a certification issued by the agent
referred to in the immediately preceding paragraph (the “Certification”), stating the amount of the
Financial Liability (principal and interest) as of the month immediately preceding the Effective
Date (as defined below). The Parties agree that the Purchase Price includes the purchase price of
the shares of El Sitio Chile S.A., in accordance with the provisions of Section 6.3 below.

Buyers shall pay the Purchase Price to CLAXSON CHILE on the Effective Date, in United States
dollars, as follows: (a) by allocating the amount of Deposit 1 (as defined in Section 3.4 below) to
partial payment of the Purchase Price, which amount shall nevertheless remain deposited in the
Escrow Account (as defined below) for the purposes contemplated in Section 3.4 below, whereupon
Deposit 2 (if established in accordance with the provisions of Article Three below) shall be made
immediately available to, and shall be owned by, CLAXSON CHILE, without any retention or security
interest; and (b) the remaining portion of the Purchase Price, that is to say, the Purchase Price
minus the amount of Deposit 1 and Deposit 2 (if established), by wire transfer of immediately
available funds into the following U.S. Dollar checking account held by CLAXSON CHILE in Banco de
Crédito de Inversiones: account No. 11048565.

The breakdown of the Purchase Price per share shall be included in Annex 2 hereto, to be enclosed
herewith on the Effective Date (as defined below), and which is made a part hereof for all legal
purposes.

ARTICLE THREE — ESCROW ACCOUNT

	3.1.	 	On even date herewith, GLR, acting on its own behalf and on behalf of GLR CHILE, CLAXSON
CHILE and The Bank of New York, a banking corporation organized and existing under the laws of
the State of New York, United States (hereinafter the “Escrow Agent”), are entering into an
escrow account agreement that is enclosed as Annex 3 hereto (hereinafter the “Escrow
Agreement”), whereby GLR is depositing an amount of FIVE MILLION UNITED STATES DOLLARS
(US$5,000,000) into an account opened at the Escrow Agent (the “Escrow Account”) (hereinafter
the “Deposit 1”).

	3.2.	 	Likewise, if the initial term for the Effective Date is extended in accordance with the
provisions of Article Five below, Buyers shall deposit in the Escrow Account opened at the
Escrow Agent an additional amount of FIVE MILLION UNITED STATES DOLLARS (US$ 5,000,000)
(hereinafter the “Deposit 2”).

6

 

	3.3.	 	The amounts deposited in the Escrow Account (the Deposit 1 and, if applicable, the Deposit 2)
shall be transferred by the Escrow Agent to CLAXSON CHILE in the following events:

	 	(i)	 	In the event that (a) after all the terms contemplated in Section 5.2 below have
expired, Consent for acquisition of IARC Shares by GLR CHILE has not been obtained; or
(b) in the event that no Consent has been obtained by the end of Term 1 contemplated in
Section 5.2, and GLR CHILE chooses not to extend the term to secure such Consent; or (c)
in the event that no Consent has been obtained by the end of Term 2 contemplated in
Section 5.2, and GLR CHILE chooses not to extend the term to secure such Consent; or

	 	(ii)	 	In the event that Buyers fail to discharge their obligation to pay the Purchase
Price on the Effective Date, once the Consent has been obtained.

	3.4.	 	On the Effective Date, simultaneously with payment of the Purchase Price as provided by
Article Two, Deposit 1 —that is to say, an amount of FIVE MILLION UNITED STATES DOLLARS
(US$5,000,000)- shall become the property of CLAXSON CHILE, which amount shall remain
deposited in the Escrow Account and shall be pledged in favor of Buyers as security for the
accuracy of the “Representations and Warranties” of CLAXSON CHILE and the GUARANTOR made in
Article Eight below, and as security for the events of “Indemnity” contemplated in Article Ten
below, so that any such indemnities to be paid by CLAXSON CHILE or the GUARANTOR thereunder
shall be primarily charged to Deposit 1 until Deposit 1 becomes exhausted, without prejudice
to the right of GLR CHILE to seek payment by CLAXSON CHILE and the GUARANTOR of any amounts
not covered by Deposit 1, up to the aggregate amount of US$8,000,000, in accordance with the
provisions of Section 10.6 below.

	3.5.	 	The amount deposited as security in favor of Buyers (Deposit 1) as established in Section 3.4
above shall be released and made immediately available to CLAXSON CHILE as follows:

	 	(i)	 	On the second anniversary of the Effective Date: 40%;
	 
	 	(ii)	 	On the third anniversary of the Effective Date: 40%; and
	 
	 	(iii)	 	On the sixth anniversary of the Effective Date: 20%.

	 	 	Notwithstanding the provisions of (i), (ii) and (iii) above, the amount of any Claims by BUYERS
or third parties against CLAXSON CHILE and/or the GUARANTOR shall be deducted from the amounts
to be released under Deposit 1, until the admissibility or inadmissibility of any such Claim is
finally resolved.
	 
	3.6.	 	In the event that CLAXSON CHILE fails to discharge its obligations established in Article Six
on the Effective Date, once Consent has been obtained, the Escrow Account (Deposit 1 and, if
applicable, Deposit 2) shall be transferred by the Escrow Agent to Buyers.
	 
	3.7.	 	Interest accrued on the Escrow Account shall be distributed as follows:

	 	(i)	 	to Buyers: until the earlier of the following events has occurred: (x) the
Effective Date (such date included); or (y) until expiration of the Term 1, Term 2 or
Term 3, as applicable in accordance with the provisions of Section 5.2 below;
	 
	 	(ii)	 	to CLAXSON CHILE: after the date when any of the events described in paragraph
(i) above has occurred.

7

 

	3.8.	 	For purposes of this Article, GLR CHILE hereby grants an irrevocable power of attorney in
favor of GLR, in the terms of Section 241 of the Commercial Code, so that GLR, acting on its own
behalf and on behalf of GLR CHILE, may execute the Escrow Agreement, deposit the amounts referred
to in this Article in the Escrow Account, instruct the Escrow Agent to release the amounts
deposited in the Escrow Account, and generally represent GLR CHILE in connection with performance
under the Escrow Agreement.

ARTICLE FOUR — BANK CREDITORS’ CONSENT

	4.1	 	Before the date hereof, SELLER and BUYERS have obtained the express consent of Corpbanca,
Scotiabank and Bank Boston (creditors under the Syndicated Loan, hereinafter the “Bank
Creditors”), acting through the Agent Corpbanca, to enter into this Agreement and accordingly
to transfer to BUYERS, on the Effective Date, the shares of IARC and the Affiliates held by
SELLER and El Sitio Chile S.A. Evidence of Bank Creditors’ consent is included as Annex 16
hereto. For this purpose, GLR CHILE agrees to become a guarantor in favor of the banks under
the Syndicated Loan, effective on the Effective Date, in substitution for SELLER, in the same
terms as SELLER currently acts as guarantor under the Syndicated Loan.

