Document:

Exhibit
10.3

 

[Free English Translation Final
Spanish Version]

 

NOTARY RECORD:

 

PURCHASE
AND SALE OF SHARES

 

ISSUED BY
METRÓPOLIS INTERCOM S.A.

 

KNOW ALL PERSONS BY THESE PRESENTS, that in Santiago, Chile, this 13
day of April of 2005, before me, Jose Musalem Saffie, Notary Public and
Holder of Title to the 48th Notarial Office in and for Santiago, domiciled in
this city at Huerfanos 770, 3rd floor, municipal district of
Santiago, personally appeared: Mr. Rodrigo Castillo Murillo, Chilean, [marital
status], attorney, [ID card No.], domiciled at Reyes Lavalle 3340, 9th floor,
municipal district of Las Condes, Santiago, as hereinbelow evidenced for and on
behalf of VTR GlobalCom S.A., a stock company
duly organized and validly existing under the Laws of Chile, Tax ID No.
78.452.650-K, and with the same domicile as its representative (“VTR” or “Buyer”); and
Max Letelier Bomchil, Chilean, [marital status], attorney, [ID card No.],
domiciled at Avenida Isidora Goyenechea N°3.120, 3trh floor, municipal district
of Las Condes, Santiago, as hereinbelow evidenced for and on behalf of Liberty Comunicaciones de Chile Uno, Ltda., a limited
liability company duly organized and validly existing under the Laws of Chile,
Tax ID No. 78.525.330-2, and with the same domicile as its representatives (“Uno”, and together with its successors and any other holder
of this instrument, “Seller”); the
parties appearing, being of legal age and having evidenced their identities
with the aforementioned personal documents, hereby set forth as follows: that
they hereby enter into a share purchase and sale agreement (the “Transaction”) per the following clauses:

 

FIRST: Preamble.
1) Share Purchase Agreement. Under an instrument of private record
dated as of April 13, 2005, VTR, Uno and Cristalerías de Chile S.A. entered into an English-language share purchase and
transfer agreement titled “Purchase and Contribution
Agreement” (the “Purchase Agreement”)
whereby among other things VTR agreed to purchase from Uno, who in turn agreed
to transfer to VTR, all, but one, of the shares owned by Uno and issued by
Chilean stock company Metrópolis Intercom S.A. (“Metrópolis”).
2) Shares of Metrópolis. Seller
holds sole and exclusive title to 44.485.106 shares issued by Metrópolis, which
in all represent 49,9999% of equity capital of said company as evidenced in
share certificates Nos. 19, 23, 26, and 29, fully subscribed for and paid up
and validly recorded to its name in the Shareholders Registry Book of
Metrópolis (the “Metrópolis Shares”). Metrópolis
is a closely held stock company incorporated under the Laws of Chile by means
of an instrument of public record executed at the Santiago Notarial

 

1

 

Office of Juan Ricardo San Martín Urrejola on February 7th
1996, the excerpt of which is recorded in folio 5156, entry No. 4232 in the
Commerce Registry kept by the Santiago Real Estate Recorder’s Office for 1996,
published in the Official Gazette on March 2nd 1996. 3) Representations by Uno. Uno has made certain representations
and warranties regarding its title to the Metrópolis Shares sold hereby in the
Purchase Agreement, all of which have been of the essence in inducing Buyer to
enter into this instrument. 4)  In connection with the Purchase
Agreement and under an instrument of private record dated as of the same date
as the Purchase Agreement, United Chile, Inc., United Chile Ventures, Inc.,
Cristalerías de Chile S.A. and VTR
entered into an English-language shareholders agreement titled “Shareholders Agreement” (hereinafter, as in effect on the
date hereof, the “Shareholders Agreement as in Effect on the
Date Hereof”).

 

SECOND: Purchase and
Sale of the Metrópolis Shares. Uno, duly represented as first above
indicated, hereby sells, assigns and transfers to Buyer, who, duly represented
as first above indicated, hereby purchases, accepts and acquires on its own
behalf, the Metrópolis Shares identified in Article First above, subject
to the terms, deadlines and conditions agreed herein and in the Purchase
Agreement. The Metrópolis Shares are sold and transferred with all the voting
and dividend rights, assets and interests as to capital, corporate funds of any
kind, purpose or denomination, such as reserve, revaluation, credit, profit and
dividend funds, accumulated or not, not distributed, even if agreements are
pending with regard to their distribution or to which each shareholder is
otherwise entitled as owner of shares at Metrópolis at the date of execution of
this Transaction, whether originating in the current business year or any
previous business years.

 

THIRD: Purchase
Price for the Metrópolis Shares. The total purchase price (the “PP Amount”) for the Metrópolis Shares is 121,550,625.00
United States dollars (“Dollars”).

 

FOURTH: Terms of
Payment.

 

1) Payment of PP Amount.  Buyer shall duly and punctually pay to Seller
in full the PP Amount no later than 10:00 a.m., New York time, on April 13,
2009, at the place and in the manner set out herein.  Except as set out in the following sentence,
the obligation to pay the PP Amount shall not bear interest.  Notwithstanding the foregoing sentence to the
contrary, upon the occurrence and during the continuance of an Event of Default
(as defined below), Buyer shall pay to Seller interest (“Default
Interest”) at the Default Rate (as defined below) on any PP Amount
outstanding.  In the case of an Event of
Default, any PP Amount outstanding plus any Default Interest due and owing at
the Default Rate shall be payable on the demand of Seller.  “Default Rate”
shall mean the lesser of a) 8% per
annum and b) the maximum rate allowable
under applicable Law.  Default Interest
on the PP Amount shall be computed on the basis of a 360-day year and the
actual number of days elapsed. In the event that Buyer is required by
applicable Law to deduct or withhold any Taxes from any Default Interest
payable under this Agreement, Buyer shall promptly pay Seller such additional
amounts as may be required, after the deduction or withholding of such Taxes,
to

 

2

 

enable Seller to receive from Buyer, on the due date thereof, an amount
equal to the full amount stated to be payable to Buyer as Default Interest.

 

2) Payment Terms.  All payments of the PP Amount, Default
Interest and other amounts to be made by Buyer under this instrument shall be
paid in immediately available funds, in Dollars, without set off, counterclaim,
withholding or deduction of any kind whatsoever, except to the extent required
by applicable Law or as specifically provided herein, by deposit in the account
specified by Seller in a written notice delivered to Buyer or by delivery to
Seller at Seller’s address for notices determined pursuant to the Purchase
Agreement, on or before the due date thereof. 
Except to the extent otherwise expressly provided herein, whenever any
payment hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case and to the extent applicable be included
in the computation of payment of Default Interest.  All payments shall be applied first to the
payment of Default Interest, if any, due and payable with respect to the PP
Amount; and then to the repayment of the aggregate unpaid amount of the PP
Amount due and payable.

 

3) Nature of Obligations; Subordination.  Buyer’s obligations to pay the PP Amount,
Default Interest and other amounts to be paid by Buyer under this instrument
are general, unsecured obligations of Buyer that do and will rank pari passu with all other present or future general,
unsecured obligations of Buyer.  In
connection with this instrument, Buyer, Seller, and certain parties to the VTR
Credit Agreement have or will enter into an agreement for the purposes of
pledging and subordinating Buyer’s obligations to pay the PP Amount, Default
Interest, and other amounts to be paid by Buyer under this instrument to the
obligations of Buyer under the VTR Credit Agreement on the terms set out in
such agreement.

 

4) Prepayment.  a) Buyer may
prepay the outstanding PP Amount in whole or in part at any time and from time
to time, by paying Seller an amount (a “Voluntary Prepayment
Amount”) equal to the product of the applicable percentage (the “Prepayment Percentage”), as set out below, multiplied by
the portion of the total outstanding PP Amount to be prepaid, if paid on any
day during the 12-month period commencing on April 13 of the applicable
year, as set out below:

 

	
  Year

  	
   

  	
  Prepayment Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  86.3838

  	
  %

  
	
  2006

  	
   

  	
  90.7029

  	
  %

  
	
  2007

  	
   

  	
  95.2381

  	
  %

  
	
  2008

  	
   

  	
  100.0000

  	
  %

  

 

For example, if Buyer decided to prepay USD$60,775,312.50 of the total
outstanding PP Amount on any day during the 12-month period commencing on April 13,
2005, the

 

3

 

Voluntary Prepayment Amount would equal USD$52,500,000.00 (determined
by multiplying USD$60,775,312.50 by the applicable Prepayment Percentage of
86.3838%).

 

b) Promptly
following Buyer’s receipt of the consolidated financial statements (certified
by an independent auditing firm of renowned international prestige listed in
the special registry kept by the Securities and Insurance Commission) of Buyer
and its Subsidiaries with which Buyer is required to consolidate in accordance
with GAAP, for each fiscal year, starting with the fiscal year ending December 31,
2005, Buyer shall prepay, or procure the prepayment of, the outstanding PP
Amount in whole or in part, subject to any limitations imposed by the VTR
Credit Agreement (as defined in the Shareholders Agreement as
in Effect on the Date Hereof), by paying Seller an amount (the “Mandatory Prepayment Amount”) equal to the lesser of i) an amount equal to the Voluntary Prepayment Amount,
determined in accordance with clause a) of this paragraph 4), which if paid
would result in the full payment of the then outstanding PP Amount and ii) the amount of residual Available Cash (as defined in the
Shareholders Agreement as in Effect on the Date Hereof and calculated in
respect of such fiscal year), if any, as determined by subtracting 1) the amount of all the payments made or to be made
out of Available Cash (calculated in respect of such fiscal year) pursuant to
the terms of Section 6.4(a)(i) of the Shareholders Agreement as in Effect
on the Date Hereof from 2) the
aggregate amount of Available Cash (calculated in respect of such fiscal year).

 

For example, if no prepayments of the PP Amount had been made and Buyer
received its consolidated financial statements for the year ended December 31,
2005 (the applicable fiscal year) on February 1, 2006, Buyer if required
will make a prepayment prior to April 13, 2006, and if it was determined
that Buyer had Available Cash of USD$105,000,000.00 for such fiscal year and
Buyer paid US$50,000,000 of such Available Cash pursuant to the terms of Section 6.4(a)(i)
of the Shareholders Agreement, the Mandatory Prepayment Amount would be
US$55,000,000.00 (the lesser of the Voluntary Prepayment Amount which if paid
as of February 1, 2006 would result in the full payment of the then total
outstanding PP Amount, or USD$105,000,000.00, and the amount of residual
Available Cash, or USD$55,000,000.00).

 

c) i) Upon any
Voluntary Prepayment Amount being paid under clause a) of this paragraph 4),
the outstanding PP Amount shall be reduced so that the outstanding PP Amount
immediately following the payment of such Voluntary Prepayment Amount is equal
to the result obtained by subtracting 1) the quotient
obtained by dividing the Voluntary Prepayment Amount paid by the Prepayment
Percentage used to determine such Voluntary Prepayment Amount from 2) the outstanding PP Amount immediately prior to the
payment of such Voluntary Prepayment Amount. 
ii) Upon any Mandatory Prepayment
Amount being paid under clause b) of this paragraph 4), the outstanding PP
Amount shall be reduced so that the outstanding PP Amount immediately following
the payment of such Mandatory Prepayment Amount is equal to the result obtained
by subtracting 1) the quotient obtained by
dividing the Mandatory Prepayment Amount paid by the Prepayment Percentage that
would have been used to determine such prepayment amount if such

 

4

 

prepayment amount had been a Voluntary Prepayment Amount from 2) the outstanding PP Amount immediately prior to the payment
of such Mandatory Prepayment Amount.

 

For example, if a Voluntary Prepayment Amount is paid, or if Buyer
receives applicable consolidated financial statements with respect to a
Mandatory Prepayment Amount, in each case, in an amount equal to USD$52,500,000.00
on any day during the 12-month period commencing on April 13, 2005, the PP
Amount shall be reduced to USD$60,775,312.50 (determined by subtracting (1) the
quotient obtained by dividing 
USD$52,500,000.00 by the applicable Prepayment Percentage of 86.3838%
from (2) the outstanding PP Amount of USD$121,550,625.00).

 

5) Events of Default.  The occurrence of any one or more of the
following events or existence of one or more of the following conditions shall
constitute an “Event of Default” under this instrument:  a) Buyer
shall fail to pay on or before the due date therefor the PP Amount; or b) Buyer or any of its Subsidiaries i) generally shall not pay its debts as such debts
become due, or shall admit in writing its inability to pay its debts generally,
or shall make a general assignment for the benefit of creditors; or any
proceeding shall be instituted by or against it seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts
under any Law related to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, or other similar official for it or for any substantial part
of its property (except that any proceeding instituted against it shall not
constitute an Event of Default if such proceeding has been dismissed within 60
days of the institution of such proceeding against it), or ii) shall
take any action to authorize any of the actions set forth in clause i) herein;
or c) Buyer shall fail to pay any
principal of or interest on any Indebtedness when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise); or any other default under any agreement or instrument
related to any Indebtedness or any other event shall occur if the effect of
such default or event is to allow the lender or the holder thereof to
accelerate the maturity of such Indebtedness; or any such Indebtedness shall be
declared to be due and payable or required to be prepaid (other than by a
regularly scheduled required prepayment) prior to the stated maturity thereof;
or d) This instrument shall at
any time for any reason cease to be in full force and effect; or e) Buyer shall contest the validity or enforceability
of, or deny that it has any or further liability or obligations under, this
instrument.

 

7) Acceleration; Remedies
Cumulative.  a) Upon
the occurrence of an Event of Default set out under clause b) of paragraph 6)
of this Article, and without any further action of Seller, the PP Amount shall
immediately become due and payable without presentment, demand, protest or
other notice of any kind, all of which are expressly waived by Buyer.  Upon the occurrence of any other Event of
Default hereunder, the PP Amount shall, at the option of Seller exercised by
Seller giving notice to Buyer of such exercise, become immediately due and
payable without presentment, demand, protest or other notice of any kind, all
of which are expressly waived by Buyer. 
In either case, Seller may proceed with

 

5

 

every remedy available at Law or in equity or provided for herein or in
any document executed in connection herewith, and all expenses incurred by
Seller in connection with any remedy shall be deemed indebtedness of Buyer to
Seller and a part of the obligations owing by Buyer to Seller hereunder.  b) No
delay or failure of Seller in the exercise of any right or remedy provided for
hereunder shall be deemed a waiver of the right by Seller and no exercise or
partial exercise or waiver of any right or remedy shall be deemed a waiver of
any further exercise of such right or remedy or of any other right or remedy
that Seller may have.  The rights and
remedies herein expressed are cumulative and not exclusive of any right or
remedy that Seller shall otherwise have.

 

8) Waiver of Resolutive Action (Acción Resolutoria). Notwithstanding
the provisions of paragraph 7) of this Article Fourth, Seller hereby
waives any resolutive action (acción resolutoria)
to which he may be otherwise entitled under this Agreement according to
applicable Law.

 

FIFTH:  Delivery of Share Certificates. Uno hereby delivers to Buyer
the certificates representing the Metrópolis Shares, as identified in Article First
above, Buyer declaring having received the same. The entry of this purchase and
sale of shares shall be made in the Shareholders Registry Book of Metrópolis on
the basis of said share certificates, as a result of which new certificates
shall be issued in the name of Buyer for the number of shares being sold and
purchased hereunder.

 

SIXTH: Provisions of
Purchase Agreement.  All undefined
capitalized terms used in this instrument shall have the meanings set out in
the Purchase Agreement.

 

SEVENTH: Delegation. The bearer of a true copy of this instrument is hereby
authorized to apply for the registration of this instrument in the Shareholder
Registry Book of  Metrópolis.

 

EIGHTH: Domicile.
For the purposes of this purchase and sale of shares, the parties establish
their domicile in the city and municipal district of Santiago.

 

NINTH:  Governing Law. This instrument shall be governed by and
construed in accordance with the Laws of Chile, without regard to principles
governing conflicts of law.

 

TENTH: Dispute
Resolution. Any controversy, claim, or dispute between the parties hereto
that arises out of or relates to this instrument, including any claim or
controversy relating to the interpretation, breach, termination, or invalidity
of any provision hereof, will be exclusively and finally settled pursuant to
and in accordance with the agreement named “Dispute Resolution Agreement”,
entered into by private document in the English language dated as of the same
date hereof among United Chile, Inc., United Chile Ventures, Inc., VTR,
Cristalerías de Chile S.A.,
CristalChile Inversiones S.A. and Uno (the “Dispute Resolution
Agreement”).

 

6

 

ELEVENTH: Exclusion
of certain damages. In no event will any party of this Agreement be liable
to any other party for such other party’s lost profits, loss of use, lost
revenues, or other indirect, incidental, special, or consequential damages.
Each party waives and relinquishes claims for such lost profits, loss of use,
lost revenues, or other indirect, incidental, special, or consequential
damages. Notwithstanding the foregoing, the preceding sentence will not affect
the right of the Assignor to claim the payment of Default Interests to which he
may be entitled under this Agreement.

the Dispute Resolution Agreement.

 

TWELFTH: Expenses
and Taxes. All costs, expenses, and taxes incurred in connection with this
instrument and the transactions contemplated hereby will be borne by the party
incurring such expense.

 

THIRTEENTH:
Assignment and Binding Effect. No party may assign any of its rights or
delegate any of its obligations under this instrument without the prior written
consent of the other party; provided, however, that Seller will
be entitled to freely transfer and assign its rights under this instrument to
any Person.  All of the terms and
provisions of this instrument will be binding on, and will inure to the benefit
of, the respective successors and permitted assigns of the parties.

 

FOURTEENTH:
Headings. The article and section headings of this instrument are
for reference purposes only and are to be given no effect in the construction
or interpretation of this instrument.

 

FIFTEENTH: Notices.
All notices and other communications hereunder must be in writing and must be
delivered personally, telecopied (if receipt of which is confirmed by the
Person to whom sent), sent by internationally recognized overnight delivery
service or mailed by registered or certified mail (return receipt requested) to
the parties hereto at the addresses for notices specified in the Purchase
Agreement (or to such other Person or address for a party hereto as specified
by such party by like notice).  Notice
will be deemed given and received upon receipt, if delivered personally, by
overnight delivery service or by telecopy, or on the third Business Day
following mailing, if mailed, except that notice of a change of address will
not be deemed given and received until actually received.

