Document:

<PAGE>

                                                                    EXHIBIT 4.12
                                                           [English Translation]

                                  AGREEMENT FOR

                     ACQUISITION OF KOREA THRUNET CO., LTD.

This Agreement for Acquisition of Korea Thrunet Co., Ltd. (this "Agreement") is
entered into on February 4, 2005 between the following parties:

Reorganization Company:       Korea Thrunet Co., Ltd.
                              1338-5, Seocho-dong, Seocho-ku, Seoul
                              Receiver: Seok Won Park

Proposed Acquirer:            Hanaro Telecom Inc.
                              43, Taepyungro 2-ga, Chung-gu, Seoul
                              Representative Director: Chang-Bun Yoon

                                    RECITALS

WHEREAS, Korea Thrunet Co., Ltd. (the "Thrunet"), which is subject to
reorganization proceedings sent a bidding information sheet to the prospective
investors interested in the acquisition of the shares of the Thrunet for
purposes of mergers and acquisitions ("M&A"), and Hanaro Telecom Inc. ("Hanaro
Telecom") was designated as the preferred bidder of negotiation for the
acquisition of the Thrunet under such bidding information sheet.

WHEREAS, the Thrunet and Hanaro Telecom entered into a certain memorandum of
understanding dated December 21, 2004 (the "MOU").

NOW, THEREFORE, the parties hereto agree, as follows, for the acquisition of the
Thrunet:

ARTICLE 1 (PURPOSE)

The purpose of this Agreement is to provide for the matters related to M&A of
the Thrunet by Hanaro Telecom.

ARTICLE 2 (DEFINITION)

(1)   "Amended Reorganization Plan" means the plans, as amended, regarding
      Thrunet that are prepared and submitted by Thrunet to implement this
      Agreement and obtain the approval of the Reorganization Court related
      thereto. Such plan shall include procedures and terms regarding the
      acquisition of Thrunet by Hanaro Telecom, details of the restructuring of
      the debts owed by Thrunet to its creditors, and matters related to
      reservation of the working capital of Thrunet.

(2)   "Purchase Price" means 471,390,000,000 Won to be paid by Hanaro Telecom
      for the acquisition of Thrunet, and to be invested in, or provided to,
      Thrunet in the form of

                                        1
<PAGE>

      subscription for new shares and bonds issued by Thrunet, subject to the
      terms contained in this Agreement.

(3)   "Earnest Money" means the amount that shall be paid by Hanaro Telecom to
      the account designated by Thrunet pursuant to Article 4(1) hereof in order
      to guarantee the performance of the matters contained herein.

(4)   "Reorganization Court" means the Seoul Central District Court that has the
      jurisdiction over the corporate reorganization proceedings with respect to
      Thrunet.

(5)   "Bidding Documents" means the entire bidding documents submitted by Hanaro
      Telecom to Thrunet on December 13, 2004 for M&A of Thrunet.

ARTICLE 3 (M&A PROCEDURES AND EARNEST MONEY)

(1)   The acquisition hereunder shall proceed in the stages involving, among
      others, (i) deposit of the Purchase Price by Hanaro Telecom, (ii) debt
      restructuring for reorganization security holders and reorganization
      creditors (each including the surety obligations, the same hereinafter),
      (iii) payment of the Purchase Price by Hanaro Telecom, (iv) adoption of a
      resolution with respect to the Amended Reorganization Plan at a meeting of
      interested persons, (v) approval by the Reorganization Court, (vi)
      issuance of new shares and bonds by Thrunet, and (vii) payment of the
      secured loans or unsecured loans by Thrunet.

(2)   Thrunet shall use its best efforts to follow the procedures for obtaining
      the approval of the Reorganization Court with respect to the Amended
      Reorganization Plan that reflects the M&A procedures and terms preferred
      by Hanaro Telecom, and Hanaro Telecom shall fully cooperate therewith.

(3)   The approval of the Amended Reorganization Plan by the Reorganization
      Court shall be a condition precedent to the obligation of Hanaro Telecom
      to subscribe for new shares and bonds as set forth in Articles 7 and 8
      hereof.

(4)   Hanaro Telecom shall pay the Purchase Price for the acquisition of
      Thrunet, as follows, subject to the detailed terms as set forth in
      Articles 7 and 8:

      A. Capital increase for value                     248,100,000,000 Won
      B. Subscription for bonds                         223,290,000,000 Won
                 Total                                  471,390,000,000 Won

ARTICLE 4 (EARNEST MONEY)

(1)   Hanaro Telecom shall, simultaneous with the execution of this Agreement,
      pay to the following bank account designated by Thrunet a sum of
      47,139,000,000 Won, equivalent to ten (10) % of the Purchase Price as set
      forth in Article 3(4) hereof (which shall include the guarantee deposit
      paid by Hanaro Telecom to the account designated by Thrunet upon execution
      of the MOU and the interest accrued thereon), in order to guarantee its
      performance of this Agreement. In such case, the 24,810,000,000 Won,
      equivalent to the guarantee deposit paid by Hanaro Telecom to the account
      designated by Thrunet upon execution of the MOU (including the interest
      accrued thereon), shall be applied in and toward payment of part of the
      Earnest Money, and the pledge created over such guarantee deposit
      (including the interest

                                       2
<PAGE>

      accrued thereon) shall be automatically extinguished upon the payment of
      the Earnest Money.

      Accountholder:
                                       Korea Thrunet Co., Ltd.
                                       Receiver: Seok Won Park
      Financial Institution:           Citibank Korea Inc.
      Account No.:                     151-08621-319

(2)   Thrunet and Hanaro Telecom shall enter into a pledge agreement in the form
      as attached hereto with respect to the bank deposit claims on the Earnest
      Money and any accrued interest thereon, and Thrunet shall, immediately
      upon the payment of the Earnest Money under Paragraph (1) above, create a
      pledge in favor of Hanaro Telecom (over such bank deposit claims).

(2)   The Earnest Money as set forth in this Article 4 and the interest accrued
      thereon from the date of payment of the Earnest Money until the date of
      depositing of the Purchase Price under Article 9(1) hereof shall be
      applied in and toward payment of part of the Purchase Price to be
      deposited by Hanaro Telecom.

ARTICLE 5 (PAYMENT OF REORGANIZATION SECURITY AND REORGANIZATION CREDIT)

(1)   The amount and terms of payment of reorganization security and
      reorganization credit shall be made in accordance with the Amended
      Reorganization Plan. Thrunet shall, after payment in full of the Purchase
      Price by Hanaro Telecom, repay such reorganization security and
      reorganization credit in accordance with the Amended Reorganization Plan
      as approved (by the Reorganization Court).