ARTICLE FIVE — CONDITION PRECEDENT

The effects of the purchase of shares subject matter hereof, without prejudice to those obligations
that, by the terms hereof, become due on the date of execution of this Agreement, shall be subject
to satisfaction of the following condition precedent:

	5.1.	 	The Parties acknowledge that purchase of shares contemplated in this Agreement requires the
Consent of the Anti-trust Court (“TDLC”, as per the Spanish acronym) and accordingly agree to
subject the effectiveness and consummation of the purchase transaction contemplated hereby to
satisfaction of the condition precedent that consists of obtaining TDLC’s favorable report
referred to in Section 38 of Act No. 19.733 (the Press Act) (hereinafter referred to as the
“Condition” or the “Consent”). For this purpose, the transaction subject matter hereof shall
be consulted by Buyers with TDLC. In order to cooperate with the applicable authorities and
facilitate satisfaction of the Condition, Buyers shall also consult TDLC voluntarily in
connection with the transaction subject matter hereof, in accordance with the procedure
established by Section 31 of Executive Order No. 211, issued in 1973 (DFL-I, published on
March 7, 2005).
	 
	5.2.	 	Accordingly, the effectiveness and consummation of the purchase transaction contemplated
hereby shall be subject to the Condition being satisfied within 180 calendar days after the
date hereof (“Term 1”). This notwithstanding, if the Condition has not been met by the end of
that term, GLR CHILE may in its sole discretion extend the term for satisfaction of the
Condition for an additional 180 calendar days (“Term 2”) (in any case, GLR CHILE shall first
comply with the provisions of Section 3.2 above by making Deposit 2). If the Condition has not
been met by the end of the extended term, GLR CHILE may in its sole discretion extend the term
for satisfaction of the Condition for an additional 90 calendar days (“Term 3”) (in which case
no additional deposit shall be required). If no Consent has been obtained by the end of all
the abovementioned terms, the Condition to which consummation and effects of this Agreement
are subject shall be regarded as not satisfied. Also, the Condition shall be regarded as not
satisfied if no Consent has been obtained by the end of Term 1 and GLR CHILE chooses not to
extend the applicable term; or if no Consent has been obtained by the end of Term 2 and GLR
Chile chooses not to extend the applicable term. If the Condition is not satisfied, CLAXSON
CHILE shall be entitled to receive Deposit 1 and Deposit 2 (if established), in accordance
with the provisions of Section 3.3(i) above.

8

 

	5.3.	 	After the Effective Date (as defined below), SELLER shall cooperate with BUYERS in order to
notify the applicable radio broadcasting authorities about the transfer of shares of SELLER
implemented in this Agreement, as well as the resulting change of control of the broadcasting
licenses operated by IARC and its Affiliates, at the applicable times.

ARTICLE SIX — EFFECTIVE DATE

	6.1.	 	The date -after the Condition has been met- when the sale transaction subject matter hereof
shall be regarded as consummated and shall become effective (the “Effective Date”), shall be
the fifth business day immediately following the date when TDLC notifies the Parties about the
favorable report provided by Section 38 of the Press Act, in accordance with the provisions of
Article Five above, or any other date as the Parties may agree in writing.

	6.2.	 	On the Effective Date, BUYERS shall pay the Purchase Price to SELLER in accordance with the
provisions of Article Two above. SELLER in turn shall deliver the following to BUYERS:

	 	(i)	 	transfer of the shares subject matter hereof, duly signed by SELLER in favor
of BUYERS;
	 
	 	(ii)	 	certificates representing the shares of IARC and the Affiliates subject
matter hereof, issued in the name of BUYERS, and shall record all such shares in the
name of BUYERS in the Stock Record Books of IARC and the Affiliates;
	 
	 	(iii)	 	letters of unconditional resignation, effective as of the Effective Date,
from all directors of IARC and the Affiliates; and
	 
	 	(iv)	 	a certificate issued by the General Manager of IARC and the Affiliates,
stating thereon that all corporate and accounting books and records of IARC and the
Affiliates are available at IARC offices.

	6.3.	 	Additionally, as of the Effective Date, SELLER shall cause El Sitio Chile S.A. —on a
“third-party act” basis (“promesa de hecho ajeno”)- to sell, assign and transfer to GLR, by
executing the relevant documents of transfer, the following shares owned by El Sitio Chile
S.A.:

	 	(i)	 	one share of IARC, recorded in the name of El Sitio Chile
S.A. on page 004 of the Stock Record Book of that company, as evidenced by
share certificate No. 0008;
	 
	 	(ii)	 	one share of Radiodifusión Iberoamerican Chile S.A.,
recorded in the name of El Sitio Chile S.A. on page 6 of the Stock Record
Book of that company, as evidenced by share certificate No. 009; and
	 
	 	(iii)	 	one share of Iberoamerican Radio Holdings Chile S.A.,
recorded in the name of El Sitio Chile S.A. on page 7 of the Stock Record
Book of that company, as evidenced by share certificate No. 0008.

	 	 	The purchase price of the shares held by El Sitio Chile S.A. referred to in subsections
(i), (ii) and (iii) above is included in the Purchase Price, as provided in Article Two
above.

9

 

	6.4.	 	All transactions in connection with this Agreement to be carried out on the Effective Date
shall take place in Santiago de Chile or elsewhere as mutually agreed by the Parties in
writing. Any of the Parties may request that a Notary Public be involved in any such
transactions.

ARTICLE
SEVEN — PROCEEDINGS FROM THE DATE OF EXECUTION OF THIS AGREEMENT
TO THE
EFFECTIVE DATE

From the date of execution of this Agreement to the earlier of (i) the Effective Date (such date
included); or (ii) expiration of Term 1, Term 2 or Term 3, as the case may be, in accordance with
the provisions of Section 5.2 above:

7.1. CLAXSON CHILE shall provide GLR CHILE with bimonthly reports about any relevant events and
circumstances that have or may have a material adverse effect on the business of IARC and its
Affiliates.

7.2. IARC may prepay the Syndicated Loan in whole or in part.

7.3. Conduction of Business: CLAXSON CHILE agrees to conduct the business of IARC and its
Affiliates in accordance with the ordinary course of business and in a manner that is consistent
with past practices. CLAXSON CHILE shall make its best effort to maintain the corporate and
administrative organization of IARC and its Affiliates, the development of their activities, and
their relationship with clients and suppliers and other parties with whom they may have a
substantial business relationship. For illustrative purposes and without limitation, CLAXSON CHILE
shall not do any of the following with respect to IARC or the Affiliates, without GLR CHILE’s prior
consent:

(i) amend by-laws. By-laws may be amended with GLR CHILE’S prior consent, provided that
they have not or may not have a Material Adverse Effect, as defined in Section 7.4 below;

(ii) change the capital stock or create liens of any kind on the shares or any material
assets owned by it; for this purpose, the term assets shall particularly mean broadcasting
licenses, trademarks currently owned by it, and all major broadcasting equipment and
assets;

(iii) declare and/or pay dividends or other benefits in cash or in kind;

(iv) resolve to acquire other companies or assets related to the Radio Business in an
amount in excess of US$100,000, incur indebtedness, commitments or liabilities outside the
ordinary course of business, and create guaranties for third-party liabilities;

(v) voluntarily modify, in a manner that is extraordinary or inconsistent with past
practice in the ordinary course of business, the conditions of employment and compensation
applicable to employees and other associates, or agree to pay extraordinary indemnities to
managers, directors or employees;

(vi) allow IARC and/or the Affiliates to hire additional Personnel outside the ordinary
course of business;

(vii) modify recording procedures or accounting and tax policies in any material aspect,
except as permitted by applicable law;

10

 

(viii) settle and/or make non-mandatory payments in respect of claims, lawsuits or
proceedings of any nature in which it may be involved, in an aggregate amount in excess of
US$75,000;

(ix) prepay obligations of IARC and/or the Affiliates, except for total or partial
prepayment of the Syndicated Loan, in accordance with the provisions of Section 7.2 above;

(x) enter into agreements or incur obligations outside the ordinary course of business with
affiliates or other related parties. This type of agreements may be entered into, and this
type of obligations may be incurred, with GLR CHILE’s prior consent, provided that they do
not and may not have a Material Adverse Effect, as defined in Section 7.4 below;

(xi) make up to three amendments that are extraordinary or outside usual market practice,
to service agreements with professionals or consultants, in an amount in excess of
US$100,000, which amendments should be previously approved by GLR CHILE; and

(xii) enter into new agreements outside the ordinary course of business or in a manner that
is inconsistent with IARC’s past practice or usual market practice.