 

SIXTEENTH:
Amendment; Waiver. No provision of this instrument may be amended or
modified except by an instrument or instruments in writing signed by the
parties hereto and designated as an amendment or modification.  No provision of this instrument may be waived
except by an instrument or instruments in writing signed by the parties
granting such waiver and designated as a waiver.  No failure or delay by any party hereto in
exercising any right, power, or remedy hereunder will operate as a waiver
thereof, nor will any single or partial exercise thereof or the exercise of any
other right, power, or remedy preclude any further exercise thereof or the
exercise of any other right, power, or remedy. 
No waiver of any provision hereof will be construed as a waiver of any
other provision.

 

7

 

SEVENTEENTH: No
Benefit to Others. Except as expressly set forth herein, the covenants and
agreements contained in this instrument are for the sole benefit of the parties
hereto and their respective successors and permitted assigns, and they will not
be construed as conferring and are not intended to confer any rights, remedies,
obligations, or liabilities on any other Person, unless such Person is
expressly stated herein to be entitled to any such right, remedy, obligation,
or liability.

 

EIGHTEENTH:
Interpretation. 1) As used herein, except as otherwise indicated
herein or as the context may otherwise require: a) the
words “include,” “includes,” and “including” are deemed to be followed by “without
limitation” whether or not they are in fact followed by such words or words of
like import; b) the words “hereof,” “herein,”
“hereunder,” and comparable terms refer to the entirety of this instrument, and
not to any particular article, section, or other subdivision hereof; c) any pronoun will include the corresponding
masculine, feminine, and neuter forms; d) the
singular includes the plural and vice versa; e) references
to any agreement or other document are to such agreement or document as
amended, modified, supplemented, and restated from time to time; f) references to any statute or regulation are to it as
amended, modified, supplemented, and restated from time to time, and to any
corresponding provisions of successor statutes or regulations; g) except as otherwise expressly provided in this
instrument, references to “Article,” “Section,” or another subdivision are to
an article, section, or subdivision hereof; and h) references
to any “Person” or “Entity” include such Person’s or Entity’s respective
successors and permitted assigns. 2) Any
reference herein to a “day” or number of “days” (without the explicit
qualification of “Business”) will be deemed to refer to a calendar day or
number of calendar days.  If any action
or notice is to be taken or given on or by a particular calendar day, and such
calendar day is not a Business Day, then such action or notice may be taken or
given on the next succeeding Business Day.

 

NINETEENTH: Rules of
Construction. The parties hereto agree that they have been represented by
counsel during the negotiation, preparation, and execution of this instrument
and, therefore, waive the application of any Law or rule of construction
providing that ambiguities in an agreement or other document will be construed
against the party drafting such agreement or document.

 

LEGAL CAPACITIES:  The
legal capacity of Mr. Max Letelier Bomchil to act for Liberty Comunicaciones de
Chile Uno Limitada is evidenced in an instrument of public record dated July 8,
1998, executed in the Notarial Office of Santiago or Mr. Iván Torrealba
Acevedo. The legal capacity of Mr. Rodrigo Castillo Murillo to act for VTR is
evidenced in an instrument of public record dated April 13, 2005, executed
at the Santiago Notarial Office of Jose Musalem Saffie. These legal capacities
are not inserted herein as they are known to the parties and the undersigned
Notary.

 

8

 

IN WITNESS WHEREOF and following a reading of these presents, the
parties appearing set their hands hereunto. A copy was provided. I attest.

 

	
   

  	
  /s/ JOSE
  MUSALEM SAFFIE, Notary Public

  

 

9Exhibit 10.4

 

AGREEMENT

between

UNITEDGLOBALCOM, INC.

and

LIBERTY MEDIA INTERNATIONAL HOLDINGS, LLC

 

Entered into as of April 13, 2005

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II EXCHANGE OF LIBERTY CHILE
  STOCK FOR UGC STOCK

  	
   

  
	
  Section 2.1

  	
  Exchange

  	
   

  
	
  Section 2.2

  	
  UGC Stock and Liberty Chile Stock

  	
   

  
	
  Section 2.3

  	
  Exchange Closing

  	
   

  
	
  Section 2.4

  	
  Exchange Closing Deliveries

  	
   

  
	
  Section 2.5

  	
  Registration of UGC Stock

  	
   

  
	
  Section 2.6

  	
  Registration Expenses

  	
   

  
	
  Section 2.7

  	
  Indemnification Relating to Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
  Section 3.1

  	
  LMINT’s Representations and Warranties

  	
   

  
	
  Section 3.2

  	
  UGC’s Representations and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND
  WARRANTIES REGARDING LIBERTY CHILE AND ITS SUBSIDIARIES

  	
   

  
	
  Section 4.1

  	
  Organization, Good Standing, and Authority

  	
   

  
	
  Section 4.2

  	
  Capitalization

  	
   

  
	
  Section 4.3

  	
  Consents; No Conflicts

  	
   

  
	
  Section 4.4

  	
  Subsidiaries

  	
   

  
	
  Section 4.5

  	
  Condition; No Undisclosed Liabilities

  	
   

  
	
  Section 4.6

  	
  Real Property

  	
   

  
	
  Section 4.7

  	
  Assets

  	
   

  
	
  Section 4.8

  	
  Contracts

  	
   

  
	
  Section 4.9

  	
  Employee Benefit Plans

  	
   

  
	
  Section 4.10

  	
  Employees

  	
   

  
	
  Section 4.11

  	
  Legal Compliance

  	
   

  
	
  Section 4.12

  	
  Taxes

  	
   

  
	
  Section 4.13

  	
  Books and Records

  	
   

  
	
  Section 4.14

  	
  Legal Proceedings

  	
   

  
	
  Section 4.15

  	
  Powers of Attorney

  	
   

  
	
  Section 4.16

  	
  Subsequent Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS

  	
   

  
	
  Section 5.1

  	
  General

  	
   

  
	
  Section 5.2

  	
  Publicity

  	
   

  
	
  Section 5.3

  	
  Expenses

  	
   

  
	
  Section 5.4

  	
  Notification

  	
   

  
	
  Section 5.5

  	
  Pre-Closing Covenants Regarding Liberty
  Chile

  	
   

  
	
  Section 5.6

  	
  Taxes on Equity DPP Obligation

  	
   

  
	
  Section 5.7

  	
  Tax Matters

  	
   

  
	
  Section 5.8

  	
  Further Assurances

  	
   

  

 

i

 

	
  Section 5.9

  	
  Deliveries at Signing

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI CONDITIONS TO EXCHANGE
  CLOSING

  	
   

  
	
  Section 6.1

  	
  Conditions Precedent to the Obligations of
  Each Party to Close

  	
   

  
	
  Section 6.2

  	
  Conditions Precedent to the Obligations of
  LMINT to Close

  	
   

  
	
  Section 6.3

  	
  Conditions Precedent to the Obligations of
  UGC to Close

  	
   

  
	
  Section 6.4

  	
  Frustration of Closing Conditions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII INDEMNIFICATION

  	
   

  
	
  Section 7.1

  	
  Survival of Representations, Warranties,
  and Covenants

  	
   

  
	
  Section 7.2

  	
  Indemnification by LMINT

  	
   

  
	
  Section 7.3

  	
  Indemnification by UGC

  	
   

  
	
  Section 7.4

  	
  Defense of Action

  	
   

  
	
  Section 7.5

  	
  Insurance Proceeds

  	
   

  
	
  Section 7.6

  	
  Exclusive Monetary Remedy; No Consequential
  Damages

  	
   

  
	
  Section 7.7

  	
  Tax Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII TERMINATION

  	
   

  
	
  Section 8.1

  	
  Termination

  	
   

  
	
  Section 8.2

  	
  Effect of Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX MISCELLANEOUS

  	
   

  
	
  Section 9.1

  	
  Entire Agreement

  	
   

  
	
  Section 9.2

  	
  Governing Law

  	
   

  
	
  Section 9.3

  	
  Consent to Jurisdiction

  	
   

  
	
  Section 9.4

  	
  Waiver of Jury Trial

  	
   

  
	
  Section 9.5

  	
  Headings

  	
   

  
	
  Section 9.6

  	
  Notices

  	
   

  
	
  Section 9.7

  	
  Severability

  	
   

  
	
  Section 9.8

  	
  Amendment; Waiver

  	
   

  
	
  Section 9.9

  	
  Assignment and Binding Effect

  	
   

  
	
  Section 9.10

  	
  No Benefit to Others

  	
   

  
	
  Section 9.11

  	
  Counterparts

  	
   

  
	
  Section 9.12

  	
  Interpretation

  	
   

  
	
  Section 9.13

  	
  Rules of Construction

  	
   

  

 

ii

 

This Agreement
is entered into as of April 13, 2005 by and between:

 

UNITEDGLOBALCOM,
INC., a Delaware corporation (“UGC”), and

 

LIBERTY MEDIA
INTERNATIONAL HOLDINGS, LLC, a Delaware limited liability company (“LMINT”).

 

UGC and LMINT are sometimes referred to herein individually as a “Party”
and collectively as the “Parties.” 
Capitalized terms used and not otherwise defined in this Agreement have
the respective meanings ascribed thereto in Article I.

 

RECITALS

 

A.            LMINT is the owner,
beneficially and of record, of 1,000 shares of common stock (the “Liberty
Chile Stock”) of Liberty Chile, Inc., a Colorado corporation (“Liberty
Chile”), which shares represent all of the outstanding capital stock of
Liberty Chile.  Liberty Chile is the
owner, beneficially and of record, of approximately (1) 99.75% of the derechos sociales of Liberty Comunicaciones de Chile Uno
Ltda., a Chilean sociedad de responsabilidad limitada
(“Uno”), and (2) 1,000 shares of common stock of Liberty Holdings
Chile, Inc., a Delaware corporation (“Liberty Holdings Chile”),
which shares represent all of the outstanding capital stock of Liberty Holdings
Chile.  Liberty Holdings Chile is the
owner, beneficially and of record, of approximately 0.25% of the derechos sociales of Uno, which, together with the derechos sociales held by Liberty Chile, represent all of
the outstanding derechos sociales of Uno.

 

B.            Uno owns shares
representing 50% of the outstanding capital stock of Metrópolis Intercom S.A.,
a Chilean sociedad anónima (“Metrópolis”),
one share of the outstanding capital stock of Proser S.A., a Chilean sociedad anonima (“Proser”), and the Metrópolis/Uno
Shareholder Debt.

 

C.            Cristalerías de Chile
S.A., a Chilean sociedad anónima
(“Cristalerías”), owns shares representing 50% of the outstanding
capital stock of Metrópolis, one share of the outstanding capital stock of
Proser and the Metrópolis/CCC Shareholder Debt. 
Metrópolis owns the capital stock of Proser that is not owned by Uno or
CCC.

 

D.            Cristalerías, Uno and
VTR GlobalCom S.A., a Chilean sociedad
anónima (“VTR”), have entered into a Purchase and
Contribution Agreement dated as of the date hereof (the “Purchase and
Contribution Agreement”), pursuant to which, among other things, VTR
will acquire all of the shares of capital stock of Metrópolis and Proser owned
by Uno in exchange for a deferred purchase price obligation of VTR (the “Equity
DPP Obligation”), will acquire all of the shares of capital stock of
Metrópolis and Proser owned by CCC in exchange for shares of VTR capital stock
and will acquire the Metrópolis/CCC Shareholder Debt in exchange for a deferred
purchase price obligation of VTR.

 

E.             In connection with
the execution of, and closing of the transactions contemplated by, the Purchase
and Contribution Agreement, LMINT and UGC desire to enter into this Agreement.

 

1

 

AGREEMENT

 

In
consideration of the mutual promises, covenants, and agreements set forth
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

For purposes
of this Agreement, the following terms have the following meanings:

 

Action:  As defined in Section 7.4(a).

 

Affiliate:  Affiliate of a Person means, at any time of
determination, any Person that directly, or indirectly through one or more
intermediaries, Controls, is Controlled by, or is under common Control with,
the Person in question.  Notwithstanding
anything in this definition to the contrary, for purposes of this Agreement
UGC, its Subsidiaries and Controlled Affiliates will not be considered
Affiliates of LMINT or any of its Affiliates.

 

Agreement:  This Agreement (including the Schedules
attached hereto).

 

Antitrust
Resolution:  The
resolution issued by the Tribunal de Defensa de la
Libre  Competencia of Chile on October 25,
2004, which became final and nonappealable on March 10, 2005 as a result
of a ruling by the Chilean Supreme Court.

 

Business Day:  Any day other than Saturday, Sunday, and a
day on which banks in Denver, Colorado, U.S.A. are required or permitted to
close.

 

Cristalerías:  As defined in the recitals.

 

Cristalerías
Put Agreement: 
The Put Agreement dated as of the date hereof between UGC and
Cristalerías.

 

Chile:  The Republic of Chile.

 

Code:  The U.S. Internal Revenue Code of 1986.

 

Commission:  As defined in Section 2.5(a)(i).

 

Contract:  Any note, bond, indenture, debenture,
security agreement, trust agreement, mortgage, lease, contract, license,
franchise, permit, guaranty, joint venture agreement, or other agreement,
instrument, commitment or obligation, whether oral or written.

 

Control:  The ability to direct or cause the direction
(whether through the ownership of voting securities, by contract, or otherwise)
of the management and policies of a Person or to control (whether affirmatively
or negatively and whether through the ownership of voting securities, by
contract, or otherwise) the decision of such Person to engage in the particular
conduct at issue.  A Person will be
rebuttably presumed to control an Entity if such Person owns,

 

2

 

directly or indirectly through one or more intermediaries, (a) sufficient
shares of stock or other equity interests of such Entity to allow such Person,
under ordinary circumstances, to elect or direct the election of a majority of
the members of the board of directors or other governing body of such Entity or
(b) shares of stock or other equity interests of such Entity representing,
in the aggregate, more than 50% of the aggregate outstanding economic interests
in such Entity.

 

Dollars:  Dollars, the lawful currency of the U.S.

 

DPPOs:  Collectively the Equity DPP Obligation and
the Uno Debt DPPO.

 

Effectiveness
Period:  As
defined in Section 2.5(a)(i).

 

Entity:  Any sociedad
anónima, sociedad de
responsabilidad limitada, corporation, general or limited
partnership, limited liability company, joint venture, trust, association,
unincorporated entity of any kind, or Governmental Authority.

 

Equity DPP
Obligation:  As
defined in the recitals.

 

Exchange:  As defined in Section 2.1.

 

Exchange Act:  The Securities Exchange Act of 1934.

 

Exchange
Closing:  As
defined in Section 2.3.

 

Exchange
Closing Date: 
The date on which the Exchange Closing occurs.

 

Excluded Uno
Covenants:  As
defined in Section 7.2(c).

 

Filing:  Any written registration, declaration,
application, or filing.

 

GAAP:  Generally accepted accounting principles as
used in the U.S., as in effect on the date hereof.

 

Governing
Documents:  The estatutos sociales, escritura de constitución social, articles
or certificate of incorporation or association, general or limited partnership
agreement, limited liability company or operating agreement, bylaws, or other
governing documents of any Entity, in each case as amended.

 

Governmental
Authority:  Any
U.S. federal, state, or local, or any foreign, court, governmental department,
commission, authority, board, bureau, agency, official, or other instrumentality.

 

Indemnified
Party:  As
defined in Section 7.4(a).

 

Indemnifying
Party:  As
defined in Section 7.4(a).

 

Judgment:  Any judgment, writ, order, decree,
injunction, award, restraining order, or ruling of or by any court, judge,
justice, arbitrator, or magistrate, including any bankruptcy court or judge,
and any writ, order, decree, or ruling of or by any Governmental Authority.

 

3

 

Law:  Any U.S. federal, state, or local, or any
foreign, statute, code, ordinance, rule, regulation, Judgment, regulatory
agreement with a Governmental Authority, or general principle of common or
civil law or equity.

 

Legal
Proceeding:  Any
private or governmental action, suit, complaint, arbitration, legal, or
administrative proceeding or investigation.

 

Liberty Chile
Investment:  As
defined in Section 4.4(a).

 

Liberty Chile
Investment Agreements: 
As defined in Section 4.4(a).

 

Liberty Chile
Material Adverse Effect:  A Material Adverse Effect with respect to
Liberty Chile, other than any event or circumstance that involves or affects
VTR or any of its Subsidiaries.

 

Lien:  Any (a) security agreement, conditional
sale agreement or other title retention agreement; (b) lease, consignment,
or bailment given for security purposes; and (c) lien, charge, restrictive
agreement, prohibition against transfer, mortgage, pledge, option, encumbrance,
adverse interest, security interest, claim, attachment, exception to or defect
in title, or other ownership interest (including reservations, rights of entry,
possibilities of reverter, encroachments, easements, rights of way, restrictive
covenants, leases, and Licenses granted to other Persons) of any kind, but
excluding any of the foregoing created or imposed by or pursuant to the Antitrust
Resolution, the Transaction Documents or the VTR/MI Transaction Documents.

 

LMINT:  As defined in the preamble.

 

LMINT Designee:  As defined in Section 2.1.

 

LMINT
Disclosure Schedule: 
The schedule so named, dated the date hereof, delivered by LMINT to
UGC.

 

LMINT Group:  Individually and collectively, (a) Liberty
Chile, (b) LMINT and (c) any Person as to which Liberty Chile is
liable for Taxes incurred by such Person either as a transferee, or pursuant to
U.S. Treasury Regulations Section 1.1502-6, or pursuant to any other
provision of applicable Law.

 

LMINT
Indemnified Parties or LMINT Indemnified Party:  As defined in Section 7.3.

 

Losses:  Losses, liabilities, damages, dues,
deficiencies, assessments, Liens, fines, interest, penalties, costs, expenses,
and obligations, including amounts reasonably paid in settlement, prosecuting,
defending, or otherwise, and reasonable legal, accounting, experts, and other
fees, costs, and expenses, in connection with claims, actions, suits,
proceedings, hearings, investigations, charges, complaints, demands,
injunctions, Judgments, orders, decrees, and rulings.

 

Material
Adverse Effect: 
With respect to any Person, (a) any event, change, or effect that
is materially adverse to the condition (financial or otherwise), properties,
assets, liabilities, business, operations or results of operations of such
Person and its Subsidiaries, taken as a

 

4

 

whole, except to the extent that such change, event, or effect is
attributable to or results from (i) changes affecting the securities or
capital markets or economic conditions generally in the country or countries in
which such Person or group of Persons conduct their businesses, (ii) changes
affecting the industries in which such Person or group of Persons operate
generally (as opposed to changes affecting any such Person or group of Persons
specifically or predominantly), (iii) the effect of the public
announcement of this Agreement or the Purchase and Contribution Agreement or the
pendency of the transactions contemplated hereby or thereby or by the other
Transaction Documents, or (iv) changes in GAAP or in generally accepted
accounting principles in Chile, as applicable, or (b) if such Person is a
Party hereto or a party to any other Transaction Document, any event, change,
or circumstance that has a material adverse effect on the ability of such
Person to perform its obligations under, and to consummate the transactions
contemplated by, this Agreement and the other Transaction Documents, as
applicable.

