Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 10.4    
    

 
 

  FORM OF    
    
    TAX SHARING AGREEMENT    
    
    BETWEEN    
    
    LIBERTY MEDIA CORPORATION    
    
    AND    
    
    LIBERTY ENTERTAINMENT, INC.    

 

 
 

  TABLE OF CONTENTS    
    

							
	 
	 	 
	 	Page 
	 	  SECTION 1.    Definition of Terms
	 	 1
	 	  SECTION 2.    Allocation of Taxes and Tax-Related Losses
	 	

7
	 	 	 2.1
	 	 Allocation of Taxes
	 	

7
	 	 	 2.2
	 	 Special Rules
	 	8
	 	 	 2.3
	 	 Tax Payments
	 	8
	 	  SECTION 3.    Preparation and Filing of Tax Returns
	 	

9
	 	 	 3.1
	 	 Combined Returns
	 	9
	 	 	 3.2
	 	 Separate Returns
	 	9
	 	 	 3.3
	 	 Provision of Information
	 	9
	 	 	 3.4
	 	 Special Rules Relating to the Preparation of Tax Returns
	 	9
	 	 	 3.5
	 	 Refunds, Credits or Offsets
	 	11
	 	 	 3.6
	 	 Carrybacks
	 	1
	 	 	 3.7
	 	 Amended Returns
	 	12
	 	  SECTION 4.    Tax Payments
	 	

12
	 	 	 4.1
	 	 Payment of Taxes to Tax Authority
	 	

12
	 	 	 4.2
	 	 Indemnification Payments
	 	12
	 	 	 4.3
	 	 Interest on Late Payments
	 	12
	 	 	 4.4
	 	 Tax Consequences of Payments
	 	12
	 	  SECTION 5.    Assistance and Cooperation
	 	

13
	 	 	 5.1
	 	 Cooperation
	 	

13
	 	 	 5.2
	 	 Supplemental Rulings
	 	13
	 	  SECTION 6.    Tax Records
	 	

14
	 	 	 6.1
	 	 Retention of Tax Records
	 	

14
	 	 	 6.2
	 	 Access to Tax Records
	 	14
	 	 	 6.3
	 	 Confidentiality
	 	15
	 	 	 6.4
	 	 Delivery of Tax Records
	 	15
	 	  SECTION 7.    Restriction on Certain Actions of LMC and LEI; Indemnity
	 	

15
	 	 	 7.1
	 	 Restrictive Covenants
	 	

15
	 	 	 7.2
	 	 LMC Indemnity
	 	16
	 	 	 7.3
	 	 LEI Indemnity
	 	16
	 	 	 7.4
	 	 Scope
	 	16
	 	 	 7.5
	 	 Notices of Tax Contests (Other than Third Party Claims)
	 	16
	 	 	 7.6
	 	 Control of Tax Contests (Other than Third Party Claims)
	 	17
	 	 	 7.7
	 	 Cooperation
	 	17
	 	 	 7.8
	 	 Third Party Claims
	 	17
	 	 	 7.9
	 	 Other Claims
	 	18
	 	  SECTION 8.    General Provisions
	 	

18
	 	 	 8.1
	 	 Termination
	 	

18
	 	 	 8.2
	 	 Predecessors or Successors
	 	18
	 	 	 8.3
	 	 Expenses
	 	18
	 	 	 8.4
	 	 Governing Law
	 	18

i

 

							
	 
	 	 
	 	Page 
	 	 	 8.5
	 	 Waiver of Jury Trial
	 	19
	 	 	 8.6
	 	 Notices
	 	19
	 	 	 8.7
	 	 Counterparts
	 	19
	 	 	 8.8
	 	 Binding Effect; Assignment
	 	19
	 	 	 8.9
	 	 Severability
	 	20
	 	 	 8.10
	 	 Amendments; Waivers
	 	20
	 	 	 8.11
	 	 Effective Date
	 	20
	 	 	 8.12
	 	 Change in Law
	 	20
	 	 	 8.13
	 	 Authorization, Etc.
	 	20
	 	 	 8.14
	 	 No Third Party Beneficiaries
	 	21
	 	 	 8.15
	 	 Entire Agreement
	 	21
	 	 	 8.16
	 	 No Strict Construction; Interpretation
	 	21
	 	 	 8.17
	 	 Headings
	 	21
	 	 	 8.18
	 	 Assignment of Rights under the Tax Matters Agreement
	 	21

ii

 