7.4. Notice about Adverse Events; Material Adverse Effects. From the date of execution of
this Agreement to the earlier of (i) the Effective Date (such date included); or (ii) expiration of
Term 1, Term 2 or Term 3, as the case may be, in accordance with the provisions of Section 5.2
above, CLAXSON CHILE shall inform GLR CHILE about any event that has or is reasonably likely to
have a Material Adverse Effect on IARC and/or the Affiliates.

As used herein, “Material Adverse Effect” shall mean any fact, event or material adverse change in
the business or financial condition of IARC and/or its Affiliates considered as a whole, the impact
of which on the consolidated financial statements of IARC and the Affiliates is a decrease in
shareholders’ equity in excess of TWO HUNDRED FIFTY THOUSAND DOLLARS (US$ 250,000) in the
aggregate.

The following shall be excluded from this definition of Material Adverse Effect:

(i) changes that generally affect the industry and market where IARC and the Affiliates operate
(including without limitation, changes due to the seasonal nature of the business), or (iii)
changes arising from legal and regulatory provisions issued by governmental authorities that
generally affect the radio broadcasting industry; or

(ii) contingencies expressly excluded by the Parties.

ARTICLE EIGHT — REPRESENTATIONS AND WARRANTIES OF CLAXSON CHILE AND THE GUARANTOR

CLAXSON CHILE and the GUARANTOR hereby represent and warrant that the following statements are
accurate as of the date of execution of this Agreement and, as stated below, shall be accurate as
of the Effective Date:

	8.1.	 	Organization and Authority of SELLER. CLAXSON CHILE is a corporation duly organized and
existing in accordance with the laws of Chile, and has the requisite corporate power to enter
into this Agreement and perform its obligations hereunder. Execution of this Agreement and
performance of the obligations contemplated hereby have been duly authorized by all requisite
corporate action on the part of CLAXSON CHILE. This Agreement has been executed by SELLER and,
assuming that this Agreement constitutes a valid and binding obligation of BUYERS, it is
enforceable against SELLER in accordance with its terms.

11

 

	8.2.	 	Title to the Shares of IARC and the Affiliates. As of the date of execution of this Agreement
SELLER is and as of the Effective Date shall continue to be, the
owner of record of IARC shares and indirectly of the Affiliates’ shares listed in Annex 1 hereto, in each case, free
and clear of any and all liens, charges, options, pledges and third-party claims (“Liens”).
Upon consummation of the transactions contemplated in this Agreement, SELLER shall transfer to
BUYERS valid title to IARC shares and indirectly to the Affiliates’ shares and accordingly to
the Radio Business. As of the Effective Date, the abovementioned shares shall be fully
subscribed and paid in, and shall include all of their respective rights to dividends. The
abovementioned shares shall be the only shares of IARC and the Affiliates. The pledges and
prohibitions with respect to the shares established in accordance with the terms of the
Syndicated Loan, as listed in Annex 5 hereto, are excluded from this provision.
	 
	8.3.	 	Organization and Authority of IARC and the Affiliates.

	 	8.3.1.	 	IARC and each Affiliate is a corporation or a limited liability company, as the case
may be, duly organized and existing in accordance with the laws of Chile.
	 
	 	8.3.2.	 	IARC and its Affiliates have, and as of the Effective Date shall continue to have,
possession and control of their respective corporate and accounting books.

	8.4.	 	Capitalization. There are no, and as of the Effective Date there shall be no, other options,
share exchange agreements or other commitments whereby SELLERS are under an obligation to
issue, sell, buy, return or redeem any of IARC’s or the Affiliates’ shares.
	 
	 	 	IARC has no affiliates other than as listed in Annex 1 hereto.
	 
	8.5.	 	No Conflict, Consent or Approval.

	 	8.5.1.	 	Execution of this Agreement by SELLER does not breach or conflict with: (a) any
provision of the by-laws of IARC or the Affiliates; (b) any court resolution, law or
regulation applicable to SELLER, IARC or the Affiliates, other than as required by
reason of BUYERS’ involvement; (c) any promissory note, bond, mortgage, loan, license,
contract or other instruments or obligations to which SELLER, IARC or the Affiliates
are a party; except as provided in the Syndicated Loan and evidenced in the consent
granted by the Bank Creditors under the Syndicated Loan and related documents (Annex
16 hereto) and other than the Consent referred to in Article Five above.
	 
	 	8.5.2.	 	No consent or approval by, and no recording, filing or presentation with, any court,
administrative agency or committee of any kind, whether local or foreign
(“Governmental Authority”) is required in connection with performance by SELLER of its
obligations under this Agreement, other than the Consent.

	8.6.	 	Financial Statements.

	 	8.6.1.	 	Annex 8.6 contains true and accurate copies of (i) the individual audited financial
statements of IARC as of December 31, 2005, in FECU format (the “Audited Financial
Statements”); (ii) the audited consolidated financial statements of IARC and its
Affiliates as of December 31, 2005, in FECU

12

 

	 	 	 	format (the “Audited Consolidated Financial Statements”); the unaudited individual
financial statements of the Affiliates as of December 31, 2005, in FECU format (the
“Unaudited Individual Affiliate Financial Statements”) (jointly with the Audited
Financial Statements and the Audited Consolidated Financial Statements, hereinafter
referred to as the “Financial Statements”).
	 
	 	 	 	Except as provided in Annex 8.6 hereto, the Financial Statements: (a) present a true
and fair view of the financial condition and results of operations of IARC and the
other Affiliates, as the case may be, as of the date and for the period stated
thereon; (b) have been prepared in accordance with generally accepted accounting
principles in Chile (“GAAP”) and in accordance with past practices, consistently
applied throughout the periods involved, except as stated on the Financial
Statements, the notes or schedules thereto.
	 
	 	8.6.2.	 	Except as provided in Annex 8.6 hereto, IARC and the Affiliates have kept, and until
the Effective Date shall continue to keep, their books in accordance with applicable
law. As of the Effective Date, there shall be no relevant transaction or obligation
that is not duly recorded in their respective accounting books.
	 
	 	8.6.3.	 	Ever since the date of the Financial Statements there has been no Material Adverse
Effect on the financial condition and results of operations reflected therein, and the
relevant companies have been managed in the ordinary course of business, except as
provided in Annex 8.6 hereto.
	 
	 	8.6.4.	 	In the event that the Effective Date has not taken place before, and as soon as they
are available, SELLER shall provide BUYERS with a copy of the documents comprised in
the financial statements referred to in Section 8.6.1. above, in respect of fiscal
year 2006 and, where applicable, fiscal year 2007. The shareholders’ equity of IARC
and the Affiliates reflected in those documents shall not be lower than the
shareholders’ equity reflected in the Audited Consolidated Financial Statements.