(2)   Thrunet shall, for purposes of payment under Paragraph (1) above, apply
      the Purchase Price as set forth in Article 3(4) hereof, less (i) the
      amounts set forth in the following Subparagraphs, (ii) the reserves set
      aside with respect to PowerCom Co., Ltd. ("PowerCom") in Paragraph (3)
      below, and (iii) the escrow amount set forth in Paragraph (4) below
      (reserves under the proviso of Paragraph (4) below, if a penalty is
      imposed by the Fair Trade Commission (the "FTC") prior to the date of
      deposit of the Purchase Price). The amounts deducted under the following
      Subparagraphs shall be applied for the working capital needs, etc. of
      Thrunet:

      1.    Amount equivalent to reorganization security and reorganization
            credit (including the interest accrued on such loans) owed by
            Thrunet that have been paid, not pursuant to the valid
            reorganization plan of Thrunet, since January 1, 2005 until the date
            of this Agreement; and

      2.    Amount equivalent to the advisory fees to be paid to Samjung KPMG
            FAS, Korea Development Bank, and DeRyook International Law Firm,
            whose advisory services were retained by Thrunet to proceed with the
            present M&A involving Hanaro Telecom.

(3)   A sum of 8,500,000,000 Won, forming part of the Purchase Price, shall be
      set aside as the reserves for the working capital needs of Thrunet, which
      shall be used to pay the minimum use charges to PowerCom until the
      expiration of the effective term of each of (i) the "Agreement on the Use
      of Cable TV Transmission Network for Provision of Additional Services"
      (initially executed between Thrunet and Korea Electric Power

                                        3
<PAGE>

      Corporation on March 25, 1999 and subsequently PowerCom succeeded Korea
      Electric Power Corporation as a party thereto) (ii) the "Agreement on
      Provision of HFC Network between Thrunet and PowerCom" dated January 19,
      2001, each existing validly between Thrunet and PowerCom.

(4)   With respect to the "Agreement on the Clean Marketing for Internet
      Services" dated around April 2003 among six (6) communication service
      providers including Thrunet, the Korea Fair Trade Commission (the "FTC")
      is investigating whether such agreement is in violation of Article 19
      (Prohibition of Unfair Collaborative Acts) of the Monopoly Regulation and
      Fair Trade Act ("MRFTA"). In the event that the FTC imposes a penalty on
      Thrunet for an unfair collaborative act, Thrunet shall, in order to secure
      the payment of such penalty, deposit, immediately upon depositing the
      Purchase Price, a sum of 8,000,000,000 Won (the "Escrow Amount"), forming
      part of the Purchase Price, in the name of Thrunet, with a financial
      institution (the "Escrow Agent") agreed upon between Thrunet and Korea
      Development Bank (representative of the creditors of Thrunet). Thrunet,
      the Korea Development Bank and Hanaro Telecom shall enter into an escrow
      agreement in the form attached hereto (the "Escrow Agreement") with the
      Escrow Agent prior to the deposit of the Escrow Amount; provided, however,
      that, if a penalty is imposed prior to deposit of the Purchase Price under
      Article 9 hereof, (i) such penalty shall first be paid with the funds held
      by Thrunet, then (ii) Thrunet shall set aside as reserves a portion of the
      Purchase Price equal to the "amounts that would otherwise be withdrawn and
      paid out from the Escrow Account" as calculated pursuant to Paragraph (5)
      below, and shall use such reserves as the working capital of Thrunet,
      without opening an escrow account.

(5)   The Escrow Amount under Paragraph (4) above shall be used as follows, and
      the specific terms, method, etc. of withdrawal of the Escrow Amount shall
      be in accordance with the Escrow Agreement:

      1.    If no penalty is imposed by the FTC:

            the Escrow Amount (including the accrued interest thereon) shall be
            used to pay the reorganization security and reorganization credit
            owed by Thrunet, pursuant to the Amended Reorganization Plan;

      2.    If the penalty imposed by the FTC is not more than 4,000,000,000
            Won:

            Thrunet shall withdraw the amount equal to such penalty from the
            escrow account and pay such amount. The balance of the Escrow Amount
            (including the accrued interest thereon) remaining after such
            payment shall be used to pay the reorganization security and
            reorganization creditowed by Thrunet, pursuant to the Amended
            Reorganization Plan;

      3.    If the penalty imposed by the FTC is more than 4,000,000,000 Won,
            but not more than 10,000,000,000 Won:

            Thrunet shall withdraw that portion of the amount of such penalty
            which is equal to 4,000,000,000 Won plus two-thirds (2/3) of the
            excess of such penalty over 4,000,000,000 Won [i.e. 4,000,000,000
            Won + (penalty amount - 4,000,000,000 Won) x 2/3] from the Escrow
            Account and pay such portion. The rest of the amount of such penalty
            shall be paid with the funds held by Thrunet. The balance of the
            Escrow Amount (including the accrued interest thereon)

                                        4
<PAGE>

            remaining after such payment shall be used to pay reorganization
            security and reorganization credit owed by Thrunet, pursuant to the
            Amended Reorganization Plan; and

      4.    If the penalty imposed by the FTC is more than 10,000,000,000 Won:

            Thrunet shall withdraw that portion of the amount of such penalty
            which is equal to the amount of the Escrow Amount (including the
            accrued interest thereon) from the Escrow Account and pay such
            portion. The rest of the entire amount of such penalty shall be paid
            with the funds held by Thrunet.

(6)   Thrunet may object to the imposition of a penalty by the FTC through a
      lawsuit, objection, etc. If a refund (including the added refund) is
      received as a result of the final and conclusive determination of the
      penalty, the Thrunet shall conduct the following:

      1.    based on the finally and conclusively determined amount of the
            penalty, calculate the "penalty amount that shall be withdrawn and
            paid out of the Escrow Account finally and conclusively" as
            calculated pursuant to Paragraph (5) above; and

      2.    additionally pay to the reorganization security holders and
            reorganization creditors, in accordance with the Amended
            Reorganization Plan, the amount of refund (including the added
            refund thereon), which is equal to (i) the "amount already withdrawn
            and paid out of the Escrow Account pursuant to Paragraph (5) above
            (or as the case may be, the amount equivalent to the reserves set
            aside under the proviso of Paragraph (4) above)", less (ii) the
            "penalty amount that shall be withdrawn and paid out from the Escrow
            Account finally and conclusively" as calculated in Subparagraph 1
            above.