 
 

  TAX SHARING AGREEMENT    
    

        THIS TAX SHARING AGREEMENT (this "Agreement") is entered into as of
[                        ], between Liberty Media
Corporation, a Delaware corporation ("LMC"), and Liberty Entertainment, Inc., a Delaware corporation ("LEI"). Unless otherwise indicated, all "Section" references in this Agreement are to
sections of this Agreement. 

 
 

  RECITALS    
    

        WHEREAS, LEI is a wholly owned subsidiary of LMC; and 

        WHEREAS,
the Board of Directors of LMC has determined that it would be appropriate and desirable for LMC to separate the LEI Group from the LMC Group; and 

        WHEREAS,
the Board of Directors of LEI has also approved such transaction; and 

        WHEREAS,
following the Contribution, LMC intends to distribute its entire interest in the stock of LEI to holders of Liberty Entertainment Common Stock (the "Distribution"), in what is
intended to
qualify as a tax-free transaction described under Sections 368(a), 355, and 361 of the Code; and 

        WHEREAS,
the parties set forth in the Reorganization Agreement the principal arrangements between them regarding the separation of the LEI Group from the LMC Group; and 

        WHEREAS,
the parties desire to provide for and agree upon the allocation between the parties of liabilities for Taxes arising prior to, as a result of, and subsequent to the
Distribution, and to provide for and agree upon other matters relating to Taxes. 

        NOW,
THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, and intending to be legally bound hereby, LMC and LEI hereby agree as follows: 

        SECTION 1.    Definition of Terms.    For purposes of this Agreement (including the recitals hereof), the
following terms have the following meanings: 

        "Affiliate"
means with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control
with, such first Person. For the avoidance of doubt, (v) neither DTV nor any of its Subsidiaries will be treated as Affiliates of any party hereto or any member of such party's Group during any
period in which (1) such party beneficially owns less than 50% of the outstanding common stock of DTV or (2) if such party beneficially owns 50% or more of the outstanding common stock
of DTV, such party's right to vote such shares of common stock of DTV in its sole discretion is restricted or limited pursuant to any agreement or arrangement to which DTV or any of its Subsidiaries
is a party, including the Letter Agreement, dated as of May 6, 2008, by and among DTV, LMC, Greenlady Corp. and Greenlady II, LLC; (w) neither IAC/InteractiveCorp nor
Expedia, Inc., nor any of their respective Subsidiaries, will be treated as Affiliates of any member of the LMC Group or the LEI Group; (x) Game Show Network, LLC and its
Subsidiaries will be treated as Affiliates of LEI; (y) no member of the LEI Group will be treated as an Affiliate of any member of the LMC Group; and (z) no member of the LMC Group will
be treated as an Affiliate of any member of the LEI Group. 

        "Agreement"
has the meaning set forth in the preamble hereof. 

        "business
day" means any day other than a Saturday, Sunday or a day on which banking institutions in New York City, New York or London, England are authorized or required by law or
executive order to close. 

        "Closing
of the Books Method" means the apportionment of items between portions of a Taxable period based on a closing of the books and records as of the end of the day on the
Distribution Date (as if the Distribution Date were the end of the Taxable period), provided that any items not 

1

 

susceptible
to such apportionment shall be apportioned pro rata on the basis of elapsed days during the relevant portion of the Taxable period. 

        "Code"
means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor law. 

        "Combined
Return" means a consolidated, combined or unitary Tax Return that includes, by election or otherwise, one or more members of the LMC Group and one or more members of the LEI
Group. 

        "Company"
means LMC or LEI, as the context requires. 

        "Compensatory
Equity Interests" means options, stock appreciation rights, restricted stock, stock units or other rights with respect to LMC stock or LEI Stock that are granted on or
prior to the Distribution Date by LMC, LEI or any of their respective Subsidiaries in connection with employee or director compensation or other employee benefits. 