	8.7.	 	Except as provided in Annex 8.6 hereto, as of the Date of this Agreement and as of the
Effective Date, IARC and its Affiliates have no debts owing to credit entities (other than the
Syndicated Loan) or financial debts owing to CLAXSON companies, and where applicable have
reestablished their financial balance within the terms provided by applicable law.

	8.8.	 	Except as provided in Annex 8.6 hereto, sufficient provision has been made in the Financial
Statements for all bad debts and doubtful accounts; there are no debts owing to IARC or the
Affiliates as of the Effective Date, other than debts incurred in the ordinary course of
business.
	 
	8.9.	 	Taxes

Except as provided in Annex 8.9 hereto, IARC and its Affiliates:

	 	8.9.1.	 	Have duly filed and shall have duly filed their tax returns of any nature required
by all applicable tax administrative laws and regulations (the “Tax Returns”), and the
Tax Returns are accurate, complete and correct; all tax liabilities of those companies
have been duly discharged.
	 
	 	8.9.2.	 	Have prepared the Tax Returns in good faith, in accordance with applicable tax laws
and regulations.

13

 

	 	8.9.3.	 	Have paid and shall have paid or duly provided, as of the Effective Date, for all
applicable governmental charges (including taxes, charges, patents, duties and fees)
payable under applicable law, and are current in their payment, in respect of both
their own taxes and those taxes that they are under an obligation to pay as a
third-party obligor, except for taxes the maturity date of which falls after this
date, which have been duly provided for in accordance with GAAP.
	 
	 	8.9.4.	 	Are not aware of any summons, calculation, draft, claim, ongoing revision or lawsuit
in connection with tax matters, of which IARC and/or the Affiliates have been
notified, or about which IARC and/or the Affiliates have written evidence that they
are about to be filed against them, and no tax contingencies other than as stated in
Annex 8.9 hereto; neither IARC nor the Affiliates have been notified, verbally or in
writing, about any audit or investigation in connection with taxes paid or that should
have been paid by them;
	 
	 	8.9.5.	 	Have established and as of the Effective Date shall have established, in accordance
with GAAP, and have applied in a manner that is consistent with past accounting
practices, sufficient reserves and provisions to pay all taxes accrued.
	 
	 	8.9.6.	 	For purposes of this clause, the term “taxes” shall include all tax liabilities,
that is to say, the full amount of taxes plus any applicable interest, penalties and
additional amounts.

	8.10.	 	Contracts, Agreements and Practices.

Except as provided in Annex 8.10 hereto:

	 	8.10.1.	 	All material contracts to which IARC and the Affiliates are a party are valid and
binding on IARC and the Affiliates, as the case may be, in accordance with their
terms, and are basically in line with standard practice in this field of activity in
Chile.
	 
	 	8.10.2.	 	Neither IARC nor the Affiliates have supplied guaranties, “avales” or security
interests for the benefit of third parties that remain in force, except under the
Syndicated Loan and as listed in Annex 5 hereto.
	 
	 	8.10.3.	 	As of the Effective Date, IARC and its Affiliates shall not have any agreement in
force with related parties of SELLER.

	8.11.	 	Liens. Except for the assets and rights of IARC and the Affiliates encumbered in connection
with the Syndicated Loan —as listed in Annex 5 hereto-, there are no liens on the assets or
rights of IARC and its Affiliates in favor of third parties.
	 
	8.12.	 	Real and Personal Property

	 	8.12.1.	 	Annex 8.12 includes a list of all real property and other important assets
(transmission equipment, antennas, towers, editing, recording and post-production
equipment) owned by IARC and the Affiliates. Annex 8.12 includes a list of real
property and other assets leased by IARC and the Affiliates.
	 
	 	8.12.2.	 	Real and personal property and other assets included in the Financial Statements
are owned by IARC and the Affiliates, as the case may be, free and clear of any third-party claims and liens of any nature, except as provided in
Annex 8.12 hereto.

14

 

	 	8.12.3.	 	Except as provided in Annex 8.12 hereto, all such property and assets are, and as
of the Effective Date shall be, in good working order, normal wear and tear excepted,
and shall be in a condition to be used for their intended purpose.
	 
	 	8.12.4.	 	No asset listed in Annex 8.12 shall be disposed of, encumbered or leased other than
in the ordinary course of business after the date hereof, except as provided in Annex
8.12 hereto.

	8.13.	 	Trademarks.

	 	8.13.1.	 	IARC and its Affiliates are the owners of, or have the right to use, the trademarks
that identify the eight radio stations operated by IARC and the Affiliates in Chile
under the names of “Imagina”, “Rock and Pop”, “Concierto”, “Futuro”, “FM Dos”,
“Corazón”, “Pudahuel” and “FM Hit”. The relevant trademark registration numbers are
listed in Annex 8.13 hereto. The only liens or encumbrances affecting any such
trademarks are listed in Annex 5 hereto.
	 
	 	8.13.2.	 	As of the date of this Agreement, SELLER has not -to the best of its knowledge and
belief- violated any third-party industrial or intellectual property rights, and has
not failed to perform its obligations under industrial or intellectual property right
agreements in a manner that can be reasonably expected to result in a claim,
revocation of license, cost or liability.
	 
	 	8.13.3.	 	All software licenses of SELLER used by IARC and the Affiliates shall remain in
force for four months after the Effective Date, in order to ensure continuity of
services after the transaction has been completed.

	8.14.	 	Compliance with Laws. Litigation.

	 	8.14.1.	 	To the best of the SELLER’s knowledge and belief, IARC and the Affiliates have
conducted their respective businesses in all material respects in accordance with all
applicable laws and regulations, including industrial health and safety and
environmental protection laws and regulations.
	 
	 	8.14.2.	 	There is not pending or —to the best of the SELLER’s knowledge and belief-
threatened against IARC and/or the Affiliates, any claim, action, litigation,
administrative proceeding or arbitration that may have a Material Adverse Effect (as
defined in Section 7.4 above) on the business, assets, or financial condition of IARC
and/or the Affiliates or on the transaction subject matter hereof, and there is not
pending or threatened, and there are no circumstances that could result in, any legal
or administrative proceeding that, if unfavorably resolved, could have a Material
Adverse Effect on the business, assets, or financial condition of IARC and/or the
Affiliates or on the transaction subject matter hereof. An exception is made in
respect of an ongoing investigation by the Attorney General in Economic Matters
(“Fiscalía Nacional Económica”) in connection with the radio broadcasting industry and
the impact of this transaction.

	8.15.	 	Broadcasting Licenses

	 	8.15.1.	 	IARC and its Affiliates hold the broadcasting licenses listed in Annex 8.15 hereto,
where their effective and termination dates are stated. Additionally,

15

 

	 	 	 	IARC and its Affiliates have participated in certain bidding processes that remain
pending resolution, as provided in Annex 8.15 hereto. Annex 8.15 further includes a
list of licenses operated but not owned by IARC and its Affiliates.
	 
	 	8.15.2.	 	As of the Effective Date, IARC and its Affiliates shall hold the requisite licenses
and permits to operate the Radio Business; execution and performance of this Agreement
shall not result in termination or other Material Adverse Effect that precludes
operation of the Radio Business in substantially similar conditions to the ones
prevailing as of the date of execution of this Agreement by SELLER.
	 