 

Merger
Agreement:  The
Agreement and Plan of Merger dated as of January 17, 2005 by and among New
Cheetah, Inc., Liberty Media International, Inc., UGC, Cheetah
Acquisition Corp. and Tiger Global Acquisition Corp.

 

Metrópolis:  As defined in the recitals.

 

Metrópolis/Uno
Shareholder Debt: 
The indebtedness owed by Metrópolis to Uno represented by the following
documents:  (a) the Money Receipt
and Acknowledgement of Debt (Recibo de Dinero y
Reconocimiento de Deuda) dated as of April 19, 2004, pursuant
to which Metrópolis acknowledged its debt to Uno in the amount of $850,000,000
Chilean Pesos; (b) the Money Receipt and Acknowledgement of Debt (Recibo de Dinero y Reconocimiento de Deuda) dated as of June 14,
2004 pursuant to which Metrópolis acknowledged its debt to Uno in the amount of
$2,700,000,000 Chilean Pesos; and (c) the Money Receipt and
Acknowledgement of Debt (Recibo de Dinero y
Reconocimiento de Deuda) dated as of December 16, 2004,
pursuant to which Metrópolis acknowledged its debt to Uno in the amount of
$2,400,000,000 Chilean Pesos.

 

Metrópolis/CCC
Shareholder Debt: 
The indebtedness owed by Metrópolis to CCC represented by the following
documents: (a) the Money Receipt and Acknowledgement of Debt (Recibo de Dinero y Reconocimiento de Deuda), dated as of April 19,
2004, pursuant to which Metrópolis acknowledged its debt to CCC in the amount
of $850,000,000 Chilean Pesos; (b) the Money Receipt and Acknowledgement
of Debt (Recibo de Dinero y Reconocimiento de Deuda),
dated as of June 14, 2004, pursuant to which Metrópolis acknowledged its
debt to CCC in the amount of $2,700,000,000 Chilean Pesos; and (c) the
Money Receipt and Acknowledgement of Debt (Recibo de Dinero y
Reconocimiento de Deuda), dated as of December 16, 2004, pursuant
to which Metrópolis acknowledged its debt to CCC in the amount of
$2,400,000,000 Chilean Pesos.

 

Notice and
Questionnaire: 
As defined in Section 2.5(b).

 

Ordinary
Course of Business: 
The ordinary course of business of a Person, consistent with such Person’s
past practices (including with respect to quantity and frequency).

 

5

 

Party
or Parties:  As defined in the
preamble.

 

Permitted
Liens:  The
following Liens:  (a) Liens for
Taxes, assessments or other governmental charges or levies not yet due and
payable; (b) Liens of carriers, warehousemen, mechanics, materialmen and
landlords incurred in the ordinary course of business for sums not yet due; (c) Liens
incurred in the ordinary course of business in connection with workmen’s
compensation, unemployment insurance or other forms of governmental insurance
or benefits, or to secure performance of tenders, statutory obligations, leases
and Contracts (other than for borrowed money) entered into in the ordinary
course of business or to secure obligations on surety or appeal bonds; (d) purchase
money security interests or Liens on property acquired or held by the
applicable Person in the ordinary course of business to secure the purchase
price of such property or to secure indebtedness incurred solely for the
purpose of financing the acquisition of such property; and (e) easements,
restrictions and other minor defects of title that are not, in the aggregate,
material or which do not, individually or in the aggregate, materially and
adversely affect the value of the property affected thereby.

 

Person:  Any natural person or Entity.

 

Post-Closing
Period:  Any
period that begins after the Exchange Closing Date and, with respect to any
period that begins before the Exchange Closing Date and ends after the Exchange
Closing Date, the portion of that period beginning after the Exchange Closing
Date.

 

Pre-Closing
Period:  Any
period that ends on or prior to the Exchange Closing Date and, with respect to
any period that begins before the Exchange Closing Date and ends after the
Exchange Closing Date, the portion of that period ending on the Exchange
Closing Date.

 

Proser:  As defined in the recitals.

 

Prospectus:  As defined in Section 2.5(a)(i).

 

Purchase and
Contribution Agreement:  As defined in the recitals.

 

Registration
Rights Agreement: 
The Registration Rights Agreement dated January 30, 2002 among UGC
(formerly named New UnitedGlobalCom, Inc.), LMC, Liberty Global, Inc.
and Liberty UCOMA, LLC.

 

Registration
Statement:  As
defined in Section 2.5(a)(i).

 

Related Party
Transaction Committee: 
A committee of the board of directors of UGC designated the Related
Party Transaction Committee, the approval of which was obtained prior to UGC’s
execution and delivery of this Agreement.

 

Required LMINT
Consents:  As
defined in Section 3.1(d).

 

Required UGC
Consents:  As
defined in Section 3.2(d).

 

Restriction:  With respect to any capital stock,
partnership interest, membership right or membership interest in a limited
liability company, or other equity interest or security:  any

 

6

 

voting or other trust or agreement, option, warrant, preemptive right
(other than any imposed by applicable Law), right of first offer, right of
first refusal, escrow arrangement, proxy, buy-sell agreement, power of
attorney, or other Contract (but excluding the VTR/MI Transaction Documents and
the Transaction Documents), or any License that, conditionally or
unconditionally, (a) grants to any Person the right to purchase or
otherwise acquire, or obligates any Person to sell or otherwise dispose of or
issue, or otherwise gives or, whether upon the occurrence of any event or with
notice or lapse of time or both or otherwise, may give any Person the right to
acquire (i) any such capital stock, partnership interest, membership right
or membership interest in a limited liability company, or other equity interest
or security; (ii) any proceeds of, or any distributions paid or that are
or may become payable with respect to, any such capital stock, partnership
interest, membership right or membership interest in a limited liability
company, or other equity interest or security; or (iii) any interest in
such capital stock, partnership interest, membership right or membership
interest in a limited liability company, or other equity interest or security
or any such proceeds or distributions; (b) restricts or, whether upon the
occurrence of any event or with notice or lapse of time or both or otherwise,
is reasonably likely to restrict the transfer or voting of, or the exercise of
any rights or the enjoyment of any benefits arising by reason of ownership of,
any such capital stock, partnership interest, membership right or membership
interest in a limited liability company, or other equity interest or security
or any such proceeds or distributions; or (c) creates or, whether upon the
occurrence of any event or with notice or lapse of time or both or otherwise,
is reasonably likely to create a Lien or purported Lien affecting such capital
stock, partnership interest, membership right or membership interest in a
limited liability company, or other equity interest or security, proceeds or
distributions; provided however that none of the Antitrust Resolution
nor the VTR/MI Transaction Documents nor the Transaction Documents will be
considered to constitute or impose a Restriction.

 

Securities Act:  The U.S. Securities Act of 1933.

 

Subsidiary:  With respect to any Person:

 

(a)           a
corporation a majority in voting power of whose capital stock with voting
power, under ordinary circumstances, to elect directors is at the time,
directly or indirectly, owned by such Person, by a Subsidiary of such Person,
or by such Person and one or more Subsidiaries of such Person;

 

(b)           a
partnership or limited liability company in which such Person or a Subsidiary
of such Person is, at the date of determination, (i) in the case of a
partnership, a general partner of such partnership with the power exclusively
to direct the policies and management of such partnership or (ii) in the
case of a limited liability company, the managing member or, in the absence of
a managing member, a member with the power exclusively to direct the policies
and management of such limited liability company; or

 

(c)           any
Entity (other than a corporation, partnership, or limited liability company) in
which such Person, a Subsidiary of such Person, or such Person and one or more
Subsidiaries of such Person, directly or indirectly, at the date of
determination thereof, has (i) the power to elect or direct the election
of a majority of the members of

 

7

 

the governing
body of such Person or (ii) in the absence of such a governing body, at
least a majority ownership interest.

 

Notwithstanding anything in this definition to the contrary, for
purposes of this Agreement UGC and its Subsidiaries will not be considered
Subsidiaries of LMINT or any of its Subsidiaries.

 

Tax
or Taxes:  All taxes, however
denominated, including any monetary adjustments, interest, penalties or other
additions to tax that may become payable in respect thereof, imposed by any Tax
Authority, which taxes include, without limiting the generality of the
foregoing, all income or profits taxes, payroll and employee withholding taxes,
unemployment insurance, social security taxes, income withholding taxes, sales
and use taxes, value added taxes, ad valorem taxes, excise taxes, franchise
taxes, gross receipts taxes, business or municipal license taxes, occupation
taxes, real and personal property taxes, stamp taxes, environmental taxes,
severance taxes, production taxes, transfer taxes, workers’ compensation,
governmental charges, and other obligations of the same or of a similar nature
to any of the foregoing.

 

Tax Authority:  Any U.S. federal, state, or local, or any
foreign, taxing authority.

 

Tax Indemnity
Payment:  As
defined in Section 7.7.

 

Tax Return
Preparation Standard: 
The preparation of a Tax Return and the reporting of any item thereon in
accordance with specific practices used by the particular taxpayer for Tax
Returns filed with respect to the most recent reporting period (which practices
will include Tax elections, income recognition practices, expense recognition
practices and asset write-off periods), but only to the extent such practices
comply with applicable Tax Laws, and to the extent the reporting of any item is
not in compliance with applicable Tax Laws, in accordance with practices that
comply with applicable Tax Laws.

 

Tax Returns:  All returns, declarations, reports, forms,
claims for refund, estimates, information returns, and statements and other
documentation, including amendments, required to be maintained or filed with or
supplied to any Tax Authority in connection with any Taxes.

 

Trading Day:
 A day during which trading in securities
generally occurs on the principal securities exchange or quotation system, as
applicable, on which UGC Class A Stock is then trading or quoted, other
than a day on which a material suspension of or limitation on trading is
imposed that affects either such principal securities exchange or quotation
system in its entirety or only UGC Class A Stock (by reason of movements
in price exceeding limits permitted by such principal securities exchange or
quotation system or otherwise) or on which such principal securities exchange
or quotation system cannot clear the transfer of UGC Class A Stock.

 

Transaction
Documents:  This
Agreement and any and all other documents, instruments, certificates and
agreements to be executed and delivered in connection with the transactions
contemplated hereby.

 

Transfer Taxes:  As defined in Section 5.6.

 

UGC:  As defined in the preamble.

 

8

 

UGC Class A
Stock:  The Class A
common stock, par value US$0.01 per share, of UGC.

 

UGC Commission Filings:  As defined in Section 3.2(k).

 

UGC
Indemnified Parties or UGC Indemnified Party:  As defined in Section 7.2.

 

UGC Material
Adverse Effect: 
A Material Adverse Effect with respect to UGC.

 

UGC Stock:  As defined in Section 2.2(a).

 

Uno:  As defined in the recitals.

 

Uno Debt DPPO:  The deferred purchase price obligation issued
by VTR to Uno at the closing of the VTR/MI Transaction in exchange for an
assignment to VTR of the credit underlying the Metrópolis/Uno Shareholder Debt
as provided in the Purchase and Contribution Agreement.

 

U.S. or U.S.A.:  The United States of America.

 

US$ or $:  Dollars.

 

VTR:  As defined in the recitals.

 

VTR/MI
Transaction: 
The transactions contemplated by the VTR/MI Transaction Documents,
including the termination and liquidation of Cordillera Comunicaciones Limitada
and Cordillera Comunicaciones Holding Limitada and the other transactions
necessary to satisfy the conditions to closing under the Purchase and
Contribution Agreement.

 

VTR/MI
Transaction Documents: 
The Purchase and Contribution Agreement, the Shareholders Agreement, the
Put Agreement, the Dispute Resolution Agreement, the Guaranty, the CCC
Subscription and Transfer Agreement, the Uno Transfer Agreement (including the
Equity DPP Obligation), the Uno Debt DPPO, the CCC Waiver and Release, the
LMINT/LMC Waiver and Release and the CCC Debt DPPO, each as defined in the
Purchase and Contribution Agreement, any and all other documents, instruments
and agreements being or to be executed and delivered in connection with the
transactions contemplated thereby (including in connection with the termination
and dissolution of Cordillera Comunicaciones Limitada and Cordillera
Comunicaciones Holding Limitada and the distribution and leasing of the real
property interests owned by them, and the satisfaction of the parties’ other
conditions thereunder) and in connection with the subordination and pledge of
the DPPOs to the lenders under the VTR Credit Agreement, as defined in the Purchase
and Contribution Agreement.

 

ARTICLE II

EXCHANGE OF LIBERTY CHILE STOCK FOR UGC STOCK

 

Section 2.1             Exchange.  If the Merger Agreement is terminated without
the consummation of the mergers contemplated thereby, subject to the conditions
set forth in this Agreement, including Article VI, LMINT will sell and
assign the Liberty Chile Stock to UGC in exchange for UGC Class A Stock,
and UGC will issue and deliver to LMINT, or one or more of

 

9

 

its Affiliates designated by LMINT in accordance with Section 9.9
(collectively, the “LMINT Designee”), UGC Class A Stock (the “Exchange”)
as provided in this Article II.

 

Section 2.2             UGC
Stock and Liberty Chile Stock.

 

(a)           If
the Exchange occurs, UGC must at the Exchange Closing issue to LMINT or the
LMINT Designee 10,000,000 shares of UGC Class A Stock, adjusted as
provided in this Section 2.2 (such shares, the “UGC Stock”).  All of the shares of UGC Stock delivered at
the Exchange Closing shall when delivered be fully paid and nonassessable and
free and clear of all Liens and Restrictions, except Restrictions on transfer
imposed by applicable securities Laws and by the Registration Rights Agreement
(if any), Restrictions imposed on all shares of UGC Class A Stock by the
certificate of incorporation of UGC and Liens and Restrictions imposed by or
with the consent of LMINT or any of its Affiliates.

 

(b)           If
between the date of this Agreement and the Exchange Closing, the outstanding
shares of UGC Class A Stock shall have been increased, decreased, changed
into or exchanged (other than a conversion or exchange of UGC Class B
common stock or Class C common stock into UGC Class A Stock on a
one-for-one basis) for a different number of shares or different class of
shares, in each case, by reason of any reclassification, recapitalization,
stock split, split-up, combination or exchange of shares, or a stock dividend
or dividend payable in any other securities shall be declared with a record
date between the date of this Agreement and the Exchange Closing, or any
similar event shall have occurred, then the UGC Stock deliverable at the
Exchange Closing shall be appropriately adjusted to provide LMINT the same
economic benefit as contemplated by this Agreement prior to such event.

 

(c)           In
case of any merger or combination of UGC with another Entity or other similar
transaction (other than the transactions contemplated by the Merger Agreement)
prior to the Exchange Closing in which the outstanding shares of UGC Class A
Stock are converted into or exchanged for publicly traded common stock of
another Entity, then references in this Agreement to UGC Class A Stock
shall be deemed to refer to a number of shares of the publicly traded common
stock of such other Entity into which the UGC Class A Stock is converted
or for which it is exchanged equal to the number of shares of such stock that
would be received in exchange for the UGC Stock in such merger or combination.

 

(d)           If
the Exchange occurs, LMINT must at the Exchange Closing deliver to UGC or one
of its Subsidiaries designated by UGC in accordance with Section 9.9 the
Liberty Chile Stock, free and clear of all Liens and Restrictions except
Restrictions on transfer imposed by applicable securities Laws, Restrictions
imposed on all shares of Liberty Chile Stock by the articles of incorporation
of Liberty Chile and Liens and Restrictions imposed by or with the consent of
UGC and its Subsidiaries.  Prior to the
Exchange Closing the Uno Debt DPPO will be distributed by Liberty Chile so that
it is not owned by Liberty Chile at the time of the Exchange Closing.

 

10

 

Section 2.3             Exchange
Closing.  The closing of the
transactions contemplated by this Article II (the “Exchange Closing”)
will take place at the offices of UGC, 4643 South Ulster Street, No. 1300,
Denver, Colorado, or at such other location as the Parties may agree, on the
twentieth Trading Day after the termination of the Merger Agreement without
consummation of the mergers contemplated thereby or, if later, on the first
Business Day following the satisfaction (or, if permissible, the waiver) of all
conditions to the Exchange Closing.

 

Section 2.4             Exchange
Closing Deliveries.  At the Exchange
Closing:

 

(a)           LMINT
must sell, transfer, assign, convey and deliver to UGC or its designee:

 

(i)            one
or more certificates representing the Liberty Chile Stock, duly endorsed and in
proper form for transfer to UGC or its designee, accompanied by duly executed
instruments of transfer in blank;

 

(ii)           all
of the following of Liberty Chile and each of its Subsidiaries formed under the
laws of a state of the U.S.: (A) share ledgers, (B) minutes books
containing the minutes of all meetings, and all actions by written consent, of
shareholders, directors and committees of directors since the time of the
applicable Entity’s incorporation, and (C) all other books and records;

 

(iii)          (A) letters
of resignation, effective as of the Exchange Closing, of each director of
Liberty Chile and each of its Subsidiaries that UGC requests (which request
must be made in writing at least three Business Days before the Exchange
Closing Date) and (B) evidence of the revocation, effective as of the
Exchange Closing, of each power of attorney set forth on Section 4.15 of
the LMINT Disclosure Schedule that UGC requests (which request must be
made in writing at least three Business Days before the Exchange Closing Date);
and

 

(iv)          such
other documents and instruments as UGC may reasonably request at least five
Business Days prior to the Exchange Closing Date.

 

(b)           UGC
must deliver or cause to be delivered to LMINT or the LMINT Designee:

 

(i)            one
or more certificates representing the UGC Stock; and

 

(ii)           such
other documents and instruments as LMINT may reasonably request at least five
Business Days prior to the Exchange Closing Date.

 

11

 

Section 2.5             Registration
of UGC Stock.