        "Contribution"
means the contribution by Liberty Media LLC, a Delaware limited liability company, to LEI of its entire interest in each of Liberty Genius, Inc., Liberty
Freedom, LLC, Greenlady Corp. and LDIG, LLC, and the full amount of any intercompany receivable due to LMC from LDIG Gamenet, LLC. 

        "Control"
means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether
through ownership of securities or partnership, membership, limited liability company, or other ownership interests, by contract or otherwise and the terms "Controlling" and "Controlled" have meanings
correlative to the foregoing. 

        "Disclosing
Party" has the meaning set forth in Section 6.3. 

        "Distribution"
has the meaning set forth in the recitals hereof. 

        "Distribution
Date" means the date on which the Distribution occurs. 

        "DTV"
means The DIRECTV Group, Inc., a Delaware corporation. 

        "Due
Date" has the meaning set forth in Section 4.3. 

        "Effective
Time" means the time at which the Distribution is effected on the Distribution Date. 

        "Employing
Party" has the meaning set forth in Section 3.4(d). 

        "Final
Determination" means a determination within the meaning of Section 1313 of the Code or any similar provision of state or local Tax Law. 

        "Group"
means the LMC Group or the LEI Group, as the context requires. 

        "Income
Tax" means all Taxes (i) based upon, measured by, or calculated with respect to, net income, net profits or deemed net profits (including any capital gains Tax, minimum
Tax based upon, measured by, or calculated with respect to, net income, net profits or deemed net profits, any Tax on items of Tax preference and depreciation recapture or clawback, but not including
sales, use, real or personal property, gross or net receipts, gross profits, transfer and similar Taxes), (ii) imposed by a foreign country which qualify under Section 903 of the Code or
(iii) based upon, measured by, or calculated with respect to multiple bases (including, but not limited to, corporate franchise and occupation Taxes) if such Taxes may be based upon, measured
by, or calculated with respect to one or more bases described in clause (i) above. 

        "Interest
Rate" means the Rate determined below, as adjusted as of each Interest Rate Determination Date. The "Rate," means, with respect to each period between two consecutive Interest 

2

 

Rate
Determination Dates, a rate determined at approximately 11:00 a.m., London time, two London business days before the first Interest Rate Determination Date equal to the greater of:
(x) the sum of (i) the six month dollar LIBOR rate as displayed on page "LR" of Bloomberg (or such other appropriate page as may replace such page), plus (ii) 2%, and
(y) the interest rate that would be
applicable at such time to a "large corporate underpayment" (within the meaning of Section 6621(c) of the Code) under Sections 6601 and 6621 of the Code. Interest will be calculated on
the basis of a year of 365 days and the actual number of days for which due. 

        "Interest
Rate Determination Date" means the Due Date and each March 31, June 30, September 30 and December 31 thereafter. 

        "IRS"
means the Internal Revenue Service. 

        "IRS
Submissions" means the Ruling Request, each supplemental submission and any other correspondence or supplemental materials submitted to the IRS in connection with obtaining the
Ruling. 

        "issuing
corporation" has the meaning set forth in Section 3.4(d)(ii). 

        "LDIG
Gamenet Restructuring" means the transactions contemplated by Step [            ] of the Restructuring Plan attached as Schedule 1.1 to the
Reorganization Agreement. 

        "LEI"
has the meaning set forth in the preamble hereof. 

        "LEI
Asset Successor" has the meaning set forth in Section 8.8. 

        "LEI
Group" means (x) with respect to any Tax Year (or portion thereof) ending at or before the Effective Time, LEI and each of its Subsidiaries at the Effective Time; and
(y) with respect to any Tax Year (or portion thereof) beginning after the Effective Time, LEI and each Subsidiary of LEI (but only while such Subsidiary is a Subsidiary of LEI). 

        "LEI
Indemnitees" has the meaning set forth in Section 7.2. 

        "LEI
Stock" means the Series A LEI common stock, par value $.01 per share, the Series B LEI common stock, par value $.01 per share, and if and when issued, the
Series C LEI common stock, par value $.01 per share, and any series or class of stock into which the Series A, Series B, or Series C LEI common stock is redesignated,
reclassified, converted or exchanged following the Effective Time. 