(7)   Hanaro Telecom shall bear no obligations to contribute moneys in
      connection with the acquisition of Thrunet, other than the obligation to
      deposit and pay the Purchase Price under Articles 3(4) and 9.

ARTICLE 6 (CAPITAL REDUCTION)

Thrunet may determine, at the time of preparation of the Amended Reorganization
Plan, specific matters regarding capital reduction, such as reduction of the
capital represented by common shares issued prior to the approval of the Amended
Reorganization Plan, and the consolidation ratio of shares.

ARTICLE 7 (ISSUANCE OF NEW SHARES)

(1)   Thrunet shall issue and allocate to Hanaro Telecom, and Hanaro Telecom
      shall subscribe for, 99,240,000 common shares in registered form pursuant
      to this Agreement and the Amended Reorganization Plan, promptly upon
      completion of the capital reduction procedures of Thrunet under Article 6
      hereof (or on the issuance date of new shares, in the event that no
      capital reduction is effected under Article 6 hereof).

(2)   Matters regarding issuance of new shares under Paragraph (1) above shall
      be as follows:

                                        5
<PAGE>

      1.    Type and number of new shares to be issued: 99,240,000 common shares
            in registered form;

      2.    Par value per share: 2,500 Won;

      3.    Issue price per share: 2,500 Won;

      4.    Capital increase: 248,100,000,000 Won;

      5.    Method of allocation of new shares and subscribers thereof: entire
            new shares to be allocated to Hanaro Telecom;

      6.    Payment date for new shares: the date as set forth in the Amended
            Reorganization Plan;

      7.    Location of payment of Subscription money: account designated by
            Thrunet; and

      8.    Effective date of new shares: the date immediately following the
            date of payment for the new shares.

(3)   Hanaro Telecom shall not dispose of 49,620,000 shares, which comprise 50 %
      of the new shares, that it subscribed for under this Article 7, for a
      one-year period following the issuance date of such shares. To secure its
      obligation not to dispose of such shares, Hanaro Telecom shall make a
      safeguard deposit such shares in the Korea Securities Depository, and
      shall promptly deliver the relevant documents to Thrunet. Thrunet shall
      issue share certificates to Hanaro Telecom pursuant to the applicable laws
      and regulations upon completion of Hanaro Telecom's payment for for the
      new shares

ARTICLE 8 (SUBSCRIPTION FOR BONDS)

Hanaro Telecom shall subscribe for bonds (the "Bonds") issued by Thrunet on a
private placement basis pursuant to this Agreement and the Amended
Reorganization Plan, as follows:

      1.    Type of Bonds: non-guaranteed corporate bonds;

      2.    Total amount of the Bonds: 223,290,000,000 Won;

      3.    Issue price of the Bonds: 223,290,000,000 Won;

      4.    Maturity of the Bonds: five (5) year anniversary of the issuance
            date of the Bonds (if such date is not a bank business day, the
            immediately following bank business day);

      5.    Interest rate for the Bonds; 3.42% per annum;

      6.    Interest payment date: every three (3) months after the issuance
            date of the Bonds (if such date is not a bank business day, the
            immediately following bank business day);

      7.    Default interest: if the issuer fails to pay the principal of, or
            the interest on, the Bonds on the maturity or the payment due dates,
            default interest shall be payable in respect of the overdue amount,
            calculated on daily basis at the default interest rate as set forth
            in the Amended Reorganization Plan, from the date immediately
            following the relevant maturity or due date until the date of actual
            payment;

      8.    Redemption prior to maturity: the issuer may redeem the whole or any
            part of the Bonds with respect to the principal or interest thereon
            at any time prior to maturity, subject to a one-month written
            notice;

      9.    Type of bond certificates: bearer form;

      10.   Payment due date for subscription money for the Bonds: the date
            immediately following the effective date of new shares under Article
            7(2) hereof; and

                                        6
<PAGE>

      11.   Subscription money to be paid to: the account designated by Thrunet.

ARTICLE 9 (DEPOSIT AND PAYMENT OF PURCHASE PRICE)

(1)   Hanaro Telecom shall deposit in the account designated by Thrunet the
      Purchase Price, less the sum of the Earnest Money already paid by Hanaro
      Telecom pursuant to Article 4 hereof and the interest accrued on the
      Earnest Money, at least three (3) bank business days prior to the meeting
      of interested persons for adoption of resolution of the Amended
      Reorganization Plan.

(2)   Thrunet and Hanaro Telecom shall enter into a pledge agreement in the form
      as attached hereto with respect to the bank deposit claims on the full
      amount of the Purchase Price and the accrued interest thereon, over which
      the Thrunet shall create a pledge in favor of Hanaro Telecom immediately
      upon the deposit of the Earnest Money under Paragraph (1) above; provided,
      however, that no such pledge shall be created over the Escrow Amount as
      referred to in Article 5(4) hereof.

(3)   The pledge created under Paragraph (2) above shall, for the payment of the
      subscription money for new shares and subscription money for the Bonds and
      to the extent of the amount of money to be paid for such new shares and
      the Bonds, be extinguished on the payment date of the subscription money
      for new shares and the payment date of the subscription money for the
      Bonds, respectively, under the Amended Reorganization Plan after the
      Amended Reorganization Plan is approved by the Reorganization Court.

(4)   The Purchase Price shall, after the Amended Reorganization Plan is
      approved by the Reorganization Court, be converted into the subscription
      money for new shares under Article 7 hereof and the subscription money for
      the Bonds under Article 8 hereof. Also, the amount on deposit on the
      Escrow Account under Article 5(4) hereof shall be converted into the
      subscription money for the Bonds.

(5)   After the Purchase Price is converted pursuant to Paragraph (4) above into
      the subscription money for new shares and the subscription money for the
      Bonds, Thrunet shall return to Hanaro Telecom the interest accrued on the
      Purchase Price deposited pursuant to Paragraph (1) above.

ARTICLE 10 (DISPATCH OF ACQUISITION GROUP)

(1)   Hanaro Telecom may, after the approval of the Amended Reorganization Plan,
      dispatch a group of acquisition personnel (the "Acquisition Group") to
      Thrunet in order to facilitate the acquisition of Thrunet by Hanaro
      Telecom.

(2)   The size of the Acquisition Group and the scope of the matters that may be
      handled by the Acquisition Group shall be determined with the permission
      of the Reorganization Court, subject to consultations between Thrunet and
      Hanaro Telecom.