 

(a)           UGC
will:

 

(i)            prepare
and file with the U.S. Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration Statement”) relating to the
resale by LMINT of the UGC Stock in accordance with the methods of distribution
provided by LMINT and set forth in the Registration Statement and Rule 415
under the Securities Act (or any successor rule thereto) and use its
commercially reasonable best efforts to cause the Registration Statement to be
declared effective on or prior to the time of the Exchange Closing (but, in any
event, not later than the date that is 45 days after the Exchange Closing) and
keep the Registration Statement continuously effective in order to permit the
prospectus included therein (the “Prospectus”) to be lawfully delivered
by LMINT for a period of two years from the later of the date the Registration
Statement is declared effective by the Commission and the date of the Exchange
Closing, or such shorter period that will terminate when all the UGC Stock
covered by the Registration Statement has been sold pursuant thereto (the “Effectiveness
Period”);

 

(ii)           use
its commercially reasonable best efforts to cause the Registration Statement
and the Prospectus and any amendment or supplement thereto, as of the effective
date of the Registration Statement, amendment, or supplement, (A) to
comply with the applicable requirements of the Securities Act and the rules and
regulations of the Commission and (B) not to contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading;

 

(iii)          furnish
to LMINT such copies of the Prospectus (and any amendment or supplement to the
Prospectus), including a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as LMINT may reasonably
request to facilitate the disposition of all UGC Stock covered by the
Registration Statement;

 

(iv)          list
the UGC Stock being registered on the principal securities exchange or
quotation system, as the case may be, on which the class of equity securities
to which the UGC Stock belongs trades;

 

12

 

(v)           promptly
notify LMINT of any stop order issued or threatened in writing to be issued by
the Commission in connection therewith and take all reasonable actions required
to prevent the entry of such stop order or to remove it if entered;

 

(vi)          in
accordance with the Securities Act and the rules and regulations of the
Commission, prepare and file with the Commission such amendments to the
Registration Statement and supplements to the Prospectus as may be necessary to
keep the Registration Statement effective for the Effectiveness Period and the
Registration Statement and the Prospectus accurate and complete for the Effectiveness
Period;

 

(vii)         use
its commercially reasonable efforts to register or qualify the UGC Stock
covered by the Registration Statement and to maintain such registration or
qualification under such U.S. state securities or blue sky laws as LMINT reasonably
requests and do any and all other reasonable acts and things necessary to
enable LMINT to consummate the disposition of the UGC Stock in such
jurisdiction, except that UGC will not for any purpose be required (A) to
execute a general consent to service of process in any jurisdiction where it is
not then subject to service of process, (B) to qualify to do business as a
foreign corporation in any jurisdiction where it is not then so qualified, (C) to
subject itself to taxation in any jurisdiction where it is not then so subject,
or (D) to conform its capitalization or the composition of its assets to
the securities or “blue sky” laws of any jurisdiction;

 

(viii)        notify
LMINT (A) of the initial filing of the Registration Statement with the
Commission and (B) promptly after it receives notice thereof, of the date
and time when the Registration Statement and each post-effective amendment
thereto has become effective;

 

(ix)           notify
LMINT promptly of any request by the Commission for the amending or supplementing
of the Registration Statement or the Prospectus or for additional information;

 

(x)            notify
LMINT, at any time when the Prospectus is required to be delivered under the
Securities Act, of any event which would cause the Prospectus to include an
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not
misleading, and promptly prepare and file with the 

 

13

 

Commission, and promptly notify LMINT of the filing of, such amendments
or supplements to the Registration Statement or the Prospectus as may be
necessary to correct any such misstatements or omissions;

 

(xi)           permit
a single firm of counsel designated by LMINT (which initially will be Baker
Botts LLP) a reasonable period of time prior to the filing of the Registration
Statement with the Commission to review the Registration Statement, and
reasonably consider and take into account all reasonable comments from such counsel
with respect thereto;

 

(xii)          furnish
promptly to LMINT copies of all written communications between UGC (including
its counsel) and the Commission with respect to the Registration Statement not
otherwise set forth above;

 

(xiii)         otherwise
use commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to LMINT, as soon as
reasonably practicable an earnings statement that satisfies the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder; and

 

(xiv)        if
the Registration Statement ceases to be effective, promptly prepare and file a
new registration statement covering the UGC Stock previously covered by the
Registration Statement and use its commercially reasonable efforts to have such
new registration statement declared effective as soon as possible and otherwise
comply, as to such new registration statement, with the obligations hereunder
as if such new registration statement is the Registration Statement.

 

(b)           LMINT’s
Obligations.  Promptly following a
written request by UGC, LMINT will deliver a written notice to UGC containing
any information required under the Securities Act or the regulations
promulgated by the Commission and requested by UGC and necessary to enable the
Registration Statement or any amendment or supplement thereto to include the
information required regarding LMINT and the intended distribution of the UGC
Stock (a “Notice and Questionnaire”).

 

(c)           Permitted
Interruption.  Notwithstanding any
provision of this Agreement, under the circumstances and subject to the terms
and conditions specified in Section 3.1(a) of the Registration Rights
Agreement, UGC may require LMINT to suspend the offering of UGC Stock pursuant
to the Registration Statement provided that the Registration Statement has been
effective for at least 60 days.

 

14

 

Section 2.6             Registration
Expenses.  In connection with any
registration with the Commission pursuant to this Agreement, UGC must pay all
expenses incurred in connection with such registration on the terms and
conditions specified in Section 3.2 of the Registration Rights Agreement.

 

Section 2.7             Indemnification
Relating to Registration.  The
Parties’ indemnification obligations relating to the matters addressed in Section 2.5
will be governed by the provisions of Article IV of the Registration
Rights Agreement, and not by Sections 7.2 and 7.3 hereof.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.1             LMINT’s
Representations and Warranties.  LMINT
represents and warrants to UGC that the statements contained in this Section 3.1
are correct and complete as of the date of this Agreement and will be correct
and complete as of the Exchange Closing Date as though made then:

 

(a)           Organization.  It (i) is duly organized, validly
existing, and in good standing under the Laws of the State of Delaware and (ii) has
all requisite limited liability company power and authority to own, lease, and
operate its properties and to carry on its business as now being conducted.

 

(b)           Power
and Authority.  (i) It has all
requisite limited liability company power and authority to enter into and
perform its obligations under this Agreement and each other Transaction
Document to be executed and delivered by it pursuant to this Agreement; and (ii) the
execution, delivery and performance by it of this Agreement and each other
Transaction Document to which it is or will be a party have been duly
authorized by all requisite limited liability company action, and at the Exchange
Closing, subject to the satisfaction of the conditions set forth in this
Agreement, the performance by it of its obligations under this Agreement and
each other Transaction Document to which it is or will be a party will have
been duly authorized by all requisite limited liability company action.

 

(c)           Validity.  This Agreement has been, and each of the
other Transaction Documents to be executed and delivered by it has been (or, if
to be delivered at the Exchange Closing, will be at or prior to the Exchange
Closing) duly executed and delivered by it, and assuming the due execution and
delivery by each other party hereto and thereto, this Agreement constitutes,
and when executed and delivered by it pursuant to this Agreement, each other
Transaction Document to be executed and delivered by it will constitute, the
legal, valid, and binding obligation of it, enforceable in accordance with its
terms, except as such enforceability may be affected by applicable bankruptcy,
reorganization, insolvency, moratorium, or similar Laws affecting creditors’
rights generally.

 

(d)           Consents.  Except for any required notices, Filings,
consents, approvals, or waivers that have been obtained or made or, in the case
of filings with the Commission, filings that will be made when required, and
except for those set forth in Section 3.1(d) of

 

15

 

its Disclosure Schedule (collectively, the “Required LMINT
Consents”), no consent, approval, or waiver of, notice to, or Filing with,
any other Person is required on behalf of it in connection with the execution,
delivery, or performance by it of this Agreement or any of the other
Transaction Documents to be executed and delivered by it, or the consummation
of the transactions contemplated hereby and thereby.

 

(e)           No
Conflicts.  The execution and
delivery by it of this Agreement and the other Transaction Documents to be
executed and delivered by it do not, and the performance by it of its
obligations under this Agreement and the other Transaction Documents to be
executed and delivered by it and the consummation of the transactions
contemplated hereby and thereby will not, (i) violate or conflict with any
provision of its Governing Documents; (ii) assuming in respect of the
performance by it of its obligations under this Agreement and such other
Transaction Documents and the consummation of the transactions contemplated
hereby and thereby that the Required LMINT Consents of Governmental Authorities
are given, made or obtained, violate any of the terms, conditions, or
provisions of any Law in effect on the date of this Agreement or on the
Exchange Closing Date or any License in each case to which it is subject or by
which it or any of its assets is bound, except that no representation is made with
respect to any Law of any jurisdiction in which it does not, directly or
through a Subsidiary, own assets or engage in business; (iii) assuming in
respect of the performance by it of its obligations under this Agreement and
such other Transaction Documents and the consummation of the transactions
contemplated hereby and thereby that the Required LMINT Consents are given,
made and obtained, result in a violation or breach of, or (with or without the
giving of notice or lapse of time or both) constitute a default (or give rise
to any right of termination, cancellation, acceleration, repurchase,
prepayment, repayment, or increased payments) under, or give rise to or
accelerate any obligation (including any obligation to, or to offer to,
repurchase, prepay, repay, or make increased payments), or result in the loss
or modification of any benefit under, or pursuant to, any Contract to which it
is a party or by which it or any of its assets is bound; or (iv) result in
a Lien or Restriction on the Liberty Chile Stock, other than any imposed by or
with the consent of UGC or any of its Subsidiaries.

 

(f)            Brokers’
and Finders’ Fees.  No broker,
finder, investment banker, or similar intermediary has been retained by, or is
authorized to act on behalf of, LMINT, Liberty Chile, any of their respective
Subsidiaries or any of their respective officers or directors who will be
entitled to any fee or commission in connection with this Agreement or any
other Transaction Document or upon consummation of the transactions contemplated
hereby or thereby and which fee or commission could reasonably be expected to
be or become a liability of UGC or any of its Controlled Affiliates or Liberty
Chile or any of its Subsidiaries.

 

(g)           Information.  It has been given full access to, and ample
opportunity to review, such financial and other information related to UGC as
it has deemed necessary to make an informed decision to invest in the UGC
Stock.

 

(h)           Ownership
of Liberty Chile Stock.  For all
purposes other than U.S. federal income Tax purposes, it is the owner of all of
the shares of Liberty Chile Stock, free and

 

16

 

clear of all Liens and Restrictions, except transfer Restrictions
imposed by applicable securities Laws, Restrictions on all shares of Liberty
Chile Stock imposed by the articles of incorporation of Liberty Chile and Liens
and Restrictions imposed by or with the consent of UGC or any of its
Subsidiaries.  There are no voting
trusts, proxies, powers of attorney, or other agreements or understandings with
respect to the voting of the Liberty Chile Stock.  For U.S. federal income Tax purposes Liberty
Media International, Inc., a Delaware corporation which is the sole member
of LMINT, is the owner of the Liberty Chile Stock.

 

(i)            Interested Party Transactions. 
Other than transactions required or permitted by this Agreement, the
VTR/MI Transaction Documents or the other Transaction Documents, Section 3.1(i) of
its Disclosure Schedule lists all Contracts between Liberty Chile or any
of its Subsidiaries, on the one hand, and, on the other hand, (i) LMINT or
any of its Affiliates or (ii) any director, officer, or employee of LMINT
or any of its Affiliates, in each case that has not yet been fully performed.

 

(j)            Legal
Proceedings.  There is no Legal
Proceeding pending or, to LMINT’s knowledge threatened, against or affecting
LMINT or any of its Affiliates that, if determined adversely to LMINT or such
Affiliate, insofar as LMINT can reasonably foresee, is reasonably likely to
have a Liberty Chile Material Adverse Effect or prohibit or make illegal the
Exchange.

 

(k)           Investment
Intent.  It understands that the UGC
Stock has not been registered under the Securities Act or registered or
qualified under any U.S. state securities Laws, and is being offered and sold
to LMINT or the LMINT Designee in reliance upon federal and state exemptions
for transactions not involving any public offering.  It will acquire the UGC Stock solely for
investment purposes, and not with a view to, or for resale in connection with,
any “distribution” thereof within the meaning of the Securities Act, except for
any offering registered under Section 2.5 or pursuant to an exemption from
the registration requirements of securities Laws.

 

Section 3.2             UGC’s
Representations and Warranties.  UGC
represents and warrants to LMINT that the statements contained in this Section 3.2
are correct and complete as of the date of this Agreement and will be correct
and complete as of the Exchange Closing Date as though made then:

 

(a)           Organization.  It (i) is duly organized, validly
existing, and in good standing under the Laws of the State of Delaware and (ii) has
all requisite corporate power and authority to own, lease, and operate its
properties and to carry on its business as now being conducted.

 

(b)           Power
and Authority.  (i) It has all
requisite corporate power and authority to enter into and perform its
obligations under this Agreement and each other Transaction Document to be
executed and delivered by it pursuant to this Agreement; and (ii) the
execution, delivery and performance by it of this Agreement and each other
Transaction Document to which it is or will be a party have been duly
authorized by all requisite corporate action (including approval by the Related
Party Transactions Committee), and at

 

17

 

the Exchange Closing, subject to the satisfaction of the conditions set
forth in this Agreement, the performance by it of its obligations under this
Agreement and each other Transaction Document to which it is or will be a party
will have been duly authorized by all requisite corporate action.

 

(c)           Validity.  This Agreement has been, and each of the
other Transaction Documents to be executed and delivered by it has been (or, if
to be delivered at the Exchange Closing, will be at or prior to the Exchange
Closing) duly executed and delivered by it, and assuming the due execution and
delivery by each other party hereto and thereto, this Agreement constitutes,
and when executed and delivered by it pursuant to this Agreement, each other
Transaction Document to be executed and delivered by it will constitute, the
legal, valid, and binding obligation of it, enforceable in accordance with its
terms, except as such enforceability may be affected by applicable bankruptcy,
reorganization, insolvency, moratorium, or similar Laws affecting creditors’
rights generally.

 

(d)           Consents.  Except for any required notices, Filings,
consents, approvals, or waivers that have been obtained or made, notices and Filings
to be made with, and consents, approvals and waivers to be obtained from, the
Commission in connection with the provisions of Section 2.5 that will be
made or obtained when required (the “Required UGC  Consents”), no
consent, approval, or waiver of, notice to, or Filing with, any other Person is
required on behalf of it in connection with the execution, delivery, or
performance by it of this Agreement or any of the other Transaction Documents
to be executed and delivered by it, or the consummation of the transactions
contemplated hereby and thereby.

 

(e)           No
Conflicts.  The execution and
delivery by it of this Agreement and the other Transaction Documents to be
executed and delivered by it do not, and the performance by it of its
obligations under this Agreement and the other Transaction Documents to be
executed and delivered by it and the consummation of the transactions
contemplated hereby and thereby will not, (i) violate or conflict with any
provision of its Governing Documents; (ii) assuming in respect of the
performance by it of its obligations under this Agreement and the other
Transaction Documents and the consummation of the transactions contemplated
hereby and thereby that the Required UGC Consents of Governmental Authorities
are given, made and obtained, violate any of the terms, conditions, or
provisions of any Law in effect on the date of this Agreement or License in
each case to which it is subject or by which it or any of its assets is bound,
except that no representation is made with respect to any Law of any
jurisdiction in which it does not, directly or through a Subsidiary, own assets
or engage in business; or (iii) assuming in respect of the performance by
it of its obligations under this Agreement and the other Transaction Documents
and the consummation of the transactions contemplated hereby and thereby that
the Required UGC Consents are given, made and obtained, result in a violation
or breach of, or (with or without the giving of notice or lapse of time or
both) constitute a default (or give rise to any right of termination,
cancellation, acceleration, repurchase, prepayment, repayment, or increased
payments) under, or give rise to or accelerate any material obligation
(including any obligation to, or offer to, repurchase, prepay, repay, or make
increased payments), or result in the loss or modification of any

 

18

 

material benefit under, or pursuant to, any Contract to which it is a
party or by which it or any of its assets is bound; or (iv) result in a
Lien or Restriction on the UGC Stock, other than any imposed by or with the
consent of LMINT or any of its Affiliates.

 

(f)            Brokers’
and Finders’ Fees.  No broker,
finder, investment banker, or similar intermediary has been retained by, or is
authorized to act on behalf of, UGC, any of its Subsidiaries or any of their
respective officers or directors who will be entitled to any fee or commission
in connection with this Agreement or any other Transaction Document or upon
consummation of the transactions contemplated hereby or thereby and which fee
or commission could reasonably be expected to be or become a liability of LMINT
or any of its Affiliates.

 

(g)           Information.  It has been given full access to, and ample
opportunity to review, such financial and other information as it has deemed
necessary to make an informed decision to invest in the Liberty Chile Stock.

 

(h)           Investment
Intent.  It understands that the
Liberty Chile Stock has not been registered under the Securities Act or
registered or qualified under any U.S. state securities Laws, and is being
offered and sold in reliance upon federal and state exemptions for transactions
not involving any public offering.  It
will acquire the Liberty Chile Stock solely for its own account for investment
purposes, and not with a view to, or for resale in connection with, any “distribution”
thereof within the meaning of the Securities Act.

 

(i)            UGC
Stock.  When issued to LMINT at the
Exchange Closing against receipt of the consideration therefor in accordance
with this Agreement, the UGC Stock will be duly authorized, validly issued,
fully paid and nonassessable, and will be free and clear of all Liens and
Restrictions, except (i) Restrictions on transfer imposed by applicable
securities Laws, (ii) Restrictions imposed by the Registration Rights
Agreement, if any, (iii) Restrictions imposed on all shares of UGC Class A
Stock by the certificate of incorporation of UGC and (iv) any Liens or
Restrictions imposed by or with the consent of LMINT or any of its Affiliates.

 

(j)            Legal
Proceedings.  There is no
Legal Proceeding pending, or to UGC’s knowledge threatened, against or
affecting UGC or any of its Subsidiaries that, if determined adversely to UGC
or such Subsidiary, insofar as UGC can reasonably foresee, is reasonably likely
to have a UGC Material Adverse Effect or prohibit or make illegal the Exchange.

 

(k)           Disclosure.  Since December 31, 2004 UGC has filed,
and at all times prior to the earlier of the Exchange Closing and the
consummation of the mergers contemplated by the Merger Agreement will file,
with the Commission all reports, registration statements, proxy statements and
other documents, including exhibits and in each case together with all
amendments thereto, required to be filed by it with the Commission (all such
reports, registration statements, proxy statements and other documents,
including exhibits and in each case together with all amendments thereto, the “UGC
Commission Filings”).  None of the
UGC Commission Filings contained or will contain, as of their respective dates,
any untrue statement of a material fact or omitted or will omit to state a

 

19

 

material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made or
will be made, not misleading.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

REGARDING LIBERTY CHILE AND ITS SUBSIDIARIES

 

Assuming the
consummation of the transactions contemplated by the VTR/MI Transaction
Documents (other than the payment of the DPPOs), including the termination and
liquidation of Cordillera Comunicaciones Holding Limitada and Cordillera
Comunicaciones Limitada and the sale by Uno of its interests in Metrópolis and
Proser and the credit underlying the Metrópolis/Uno Shareholder Debt to VTR, in
accordance with the terms thereof, LMINT represents and warrants to UGC that
the statements contained in this Article IV are correct and complete as of
the date of this Agreement and will be correct and complete as of the Exchange
Closing Date as though made then.