        "LEI
Successor" has the meaning set forth in Section 8.8. 

        "LEI
Successor Entity" has the meaning set forth in Section 8.8. 

        "LEI
Successor Parent" has the meaning set forth in Section 8.8. 

        "LEI
Transaction" means any asset transfer, business combination or other transaction described in Section 8.8 pursuant to which any Person becomes an LEI Successor. 

        "Liberty
Entertainment Common Stock" means the Series A Liberty Entertainment common stock, par value $.01 per share, and the Series B Liberty Entertainment common stock,
par value $.01 per share. 

        "LMC"
has the meaning set forth in the preamble hereof. 

        "LMC
Group" means LMC and each Subsidiary of LMC (but only while such Subsidiary is a Subsidiary of LMC) other than any Person that is a member of the LEI Group (but only during the
period such Person is treated as a member of the LEI Group). 

        "LMC
Indemnitees" has the meaning set forth in Section 7.3. 

3

 

        "LMC
Section 355(e) Event" means the application of Section 355(e) of the Code to the Distribution as a result of the Distribution being "part of a plan (or series of
related transactions) pursuant to which 1 or more persons acquire directly or indirectly stock representing a 50-percent or greater interest" in LMC (within the meaning of
Section 355(e) of the Code). 

        "Losses"
means any and all damages, losses, deficiencies, liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including
the fees and expenses of any
and all actions and demands, assessments, judgments, settlements and compromises relating thereto and the costs and expenses of attorneys', accountants', consultants' and other professionals' fees and
expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder); provided, however, that "Losses" shall exclude any
special or punitive damages; provided, further, that the foregoing proviso will not be interpreted to limit indemnification for Losses incurred as a
result of the assertion by a claimant (other than the parties hereto and their successors and assigns) in a third-party claim for damages of the foregoing type. 

        "News"
means News Corporation, a Delaware corporation. 

        "News
Distributions" means "Distribution 1," "Distribution 2," "Distribution 3," "Distribution 4," and "Distribution 5," in each case as defined in the News Rulings. 

        "News
IRS Submissions" means the News Ruling Requests, each supplemental submission and any other correspondence or supplemental materials submitted to the IRS in connection with
obtaining the News Rulings. 

        "News
Tax-Related Losses" mean any Losses resulting from the failure of any of the News Transactions to qualify (i) as a tax-free transaction described
under Sections 368(a), 355 and/or 361 of the Code, as applicable, or (ii) in whole for nonrecognition of income, gain and loss for U.S. federal income tax purposes to News, each of its
Subsidiaries immediately prior to the News Transactions, LMC and each of its Subsidiaries on February 27, 2008. 

        "News
Opinions" means the tax opinion delivered by Baker Botts L.L.P. to LMC, and the tax opinion delivered by Skadden, Arps, Slate, Meagher & Flom LLP to News, in
connection with the News Transactions. 

        "News
Ruling Requests" means the requests for rulings, dated February 26, 2007 and March 20, 2007, filed by News and LMC with the IRS in connection with the News
Transactions. 

        "News
Rulings" means PLR 200812003 that was issued to News on September 25, 2007 and PLR 200812004 that was issued to LMC on September 25, 2007. 

        "News
Tax Materials" means (i) the News Rulings, (ii) each News IRS Submission, (iii) the representation letters delivered by LMC to Baker Botts L.L.P. and
Skadden, Arps, Slate, Meagher & Flom LLP in connection with the delivery of the News Opinions, and (iv) any other materials delivered by LMC in connection with the rendering by
Baker Botts L.L.P. and Skadden, Arps, Slate, Meagher & Flom LLP of the News Opinions or the issuance by the IRS of the News Rulings. 

        "News
Transactions" means "Contribution 1," "Contribution 2," and "Contribution 3," in each case as defined in the News Rulings, and each of the News Distributions. 

        "News
Transaction Taxes" means any Taxes resulting from the News Transactions. 

        "Non-Preparer"
means the Company that is not responsible for the preparation and filing of the applicable Tax Return pursuant to Sections 3.1 or 3.2. 

        "Payment
Date" means (x) with respect to any U.S. federal income tax return, the due date for any required installment of estimated taxes determined under Code
Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code Section 6072, 

4

 

and
the date the return is filed, and (y) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 

        "Person"
means any individual, corporation, company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind. 