	 	8.15.3.	 	IARC and its Affiliates are the only related companies of Claxson Interactive
Group, Inc. that operate the Radio Business in Chile. There are no liens or charges on
the present broadcasting licenses of IARC and its Affiliates other than as arising
under the Syndicated Loan (Annex 5).

	8.16.	 	Employment and Service Contracts.

	 	8.16.1.	 	Annex 8.16 includes a list of all employees of IARC and the Affiliates, as well as
employees of SELLER to be transferred to IARC before the Effective Date (“Personnel”)
as of November 2006, as evidenced by the official records of the relevant companies,
including their seniority, whether they are permanent, temporary or other type of
employees, their wages, job titles and whether or not they are part of an external
pension plan, or their condition as beneficiaries under pension commitments assumed by
IARC and/or the Affiliates. SELLER is not negotiating any material changes to the
terms and conditions of any such contracts, except —where applicable- for collective
bargaining that started before the date of this Agreement and does not reasonably
exceed standard market conditions.
	 
	 	8.16.2.	 	The number of workers stated in Annex 8.16 hereto is all Personnel hired by IARC
and/or the Affiliates and SELLER as of November 2006.
	 
	 	8.16.3.	 	On and after the date of this Agreement and until the Effective Date, IARC and/or
the Affiliates have complied with all labor and social security legal and regulatory
provisions applicable to their respective employees and are, and as of the Effective
Date shall be, current in payment of all their social security and health insurance
liabilities, and have paid in full and in a timely fashion all compensation accrued
(including bonuses agreed upon or stipulated in accordance with past policies of IARC
and/or the Affiliates, and benefits owing to Personnel, as well as withholding taxes
and applicable social security and health insurance rates). Compensation payable to
Personnel by IARC and its Affiliates complies in all material aspects with the
provisions of collective bargaining agreements in force and all other applicable labor
laws and regulations. Over the last 12 months, IARC and/or the Affiliates have not
fired any employee in breach of the applicable legal provisions.
	 
	 	8.16.4.	 	Annex 8.16 includes a list of all service contracts with professionals and
consultants, including without limitation, speakers, performers, technicians,
consultants, etc., as evidenced by the respective companies’ official records,
including a description of the main conditions thereof (duration, consideration,
etc.). IARC and the Affiliates are, and as of the Effective Date shall be, current in
performance of their obligations under all such contracts, which shall not be amended,
except for renewal thereof in standard terms and
conditions as IARC and/or the Affiliates may deem necessary in order to maintain
the programming of IARC and the Affiliates.

16

 

	 	8.16.5.	 	As stated in the immediately preceding paragraphs, IARC and/or the Affiliates shall
not have assumed any obligation to make payment in cash or in kind, in excess of the
lawfully mandatory amounts, in the event of termination, resignation or retirement of
their respective employees or directors. Neither IARC nor the Affiliates have
incentive compensation, employee share ownership schemes, agreements or covenants
regarding compensation for the number of years of service in excess of the lawfully
mandatory amounts, deferred compensation or other arrangements (including arrangements
that, as a result of a change in the shareholding or management of IARC and/or an
Affiliate, could result in a payment obligation by IARC and/or an Affiliate in favor
of any party, including current directors and officers of IARC and/or any Affiliate,
or similar plans with or for the benefit of executives, workers, representatives or
directors of IARC and/or the Affiliates). Additionally, neither IARC nor the
Affiliates have extended loans to their respective directors or workers that have
matured or remain outstanding.
	 
	 	8.16.6.	 	There are no claims pending or, to the best of the SELLER’s knowledge and belief,
threatened, for lack of payment or conflicting interpretations of the benefits or
compensation agreed upon in individual contracts or collective bargaining agreements,
penalties, interest, audits, investigations, releases or summonses in connection with
labor or social security obligations arising from current employment relations with
the employees of IARC and/or the Affiliates, including before the Labor Bureau
(“Dirección del Trabajo”) or the Labor Supervision Board (“Inspección del Trabajo”).
	 
	 	8.16.7.	 	There are no amounts owing to the directors of IARC and/or the Affiliates as fees,
profit-sharing or otherwise. The directors and managers who shall submit their
resignations as a result of this transaction have no debts owing to IARC and/or the
Affiliates.
	 
	 	8.16.8.	 	As of the date of this Agreement SELLER is not aware that IARC or its Affiliates
are in the process of collective bargaining with their respective workers, and is not
aware of any organizing activities or processes designed to establish a new union or
start a new collective bargaining process. SELLER is not aware of any actual or
threatened claim, report or legal or administrative action on the grounds of breach of
social security provisions.
	 
	 	8.16.9.	 	To the best of the SELLER’s knowledge and belief, the contractors of IARC and/or
the Affiliates as of the date of this Agreement are current in payment of their
respective social security and labor liabilities.

	8.17.	 	No Material Adverse Effect.
	 
	 	 	In the course of their respective businesses IARC and/or the Affiliates have not executed
(except as provided in the Syndicated Loan) and in general shall not execute until the
Effective Date, any contract or agreement that, as a result of execution of this Agreement
and performance hereunder, may be terminated by the counterparty or entitles the
counterparty to amend unilaterally the terms of any such contract or agreement, or that has
a Material Adverse Effect on IARC or its Affiliates.

17

 

	8.18.	 	Neither IARC not the Affiliates have defaulted any of their obligations or agreements for
which they are responsible, that materially and adversely affect the ordinary course of IARC’s
and the Affiliates’ businesses or that have a Material Adverse Effect.
	 
	8.19.	 	Insurance. IARC and the Affiliates have taken the insurance policies listed in Annex 8.19
hereto on their respective assets, businesses and employees that provide them with coverage
against insurable contingencies in accordance with reasonable standards and standard industry
practice in these matters; no material claim has been submitted under any such insurance
policies.
	 
	8.20.	 	By-laws. Copies of the current by-laws of IARC and the Affiliates are enclosed as Annex 8.20
hereto. All the rights and obligations of the shareholders of IARC and the Affiliates are
established in the said by-laws, and there are no rights, obligations or contractual covenants
outside the by-laws.
	 
	8.21.	 	Brokers. There is no broker, agent or financial advisor or any other party that is entitled
to collect commissions, financial advisory fees or compensation in connection with the
transactions contemplated in this Agreement.
	 
	8.22.	 	General. All information regarding IARC and the Affiliates included in this Agreement and
the documents referenced herein, supplied to BUYERS is true, complete and accurate in all
material respects.
	 
	 	 	The information reflected in the Annexes to this Agreement is included in order to make
BUYERS aware of the exact condition of IARC and the Affiliates as of the date hereof, and
does not diminish, exclude or release any potential indemnity obligation by SELLER and/or
the GUARANTOR, except as provided in Section 7.4(ii) above, and except for claims in an
amount below TWO HUNDRED FIFTY THOUSAND DOLLARS (US$ 250,000) as provided in Section 10.5
below, in either case, within the indemnity cap of EIGHT MILLION DOLLARS (US$ 8,000,000)
established in Section 10.6 below.
	 
	 	 	Likewise, the indemnity obligations of SELLER and/or the GUARANTOR shall not be limited by
the outcome/findings of BUYERS as a result of the limited due diligence procedure carried
out before execution of this Agreement.
	 