(3)   Thrunet shall (i) until Hanaro Telecom acquires the management right over
      Thrunet, consult the Acquisition Group prior to obtaining the permission
      of the Reorganization Court if Thrunet intends to pay its debts, incur new
      debts, acquire or dispose of material assets, or enter into, renew or
      amend any agreements relating to the foregoing, and (ii) consult the
      Acquisition Group with respect to the matters falling under the work scope
      of the Acquisition Group.

                                        7
<PAGE>

ARTICLE 11 (TERMS OF EMPLOYMENT)

(1)   Hanaro Telecom shall guarantee the employment of all of the employees of
      Thrunet under the Labor Standard Act as of the date of this Agreement and
      procure that no disadvantage is caused to such employees by the execution
      and performance of this Agreement.

(2)   The period during which the guarantee of employment under Paragraph (1)
      above is applicable shall be as agreed separately between Hanaro Telecom
      and Thrunet.

ARTICLE 12 (EFFECTIVENESS)

This Agreement shall become effective upon the affixing by Thrunet and Hanaro
Telecom of their seal impressions on this Agreement and the approval of the
Reorganization Court with respect thereto.

ARTICLE 13 (TERMINATION)

(1)   Upon the occurrence of any of the following events, Thrunet may terminate
      this Agreement with a written notice to Hanaro Telecom; provided that,
      this Agreement shall not be terminated for any reason after the Amended
      Reorganization Plan is approved by the Reorganization Court:

      1.    if Hanaro Telecom fails to deposit the Earnest Money under Article
            4(1) hereof;

      2.    if Hanaro Telecom fails to deposit the Purchase Price under Article
            9(1) hereof;

      3.    if Hanaro Telecom fails to obtain and notify to Thrunet the
            approvals, licenses, etc. under Article 15(3) hereof within the
            period prescribed therein; or

      4.    if Hanaro Telecom commits a breach of its obligations under this
            Agreement and fails to remedy such breach within 15 days following
            the receipt of a notice requiring such breach to be remedied.

(2)   Upon the occurrence of any of the following events, this Agreement may be
      terminated with a written notice to the other party; provided, however,
      that this Agreement shall not be terminated for any reason after the
      Amended Reorganization Plan is approved by the Reorganization Court:

      1.    by Hanaro Telecom and/or Thrunet, if the Amended Reorganization Plan
            is not approved by the Reorganization Court;

      2.    by either party, if such party becomes unable to perform this
            Agreement due to a war, act of God or any other force majeure beyond
            the control of such party; or

      3.    by Hanaro Telecom, if Thrunet commits a breach of its obligations
            under this Agreement and fails to remedy such breach within 15 days
            following the receipt of a notice requiring remedy of such breach.

(3)   Either party may terminate this Agreement if the Amended Reorganization
      Plan fails to be approved by the Reorganization Court within 6 months from
      the date of this Agreement for reasons not attributable to such party.

                                        8
<PAGE>

(4)   If this Agreement is terminated due to any event set forth in Paragraph
      (1) above, the guarantee deposit (including the accrued interest thereon
      in the case of Article 13 (1), Subparagraph 1) or the Earnest Money
      (including the accrued interest thereon in the case of Article 13 (1),
      Subparagraphs 2 to 4) shall belong to Thrunet as a penalty. In such case,
      the pledge created over the bank deposit claims shall be automatically
      extinguished and Hanaro Telecom shall give the relevant financial
      institution a notice of closing of the account concerned. Hanaro Telecom
      shall bear no obligations to compensate for damages in connection with
      this Agreement, other than the guarantee deposit (including the accrued
      interest) or the Earnest Money (including the accrued interest thereon)
      belonging to Thrunet pursuant to this Paragraph (4).

(5)   If this Agreement is terminated under Paragraph (2) or (3) above for
      reasons not attributable to Hanaro Telecom prior to the approval of the
      Amended Reorganization Plan by the Reorganization Court, Thrunet shall,
      immediately upon such approval by the Reorganization Court being obtained,
      return to Hanaro Telecom the Earnest Money (including the accrued interest
      thereon) or the Purchase Price (including the accrued interest thereon).

(6)   If this Agreement is terminated, Thrunet and Hanaro Telecom shall
      immediately return to the other party, or destroy, all the materials, etc.
      obtained from the other party.

ARTICLE 14 (INDEMNITY)

If this Agreement is terminated, Hanaro Telecom shall not claim any damages from
Thrunet, the Reorganization Court, the lead manager for the present M&A, etc.,
other than the return or repayment of the Earnest Money and the Purchase Price
pursuant to Articles 4 (1), 9 (1), or 13 (4) or (5) hereof.

ARTICLE 15 (COVENANTS BY HANARO TELECOM)

(1)   Hanaro Telecom fully understands that it shall obtain the consent of the
      REORGANIZATION SECURITY HOLDERS AND REORGANIZATION creditors or the
      shareholders of the Thrunet in a meeting of interested persons if the
      interest of such REORGANIZATION SECURITY HOLDERS AND REORGANIZATION
      creditors or the shareholders is unfavorably affected in connection with
      the Amended Reorganization Plan.

(2)   Hanaro Telecom fully understands that (i) the reorganization procedures of
      the Thrunet shall not automatically be terminated by the execution of this
      Agreement, debt restructuring under the Amended Reorganization Plan,
      payment of the Purchase Price, and payment of the REORGANIZATION SECURITY
      AND REORGANIZATION credits owed by the Thrunet, and (ii) the termination
      of the reorganization procedures of the Thrunet shall be determined by the
      final and conclusive judgment of the Reorganization Court pursuant to the
      applicable laws, based on the financial soundness of the Thrunet,
      including procurement of funds necessary to perform the Amended
      Reorganization Plan or generation of ordinary profit, after the
      acquisition of the issued shares of the Thrunet by Hanaro Telecom pursuant
      to the approved Amended Reorganization Plan.

(3)   Hanaro Telecom acknowledges that it is entering into this Agreement based
      on its confirmation of the availability of the approvals, licenses, etc.
      under the MRFTA and other relevant laws and regulations necessary for the
      acquisition of the Thrunet by Hanaro Telecom. If such approvals, licenses,
      etc. necessary for the acquisition of

                                       9
<PAGE>

      the Thrunet by Hanaro Telecom are not obtained and notified to the Thrunet
      not later than the earlier of (i) 60 days following the date of this
      Agreement (or the extended date by which such approvals, licenses, etc.
      are to be obtained, if such extended date has been granted by the
      Reorganization Court as a result of a delay in the period for obtaining
      such approvals, licenses, etc. pursuant to the relevant laws and
      regulations) and (ii) three (3) business days prior to the meeting of
      interested persons, such failure shall be deemed to be attributable to
      Hanaro Telecom.