 

Section 4.1             Organization,
Good Standing, and Authority.  Each
of Liberty Chile and its Subsidiaries (a) is a corporation or Chilean sociedad de  responsabilidad limitada
duly organized, validly existing, and in good standing under the Laws of its
jurisdiction of organization, (b) has all requisite corporate or similar
entity power and authority to own, lease, and operate its properties and to
carry on its business as now being conducted, and (c) is duly qualified or
licensed and in good standing to do business in each jurisdiction in which the
property owned, leased or operated by it or the nature of the business
conducted by it makes such qualification necessary, except where the failure to
be so qualified or licensed and in good standing has not had and is not
reasonably likely to have a Liberty Chile Material Adverse Effect.

 

Section 4.2             Capitalization.  The total authorized capital stock of Liberty
Chile consists solely of 10,000 shares of common stock, par value $1.00 per
share, of which 1,000 shares are issued and outstanding.  All of such issued and outstanding shares are
duly authorized, validly issued, fully paid, and nonassessable.  Other than this Agreement, there are no other
issued or outstanding shares of capital stock, subscriptions, options,
warrants, puts, calls, trusts (voting or otherwise), rights, exchangeable or
convertible securities, or other commitments or agreements of any nature
relating to the capital stock or other securities or ownership interests of
Liberty Chile or obligating Liberty Chile, at any time or upon the happening of
any event, to issue, transfer, deliver, sell, repurchase, redeem, or otherwise
acquire, or cause to be issued, transferred, delivered, sold, repurchased,
redeemed, or otherwise acquired, any of its capital stock, other securities, or
ownership interests or any phantom shares, phantom equity interests, or stock
or equity appreciation rights, or other ownership interests of Liberty Chile or
obligating Liberty Chile to grant, extend, or enter into any such subscription,
option, warrant, put, call, trust, right, exchangeable or convertible security,
commitment, or agreement.

 

Section 4.3             Consents;
No Conflicts.

 

(a)           Consents.  Except for any required notices, Filings,
consents, approvals, or waivers that have been obtained or made and those set
forth in Section 4.3(a) of the LMINT Disclosure Schedule, no consent,
approval, or waiver of, notice to, or Filing with, 

 

20

 

any other Person is required on behalf of Liberty Chile or any of its
Subsidiaries in connection with the consummation of the transactions
contemplated by the Transaction Documents.

 

(b)           No
Conflicts.  The execution and
delivery of this Agreement and the other Transaction Documents to be executed
and delivered by it do not, and the consummation of the transactions
contemplated hereby and thereby will not, (i) violate or conflict with any
provision of the Governing Documents of Liberty Chile or any of its
Subsidiaries; (ii) assuming in respect of the consummation of the
transactions contemplated by this Agreement and the other Transaction Documents
that the consents, approvals, Filings and notices to and of Governmental
Authorities set forth in Section 4.3(a) of the LMINT Disclosure Schedule are
given, made and obtained, violate any of the terms, conditions, or provisions
of any Law in effect on the date of this Agreement or on the Exchange Closing
Date or any License in each case to which Liberty Chile or any of its
Subsidiaries is subject or by which Liberty Chile, any of its Subsidiaries, or
any of their respective assets is bound, except that no representation is made
with respect to any Law of any jurisdiction in which Liberty Chile or any of
its Subsidiaries does not own assets or engage in business, (iii) assuming
in respect of the consummation of the transactions contemplated by this
Agreement and the other Transaction Documents that the consents, approvals,
Filings and notices set forth in Section 4.3(a) of the LMINT
Disclosure Schedule are given, made or obtained, result in a violation or
breach of, or (with or without the giving of notice or lapse of time or both)
constitute a default (or give rise to any right of termination, cancellation,
acceleration, repurchase, prepayment, repayment, or increased payments) under,
or give rise to or accelerate any obligation (including any obligation to, or
offer to, repurchase, prepay, repay, or make increased payments), or result in
the loss or modification of any benefit under, or pursuant to, any Contract to
which Liberty Chile or any of its Subsidiaries is a party or by which Liberty
Chile, any of its Subsidiaries, or any of their respective assets is bound,
except that no representation is made under this Section 4.3(b) with
respect to the VTR/MI Transaction Documents, or (iv) result in any Lien or
Restriction on any of the assets of Liberty Chile or any of its Subsidiaries,
other than Liens and Restrictions imposed by or with the consent of UGC or any
of its Subsidiaries.

 

Section 4.4             Subsidiaries.

 

(a)           Liberty
Chile does not own, directly or indirectly, any equity investment accounted for
by the equity method.  Section 4.4(a) of
the LMINT Disclosure Schedule sets forth: (i) the name and jurisdiction
of organization of each direct and indirect Subsidiary of Liberty Chile, (ii) the
percentage or number and kind of equity interests or securities that are
authorized, and the percentage or number and kind of equity interests or
securities that are issued and outstanding, including interests or securities
convertible into or exchangeable or exercisable for any equity interest or
security, in each Subsidiary owned directly or indirectly by Liberty Chile
(each a “Liberty Chile Investment”), and (iii) all Contracts (other
than the VTR/MI Transaction Documents and the Transaction Documents) to which
Liberty Chile or any of its Subsidiaries are parties evidencing such equity
interests or securities, pursuant to which such interests or securities are held,
evidencing Restrictions affecting such interests or securities or entered into
in connection with the acquisition of such interests or securities (unless all
liabilities, obligations, and 

 

21

 

commitments thereunder have been performed in full and there are no
remaining liabilities, obligations, or commitments (actual, contingent, or
otherwise) thereunder), each as of the date of this Agreement (the “Liberty
Chile Investment Agreements”).

 

(b)           All
equity interests and securities in Subsidiaries of Liberty Chile are duly
authorized, validly issued, fully paid, and nonassessable.  Liberty Chile or the applicable Subsidiary
thereof has good and valid ownership to the Liberty Chile Investments, free and
clear of all Liens (other than Permitted Liens) and Restrictions, other than
any imposed by or with the consent of UGC or its Subsidiaries or by the
Governing Documents of the Entity in which the Liberty Chile Investments are
held and Restrictions on transfer imposed by applicable securities Laws.  Except as set forth in Section 4.4(b) of
the LMINT Disclosure Schedule, there are no other issued or outstanding equity
interests or securities of any Subsidiary of Liberty Chile, subscriptions,
options, warrants, puts, calls, trusts (voting or otherwise), rights,
exchangeable or convertible securities, or other commitments or agreements of
any nature relating to the capital stock or other securities or ownership
interests of any such Subsidiary or obligating any such Subsidiary, at any time
or upon the happening of any event, to issue, transfer, deliver, sell,
repurchase, redeem, or otherwise acquire, or cause to be issued, transferred,
delivered, sold, repurchased, redeemed, or otherwise acquired, any capital
stock or other securities or ownership interests of any such Subsidiary, or any
phantom shares, phantom equity interests, or stock or equity appreciation
rights, or other ownership interests of any such Subsidiary or obligating any
such Subsidiary to grant, extend, or enter into any such subscription, option,
warrant, put, call, trust, right, exchangeable or convertible security,
commitment, or agreement.  Except as set
forth in Section 4.4(b) of the LMINT Disclosure Schedule, neither
Liberty Chile nor any of its Subsidiaries owns or has any right to acquire,
directly or indirectly, any outstanding capital stock of, or other equity
interests or securities in, any Entity, other than securities created or
evidenced by the VTR/MI Transaction Documents.

 

(c)           True,
correct, and complete copies of the Liberty Chile Investment Agreements have
been provided to UGC.  Assuming the due
execution and delivery by each of the other parties thereto, the Liberty Chile
Investment Agreements constitute legal, valid, and binding obligations of
Liberty Chile or the applicable Subsidiary that is a party to such Liberty
Chile Investment Agreement.  There is no
Legal Proceeding pending, or to LMINT’s knowledge, threatened in writing
relating to any of such Liberty Chile Investments or Liberty Chile Investment
Agreements.

 

(d)           Each
Subsidiary of Liberty Chile (i) is duly organized, validly existing, and
in good standing under the laws of the jurisdiction of its organization, (ii) has
all requisite power and authority to own, lease, and operate its properties and
to carry on its business as it is now being conducted, and (iii) is duly
qualified to do business and is in good standing in each jurisdiction in which
the properties owned, leased, or operated by it, or the nature of its
activities make such qualification necessary, except where the failure to be so
qualified or licensed and in good standing has not had and is not reasonably
likely to have a Liberty Chile Material Adverse Effect.

 

22

 

Section 4.5             Condition;
No Undisclosed Liabilities.

 

(a)           Except
as permitted or required by this Agreement, the other Transaction Documents or
the VTR/MI Transaction Documents, since the closing of the VTR/MI Transaction:

 

(i)            no
event has occurred and no condition exists that, individually or together with
other events and conditions, has had or, insofar as LMINT can reasonably
foresee, is reasonably likely to have, a Liberty Chile Material Adverse Effect;

 

(ii)           other
than holding the Liberty Chile Investments and engaging in the transactions
contemplated by the Transaction Documents and the VTR/MI Transaction Documents,
neither Liberty Chile nor any of its Subsidiaries has conducted any business;

 

(iii)          neither
Liberty Chile nor any of its Subsidiaries has made any capital expenditures;

 

(iv)          neither
Liberty Chile nor any of its Subsidiaries has (A) declared, approved,
accrued, set aside, or paid any dividend or made any other distribution in
respect of any shares of capital stock or other securities, or (B) repurchased,
redeemed, or otherwise reacquired any shares of its capital stock or other
securities; and

 

(v)           neither
Liberty Chile nor any of its Subsidiaries has agreed or committed (in writing
or otherwise) to take any of the actions referred to in clauses (ii) through
(iv) above.

 

(b)           Except
for liabilities and obligations under the VTR/MI Transaction Documents and the
Contracts listed in Section 4.8(a) of the LMINT Disclosure Schedule to
the extent that the existence of such liabilities is reasonably ascertainable
solely by reference to such Contracts, neither Liberty Chile nor any of its
Subsidiaries has any liability (whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued,
whether liquidated or unliquidated, and whether due or to become due, except
for liabilities for Taxes that are not yet due and payable).

 

Section 4.6             Real
Property.  Neither Liberty Chile nor
any of its Subsidiaries owns or leases any real property or any interest in any
real property, except for the interests in real property distributed to Uno in
connection with the termination and liquidation of Cordillera Comunicaciones
Limitada and Cordillera Comunicaciones Holding Limitada, as to which no
representation is made.

 

Section 4.7             Assets.  (i) Except for their respective
interests in the Liberty Chile Investments and their respective rights under
the Liberty Chile Investment Agreements, the 

 

23

 

VTR/MI Transaction Documents, the Contracts disclosed in Section 4.8(a) of
the LMINT Disclosure Schedule and the real property interests referred to
in Section 4.6, as to which no representation is made, neither Liberty
Chile nor any of its Subsidiaries owns or uses any assets of any kind, and (ii) all
assets owned or used by Liberty Chile or any of its Subsidiaries are free and
clear of all Liens (other than Permitted Liens) and Restrictions, other than
Liens and Restrictions imposed by or with the consent of UGC or any of its
Subsidiaries.

 

Section 4.8             Contracts.

 

(a)           Except
for this Agreement and the VTR/MI Transaction Documents and as disclosed in Section 4.8(a) of
the LMINT Disclosure Schedule, there is no Contract or Judgment to which
Liberty Chile or any of its Subsidiaries is a party or by which any of them or
any of their respective assets is bound or subject.

 

(b)           (i) Except
for the VTR/MI Transaction Documents, as to which no representation is made,
all Contracts listed in Section 3.1(i), Section 4.8(a) and Section 4.10(a) of
the LMINT Disclosure Schedule are valid, binding, and in full force and
effect and are enforceable by Liberty Chile or its applicable Subsidiary in
accordance with their respective terms, except as such enforceability may be
affected by applicable bankruptcy, reorganization, insolvency, moratorium, or
similar Laws affecting creditors’ rights generally; (ii) neither Uno
nor any of its Affiliates has taken any action that, to LMINT’s knowledge,
would cause the Equity DPP Obligation, Section 2.5 or 2.6 of the Purchase
and Contribution Agreement or the CCC Waiver and Release to be unenforceable; (iii) Liberty
Chile or its applicable Subsidiary has performed all material obligations
required to be performed by it to date under such Contracts, and is not (with
or without the lapse of time or the giving of notice, or both) in breach or
default in any respect thereunder and, to the knowledge of LMINT, no other
party to any such Contract is (with or without the lapse of time or the giving
of notice, or both) in breach or default thereunder; and (iv) neither
LMINT nor Liberty Chile has received any notice of the intention of any party
to terminate any such Contract.

 

(c)           True,
correct, and complete copies of all Contracts, including a written summary
setting forth the material terms and conditions of each oral Contract, listed
in Section 4.8(a) of the LMINT Disclosure Schedule have been
provided to UGC.

 

Section 4.9             Employee
Benefit Plans.

 

(a)           Neither
Liberty Chile nor any of its Subsidiaries has ever had any direct or contingent
liability with respect to any compensation, bonus, pension, profit sharing,
deferred compensation, stock ownership, stock purchase, stock option, phantom
stock, retirement, employment, change-in-control, welfare, collective
bargaining, severance, disability, death benefit, hospitalization, or medical
plan, program, policy, or arrangement maintained or contributed to (or required
to be contributed to) for the benefit of any current or former officer or
director of Liberty Chile or any of its Subsidiaries.

 

(b)           (i) There
are no pending or, to the knowledge of LMINT, threatened investigations,
claims, or lawsuits in respect of any of the items listed in Section 4.9(a);

 

24

 

and (ii) no current or former officer or director of Liberty Chile
or any of its Subsidiaries will become entitled to any payment, benefit, or
right, or any increased and/or accelerated payment, benefit, or right, as a
result of the execution of this Agreement or any other Transaction Document or
the consummation of the transactions contemplated hereby or thereby.

 

Section 4.10           Employees.

 

(a)           Neither
Liberty Chile nor any of its Subsidiaries has ever had any employees.  Section 4.10(a) of the LMINT
Disclosure Schedule contains (i) a true, correct, and complete list
of all Contracts of Liberty Chile or any of its Subsidiaries with any current
officer, director, or consultant of Liberty Chile or any of its Subsidiaries
(and true, correct, and complete copies of all such Contracts have been delivered
to UGC), and (ii) a true, correct, and complete list of all Contracts of
Liberty Chile or any of its Subsidiaries with any former officer, director or
consultant that was in effect at any time within the two year period
immediately preceding the date of this Agreement and has not been fully
performed (and true, correct, and complete copies of all such Contracts have
been delivered to UGC).

 

(b)           Neither
UGC nor Liberty Chile or any of their respective Subsidiaries will be required
to retain any Person as a consultant of Liberty Chile or the applicable
Subsidiary from and after the Exchange Closing as a result of any Contract
entered into or commitment made by Liberty Chile or any of its Subsidiaries.

 

(c)           (i) There
are, and since the formation of Liberty Chile or its applicable Subsidiaries
have been, no complaints or grievances that have been formally filed with
Liberty Chile or any of its Subsidiaries or any Governmental Authority by any
consultant of Liberty Chile or any of its Subsidiaries or former consultant of
Liberty Chile or any of its Subsidiaries which are unsettled or unresolved; and
(ii) to the knowledge of LMINT, no facts or circumstances exist that would
reasonably be expected to result in a claim by any Governmental Authority
against Liberty Chile or any of its Subsidiaries or any director or officer of
Liberty Chile or any of its Subsidiaries in their capacity as a director or
officer.

 

Section 4.11           Legal
Compliance.  Liberty Chile and its
Subsidiaries (a) are in compliance with, and since their respective dates
of organization have complied with, the terms of their respective Licenses and
all applicable Laws, and (b) no Legal Proceeding, claim, demand, or notice
has been filed or commenced against Liberty Chile or any of its Subsidiaries alleging
any failure to so comply.  Without
limiting the generality of the preceding sentence, neither Liberty Chile, nor
any of its Subsidiaries, nor any of their respective directors, officers, or
agents, has made, offered to make, or directed others to make or offer or make,
any payment, or has given, offered to give, or directed others to give or offer
or give, anything of value, directly or indirectly, to any official or
representative of any Governmental Authority or political party or political
campaign, for the purpose of influencing a decision to secure or maintain
business for any Person.

 

25

 

Section 4.12           Taxes.

 

(a)           All
Tax Returns required to be filed by or on behalf of Liberty Chile or any of its
Subsidiaries have been duly filed on a timely basis and such Tax Returns
(including all attached statements and schedules) are true, correct, and complete.  All Taxes shown to be payable on such Tax
Returns or on subsequent assessments with respect thereto have been paid in
full on a timely basis, and no other Taxes are payable by Liberty Chile or any
of its Subsidiaries with respect to items or periods covered by such Tax
Returns (whether or not shown on or reportable on such Tax Returns) or with
respect to any Pre-Closing Period.  No
claim has been made or threatened by any jurisdiction where Liberty Chile or
any of its Subsidiaries does not file returns that Liberty Chile or any of its
Subsidiaries is or may be subject to Taxes in that jurisdiction and there is no
meritorious basis for such a claim.

 

(b)           Liberty
Chile and each of its Subsidiaries have withheld and paid over all Taxes
required to have been withheld and paid over (including any estimated Taxes),
and have complied with all information reporting and backup withholding
requirements, including maintenance of required records with respect thereto,
in connection with amounts paid or owing to any creditor, independent
contractor, or other third party.

 

(c)           Liberty
Chile and each of its Subsidiaries have disclosed on their respective Tax
Returns all positions taken therein that could give rise to a substantial
understatement penalty within the meaning of Code Section 6662 (or any
corresponding provision of state, local or foreign law).

 

(d)           There
are no Liens or Restrictions on any of the assets of Liberty Chile or any of
its Subsidiaries with respect to Taxes, other than Liens for Taxes not yet due
and payable.