	 	 	The Parties expressly agree that the qualifications and information related to the
representations and warranties of SELLER contained in this Agreement and the Annexes hereto
refer to all of the representations and warranties of SELLER, even where no reference is
made to a particular representation or warranty.

ARTICLE NINE.—REPRESENTATIONS AND WARRANTIES OF BUYERS

	9.1.	 	Organization and Authority of BUYERS. GLR CHILE is a limited liability company duly organized
and existing in accordance with the laws of Chile, while GLR is a corporation duly organized
and existing in accordance with the laws of Delaware, United States of America; both have the
requisite corporate power to enter into this Agreement and perform their obligations
hereunder. Execution of this Agreement and performance of the obligations contemplated herein
have been duly authorized by all requisite corporate action on the part of BUYERS. This
Agreement has been executed by BUYERS and, assuming that this Agreement constitutes a valid
and binding obligation of SELLER, it is enforceable against BUYERS in accordance with its
terms.

18

 

	9.2.	 	No Conflict, Consent or Approval. Execution of this Agreement by BUYERS does not breach or
conflict with: (a) any provision of the by-laws of BUYERS; (b) any court resolution, law or
regulation applicable to either BUYER; (c) any promissory note, bond, mortgage, loan, license,
contract or other instruments or obligations to which either BUYER is a party. No consent or
approval by, and no recording, filing or presentation with, any court, administrative agency
or committee of any kind, whether local or foreign (“Governmental Authority”) is required in
connection with performance by BUYERS of their obligations under this Agreement, other than
the Consent referred to in Article Five above.
	 
	9.3.	 	Litigation. There is no claim, action, complaint, investigation or proceeding pending or, to
the best of the BUYERS’ knowledge and belief, threatened against or affecting BUYERS in
connection with this Agreement or generally in connection with execution and performance
hereof.
	 
	9.4.	 	Funding. BUYERS have sufficient financial resources to pay the Purchase Price in the terms
contemplated in this Agreement.
	 
	9.5.	 	Brokers. There is no broker, agent or financial advisor or any other party that is entitled
to collect commissions, financial advisory fees or compensation in connection with the
transactions contemplated in this Agreement.
	 
	9.6.	 	Representations. All information regarding BUYERS included in this Agreement and the
documents referenced herein, supplied to SELLER is true, complete and accurate in all material
respects, and there is no fact or matter that has not been disclosed that could render any
such information and documents false, inaccurate or misleading in any material respect as of
the date of this Agreement.

ARTICLE TEN — INDEMNITY

(i) Indemnity.- CLAXSON CHILE and the GUARANTOR jointly and severally assume liability to, and
agree to indemnify and hold harmless, the BUYERS, IARC and the Affiliates (including their
respective managers, officers, employees and agents) in the terms of this Agreement from and
against any and all damages, including reasonable legal fees and expenses incurred directly in
connection with the relevant claims for damages (hereinafter “Damages”) suffered by IARC or any of
the Affiliates, arising from any error, omission, inaccuracy (including hidden liabilities) in the
representations of SELLER included in Article Eight above, or otherwise arising from nonperformance
by SELLER of its obligations under this Agreement, in either case, subject to the terms,
stipulations and limits established herein, it being understood that SELLERS, IARC and the
Affiliates shall not be indemnified in respect of the same event, and accordingly no duplication of
indemnity shall exist in respect of any one event.

(ii) Any claims eventually submitted by BUYERS to CLAXSON CHILE and/or the GUARANTOR, as well as
any claims submitted by third parties against IARC and/or the Affiliates and/or BUYERS under this
Article are jointly referred to as the “Claim” or “Claims”, as the case may be.

	10.1.	 	Terms. SELLER and/or the GUARANTOR shall indemnify BUYERS in respect of Claims submitted
within the following terms:

	 	10.1.1.	 	Claims against IARC and/or the Affiliates and/or BUYERS (in the event that joint
and several liability is invoked), in connection with tax, labor, social security and
pension matters, until the relevant cause of action becomes barred by the statute of
limitations;

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	 	10.1.2.	 	Claims that BUYERS may submit to CLAXSON CHILE as provided in 10.1 above and
particularly in connection with Hidden Liabilities, for a term of three (3) months
after the date when the audited Financial Statements of IARC become available in
respect of the first fiscal year closed after the Effective Date;

	 	10.1.3.	 	All other third-party Claims filed within 18 months after the Effective Date.

	10.2.	 	Third-party Claims.- In the case of third-party Claims referred to in 10.2.1 and 10.2.3
above (including without limitation claims in connection with tax, labor, social security and
pension matters), the following procedure shall apply:

	 	10.2.1.	 	Within fifteen (15) business days after BUYERS become aware of a third-party Claim,
BUYERS shall notify CLAXSON CHILE accordingly and shall request indemnity therefor
(the “Notice of Potential Damages”).
	 
	 	10.2.2.	 	The Notice of Potential Damages shall include a copy of the document
containing the third-party Claim and the estimated amount of Damages, with a breakdown
of the items included in them, if known.
	 
	 	10.2.3.	 	Within ten (10) business days following receipt of a Notice of Potential
Damages, CLAXSON CHILE shall notify BUYERS:

	 	(a)	 	if CLAXSON CHILE denies —with cause- that the
third-party Claim may result in an obligation to indemnify in accordance
with the standards established in this Agreement, in which case BUYERS may
exercise any defense they deem convenient, without prejudice to their right
to seek Indemnity from CLAXSON CHILE in the terms of this Article. In any
case, CLAXSON CHILE, acting by itself or through counsel of its
choice, may request and shall be entitled to obtain full information
regarding the Claim in question, irrespective of the status of the
proceedings;
	 
	 	(b)	 	if they accept that the third-party Claim may result in
an obligation to indemnify, in which case CLAXSON CHILE shall choose in
their answer any one of the following alternatives:
	 
	 	 	 	(i) instruct BUYERS to accept the third-party Claim, whereupon CLAXSON CHILE
shall bear the full amount thereof and shall be obligated to pay the amount
of the indemnity within the next following five (5) business days.
	 
	 	 	 	(ii) assume the defense of the Claim, in which case CLAXSON CHILE shall bear
the consequences of the related judicial or extrajudicial proceedings and
shall be entitled to exercise the defense it deems most convenient in the
face of the third-party Claim, and CLAXSON CHILE shall bear any and
all expenses, fees and costs arising from such defense, both in and out of
court, and shall be liable for any and all Damages arising from the
third-party Claim. In any case, BUYERS, acting by themselves or through
counsel of their choice, may request and shall be entitled to obtain full
information regarding the Claim in question, irrespective of the status of
the proceedings. BUYERS in turn shall provide all requisite information so
that CLAXSON CHILE may defend its interests, and shall cooperate with
CLAXSON CHILE, including by granting powers of attorney in favor of counsel
designated by CLAXSON CHILE. 

20

 

	 	 	 	(iii) waive the right to defend the Claim, in which case defense shall be
directed by BUYERS. In any case, CLAXSON CHILE, acting by itself or
through counsel of its choice, may request and shall be entitled to obtain
full information regarding the Claim in question, irrespective of the status
of the proceedings.

	 	10.2.4.	 	In the event that CLAXSON CHILE fails to respond to the Notice of Potential Damages
when due, it shall be deemed to accept the Claim in the terms of paragraph
10.3.3(b)(i) above, whereupon CLAXSON CHILE shall be under an obligation to pay the
amount of indemnity within the next following five (5) business days.
	 