ARTICLE 16 (COVENANTS BY THRUNET)

(1)   Thrunet shall promptly take all the steps necessary for acquisition of
      Thrunet by Hanaro Telecom to be completed as quickly as possible pursuant
      to this Agreement, for as long as this Agreement remains effective.

(2)   Thrunet shall conduct its purchases, sales, administration and other
      business and management matters in good faith and in the ordinary course
      of business, for as long as this Agreement remains effective.

(3)   Thrunet shall comply with the applicable laws and regulations in
      performing the matters set forth herein, for as long as this Agreement
      remains effective.

(4)   Thrunet shall not, for as long as this Agreement remains effective, commit
      any act that, except for the change in the capital of Thrunet as set forth
      in this Agreement, may cause a change in the capital of Thrunet,
      including, without limitation, a grant of the pre-emptive rights to
      subscribe for new shares to any persons other than Hanaro Telecom,
      issuance of convertible bonds, bonds with warrants or exchangeable bonds,
      or a grant of stock options.

(5)   Thrunet shall not, for as long as this Agreement remains effective,
      proceed with or commence any transactions the same as or similar to the
      transactions contemplated by this Agreement, with third parties other than
      Hanaro Telecom or the persons acknowledged by Hanaro Telecom.

(6)   Thrunet shall not, for as long as this Agreement remains effective, commit
      any act that may substantially deteriorate the financial status of the
      Thrunet, without the permission of the Reorganization Court.

(7)   With respect to the damages and reimbursable expenses payable to SK
      Networks Co., Ltd. (then known as SK Global Co., Ltd.) ("SK Networks")
      under a certain Asset Transfer Agreement dated July 5, 2002 between
      Thrunet and SK Networks and certain agreements ancillary thereto
      (collectively, the "Asset Transfer Agreement"), Thrunet shall, by prior
      consultation with Hanaro Telecom, use best efforts to enter into an
      agreement with SK Networks under which (i) the amount equivalent to 6% of
      the reserve amount (which shall be the balance of the reserve amount as of
      the date of this Agreement as confirmed by Thrunet and SK Networks and
      notified to Hanaro Telecom) held by SK Networks under the Asset Transfer
      Agreement as of the date of this Agreement shall be paid to Thrunet by
      December 31, 2007, and (ii) SK Networks waives, in return for the waiver
      by Thrunet of the right to claim the payment of the balance of the reserve
      amount on or after December 31, 2007, its rights to claim the damages and
      reimbursable expenses under the Asset Transfer Agreement as well as its
      all other rights.

(8)   Thrunet shall use best efforts to ensure that the "Master Agreement on
      Cooperation

                                       10
<PAGE>

      for Additional Communication Business" and the agreements ancillary
      thereto entered into with general cable broadcasting business operators,
      relayed broadcasting business operators or transmission network business
      operators under the Broadcasting Act will remain effective after the
      execution of this Agreement.

(9)   Thrunet shall, by referring to the opinion of Hanaro Telecom, prepare the
      Amended Reorganization Plan to contain the details of the acquisition of
      Thrunet by Hanaro Telecom.

ARTICLE 17 (APPLICATION FOR TERMINATION OF REORGANIZATION PROCEDURES)

Thrunet shall use best efforts to make an application to the Reorganization
Court for termination of the reorganization procedures pursuant to the Corporate
Reorganization Act, as quickly as possible after the completion of payment under
Article 5 hereof of the reorganization security and reorganization credits owed
by Thrunet.

ARTICLE 18 (CONFIDENTIALITY OBLIGATION)

(1)   Neither Thrunet nor Hanaro Telecom shall disclose to a third party, or
      allow a third party to gain knowledge , trade secrets of the other party,
      the terms of this Agreement or any other information related to the
      present M&A obtained in connection with the execution and performance of
      this Agreement (including the information obtained in the process leading
      to the execution of this Agreement) without prior written consent of the
      other party.

(2)   The confidentiality obligation under Paragraph (1) above shall not be
      applicable to (i) the provision by Thrunet to its creditors or the
      Reorganization Court of materials related to the present M&A and other
      information regarding the progress thereof for purposes of, among others,
      making reports to the Reorganization Court or conducting consultations
      with such creditors in order to proceed with the present M&A or (ii) the
      provision of information as required by the applicable laws and
      regulations, regulatory agencies or the court.

(3)   The confidentiality obligation under this Article 18 shall not be
      applicable to (i) the provision for unavoidable reasons by Hanaro Telecom
      of the materials related to the present M&A and other information
      regarding the progress thereof to financial advisors, legal advisors,
      accounting firms or the shareholders or creditors of Hanaro Telecom
      (restricted to the shareholders or creditors of Hanaro Telecom to whom
      materials related to the present M&A and other information regarding the
      progress thereof have been provided pursuant to the relevant agreement
      with Hanaro Telecom) for purposes of proceeding with the present M&A or
      (ii) the provision of information relating to the present M&A as required
      by the Securities and Exchange Act and other applicable laws and
      regulations.

(4)   Thrunet and Hanaro Telecom shall not use the information obtained in
      connection with the execution and performance of this Agreement for any
      purposes other than the purpose of performing this Agreement and
      proceeding with the present M&A. Hanaro Telecom shall procure that the
      financial advisors, legal advisors, accounting firms or creditors of
      Hanaro Telecom under Paragraph (3) above shall comply with the
      confidentiality obligation under this Article 18, and Hanaro Telecom shall
      directly bear the liability for any breach of such confidentiality
      obligation by such the financial advisors, legal advisors, accounting
      firms or creditors of Hanaro Telecom.

                                       11
<PAGE>

(5)   Thrunet and Hanaro Telecom shall continue to bear the confidentiality
      obligation under this Article 18 even after this Agreement ceases to be in
      effect or is terminated; provided, however, that Hanaro Telecom may (i) if
      the Amended Reorganization Plan has been approved by the Reorganization
      Court, disclose to the public or a third party under its responsibility
      the details and terms of this Agreement and other information relating to
      the present M&A (including the information obtained in the process leading
      to the execution of this Agreement) as the largest shareholder of Thrunet,
      in accordance with the applicable laws and regulations, subject to the
      prior consultation with Thrunet, and (ii) if the reorganization procedures
      for Thrunet has been completed, disclose to the public or a third party
      under its responsibility the trade secrets of Thrunet.

ARTICLE 19 (NO ASSIGNMENT)

The rights and obligations of Hanaro Telecom under this Agreement shall not be
assigned to a third party without permission of the Reorganization Court and
Thrunet.