 

(e)           Liberty
Chile and certain of its Subsidiaries have been included in U.S. consolidated
and State combined and unitary tax returns, which returns will be made
available for review by UGC at the offices of Liberty Chile.  Liberty Chile and certain of its Subsidiaries
are parties to a Tax sharing agreement among affiliated entities which will be
terminated as to Liberty Chile and its Subsidiaries prior to the Exchange
Closing.  Neither Liberty Chile nor any
of its Subsidiaries have been made aware of any liability under U.S. Treasury
Regulation Section 1.1502-6 or any analogous state, local or Chilean
Law by reason of having been a member of any consolidated, combined or unitary
group.

 

(f)            LMINT
has made available to UGC true, correct, and complete copies of all Tax Returns
of Uno for all periods since the formation thereof and all Tax audit reports,
work papers, statements of deficiencies, closing or other agreements received
by Uno or on its behalf relating to Taxes.

 

(g)           Neither
Liberty Chile nor any of its Subsidiaries does business in or derives income
from any state, local, territorial or foreign Taxing jurisdiction other than
those for which Tax Returns have been furnished or made available to UGC.

 

26

 

(h)           No
deficiencies exist or have been asserted (either formally or informally) or are
expected to be asserted with respect to Taxes of Liberty Chile or any of its
Subsidiaries, and no notice (either formally or informally) has been received
by Liberty Chile or any of its Subsidiaries that it has not filed a Tax Return
or paid Taxes required to be filed or paid by it.

 

(i)            Neither
Liberty Chile nor any of its Subsidiaries is a party to any pending action or
proceeding for assessment or collection of Taxes, nor has any such action or
proceeding been asserted or threatened (either formally or informally) against
Liberty Chile or any of its Subsidiaries or any of their respective assets.

 

(j)            No
action has been taken that would have the effect of deferring any liability for
Taxes for Liberty Chile or any of its Subsidiaries from any Pre-Closing Period
to any Post-Closing Period.

 

(k)           There
are no requests for rulings or subpoenas pending with respect to Taxes of
Liberty Chile or any of its Subsidiaries.

 

(l)            Neither
Liberty Chile nor any of its Subsidiaries has issued or assumed any
indebtedness that is subject to Code Section 279(b).

 

(m)          No
election has been made under Code Section 338 with respect to Liberty
Chile or any of its Subsidiaries and no action has been taken that would result
in any income Tax liability to Liberty Chile or any of its Subsidiaries as a
result of a deemed election within the meaning of Code Section 338.

 

(n)           Neither
Liberty Chile nor any of its Subsidiaries has agreed, or is required to make,
any adjustment under Code Section 481(a) by reason of a change in
accounting method or otherwise.

 

(o)           Neither
Liberty Chile nor any of its Subsidiaries has participated in any international
boycott as defined in Code Section 999.

 

(p)           There
are no outstanding balances of deferred gain or loss accounts related to deferred intercompany transactions with respect to Liberty
Chile or any of its Subsidiaries under U.S. Treasury Regulation
Sections 1.1502-13 or 1.1502-14.

 

(q)           There
is no excess loss account under U.S. Treasury Regulation Section 1.1502-19
with respect to the stock of Liberty Chile or any of its Subsidiaries.

 

(r)            Neither
LMINT nor any member of the LMINT Group has made any election under U.S.
Treasury Regulation Section 1.1502-20(g) (or
any similar provision) with respect to the reattribution of net operating
losses of Liberty Chile or any of its Subsidiaries.

 

(s)           Neither
Liberty Chile nor any of its Subsidiaries other than Uno has or has ever had a
permanent establishment in any foreign country.

 

27

 

(t)            Section 4.12(t)
of the LMINT Disclosure Schedule sets forth accurate and complete
information with respect to all Tax elections in effect with respect to Liberty
Chile or any of its Subsidiaries determined as of the date of the most recently
completed and filed Tax Return.  LMINT
will provide to UGC, when reasonably determinable by LMINT, complete and
accurate information with respect to (i) the amount of net operating losses,
net capital losses, net unrealized built-in gain, net unrealized built-in
losses, foreign Tax credits, minimum Tax credits, investment Tax credits and
other Tax credits of LMINT and its Affiliates allocable to Liberty Chile and
its Subsidiaries under U.S. Treasury Regulation Sections 1.1502-21, 1.1502-22,
1.1502-79 and 1-1502.95 (separately stating any such amounts
arising in years prior to the affiliation with LMINT and its Affiliates); (ii) the
date such losses or credits will expire; (iii) the overall foreign loss of
Liberty Chile and its Subsidiaries allocated to each separate Section 904(d) category;
(iv) all applicable limitations under Code Sections 382, 383, 384 and any
other provision of the Code or the federal consolidated return regulations with
respect to each of such items (taking into account the apportionment of Code Section 382
limitations and the net unrealized built-in gain amounts under U.S. Treasury
Regulation Section 1.1502-95); and (v) the U.S. federal income
and Chilean Tax basis maintained by Liberty Chile in Uno.

 

(u)           Neither
Liberty Chile nor any of its Subsidiaries has any current or potential
liability for the Taxes of any other Person.

 

(v)           Other
than Uno, Liberty Chile and its Subsidiaries are not subject to any joint venture,
partnership, or other arrangement that is treated as a partnership (or other “pass-through”
entity) for U.S. or other Tax purposes. 
Uno has been treated as a partnership for U.S. federal income tax
purposes since its inception.

 

Where appropriate in this Section 4.12, the singular will include
the plural.

 

Section 4.13           Books
and Records.  LMINT has made
available to UGC true, correct, and complete copies of (a) Liberty Chile’s
and its Subsidiaries’ respective Governing Documents, as amended to date, and (b) Liberty
Chile’s and its Subsidiaries’ respective share ledgers, minute books and all
other corporate books and records.  All
such books and records are maintained in all material respects in accordance
with applicable Law.

 

Section 4.14           Legal
Proceedings.

 

(a)           There
is no Legal Proceeding pending, or to LMINT’s knowledge, threatened in writing
relating to Liberty Chile or any of its Subsidiaries.

 

(b)           Without
limiting the generality of Section 4.14(a),

 

(i)            neither
Liberty Chile nor any of its Subsidiaries has (A) applied for or consented
to the appointment of, or the taking of possession by, a receiver, custodian,
trustee, examiner or liquidator of itself or of all or a substantial part of
its assets, (B) made a general assignment for the benefit of its
creditors, (C) commenced a voluntary case under any applicable Law
relating to bankruptcy or insolvency, (D) filed

 

28

 

a petition seeking to take advantage of any other Law relating to
bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement
or winding-up, or composition or readjustment of debts, (E) failed to
controvert in a timely and appropriate manner, or acquiesced in writing to, any
petition filed against it in an involuntary case under any applicable Law
relating to bankruptcy or insolvency, or (F) taken any corporate action
for the purpose of effecting any of the foregoing,

 

(ii)           no
proceeding or case has been commenced, without the application or consent of
Liberty Chile or any of its Subsidiaries, in any court of competent
jurisdiction, seeking (A) its reorganization, liquidation, dissolution,
arrangement or winding-up, or the composition or readjustment of its debts, (B) the
appointment of a receiver, custodian, trustee, examiner, liquidator or the like
of Liberty Chile or any of its Subsidiaries or of all or any substantial part
of their respective assets, or (C) similar relief in respect of Liberty
Chile or any of its Subsidiaries under any Law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, and

 

(iii)          no Judgment for relief against Liberty Chile or any of its
Subsidiaries has been entered in an involuntary case under any applicable Law
relating to bankruptcy or insolvency.

 

Section 4.15           Powers
of Attorney.  Section 4.15 of
the LMINT Disclosure Schedule sets forth a brief description of all
outstanding powers of attorney granted by Liberty Chile or any its
Subsidiaries, which description includes with respect to each power of attorney
the identity of the grantor, the name of the grantee, the date of grant and the
date of the relevant public deed, if applicable, the purpose and scope of the
power, and the date of expiration, if any.

 

Section 4.16           Subsequent
Information.  All written
information furnished after the date hereof by LMINT to UGC in connection with
this Agreement and the other Transaction Documents and the transactions
contemplated hereby and thereby will be accurate in every material respect, or
(in the case of projections) based on good faith estimates, on the date as of
which such information is stated or certified.

 

ARTICLE V

COVENANTS

 

Section 5.1             General.  Subject to the terms and conditions of this
Agreement and applicable Law, from the date of this Agreement to the earlier of
the Exchange Closing and the consummation of the mergers contemplated by the
Merger Agreement, each Party must (a) cooperate with the other Party and (b) use
its commercially reasonable efforts to (i) cause the conditions to its
obligations to close to be satisfied, but not waived, and (ii) take, or
cause to be

 

29

 

taken, all
actions and do, or cause to be done, all things reasonably necessary, proper,
or advisable to effect, consummate, confirm, or evidence the transactions
contemplated by this Agreement and the other Transaction Documents, including
cooperating in good faith to cause the conditions to its obligations to close
to be satisfied, but not waived.

 

Section 5.2             Publicity.  No Party will make any public announcement or
issue any press release with respect to this Agreement, the other Transaction
Documents, or the transactions contemplated hereby and thereby except as may be
mutually agreed to in writing by the Parties; provided, however,
that notwithstanding the foregoing, each Party will be permitted, upon prior
written notice to the other Party, to make such disclosures as their respective
counsel deem necessary or advisable to maintain compliance with, or to prevent
violation of, applicable securities or other Laws, or stock exchange or stock
association rules.  Except to the extent
deemed necessary or advisable by counsel to maintain compliance with, or to
prevent violation of, applicable securities or other Laws or stock exchange or
stock association rules, each Party must keep the provisions of this Agreement
and the other Transaction Documents confidential and will disclose their
contents only to those lenders, investors, partners, shareholders, directors,
officers, employees, and agents who need to know such information for purposes
of the businesses of the Parties and the transactions contemplated hereby.  Notwithstanding any provision of this
Agreement to the contrary, disclosure of this Agreement and the transactions
contemplated hereby will be permitted in the Commission filings made in
connection with the transactions contemplated by the Merger Agreement.

 

Section 5.3             Expenses.  Whether or not the Exchange Closing takes
place, except as otherwise specifically provided herein, all costs and expenses
incurred in connection with this Agreement, the other Transaction Documents,
and the transactions contemplated hereby and thereby must be paid by the Party
incurring such expense.

 

Section 5.4             Notification.  From the date of this Agreement until the
earlier of the Exchange Closing and the consummation of the mergers
contemplated by the Merger Agreement, each Party must promptly notify the other
Party in writing of any event, condition, fact, or circumstance (a) that
occurred or existed on or prior to the date of this Agreement and that caused
or constitutes a breach of any of its representations or warranties in this
Agreement; (b) that occurs, arises, or exists after the date of this
Agreement and that would cause or constitute a breach of any of its
representations or warranties in this Agreement if such representation or
warranty had been made as of the time of the occurrence, existence, or
discovery of such event, condition, fact, or circumstance; or (c) that
would reasonably be expected to (i) cause or constitute a breach of any of
its covenants or obligations, (ii) in the case of UGC, cause or constitute
a UGC Material Adverse Effect and in the case of LMINT, cause or constitute a
Liberty Chile Material Adverse Effect, or (iii) make the consummation of
the Exchange impossible or unlikely.  No
disclosure by a Party pursuant to this Section 5.4 will be deemed to
prevent or cure any misrepresentation, breach of warranty, or breach of
covenant.

 

Section 5.5             Pre-Closing
Covenants Regarding Liberty Chile. 
Except as expressly permitted or required by the terms of this
Agreement, except as required by applicable Law, and except for matters set
forth in Section 5.5 of the LMINT Disclosure Schedule, from the date of
this Agreement until the earlier of the Exchange Closing and the consummation
of the mergers contemplated by the Merger Agreement, LMINT must cause Liberty
Chile and each of its

 

30

 

Subsidiaries to (1) comply with all applicable Laws and (2) use
commercially reasonable best efforts to maintain in full force and effect all
of its Contracts, to keep available the services of its current officers and
agents, and to diligently preserve its relationships with licensors, licensees,
creditors, and agents.  Except as
expressly permitted or required by the terms of the VTR/MI Transaction
Documents or the Transaction Documents, except as required by applicable Law
and except for matters set forth in Section 5.5 of the LMINT Disclosure
Schedule, from the date of this Agreement until the earlier of the Exchange
Closing and the consummation of the mergers contemplated by the Merger
Agreement, LMINT must cause Uno to comply with its obligations under the VTR/MI
Transaction Documents and must cause each of Liberty Chile and the Subsidiaries
of Liberty Chile not to do any of the following without the prior written
consent of UGC, which consent may not be unreasonably withheld:

 

(a)           amend any of its Governing Documents;

 

(b)           declare,
approve, or pay any dividend or make any other distribution to its stockholders
(other than a dividend, distribution or assignment of all or any part of the
Uno Debt DPPO or the proceeds of any payment with respect to all or part of the
Uno Debt DPPO) whether or not upon or in respect of any shares of its capital
stock, or redeem, purchase, or otherwise acquire any of its capital stock;

 

(c)           issue any capital stock or any option, warrant, or right
relating thereto or any securities convertible into or exchangeable for any shares
of capital stock;

 

(d)           make any payments of any kind except in the Ordinary Course
of Business;

 

(e)           enter
into, amend, accelerate, terminate, make any modification to, or cancel any
Contract, lease, or License to which Liberty Chile or any of its Subsidiaries
is a party or by which any of their respective assets are bound, including any
Liberty Chile Investment Agreement;

 

(f)            incur or assume any liabilities, obligations or indebtedness
for borrowed money or guarantee any such liabilities, obligations or
indebtedness;

 

(g)           permit,
allow, or suffer any of its assets to become subjected to any Lien (other than
Permitted Liens) of any nature whatsoever, or transfer, assign, or grant any
license or sublicense of any rights under or with respect to any asset;

 

(h)           pay,
loan, or advance any amount to, or sell, transfer (other than a dividend,
distribution or assignment of all or any part of the Uno Debt DPPO or the
proceeds of any payment of all or part of the Uno Debt DPPO), or lease any of
its assets to, or enter into any agreement or arrangement with, any Person,
including any of its direct or indirect shareholders or any of their respective
Affiliates, except in the Ordinary Course of Business;

 

(i)            make
any change in any method of accounting or accounting practice or policy other
than those required by GAAP or generally accepted accounting principles in
Chile or make any material Tax election of any kind (including an election that
would alter the status of Uno as a partnership for U.S. federal income tax
purposes);

 

31

 

(j)            acquire
by merging or consolidating with, or by purchasing a substantial portion of the
assets of, or by any other manner, any business or any corporation,
partnership, association, or other business organization or division thereof or
otherwise acquire any assets;

 

(k)           make or incur any capital expenditure;

 

(l)            sell,
lease, license, or otherwise dispose of any of its assets except in the
Ordinary Course of Business (other than a dividend, distribution or assignment
of all or any part of the Uno Debt DPPO or the proceeds of any payment of all
or part of the Uno Debt DPPO);

 

(m)          form any subsidiary or acquire the equity of any Entity;

 

(n)           commence or settle any Legal Proceeding;

 

(o)           enter
into any transaction or take any other action that would cause (i) any
representation or warranty that is made by it in this Agreement and qualified
as to materiality to be untrue in any respect if then made or (ii) any
representation or warranty that is made by it in this Agreement and not
qualified as to materiality, to be untrue in any material respect if then made;
and

 

(p)           agree, commit, or offer (in writing or otherwise) to take
any of the actions described in clauses (a) through (o) of this Section 5.5.

 

Section 5.6             Taxes
on Equity DPP Obligation.  In
connection with the issuance by VTR of the Equity DPP Obligation to Uno
pursuant to the Purchase and Contribution Agreement, UGC must pay any U.S.
federal income taxes recognized by LMI under Section 304 of the Code that
arise due to VTR having current or accumulated earnings and profits for U.S.
federal income tax purposes.  UGC also
must pay all stamp, transfer and registration Taxes and fees (collectively, “Transfer
Taxes”), if any, imposed solely as a result of the Exchange.

 

Section 5.7             Tax
Matters.

 

(a)        Pre-Closing
Matters.  LMINT will cause any
Tax-sharing agreements, Tax indemnity agreements, Tax allocation agreements, or
similar agreements with respect to Liberty Chile or any of its Subsidiaries,
and any power of attorney with respect to Tax matters of Liberty Chile or any
of its Subsidiaries, to be terminated from and after the Exchange Closing Date.

 

(b)        Characterization
of Exchange.  LMINT and UGC agree to
characterize and report the Exchange as a transfer of property pursuant to Code
section 351 unless both Parties agree to an alternative characterization.

 

(c)        Allocation
of Taxes for Pre-Closing and Post-Closing Periods.

 

(i)            LMINT
must promptly pay any and all Taxes of Liberty Chile or its Subsidiaries
allocable to any Pre-Closing Period or 

 

32

 

portion thereof, whether such Taxes are due before or after the
Exchange Closing, and all Taxes specifically attributable to Liberty Chile or
any of its Subsidiaries ceasing to be a member of LMI’s consolidated
group.  Subject to the provisions below,
the Taxes allocable to a Pre-Closing Period will be determined on the accrual
accounting method and on the basis of a closing of the books of Liberty Chile
and its Subsidiaries as of the end of the Exchange Closing Date.  For the avoidance of doubt, any Taxes
attributable to any “dual consolidated losses” (as defined in U.S. Treasury
Regulation Section 1.1503-2(c)(5)) that have been or that are
incurred by Liberty Chile or any of its Subsidiaries or by Cordillera
Comunicaciones Holding Limitada or Cordillera Comunicaciones Limitada during
the Pre-Closing Period (excluding any dual consolidated losses that may be
incurred by Uno as a result of VTR’s issuance of the Equity DPP Obligation to
Uno pursuant to the Purchase and Contribution Agreement) shall be the
obligation of LMINT.  UGC must promptly
pay or cause to be paid any and all Taxes of Liberty Chile or its Subsidiaries
allocable to any Post-Closing Period or portion thereof.

 

(ii)           With
respect to transactions on the Exchange Closing Date but after the Exchange
Closing, UGC must cause Liberty Chile and its Subsidiaries to engage only in
transactions that are in the Ordinary Course of Business (and for this purpose
dividend or redemption transactions will not be considered to be transactions
in the Ordinary Course of Business).

 

(iii)          Neither
LMINT nor any member of the LMINT Group will make any election under U.S.
Treasury Regulation Section 1.1502-20(g) (or
any similar provision) with respect to the reattribution of net operating
losses of Liberty Chile or any of its Subsidiaries.

 

(iv)          For
U.S. federal and state income tax purposes, LMINT must include all income of
Liberty Chile and its Subsidiaries for all Pre-Closing Periods in the
consolidated U.S. federal income tax returns of LMINT’s consolidated group and
any state consolidated, unitary or combined income Tax Return that includes
Liberty Chile and must pay any Taxes attributable to such income.  Any position on such Tax Returns that relates
to Liberty Chile or any of its Subsidiaries must comply with the Tax Return
Preparation Standard.