	 	10.2.5.	 	CLAXSON CHILE shall be under no obligation to pay the amount of Damages as
long as there is not a final legal, arbitration or administrative decision in the
matter, except in the cases contemplated in 10.3.3.b(i) and 10.3.4 below, or where an
actual disbursement is to be made or there are Damages on the part of IARC and the
Affiliates and/or BUYERS (for instance, where the relevant legal, arbitration or
administrative decision has been provisionally enforced).
	 
	 	10.2.6.	 	As an exception and without detriment to the Parties’ obligations under this
Article, in the event that, because of the brevity of the procedural terms within
which the right of defense is to be exercised, it is not possible to abide by the
terms established in this Article, those terms shall be adjusted by mutual agreement
of the Parties to the extent necessary in order to enable actual exercise of the right
of defense. Additionally, where procedural terms are so short that they make it
impossible to follow the procedure established in this Article, not even by adjusting
the terms contemplated in it, as an exception BUYERS may defend the Claim, in which
case BUYERS agree to act with the utmost diligence. 

	10.3.	 	Claims by BUYERS.

In the case of a Claim or Claims by BUYERS against CLAXSON CHILE as provided in paragraph 10.1
above, the following procedure shall apply:

	 	10.3.1.	 	Within the term established in 10.2.2 above, BUYERS shall notify CLAXSON CHILE of
the Claim, such notice to be accompanied by a copy of the financial statements from
which the Claim arises, and shall request indemnity therefor (the “Notice of Potential
Damages”). The said notice, which shall include a description of Damages, their value
and any other information that BUYERS may deem advisable as grounds for their Claim,
shall be accompanied by a certificate issued by the auditors of IARC and/or the
Affiliates, regarding Damages.
	 
	 	10.3.2.	 	Within twenty (20) business days following receipt of a Notice of Potential
Damages, CLAXSON CHILE shall notify BUYERS:

	 	a)	 	if CLAXSON CHILE accepts the Claim in full as submitted
by the BUYERS, in which case CLAXSON CHILE shall be obligated to pay the
amount of indemnity within the next following five (5) business days; or

	 
	 	b)	 	if CLAXSON CHILE fully or partially denies the existence
of Damages, in which case CLAXSON CHILE shall designate, at its
expense, an internationally reputable audit firm, different from the
auditors of IARC and/or the Affiliates and different from the auditors
referred to in the immediately following paragraph; within thirty (30)

21

 

	 	 	 	calendar days thereafter, the audit firm shall give their opinion regarding
the item or items in the financial statements giving rise to BUYERS’ Claim.
In any case, CLAXSON CHILE, acting by itself or through counsel of
its choice, may request and shall be entitled to obtain full information
regarding the financial statements involved.

	 	10.3.3.	 	In the event that the audit firms disagree as to the causes or technical
interpretation giving rise to damages, any such discrepancies shall be solved by good
faith negotiations, which shall result in a mutually agreeable opinion signed by both
audit firms or by the Parties. In the absence of an agreement, within a term not to
exceed thirty (30) calendar days after the date of the second audit firm’s opinion,
the matter may be submitted by either party to the decision of the following firms:
Ernst & Young Auditors or PriceWaterhouseCoopers Auditors, in that order, so that they
issue a final opinion, in the understanding that the audit firm involved must have
done no work for either Party within six months before the date of their involvement.
	 
	 	 	 	The opinion of the audit firm referred to in the last place shall be issued
within a term not to exceed thirty (30) days after their appointment, shall be
binding on all Parties, and the cost of the firm’s services shall be borne by
both parties, share and share alike.
	 
	 	10.3.4.	 	In the event that CLAXSON CHILE fails to respond to the Notice of Potential Damages
when due, it shall be deemed to accept the Claim in the terms of paragraph 10.3.2.a)
above.

	10.4.	 	Limitation to Claims. Neither CLAXSON CHILE nor the GUARANTOR shall be under an obligation
to indemnity BUYERS, IARC and/or the Affiliates (including their respective directors,
advisors, managers, officers, employees and agents) in respect of Claims that, individually or
if added to other Damages, are equal to or lower than TWO HUNDRED FIFTY THOUSAND DOLLARS
(US$250,000); the obligation of CLAXSON CHILE and the GUARANTOR to indemnify in respect of
Claims shall apply to amounts in excess of that amount only.
	 
	10.5.	 	Indemnity and Liability Cap. The maximum accumulated amount for which CLAXSON CHILE and the
GUARANTOR shall be jointly and severally liable hereunder is EIGHT MILLION DOLLARS (US$
8,000,000).
	 
	10.6.	 	Any amounts payable by CLAXSON CHILE to BUYERS in accordance with the provisions of this
Article shall be charged in the first place against the sum deposited in the Escrow Account as
provided in Section 3.4 above and in the Escrow Agreement attached as Annex 3 hereto.

ARTICLE ELEVEN — EXPENSES

	11.1.	 	Each Party shall bear their own expenses (including fees and expenses of counsel,
accountants, investment advisors, brokers and other parties whose services are retained by a
Party) incurred in connection with preparation, negotiation, authorization and execution of
this Agreement, and in connection with the transactions contemplated hereby.

	11.2.	 	The Parties agree that any and all taxes, duties and charges arising from this Agreement
shall be borne by the party that is responsible for them in accordance with applicable law.

22

 

ARTICLE TWELVE — NOTICES

For all legal purposes arising herefrom, the Parties establish their addresses for notices at the
following places:

SELLER:

Eliodoro Yáñez No1783, Providencia

Santiago, Chile.

With a copy to:

-Claxson Interactive Group, Inc.

1550 Biscayne Boulevard, Miami

Florida, United States of America

Attn.: Amaya Ariztoy

-Cariola, Díez, Pérez-Cotapos & Cía. Ltda.

Avenida Andrés Bello No2711, Piso 19, Las Condes

Santiago, Chile

Attn.: Francisco Javier Illanes

BUYERS:

(i) PROMOTORA DE INFORMACIONES, S.A. (PRISA)

Att. D. Miguel Satrústegui

Calle Gran Vía 32, 6a

28013 Madrid

Fax: 34-913301070

and

(ii) GLR SERVICES, INC.

Att. Juan Pablo Alvarez

4770 Biscayne Boulevard, Suite 700, Miami FL 33137, United States

Fax: 1-305-6446703

With a copy to

Philippi, Yrarrazabal, Pulido & Brunner

Att. Juan Francisco Gutiérrez and Javier Ruiz Cámara

El Golf 40, Piso 20, Las Condes

Santiago, Chile

Fax: 56-2-3643797

where any and all notices shall be validly sent. This notwithstanding, for purposes of the
arbitration notice referred to in Article Twenty-two below, as well as any other notices in
connection with the arbitration proceedings, the Parties agree that all such notices shall be sent
via regular or certified mail, return receipt requested, to the addresses for notices designated
herein, it being understood —unless there is evidence to the contrary- that any such notice is
given on the tenth calendar day after it is sent. For that purpose, GLR and the Guarantor expressly
waive any right to personal notice and hereby appoint CT Corporation as the “Process Agent” to
validly receive any and all notices addressed to them in Miami and the State of Florida.