ARTICLE 20 (OTHER PROVISIONS)

(1)   Thrunet and Hanaro Telecom shall cooperate fully in good faith for the
      performance of this Agreement and the management normalization of Thrunet.

(2)   The reference to Thrunet in this Agreement shall be the reference to the
      receiver of Thrunet or Thrunet itself, as the context requires.

(3)   Matters not specified herein shall be in accordance with the Corporate
      Reorganization Act, Corporate Reorganization Proceedings Working Rule No.
      5 of the Bankruptcy Department of the Seoul Central District Court as
      amended on October 9, 2001 (the "Working Rule"), and general trade
      practices regarding M&A.

(4)   Terms of this Agreement may be amended by agreement between Thrunet and
      Hanaro Telecom, subject to the approval of the Reorganization Court with
      respect to such amendment.

(5)   The effectiveness and interpretation of this Agreement shall be governed
      by the laws of the Republic of Korea, and any dispute arising in
      connection with this Agreement shall be under the jurisdiction of the
      Seoul Central District Court with respect to the first-instance trial.

(6)   If the Reorganization Court presents any opinion with respect to the
      execution of this Agreement or in the process of the deliberation,
      resolution, etc. of the Amended Reorganization Plan, each of Thrunet and
      Hanaro Telecom shall accommodate such opinion to the fullest extent as
      long as its rights and/or obligations are not substantially changed
      thereby.

(7)   If Thrunet intends to do any act deviating from its customary business
      such as paying reorganization creditors owed by Thrunet or executing
      (including executing an amendment agreement) or terminating any material
      agreement from the date of this Agreement until the approval of the
      Amended Reorganization Plan, Thrunet shall consult with Hanaro Telecom in
      advance; provided that the term "material agreement" shall include,
      without limitation, the general terms and conditions for the subscribers
      of Thrunet, any agreement executed with respect to the solicitation and

                                       12
<PAGE>

      charging of subscribers, any entrustment agreement executed with respect
      to the provision of internet services to subscribers, and any agreement
      executed with respect to the use of various communication lines in
      connection with the provision of internet services to subscribers.

(8)   This Agreement shall prevail over any prior oral or written agreements
      (including Bidding Documents of Hanaro Telecom and the MOU) exchanged
      between the parties in connection with the acquisition of Thrunet by
      Hanaro Telecom.

                                       13
<PAGE>

In Witness Whereof, Thrunet and Hanaro Telecom have duly executed this Agreement
by signing or affixing their seals on this Agreement in duplicate and each party
shall keep one copy.

                                February 4, 2005

Thrunet:            Korea Thrunet Co., Ltd.
                    1338-5, Seocho-dong, Seocho-ku, Seoul
                    Receiver: Seok Won Park

Proposed Acquirer:  Hanaro Telecom Inc.
                    43, Taepyungro 2-ga, Chung-gu, Seoul
                    Representative Director: Chang-Bun Yoon

Attachments:        Pledge Agreement
                    Escrow Agreement

                                       14[FTI PALLADIUM PARTNERS COMPANY LETTERHEAD]      FTI Palladium Partners
                                                 3 Times Square
                                                 11th Floor
                                                 New York, NY 10036
                                                 212.247.1010 telephone
                                                 212.841.9350 facsimile
                                                 www.ftpallaidumpartners.com

July 8, 2005

Royce G. Yudkoff
Robert P. MacInnis
Directors
Muzak Holdings LLC
3318 Lakemont Blvd.
Fort Mill, SC. 29708

Dear Mr. Yudkoff and MacInnis:

1.       Introduction

         This letter confirms the engagement of FTI Palladium Partners, a
         division of FTI Consulting, Inc. and its wholly owned subsidiaries
         (collectively referred as "FTI") by Muzak Holdings LLC ("you," "your"
         or "Muzak" or the "Company") to provide certain employees to the
         Company to assist it with the services described below (the
         "Engagement"). This letter of engagement and the related supporting
         schedules constitute the engagement contract (the "Engagement
         Contract") pursuant to which the Services will be provided.

2.       Scope of Services

         FTI will provide the following individuals to work with you and your
         team in connection with the services (the "Services") outlined below:

         o     Greg Rayburn, to serve as a Chief Executive Officer (the "CEO")
               of the Company, reporting directly to the Board of Directors; to
               the extent determined by the Board of Directors from time to
               time, Greg Rayburn will be granted the right to attend and
               participate (but not vote) in the meetings of the Board of
               Directors of the Company as an observer (such role referred to as
               "Board Observer"); Greg Rayburn will devote 90% of his business
               time and attention to his duties as the CEO of the Company;

<PAGE>

         o     Bill Nolan, who will report directly to Greg Rayburn; Bill Nolan
               will assist Greg Rayburn and will be responsible for the
               facilitation and implementation of the CEO's directives; Bill
               Nolan will devote such of his business time and attention to his
               duties assisting the CEO as may be required to assist Greg
               Rayburn in performing services under this agreement; and.

          o    Other temporary employees (the "Temporary Employees") whom you
               may approve from time to time to support Greg Rayburn in his role
               as CEO as follows:

          1.   Work with management to further identify and implement both
               short-term and long-term profit improvement, liquidity generating
               and debt reduction initiatives in an effort to improve the value
               of the shareholders' interest;

          2.   Perform the duties of CEO and assist in the recruiting and
               retention of a permanent replacement for that position; and 3.
               Provide such other similar services as may be requested by the
               Board of Directors.

         We will keep you informed as to our staffing and will not add
         additional Temporary Employees to the assignment without first
         obtaining your consent that such additional resources are required and
         do not duplicate the activities of other employees or professionals.
         Moreover, we will attempt to utilize Company personnel to fulfill such
         roles and will take such steps as may be necessary to avoid duplication
         with the Company's other professionals. Furthermore, we will obtain
         your consent as to the areas of responsibility being filled by all
         Temporary Employees and will adjust the staffing level upwards or
         downwards as you direct. We agree that we will not replace Greg Rayburn
         as the individual performing services as the CEO under this engagement
         without your prior written consent.

     The Services of the Temporary Employees may be performed by FTI or by any
     subsidiary of FTI, as FTI shall determine. FTI may also provide non-officer
     Services through agents or independent contractors. References herein to
     FTI and its employees shall be deemed to apply also, unless the context
     shall otherwise indicate, to employees of each such subsidiary and to any
     such agents or independent contractors and their employees. Prior to
     providing services hereunder, each Temporary Employee, FTI subsidiary,
     agent, independent contractor and employee thereof shall execute a
     confidentiality agreement similar to the Confidentiality Agreement (as
     defined in Section 4).