 

(v)           If,
for any Post-Closing Period, Liberty Chile or any of its Subsidiaries earns any
credit or recognizes any loss that

 

33

 

cannot be applied against its Tax liability or the Tax liability of
another member of UGC’s consolidated group for such period, and is permitted by
Law to carryback such credit or loss to a period ending on or prior to the
Exchange Closing Date and used therein, then LMINT in its sole discretion will
decide whether such loss or credit will be carried back to the period ending on
or before the Exchange Closing Date and LMINT will pay to UGC 100% of such
amount, if such amount is allowed as a credit against Tax, and the maximum
applicable corporate tax rate applied to such amount, if such amount is allowed
as a loss or deduction.

 

(d)           Section 338
Election. 
UGC must not make any election or deemed election under Code Section 338
(or any similar provisions of U.S. State law or the law of any other Taxing
jurisdiction) with respect to Liberty Chile or any of its Subsidiaries in
connection with the purchase of the Liberty Chile Stock or any of the other transactions
contemplated by this Agreement or the other Transaction Documents.

 

(e)           Preparation
and Filing of Tax Returns.

 

(i)            LMINT
(A) must prepare and timely file all Tax Returns for Liberty Chile and its
Subsidiaries with respect to any Pre-Closing Period that are to be filed after
the date hereof and before the Exchange Closing Date, and (B) must timely
pay all Taxes due on those Tax Returns. 
If any amount shown as due on any of such Tax Returns is the obligation
of UGC, UGC must pay such amount to LMINT at least five Business Days prior to
the filing of such Tax Returns.

 

(ii)           LMINT
(A) must prepare and timely file all U.S. federal consolidated income Tax
Returns and all state consolidated, unitary or combined income Tax Returns that
include Liberty Chile or any of its Subsidiaries with respect to any Pre-Closing
Period, and (B) must timely pay all Taxes shown as due on those Tax
Returns.  If any amount shown as due on
any of such Tax Returns is the obligation of UGC, UGC must pay such amount to
LMINT at least five Business Days prior to the filing of such Tax Returns.

 

(iii)          The
Tax Returns described in Section 5.7(e)(i) and
Section 5.7(e)(ii) must be prepared in accordance with the Tax Return
Preparation Standard insofar as such Tax Returns relate to Liberty Chile or any
of its Subsidiaries.  LMINT must provide
UGC with a copy of each such Tax Return (and supporting schedules) in the form
proposed to be filed by LMINT (a “Proposed Tax Return”) at least 30 days
in advance of the due date for such Tax Return. 
UGC and its authorized

 

34

 

representatives
will have the right to review and comment on the Proposed Tax Return and LMINT
must consider any changes reasonably requested by UGC.

 

(iv)          Neither
LMINT nor any of its Affiliates will file any amended Tax Return or claim for
Tax refund with respect to Liberty Chile or any of its Subsidiaries with
respect to any Pre-Closing Period, without the consent of UGC, if the requested
adjustment would increase the Tax liability of UGC for any period unless LMINT
or such Affiliate, as applicable, agrees to indemnify UGC for the full cost of
such increased Tax liability of UGC.

 

(v)           Except
for state and U.S. federal income Tax Returns described in Section 5.7(e)(i) and Section 5.7(e)(ii), UGC must, or must
cause Liberty Chile to, prepare and timely file all Tax Returns with respect to
Liberty Chile or any of its Subsidiaries that are to be filed after the
Exchange Closing Date.  LMINT must pay to
UGC or Liberty Chile, as applicable, any amounts shown as due on those Tax
Returns that are the obligation of LMINT at least five Business Days prior to
the filing of the applicable Tax Return. 
UGC must, or must cause Liberty Chile to, pay any amount shown as due on
such Returns that is not to be paid by LMINT as provided above.

 

(vi)          LMINT
and UGC agree to furnish or cause to be furnished to each other, upon request,
as promptly as practicable, such information and assistance (including access
to books, records and accounting work papers) relating to Liberty Chile and its
Subsidiaries as is reasonably necessary for the preparation of any Tax Return,
claim for refund or Tax audit, or the prosecution or defense of any claim, suit
or proceeding relating to any proposed adjustment.

 

(f)               Tax
Controversies.

 

(i)            Notification
of Proceedings.  If either Party
receives written notice of any Tax matter with respect to the Exchange or the
DPP Obligation that is likely to affect the other Party or its Subsidiaries,
the Party receiving such written notice must promptly (and in any event within
seven calendar days) notify the other Party; provided, however,
that the failure of any Party to so notify the other Party will not impair such
Party’s rights under this Agreement or release, in whole or in part, the other
Party from its obligations under this Agreement, except to the extent (and
solely to the extent) that the first Party’s

 

35

 

failure or delay
to so notify has materially damaged the other Party in respect of such Tax
matter.

 

(ii)           Cooperation.  After the Exchange Closing, LMINT and UGC
must use their commercially reasonable efforts to cooperate with each other and
with each other’s agents, including accounting firms and legal counsel, in
connection with the preparation or audit of any Tax Return, refund claim or Tax
controversy matter with respect to the Exchange.  Such cooperation must include making
available any information, records and documents in their possession or under
their control that is relevant to the preparation or audit of any Tax Return,
refund claim or Tax controversy matter with respect to the Exchange.  Any information provided or obtained under
this Section 5.7(f)(ii) must be kept confidential, except as may
otherwise be necessary in connection with the filing of a Tax Return, refund
claims, Tax audits, Tax claims or Tax litigation or as required by Law.

 

(g)           Record
Retention.  LMINT and UGC must retain
and provide to each other upon reasonable request any records or other information
(including accounting work papers) that are in their possession or readily
obtainable and that may be relevant to any Tax matter with respect to Liberty
Chile or any of its Subsidiaries or any examination, proceeding, or
determination with respect thereto. 
Without limiting the generality of the foregoing, LMINT and UGC must
retain, until the applicable statutes of limitations (including any extensions)
plus 90 days have expired, copies of all Tax Returns, supporting work papers,
and other records or information that may be relevant to any Tax Returns of
Liberty Chile or any of its Subsidiaries and must not destroy or otherwise
dispose of any such records without first providing the other Party with a
reasonable opportunity to review and copy the same.

 

Section 5.8             Further
Assurances.  From time to time, as
and when requested by a Party, the other Party must execute and deliver, or
cause to be executed and delivered, all such documents and instruments, and
must take, or cause to be taken, all such further or other actions, as the
requesting Party may reasonably deem necessary or desirable to consummate the
transactions contemplated by this Agreement, including executing and delivering
such assignments, consents, and other instruments the requesting Party may
reasonably request as necessary or desirable for such purpose.

 

Section 5.9             Deliveries
at Signing.  On the date hereof:

 

(a)           UGC
Secretary or Assistant Secretary Certificate.  UGC will deliver to LMINT a certificate of
the Secretary or an Assistant Secretary of UGC, dated the date hereof, in form
and substance reasonably satisfactory to LMINT, as to (i) the resolutions
of the board of directors (or a duly authorized committee thereof) of UGC
authorizing the execution, delivery, and performance of this Agreement and the
transactions contemplated

 

36

 

hereby and (ii) the
incumbency and signatures of the officers of UGC executing this Agreement and
the other Transaction Documents.

 

(b)           LMINT
Secretary or Assistant Secretary Certificate.  LMINT will deliver to UGC a certificate of
the Secretary or an Assistant Secretary of LMINT, dated the date hereof, in
form and substance reasonably satisfactory to UGC, as to (i) the
resolutions of the board of directors (or a duly authorized committee thereof)
of LMINT authorizing the execution, delivery, and performance of this Agreement
and the transactions contemplated hereby and (ii) the incumbency and
signatures of the officers of LMINT executing this Agreement and the other
Transaction Documents.

 

ARTICLE VI

CONDITIONS TO EXCHANGE CLOSING

 

Section 6.1             Conditions
Precedent to the Obligations of Each Party to Close.  The respective obligation of each Party to
consummate the transactions contemplated by this Agreement in connection with
the Exchange Closing is subject to the satisfaction or the waiver by it of the
following condition on or prior to the Exchange Closing Date:

 

(a)           Consents
and Approvals.  One or more of LMINT,
UGC, and Liberty Chile, as applicable, will have obtained all consents,
approvals, and waivers of, given all notices to, and made all Filings with each
Governmental Authority and other third parties identified on a Disclosure Schedule or
otherwise required in connection with the consummation of the transactions
contemplated hereby and by the other Transaction Documents, the failure of
which to be obtained, given, or made would reasonably be expected to have a
Liberty Chile Material Adverse Effect or a UGC Material Adverse Effect, and all
such consents, approvals, waivers, notices, and Filings will be in full force
and effect.

 

Section 6.2             Conditions
Precedent to the Obligations of LMINT to Close.  The obligation of LMINT to consummate the
transactions contemplated by this Agreement in connection with the Exchange
Closing is subject to the satisfaction, or the waiver by LMINT, of each of the
following conditions on or prior to the Exchange Closing Date:

 

(a)           Representations
and Warranties True as of the Exchange Closing Date.  The representations and warranties of UGC set
forth in Section 3.2 (“UGC’s Representations and Warranties”) that
are qualified as to materiality or by terms such as “material,” “UGC Material
Adverse Effect,” or “Material Adverse Effect” and the representations and
warranties set forth in Section 3.2(i) (“UGC Stock”) will be
true and correct in all respects, and those not so qualified (other than the
representations and warranties set forth in Section 3.2(i)) will be true
and correct in all material respects, on and as of the Exchange Closing Date
with the same force and effect as though made on and as of the Exchange Closing
Date, except to the extent such representations and warranties expressly relate
to an earlier date other than the date of this Agreement (in which case, such
representations and warranties that are qualified as to materiality or by terms
such as “material,” “UGC Material Adverse Effect,” or “Material Adverse Effect”
will be true and correct in all

 

37

 

respects, and those
not so qualified will be true and correct in all material respects, on and as
of such earlier date).

 

(b)           Compliance
with this Agreement.  In respect of
the agreements and covenants contained in this Agreement and the other
Transaction Documents that are required to be performed or complied with by UGC
on or prior to the Exchange Closing Date and that are qualified as to
materiality or by terms such as “material,” “UGC Material Adverse Effect,” or “Material
Adverse Effect,” UGC will have performed and complied with such agreements and
covenants in all respects, and in respect of those not so qualified, including
the deliveries required by Section 2.4(b), UGC will have performed and
complied with them in all material respects.

 

(c)           Absence
of Injunction.  There will not be in
effect any Law that prohibits, prevents or renders illegal the consummation of
the Exchange.

 

Section 6.3          Conditions
Precedent to the Obligations of UGC to Close.  The obligation of UGC to consummate the
transactions contemplated by this Agreement in connection with the Exchange
Closing is subject to the satisfaction, or the waiver by UGC, of the following
conditions on or prior to the Exchange Closing Date:

 

(a)           Representations
and Warranties True as of the Exchange Closing Date.  The representations and warranties of LMINT
set forth in Section 3.1 (“LMINT’s Representations and Warranties”)
and Article IV (“Representations and Warranties Regarding Liberty Chile
and Its Subsidiaries”) that are qualified as to materiality or by terms such
as “material,” “Liberty Chile Material Adverse Effect,” or “Material Adverse
Effect” and the representations and warranties set forth in Section 3.1(h) (“Ownership
of Liberty Chile Stock”) will be true and correct in all respects, and those
not so qualified will be true and correct in all material respects, on and as
of the Exchange Closing Date with the same force and effect as though made on
and as of the Exchange Closing Date, except to the extent such representations
and warranties expressly relate to an earlier date other than the date of this
Agreement (in which case, such representations and warranties that are
qualified as to materiality or by terms such as “material,” “Liberty Chile
Material Adverse Effect,” or “Material Adverse Effect” will be true and correct
in all respects, and those not so qualified will be true and correct in all
material respects, on and as of such earlier date).

 

(b)           Compliance
with this Agreement.  In respect of
the agreements and covenants contained in this Agreement and the other
Transaction Documents that are required to be performed or complied with by
LMINT on or prior to the Exchange Closing Date and that are qualified as to
materiality or by terms such as “material,” “Liberty Chile Material Adverse
Effect,” or “Material Adverse Effect,” LMINT will have performed and complied
with such agreements and covenants in all respects, and in respect of those not
so qualified, including the deliveries required by Section 2.4(a), LMINT
will have performed and complied with them in all material respects.

 

(c)           Absence
of Injunction.  There will not be in
effect any Law that prohibits, prevents or renders illegal the consummation of
the Exchange.

 

38

 

Section 6.4             Frustration
of Closing Conditions. 
Neither Party may rely on the failure of any condition set forth in this
Article VI to be satisfied, and such failure will not excuse it from
consummating the transactions contemplated by this Agreement in connection with
the Exchange Closing, if such failure was caused by its failure to act in good
faith or to use its commercially reasonable efforts to cause the condition to
be satisfied on or prior to the Exchange Closing Date, as required by Section 5.1.

 

ARTICLE VII

INDEMNIFICATION

 

Section 7.1             Survival
of Representations, Warranties, and Covenants.  All representations and warranties contained
in this Agreement will survive the execution and delivery hereof and the
Exchange Closing hereunder and continue in full force and effect for 18 months after the Exchange Closing
Date, except that the representations and warranties contained in Section 3.1,
Section 3.2. (other than Section 3.2(k),
which will survive for a period of 18 months after the Exchange Closing Date)
and Section 4.12 will survive the execution and delivery hereof and the
Exchange Closing and continue in full force and effect until the expiration of
the applicable statute of limitations. 
The covenants and agreements made by each Party in this Agreement will
survive the Exchange Closing without limitation (except if they expire or
terminate pursuant to their terms).  Any
representation, warranty, or covenant that is the subject of a claim or dispute
asserted in writing prior to the expiration of the applicable of the
above-stated periods will survive with respect to such claim or dispute until
the final resolution thereof.

 

Section 7.2             Indemnification
by LMINT.  Subject to UGC (on
its own behalf or on behalf of any other UGC Indemnified Party) making a
written claim for indemnification against LMINT by giving notice pursuant to Section 9.6
within the survival period (if there is an applicable survival period pursuant
to Section 7.1), LMINT must indemnify and hold UGC, and its directors,
officers, employees, Affiliates, successors, and assigns (collectively, “UGC
Indemnified Parties,” and individually, a “UGC Indemnified Party”)
harmless from and against any and all Losses any UGC Indemnified Party may
suffer (including Losses a UGC Indemnified Party may suffer after the end of
any applicable survival period) arising out of, in the nature of, incident or
relating to, resulting from, or caused by:

 

(a)           any breach of any representation or warranty of LMINT
contained in this Agreement or in any other Transaction Document delivered by
or on behalf of LMINT pursuant to this Agreement;

 

(b)           any
nonperformance or breach of any covenant or agreement of LMINT contained in
this Agreement (other than Section 2.5, which is subject to the
indemnification provisions of the Registration Rights Agreement); or

 

(c)           any
claim asserted or threatened against any UGC Indemnified Party under or
pursuant to or otherwise in connection with the Purchase and Contribution
Agreement, including any claimed breach or nonperformance of any of the
representations, warranties or covenants of Uno therein, except that LMINT’s
indemnification obligation under this clause (c) will only apply to
(I) any claim arising out of a breach by Uno of its

 

39

 

representations and warranties made in Section 3.1
of the Purchase and Contribution Agreement, provided  that the
representations and warranties made in Sections 3.1(d), 3.1(e) and the
second sentence of 3.1(g) thereof shall be deemed to have been made to Uno’s
knowledge, and (II) the covenants and agreements made by Uno in Section 2.1(b),
Article VI, Section 8.5 and Section 8.7 of the Purchase and
Contribution Agreement to the extent such covenants and agreements are to be
performed by Uno prior to the Exchange Closing (the “Excluded Uno Covenants”).

 

Section 7.3             Indemnification
by UGC.  Subject to LMINT (on
its own behalf or on behalf of any other LMINT Indemnified Party) making a
written claim for indemnification against UGC by giving notice pursuant to Section 9.6
(which notice in the case of a claim pursuant to clause (i) or (ii) below
must be given within the survival period (if there is an applicable survival
period pursuant to Section 7.1)), UGC must indemnify and hold LMINT, and
its directors, officers, employees, Affiliates, successors, and assigns
(collectively, “LMINT Indemnified Parties,” and individually, an “LMINT
Indemnified Party”) harmless from and against any and all Losses any LMINT
Indemnified Party may suffer (including Losses a LMINT Indemnified Party may
suffer after the end of any applicable survival period) arising out of, in the
nature of, incident or relating to, resulting from, or caused by:

 

(i)            any breach of any representation or warranty of UGC
contained in this Agreement or in any other Transaction Document delivered by
or on behalf of UGC pursuant to this Agreement;

 

(ii)           any
nonperformance or breach of any covenant or agreement of UGC contained in this
Agreement (other than Section 2.5, which is subject to the indemnification
provisions of the Registration Rights Agreement);

 

(iii)          any
claim asserted or threatened against any LMINT Indemnified Party under or
pursuant to or otherwise in connection with the Purchase and Contribution
Agreement, including any claimed breach or nonperformance of any of the representations,
warranties or covenants of Uno therein, except that UGC’s indemnification
obligation under this clause (iv) will not apply to any claim arising out
of a breach by Uno of its representations and warranties made in Section 3.1
of the Purchase and Contribution Agreement, provided  that the
representations and warranties made in Section 3.1(d), 3.1(e) and the
second sentence of 3.1(g) thereof shall be deemed to have been made to Uno’s
knowledge, and except that UGC’s indemnification obligation under this Section 7.3(iii) shall
not extend to the Excluded Uno Covenants;

 

(iv)          any Taxes paid or payable by Uno (including any Taxes
imposed on Metrópolis that are paid or payable by Uno) pursuant to Schedule C
of the Purchase and Contribution

 

40

 

Agreement (excluding any Taxes payable by Uno under paragraph (a) under
the heading “Transfer Taxes”); or

 

(v)           any Transfer Taxes paid or payable upon the creation,
issuance or registration of the Uno Debt DPPO or in connection with any
amendment or assignment to VTR of the Metrópolis/Uno Shareholder Debt.

 

Section 7.4             Defense
of Action.