23

 

The addresses for notices established by the Parties shall remain valid unless a new address for
notices is notified by either Party to the other. Accordingly, any and all notices sent to those
addresses shall be valid and binding on the Parties.

The Parties agree that any and all notices to be given hereunder by either Party to the other shall
be made in writing and delivered to the other Party at the addresses designated above, either in
person or by mail, return receipt requested, or by other means of written notice.

ARTICLE THIRTEEN — PENALTY

	13.1.	 	In the event that, once the Condition has been met before expiration of the Term 3
established in Section 5.2 above, either Party fails to perform its obligation to complete the
transactions contemplated in Article Six above as of the Effective Date, the defaulting party
agrees to pay to the other, as a penalty, an amount equal to:

	 	13.1.1.	 	If the defaulting party is the BUYERS, SELLER shall keep the amounts deposited in
the Escrow Account referred to in Article Three above.
	 
	 	13.1.2.	 	If the defaulting party is SELLER, SELLER shall be under an obligation to pay to
BUYERS an amount equal to the amount deposited in the Escrow Account referred to in Article
Three above, provided however that the amount actually deposited in the Escrow Account
shall revert to BUYERS.

	13.2.	 	Notwithstanding payment of the penalty established in this Article, the non-defaulting Party
may demand specific performance or termination of this Agreement, in either case, plus
compensation for damages suffered as a result of nonperformance, in accordance with the
provisions of Section 1489 of the Civil Code of Chile.

ARTICLE FOURTEEN — NON-COMPETITION

As stated by SELLER, IARC and its Affiliates constitute all of the SELLER’s radio broadcasting
business in Chile. The SELLER and Claxson Interactive Group, Inc. and its subsidiaries agree, for a
term of five (5) years after the Effective Date, not to participate directly or indirectly in the
radio broadcasting business in Chile, whether as shareholders, partners, creditors, advisors,
employees, officers, consultants, agents or representatives of companies engaged in that business,
or by providing them with professional services, technical advice or other advisory or consulting
services, or by personally conducting business activities in the same industry (defined as any
business related to operation and commercial exploitation of radio stations, production and
marketing (including through the Internet) of, or participation in, radio programs, including
digital radio.

ARTICLE FIFTEEN — RELEASE

As of the Effective Date, BUYERS acting on their own behalf and on behalf of IARC and the
Affiliates, shall fully and definitively release the directors and managers that resign their
positions as a result of this transaction, in connection with exercise of their roles or duties
until the Effective Date, from any and all obligations, debts, covenants and duties, regardless of
their nature, class, type or condition, and agree not to file any claims or actions of any kind
against any such individuals as a result thereof.

24

 

ARTICLE SIXTEEN — CONFIDENTIALITY

The Parties agree that all information related to this Agreement and the transaction contemplated
herein shall be strictly confidential, and no Party shall be entitled to disclose any such
confidential information to third parties without the previous consent in writing of all other
Parties hereto. This confidentiality obligation shall not include information shared by the Parties
with their shareholders, advisors, parent companies and affiliates, or information that should be
disclosed in compliance with legal provisions -in which case the Parties shall make their best
efforts to agree on such disclosure previously- and, where applicable, filing of this Agreement
with the Anti-trust Authorities, on a reserved and confidential basis, along with the relevant
consultation.

ARTICLE SEVENTEEN — SEVERABILITY

The invalidity of any term or condition of this Agreement shall not affect the validity or
enforceability of any other term or condition hereof, which shall remain valid and effective. This
Agreement may be amended only by mutual agreement of the Parties. Any such amendment shall be made
in writing and shall expressly refer to this Agreement, and shall become a part hereof.

ARTICLE EIGHTEEN — ANNEXES

The Annexes to this Agreement are made a part hereof for all purposes.

ARTICLE NINETEEN — JOINT AND SEVERAL GUARANTY

The GUARANTOR hereby becomes jointly and severally liable to BUYERS for punctual performance of
SELLER’s obligations hereunder.

ARTICLE TWENTY — NO ASSIGNMENT

Neither Party shall assign their rights under this Agreement in whole or in part, except upon
written agreement by both Parties to that effect.

ARTICLE TWENTY-ONE — GOVERNING LAW

This Agreement, its validity, effectiveness, interpretation, performance and/or nonperformance and
termination shall be governed by the laws of Chile.

ARTICLE TWENTY-TWO — DISPUTE RESOLUTION

Any and all controversies that may arise in connection with this Agreement, its existence,
validity, qualification, interpretation, scope, performance or termination, that cannot be resolved
in a friendly manner by the Parties within sixty (60) days after written notice by the aggrieved
Party to the other, shall be finally settled by arbitration administered by the International
Chamber of Commerce, in accordance with the Chamber’s Arbitration Rules, by three arbitrators
designated in accordance with the said Rules. Arbitration proceedings shall be conducted in Miami
(United States of America) in the Spanish language. The arbitrators shall settle the matter in
accordance with the laws of Chile.

The Parties expressly agree to abide by the resulting arbitration award.

25

 

ARTICLE TWENTY-THREE — JOINT AND SEVERAL LIABILITY

GLR CHILE and GLR hereby become jointly and severally liable to SELLER for full and punctual
performance of their respective obligations under this Agreement and the Escrow Agreement.

ARTICLE TWENTY-FOUR — POWERS OF ATTORNEY

The powers of Mr. José Antonio Ituarte to act on behalf of CLAXSON CHILE S.A. are evidenced in a
deed executed before Eduardo Avello Concha, a Notary Public in Santiago, Chile, on December 21,
2006.

The powers of Mr. Roberto Vivo Chaneton to act on behalf of CLAXSON INTERACTIVE GROUP are evidenced
in a Resolution of the Board of Directors of CLAXSON INTERACTIVE GROUP dated December 14, 2006.

The powers of Mr. Jaime de Polanco Soutullo to act on behalf of GRUPO LATINO DE RADIODIFUSION CHILE
LIMITADA are evidenced in a deed executed before Raúl Undurraga Laso, a Notary Public in Santiago,
Chile, on December 29, 2004, recorded under No. 8063-2004.

The powers of Mr. Augusto Delkader Teig to act on behalf of GLR SERVICES, INC. are evidenced in a
Resolution of the Board of Directors of GLR SERVICES, INC. dated December 21, 2006.

IN WITNESS WHEREOF, the Parties have executed this Agreement in two counterparts dated as of the
same date, and acknowledge that any such counterpart that is signed via fax shall be fully valid.

	 	 	 
	/s/
Jose Antonio Ituarte

CLAXSON CHILE, S.A

	 	/s/ Jaime de Polanco Soutullo

GRUPO LATINO DE RADIODIFUSION CHILE LIMITADA
	 
	 	 
	/s/
Jose Antonio Ituarte

CLAXSON INTERACTIVE GROUP, INC.

	 	/s/ Augusto Delkader Teig

GLR SERVICES, INC.

ADDENDUM: In order to facilitate identification of the Annexes to this Agreement, the
Parties agree that the following individuals shall be specifically authorized to initial those
Annexes:

(a) For Claxson Chile S.A. and Claxson Interactive Group, Inc.: any one of Ricardo Berdickeski
Sommerfeld, Oscar Ferrari García and Carolina Pardo Sas.

(b) For Grupo Latino de Radiodifusión Chile Limitada and GLR Services, Inc.: any one of Javier
Cortezón and Bernardo García.

26

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