3. No Assurance on Financial Data

<PAGE>

     Because of the time and scope limitations implicit in this Engagement, the
     depth of our analyses and verification of the data is significantly
     limited. We understand that our Temporary Employees are not being requested
     to perform an audit or to apply generally accepted auditing standards or
     procedures.

4.   Privileged and Confidential Information and Work Product

     The Company acknowledges that all advice (written or oral) given by the
     Temporary Employees to the Company in connection with the Engagement is
     intended solely for the benefit and use of the Company (limited to the
     Board of Directors and management) and we understand that the Company has
     agreed to treat any advice received from us, whether orally or in writing,
     confidential and, except as provided in this Engagement Contract, will not
     publish, distribute or disclose in any manner any advice developed by or
     received from us without our prior written approval (except to the
     Company's respective officers, directors, employees, attorneys, advisors,
     owners, lenders, or prospective lenders and persons who have a need to know
     such information in order to perform services under this Engagement
     Contract). Such approval shall not be unreasonably withheld. Our approval
     is not needed if (a) the advice sought is required to be disclosed by law
     or by an order binding on the Company or us, issued by a court having
     competent jurisdiction over the Company or us, as applicable (unless such
     order specifies that the advice to be disclosed is to be placed under seal)
     provided however that the Company shall provide FTI with prompt written
     notice of such requirement, (b) such information is otherwise publicly
     available, (c) the disclosure is of information in the possession of the
     Company prior to this Engagement or is independently developed by the
     Company, or (d) the disclosure is of information acquired from a third
     party who, to the Company's knowledge owes no obligation of confidence with
     respect to such information.

     We agree that all non-public, confidential or proprietary information
     ("Information") that is received by us from the Company or the Company's
     accountants or outside counsel in connection with this engagement will be
     subject to the separate Confidentiality Agreement, dated as
     of________________(the "Confidentiality Agreement"), between FTI and the
     Company, and that we and our personnel who perform services pursuant to
     this Engagement Letter will be bound by the non-solicitation and
     non-compete provisions of the Confidentiality Agreement.

5.   Fees

     Our agreed upon compensation for the services to be rendered pursuant to
     this letter agreement is set forth on Schedule I. We will also be
     reimbursed for customary and reasonable out-of-pocket expenses including,
     but not limited to, travel, lodging, costs of reproduction, reasonable
     out-of-pocket counsel fees and other direct expenses.

<PAGE>

     We will require a retainer (the "Retainer") of $120,000, due upon the
     execution of this Engagement Contract. We will further submit to the
     Company monthly invoices (or more frequently at FTI's discretion) for
     services rendered and expenses incurred by additional temporary employees,
     which are due within 15 business days of receipt. Upon the conclusion of
     this engagement, the Retainer either will be returned to the Company upon
     payment in full of all of our outstanding invoices or, in our sole
     discretion, applied to any outstanding invoice.

     It is understood that if employees of FTI are required to testify at any
     administrative or judicial proceeding relating to this matter (whether
     during the term of this letter agreement or after termination), FTI will be
     compensated by the Company at the regular hourly rates for each such
     employee, in effect at the time, and reimbursed for reasonable
     out-of-pocket expenses (including counsel fees).

     The Company agrees to promptly notify FTI if it hires a principal or
     employee of FTI involved in this Engagement and agrees that it will pay FTI
     a cash fee, upon hiring, equal to 100% of the aggregate first year's
     annualized salary compensation, plus any guaranteed bonus, to be paid to
     FTI's former principal or employee that the Company or any of its
     subsidiaries or affiliates hires at any time up to one year subsequent to
     the date of the final invoice rendered by FTI with respect to this
     Engagement.

6.   Conflicts of Interest

     Based on the list of interested parties (the "Potentially Interested
     Parties") provided by you, we have undertaken a limited review of our
     records to determine FTI's professional relationships with the Company and
     with Bear Stearns Corporate Lending Inc as Administrative Agent and
     Collateral Agent of the Company's Credit Agreement dated April 15, 2005
     among Muzak Holdings LLC, as Parent Guarantor, Muzak LLC, as Borrower. From
     the results of such review, we are not aware of any conflicts of interest
     or relationships that would preclude us from performing the above Services
     for you.

     As you know, however, we are a large consulting firm with numerous offices
     throughout the United States. We are regularly engaged by new clients,
     which may include one or more of the Potentially Interested Parties. We
     will not accept an engagement that directly conflicts with this Engagement
     without your prior written consent.

7.   Limitation of Liability

     The Company agrees to indemnify, hold harmless and defend FTI against any
     and all losses, claims, damages, liabilities, penalties, judgments, awards,
     amounts paid in settlement, reasonable out-of-pocket costs, fees, expenses
     and disbursements including,

<PAGE>

     without limitation, the reasonable out-of-pocket costs, fees, expenses and
     disbursements, as and when incurred, of investigating, preparing or
     defending any action, suit, proceeding or investigation (whether or
     not in connection with proceedings or litigation in which FTI is a
     party), directly or indirectly caused by, relating to, based upon,
     arising out of or in connection with the engagement of FTI by the
     Company or any services rendered pursuant to such engagement; provided
     that the Company will not be responsible for payment of
     indemnification amounts hereunder (and any indemnified person shall
     reimburse the Company for indemnification amounts already paid) that
     are determined by a final judgment of a court of competent
     jurisdiction to have resulted from any indemnified person's bad faith,
     self dealing, gross negligence or willful misconduct. These
     indemnification provisions extend to the officers, directors,
     principals, members, managers, stockholders, employees,
     representatives, agents and counsel of FTI and shall survive the
     termination or expiration of the engagement. The contract rights to
     indemnification conferred in this paragraph shall not be exclusive of
     any other right that any indemnified person may have or hereafter
     acquire under any statute, agreement, order of a bankruptcy court or
     pursuant to any directors and officers liability insurance policy
     (including any such policy identified in Schedule I). The Company
     shall also reimburse any indemnified person for all reasonable
     out-of-pocket expenses incurred in connection with enforcing such
     indemnified person's rights under this letter agreement.

     In addition to the above indemnification, FTI personnel serving as
     employees of the Company wi11 be entitled to the benefit of the most
     favorable indemnities provided by the Company to its officers and
     directors, whether under the Company's by-laws, certificate of
     incorporation, by contract or otherwise.