 

(a)           If
any third party notifies any Party seeking indemnification under Section 7.2
or Section 7.3 (the “Indemnified Party”) with respect to any
matter, claim, investigation, action, suit, charge, complaint, demand, or other
proceeding, whether pending or threatened (other than any relating to a Tax
matter, which will be governed by Section 5.7(f)) (an “Action”),
that may give rise to a claim for indemnification under this Article VII,
then the Indemnified Party must promptly give notice of the Action to the Party
from which such indemnification is sought (the “Indemnifying Party”)
pursuant to Section 9.6; provided, however, that the Indemnified
Party’s failure to so notify the Indemnifying Party of any Action will not
release the Indemnifying Party, in whole or in part, from its obligations under
this Article VII, except to the extent (and solely to the extent) that the
Indemnified Party’s failure to so notify actually prejudices the Indemnifying
Party’s ability to defend against such Action.

 

(b)           The
Indemnified Party may, at the sole expense and liability of the Indemnifying
Party, exercise full control of the defense, compromise, or settlement of any
such Action, unless, at any time within 20 days after the Indemnified Party has
given notice to the Indemnifying Party of the Action, the Indemnifying Party (i) delivers
a written confirmation to such Indemnified Party that the indemnification
provisions of Section 7.2 or Section 7.3 (as applicable) are
applicable to such Action and that, subject to the other provisions of this Article VII,
the Indemnifying Party must indemnify such Indemnified Party in respect of such
Action pursuant to the terms of Section 7.2 or Section 7.3 (as
applicable), (ii) notifies such Indemnified Party in writing of the
Indemnifying Party’s intention to assume the defense thereof and thereafter
conducts the defense actively and diligently, and (iii) retains legal
counsel reasonably satisfactory to such Indemnified Party to conduct the
defense of such Action.  Notwithstanding
anything to the contrary in the immediately preceding sentence, the
Indemnifying Party will not have any right to assume the defense of such Action,
if (1) such Action seeks an injunction or other equitable relief and not
money damages only, or (2) the settlement or compromise of, or an adverse
judgment with respect to, such Action is, in the good faith judgment of the
Indemnified Party, likely to establish a precedent, custom or practice
materially adverse to the continuing business interests or the reputation of
the Indemnified Party.

 

(c)           The
Indemnified Party and the Indemnifying Party must use their commercially
reasonable best efforts to cooperate with the Party assuming the defense,
compromise, or settlement of any such Action in accordance herewith in any
manner that such Party reasonably may request. 
If the Indemnifying Party so assumes the defense of any such Action, the
Indemnified Party will have the right to employ separate counsel and

 

41

 

to participate in (but not control) the
defense, compromise, or settlement thereof, but the fees and expenses of such
counsel will be the expense of such Indemnified Party unless (i) the
Indemnifying Party has specifically agreed to pay such fees and expenses or (ii) the
Indemnified Party has been advised by its counsel that there may be one or more
legal defenses from claims available to it that are different from or
additional to those available to the Indemnifying Party or that there may be a
conflict of interest between the Indemnifying Party and the Indemnified Party
in the conduct of the defense of such Action (in either of which cases the Indemnifying
Party will not have the right to direct the defense, compromise, or settlement
of such Action on behalf of the Indemnified Party), and in any such case the
reasonable fees and expenses of such separate counsel must be borne by the
Indemnifying Party, it being understood and agreed, however, that the
Indemnifying Party will not be liable for the fees and expenses of more than
one separate firm of attorneys, plus the fees and expenses of one firm of
Chilean counsel, at any time for the Indemnified Party together with its
Affiliates, unless there is a conflict of interest between the Indemnified
Party and an Affiliate thereof, in which case the Indemnifying Party will not
be liable for the fees and expenses of more than an aggregate of two separate
firms of attorneys, plus the fees and expenses of their separate Chilean
counsel, at any time for the Indemnified Party and its Affiliates.  No Indemnified Party will settle or
compromise or consent to entry of any judgment with respect to any such Action
for which it is entitled to indemnification hereunder without the prior written
consent of the Indemnifying Party, unless the Indemnifying Party fails to
assume control of such Action in the manner provided in Section 7.4(b).  The Indemnifying Party must not, without the
written consent of the Indemnified Party, settle or compromise or consent to
entry of any judgment with respect to any such Action (1) in which any
relief other than the payment of money damages is or may be sought against any
Indemnified Party, or (2) that does not include as an unconditional term
thereof the giving by the claimant, party conducting such investigation,
plaintiff or petitioner to such Indemnified Party of a release from all
liability with respect to such Action.

 

(d)           Notwithstanding
anything to the contrary in Section 7.4(a), Section 7.4(b), or Section 7.4(c),
Section 5.7(f) will govern the rights and obligations of the Parties
in respect of the Tax matters specified therein.

 

Section 7.5             Insurance
Proceeds.  Notwithstanding anything
to the contrary in the other provisions of this Article VII, the amount
that any Indemnifying Party may be required to pay to an Indemnified Party
pursuant to this Article VII will be reduced (retroactively, if necessary)
by any insurance proceeds or refunds actually recovered by or on behalf of the
applicable Indemnified Party in reduction of the related Losses (on an
after-Tax basis).  If an Indemnified
Party receives the payment required by this Article VII from the
Indemnifying Party in respect of Losses and subsequently receives insurance
proceeds in respect of such Losses, then the Indemnified Party must promptly
repay to the Indemnifying Party a sum equal to the amount of such insurance
proceeds or refunds actually received, net of costs and expenses and on an
after-Tax basis, but not exceeding the amount paid by the Indemnifying Party to
such Indemnified Party in respect of such Losses.  No representation, warranty, covenant, or
agreement contained in this Agreement is for the benefit of any insurer.

 

42

 

Section 7.6             Exclusive
Monetary Remedy; No Consequential Damages.  The Parties hereby acknowledge and agree that
their sole and exclusive monetary remedy with respect to this Agreement and the
transactions contemplated hereby, regardless of whether the relief demanded or
sought is found in contract or tort, will be pursuant to the indemnification
provisions set forth in this Article VII. 
Notwithstanding anything in the immediately preceding sentence to the
contrary, nothing in this Section 7.6 will limit in any way the
availability of specific performance, injunctive relief, rescission, or other
non-monetary remedies to which a Party may otherwise be entitled.  In no event will any Party be liable to any
other Person for such other Person’s lost profits, loss of use, lost revenues,
or other indirect, incidental, special, or consequential Losses.

 

Section 7.7             Tax
Indemnification.  The amount
of any payment under Section 7.2 or Section 7.3 for Losses arising
out of a breach of any representation or warranty, or nonperformance or breach
of any covenant, with respect to Taxes (a “Tax Indemnity Payment”) shall
be (i) increased to take account of any additional Tax paid or payable
(grossed up for such increase) by the Indemnified Party arising from receipt of
the Tax Indemnity Payment (except to the extent such Tax Indemnity Payment is
treated as an adjustment to the consideration delivered as part of the Exchange
for Tax purposes), and (ii) reduced to take account of any Tax benefit
realized (or realizable within a five year period) by the Indemnified Party
arising from the incurrence or payment of any such Tax Indemnity Payment; provided,
that (a) in computing the amount of any such additional Tax paid or payable,
or the amount of any Tax benefit, the Indemnified Party will be deemed to be
subject to the net effective U.S. federal, local or other income tax rate
(based upon the highest applicable marginal rate) and (b) the amount of
any additional Tax, or any Tax benefit, shall be calculated regardless of
whether the item affects the Tax liability of the Indemnified Party in the year
in question (i.e., as a result of the other losses, credits or offsets
against Tax or limitations on declarations, etc.).

 

ARTICLE VIII

TERMINATION

 

Section 8.1             Termination.  Notwithstanding anything to the contrary in
this Agreement, this Agreement may be terminated and the Exchange and the other
transactions contemplated by this Agreement abandoned at any time prior to the
Exchange Closing, as follows:

 

(a)           The
Parties may terminate this Agreement by mutual written consent at any time
before the Exchange Closing;

 

(b)           This
Agreement will terminate automatically without further action by any Person at
such time as the mergers contemplated by the Merger Agreement are consummated;
and

 

(c)           Either
Party may terminate this Agreement by notice to the other if the Exchange
Closing has not occurred on or before June 30, 2006, provided  however
that the right to terminate this Agreement pursuant to this Section 8.1(c) shall
not be available to any Party whose action or failure to act has been the cause
of or resulted in the failure of

 

43

 

any condition to
the Exchange Closing to be satisfied or constitutes a breach of this Agreement.

 

Section 8.2             Effect
of Termination.  If this
Agreement is terminated pursuant to Section 8.1, this Agreement will
forthwith become wholly void and of no further force and effect and there will
be no liability on the part of any of the Parties or their respective
Affiliates, officers, or directors by reason hereof, except that (a) the
provisions of Section 5.2 (“Publicity”); Section 5.3 (“Expenses”); Article VII
(“Indemnification”), unless termination occurs pursuant to Section 8.1(b);
Article VIII (“Termination”); and Article IX (“Miscellaneous”) will
survive the termination of this Agreement, and (b) no termination of this
Agreement pursuant to Section 8.1(a) or (c) will affect any
obligation or liability of any Party for any breach by such Party or any of its
Affiliates of any representation, warranty, covenant, or agreement made herein
or in the other Transaction Documents that occurred prior to such termination.

 

ARTICLE IX

MISCELLANEOUS

 

Section 9.1             Entire
Agreement.  This Agreement and
the other Transaction Documents contain, and are intended as, a complete
statement of all of the terms of the agreements between the Parties with
respect to the matters provided for herein and therein, and, whether or not the
Exchange Closing occurs, supersede and discharge any previous agreements and
understandings between the Parties with respect to those matters.

 

Section 9.2             Governing
Law.  This Agreement will be governed
by and construed in accordance with the Laws of the State of Colorado, without
giving effect to the conflicts of Laws principles thereof.

 

Section 9.3             Consent
to Jurisdiction.  Each Party
submits to the non-exclusive jurisdiction of any federal or state court located
in the State of Colorado having subject matter jurisdiction in the event of any
controversy, claim or dispute between the Parties that arises out of or relates
to this Agreement, including any claim or controversy relating to the
interpretation, breach, termination or invalidity of any provision hereof.  Each Party hereby irrevocably and
unconditionally waives any objection to the laying of venue of any Legal
Proceeding between the Parties that arises out of or relates to this Agreement
or the transactions contemplated hereby in any such federal or state court
located in the State of Colorado and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such Legal Proceeding brought in any such court has been brought in an
inconvenient forum.  Each Party must bear
its own costs and expenses in connection with any such Legal Proceeding, unless
such court determines otherwise.

 

Section 9.4             Waiver
of Jury Trial.  EACH PARTY
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.

 

44

 

EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER
VOLUNTARILY AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 9.4.

 

Section 9.5             Headings.  The article and section headings of
this Agreement are for reference purposes only and are to be given no effect in
the construction or interpretation of this Agreement.

 

Section 9.6             Notices.  All notices and other communications
hereunder must be in writing and must be delivered personally, telecopied (if
receipt of which is confirmed by the Person to whom sent), sent by
internationally recognized overnight delivery service or mailed by registered
or certified mail (return receipt requested) to the Parties at the following
addresses (or to such other Person or address for a Party as specified by such
Party by like notice) (notice will be deemed given and received upon receipt,
if delivered personally, by overnight delivery service or by telecopy, or on
the third Business Day following mailing, if mailed, except that notice of a
change of address will not be deemed given and received until actually
received):

 

(a)           If
to LMINT, to it at:

 

	
   

  	
  12300
  Liberty Boulevard

  
	
   

  	
  Englewood,
  Colorado 80112 U.S.A.

  
	
   

  	
  Attention:
  Elizabeth M. Markowski

  
	
   

  	
  Telephone:
  (720) 875-6209

  
	
   

  	
  Telecopier:
  (720) 875-5858

  
	
   

  	
   

  
	
   

  	
  with a copy
  to:

  
	
   

  	
   

  
	
   

  	
  Sherman &
  Howard L.L.C.

  
	
   

  	
  633 17th
  Street, Suite 3000

  
	
   

  	
  Denver,
  Colorado 80202 U.S.A.

  
	
   

  	
  Attention:
  Amy L. Hirter

  
	
   

  	
  Telephone:
  (303) 299-8102

  
	
   

  	
  Telecopier:
  (303) 298-0940

  
	
   

  	
   

  
	
   

  	
  If to UGC,
  to it at:

  
	
   

  	
   

  
	
   

  	
  4643 South
  Ulster Street, #1300

  
	
   

  	
  Denver,
  Colorado 80237 U.S.A.

  
	
   

  	
  Attention:
  General Counsel

  
	
   

  	
  Telephone:
  (303) 770-4001

  
	
   

  	
  Telecopier:
  (303) 220-3117

  

 

45

 

	
   

  	
  with a copy
  to:

  
	
   

  	
   

  
	
   

  	
  Holme
  Roberts & Owen LLP

  
	
   

  	
  1700 Lincoln
  Street

  
	
   

  	
  Suite 4100

  
	
   

  	
  Denver,
  Colorado 80203  U.S.A.

  
	
   

  	
  Attention:

  	
  W. Dean
  Salter

  
	
   

  	
   

  	
  Paul G.
  Thompson

  
	
   

  	
  Telephone:
  (303) 861-7000

  
	
   

  	
  Telecopier:
  (303) 861-0200

  

 

Section 9.7             Severability.  If at any time any covenant or provision
contained herein is deemed in a final ruling of a court or other body of
competent jurisdiction to be invalid or unenforceable, such covenant or
provision will be considered divisible and such covenant or provision will be
deemed immediately amended and reformed to include only such portion of such
covenant or provision as such court or other body has held to be valid and
enforceable; and the Parties agree that such covenant or provision, as so
amended and reformed, will be valid and binding as though the invalid or
unenforceable portion had not been included herein.

 

Section 9.8             Amendment;
Waiver.  No provision of this
Agreement may be amended or modified except by an instrument or instruments in
writing signed by the Parties and designated as an amendment or
modification.  No waiver by either Party
of any provision of this Agreement will be valid unless in writing and signed
by the Party making such waiver and designated as a waiver.  No failure or delay by any Party in
exercising any right, power, or remedy hereunder will operate as a waiver
thereof, nor will any single or partial exercise thereof or the exercise of any
other right, power, or remedy preclude any further exercise thereof or the
exercise of any other right, power, or remedy. 
No waiver of any provision hereof will be construed as a waiver of any
other provision.

 

Section 9.9             Assignment
and Binding Effect.  No Party
may assign any of its rights or delegate any of its obligations under this
Agreement without (a) the prior written consent of the other Party and (b) the
complete assumption by the assignee of all of the obligations of the assignor
under this Agreement; provided, however, that if the Parties
agree that the Exchange will still qualify as a non-Taxable exchange under Section 351
of the Code and if each Party characterizes and reports the Exchange in accordance
with Section 5.7(b), UGC will be entitled to assign to one of its
Subsidiaries, to be designated by UGC, the right to acquire the Liberty Chile
Stock, which assignment will not affect any of the obligations of UGC arising
from this Agreement or any of the other Transaction Documents, and LMINT will
be entitled to assign to one or more of its Affiliates the right to acquire the
UGC Stock, which will not affect any of the obligations of LMINT arising from
this Agreement or any of the other Transaction Documents.  All of the terms and provisions of this
Agreement will be binding on, and will inure to the benefit of, the respective
successors and permitted assigns of the Parties.

 

Section 9.10           No
Benefit to Others.  Except as
expressly set forth herein, the representations, warranties, covenants, and
agreements contained in this Agreement are for the sole benefit of the Parties
and their respective successors and permitted assigns, and they will not be
construed as conferring and are not intended to confer any rights, remedies,
obligations, or

 

46

 

liabilities on
any other Person, unless such Person is expressly stated to be entitled to any
such right, remedy, obligation, or liability.

 

Section 9.11           Counterparts.  This Agreement may be executed by the Parties
in separate counterparts, each of which when so executed and delivered will be
an original, but all such counterparts will together constitute one and the
same instrument.

 

Section 9.12           Interpretation.

 

(a)           As
used herein, except as otherwise indicated herein or as the context may
otherwise require: (i) the words “include,” “includes,” and “including”
are deemed to be followed by “without limitation” whether or not they are in
fact followed by such words or words of like import; (ii) the words “hereof,”
“herein,” “hereunder,” and comparable terms refer to the entirety of this
Agreement, including the Schedules hereto, and not to any particular article,
section, or other subdivision hereof or Schedule hereto; (iii) any
pronoun will include the corresponding masculine, feminine, and neuter forms; (iv) the
singular includes the plural and vice versa; (v) references to any
agreement or other document are to such agreement or document as amended and
supplemented from time to time; (vi) references to any statute or
regulation are to it as amended and supplemented from time to time, and to any
corresponding provisions of successor statutes or regulations; (vii) except
as otherwise expressly provided in this Agreement, references to “Article,” “Section,”
“preamble,” “recital,” or another subdivision or to a “Schedule” are to an
article, section, preamble, recital or subdivision hereof or “ Schedule”
hereto; and (viii) references to any “Person” or “Entity” include such
Person’s or Entity’s respective successors and permitted assigns.

 

(b)           In
this Agreement, any reference to a Party’s “knowledge,” and comparable terms
including “know,” “known,” “aware,” or “awareness,” means such Party’s current
actual knowledge without investigation.

 

(c)           Any
reference herein to a “day” or number of “days” (without the explicit
qualification of “Business”) will be deemed to refer to a calendar day or
number of calendar days.  If any action
or notice is to be taken or given on or by a particular calendar day, and such
calendar day is not a Business Day, then such action or notice may be taken or
given on the next succeeding Business Day.

 

(d)           Any
financial or accounting terms that are not otherwise defined herein will have
the meanings given thereto under GAAP.

 

Section 9.13           Rules of
Construction.  The Parties agree that
they have been represented by counsel during the negotiation, preparation, and
execution of this Agreement and, therefore, irrevocably waive the application
of any Law or rule of construction providing that ambiguities in an
agreement or other document will be construed against the Party drafting such
agreement or document.

 

[Remainder of page intentionally left blank]

 

47

 

IN WITNESS WHEREOF, the
Parties have executed this Agreement as of the date first written above.

 

 

	
   

  	
  UNITEDGLOBALCOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ELLEN P. SPANGLER

  
	
   

  	
   

  	
  Ellen P. Spangler

  
	
   

  	
  Its:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LIBERTY MEDIA INTERNATIONAL

  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  ELIZABETH M. MARKOWSKI

  
	
   

  	
   

  	
  Elizabeth M. Markowski

  
	
   

  	
  Its:

  	
  Senior Vice President

  

 

48

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