     The Company agrees that it will specifically include and cover Greg
     Rayburn (and any other employee of FTI who, at the request of the
     Board of Directors of the Company, FTI agrees will serve as an
     employee or officer of the Company) under the Company's policies for
     directors' and officers' insurance. The Company agrees to also
     maintain insurance coverage for Mr. Rayburn for a period of not less
     than two (2) years following the date of termination of such
     employee's services hereunder. In the event that the Company is unable
     to include FTI employees serving as employees or officers of the
     Company under the Company's policies, it is agreed that FTI will
     attempt to purchase a separate directors' and officers' policy
     providing coverage similar to the coverage provided to the Company's
     other directors and officers that will cover FTI's employees serving
     as employees or officers of the Company only and that the cost of the
     same shall be invoiced to the Company as an out-of-pocket expense. If
     FTI is unable to purchase such coverage, then it shall have the right
     to terminate this letter agreement upon notice to the Company. The
     provisions of this section 7 are in the nature of contractual
     obligations and no change in applicable law or the Company's charter,
     bylaws or other organizational documents or policies shall affect any
     of Mr. Rayburn's rights hereunder.

<PAGE>

     The obligations of the parties as reflected herein shall survive the
     termination of the Engagement.

     The parties intend that an independent contractor relationship will be
     created by this letter agreement. As an independent contractor, FTI will
     have complete and exclusive charge of the management and operation of its
     business, including hiring and paying the wages and other compensation of
     all its employees and agents, and paying all bills, expenses and other
     charges incurred or payable with respect to the operation of its business.
     None of FTI's employees serving as a Temporary Employee, including Greg
     Rayburn in his capacity as CEO of the Company and Bill Nolan, will be
     entitled to receive from the Company any salary, bonus, compensation,
     vacation pay, sick leave, retirement, pension or social security benefits,
     workers compensation, disability, unemployment insurance benefits or any
     other Company employee benefits. FTI will be responsible for all
     employment, withholding, income and other taxes incurred in connection with
     the operation and conduct of its business (including those related to Greg
     Rayburn, Bill Nolan and the Temporary Employees).

8.   Waiver of Jury Trial/Dispute Resolution

     The Company agrees that neither it nor any of its assignees or successors
     shall (a) seek a jury trial in any lawsuit, proceeding, counterclaim or any
     other action based upon or arising out of or in connection with the
     engagement of FTI by the Company or any services rendered pursuant to such
     engagement or (b) seek to consolidate any such action with any other action
     in which a jury trial cannot be or has not been waived. The provisions of
     this paragraph have been fully discussed by the Company and FTI and shall
     be subject to no exceptions.

9.   Term of Engagement

     This letter agreement shall be effective as of the date hereof and shall
     continue in effect until termination or completion of our engagement
     hereunder. You may terminate this letter agreement and our engagement at
     any time upon the giving of written notice to us. We may terminate this
     letter agreement and our engagement at any time upon the giving of at least
     ninety (90) days prior written notice to you. Either you or we may
     terminate this letter agreement and our engagement immediately upon a
     material breach of this Agreement by the other party by the giving of
     written notice to the breaching party. Termination shall not affect our
     right to receive payment for services performed, reimbursement for
     reasonable out-of-pocket expenses properly incurred (in accordance with the
     terms of this letter agreement) or the' Company's obligations under section
     7 herein or our obligations under the Confidentiality Agreement. In the
     event of termination prior to the end of a calendar month, you agree to pay
     us a pro rata portion

<PAGE>

     of any set monthly compensation based upon the number of days elapsed in
     the month up to the effective time of termination.

     If any provision of this Engagement Contract shall be invalid or
     unenforceable, in whole or in part, then such provision shall be deemed to
     be modified or restricted to the extent and in the manner necessary to
     render the same valid and enforceable, or shall be deemed excluded from
     this letter agreement, as the case may require, and this letter agreement
     shall be construed and enforced to the maximum extent permitted by law as
     if such provision had been originally incorporated herein as so modified or
     as if such provision had not been originally incorporated herein, as
     applicable.

     This Engagement Contract, the Confidentiality Agreement and each related
     confidentiality agreement that any Temporary Employee may execute
     constitute the entire understanding between the parties with respect to the
     subject matter and supercede all prior written and oral proposals,
     understandings, agreements and/or representations, all of which are merged
     herein. Any amendment or modification of this letter agreement shall be in
     writing and executed by each of the parties hereto.

10.  Governing Law and Jurisdiction

     This Engagement Agreement shall be governed by and construed and enforced
     in accordance with the laws of the State of New York. The Courts of New
     York shall have exclusive jurisdiction in relation of any claim, dispute or
     difference concerning the Engagement Agreement and any matter arising from
     it. The parties hereto irrevocably waive any right they may have to object
     to any action being brought in these Courts, to claim that the action has
     been brought to an inconvenient forum or to claim that those Courts do not
     have jurisdiction.

11.  Notice

     All notices required or permitted to be delivered under this Engagement
     Contract shall be sent, if to us, to the address set forth above, to the
     attention of Dianne R. Sagner, and if to you, to the address for you set
     forth above, to the attention of your General Counsel, or to such other
     name or address as may be given in writing to the other party. All notices
     under the Engagement Contract shall be sufficient if delivered by facsimile
     or overnight mail. Any notice shall be deemed to be given only upon actual
     receipt.

12.  Continuation of Terms

     The terms of the Engagement Contract that by their context are intended to
     be performed after termination or expiration of this Engagement Contract,
     including but not limited to, section 4 and section 7, are intended to
     survive such termination or expiration and shall continue to bind all
     parties.

<PAGE>

13.  Citation of Engagement

     Notwithstanding anything to the contrary contained herein, after the
     engagement of FTI becomes a matter of public record, we shall have the
     right to disclose our retention by the Company or the successful completion
     of its services hereunder in marketing or promotional materials placed by
     FTI, at its own expense, in financial and other newspapers or otherwise,
     with the Company's prior written approval, which the Company may not
     unreasonably withhold.

                 ----------------------------------------------

We look forward to working with you on this matter. Please sign and return a
copy of this letter signifying your agreement with the terms and provisions
herein. If you have any questions, please contact Greg Rayburn at 212-499-3622.

Very truly yours,

FTI Consulting, Inc.

By: /s/ Greg Rayburn
    -----------------
        Greg Rayburn
        Senior Managing Director

Date: 7/8/05
     ----------------

Agreed by:

Muzak Holdings LLC

By: /s/ Robert P. MacInnis
    ----------------------
        Robert P. MacInnis
        Director

Date: 7/8/05
     --------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]