        "Post-Distribution
Period" means any Tax Year or other Taxable period beginning after the Distribution Date and, in the case of any Straddle Period, that part of the Tax Year
or other taxable period that begins at the beginning of the day after the Distribution Date. 

        "Pre-Distribution
Period" means any Tax Year or other taxable period that ends on or before the Distribution Date and, in the case of any Straddle Period, that part of the
Tax Year or other taxable period through the end of the day on the Distribution Date. 

        "Preparer"
means the Company that is responsible for the preparation and filing of the applicable Tax Return pursuant to Sections 3.1 or 3.2. 

        "Receiving
Party" has the meaning set forth in Section 6.3. 

        "Reorganization
Agreement" means the Reorganization Agreement between LMC and LEI dated                        , 2009. 

        "Requesting
Party" has the meaning set forth in Section 5.2(a). 

        "Restructuring"
has the meaning assigned to such term in the Reorganization Agreement. 

        "Ruling"
means [PLR            ] that was issued to LMC on [            ]. 

        "Ruling
Request" means the request for rulings, dated January 16, 2009, filed by LMC with the IRS in connection with the Distribution, as the same shall have been amended or
supplemented. 

        "Separate
Return" means (a) in the case of any Tax Return required to be filed by any member of the LMC Group (including any consolidated, combined or unitary Tax Return), any
such Tax Return that does not include any member of the LEI Group, and (b) in the case of any Tax Return required to be filed by any member of the LEI Group (including any consolidated,
combined or unitary Tax Return), any such Tax Return that does not include any member of the LMC Group. 

        "Straddle
Period" means any Taxable period commencing on or prior to, and ending after, the Distribution Date. 

        "Subsidiary"
when used with respect to any Person, means (i)(A) a corporation a majority in voting power of whose share capital or capital stock with voting power, under ordinary
circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such
Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a partnership or limited liability company in which such Person or a Subsidiary of such Person is,
at the date of determination, (1) in the case of a partnership, a general partner of such partnership with the power affirmatively to direct the policies and management of such partnership or
(2) in the case of a limited liability company, the managing member or, in the absence of a managing member, a member with the power affirmatively to direct the policies and management of such
limited liability company, or (C) any other Person (other than a corporation) in which such Person, one or more Subsidiaries of such Person or such Person and one or more Subsidiaries of such
Person, directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or direct the election of a majority of the members of the governing body of such
Person, whether or not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of such a governing body, at least a majority ownership interest or
(ii) any other Person of which an aggregate of 50% or more of the equity interests are, at the time, directly or indirectly, owned by such Person and/or one or more Subsidiaries 

5

 

of
such Person. For purposes of the foregoing, (x) neither DTV nor any of its Subsidiaries will be treated as Subsidiaries of any party hereto during any period in which (1) such party
beneficially owns less than 50% of the outstanding common stock of DTV or (2) if such party beneficially owns 50% or more of the outstanding common stock of DTV, such party's right to vote such
shares of common stock of DTV in its sole discretion is restricted or limited pursuant to any agreement or arrangement to which DTV or any of its Subsidiaries is a party, including the Letter
Agreement, dated as of May 6, 2008, by and among DTV, LMC, Greenlady Corp. and Greenlady II, LLC; and (y) neither IAC/InteractiveCorp nor Expedia, Inc., nor any of their
respective Subsidiaries, will be treated as Subsidiaries of LMC. 

        "Supplemental
IRS Submissions" means any request for a Supplemental Ruling, each supplemental submission and any other correspondence or supplemental materials submitted to the IRS in
connection with obtaining any Supplemental Ruling. 

        "Supplemental
Ruling" means any private letter ruling obtained by LMC or LEI from the IRS which supplements or otherwise modifies the Ruling. 

        "Tax"
or "Taxes" means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers compensation, employment, unemployment,
disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other similar tax
(including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any Tax Authority and any interest, penalties, additions to tax, or additional amounts in respect of
the foregoing. 

        "Tax
Authority" means, with respect to any Tax, the governmental entity or political subdivision, agency, commission or authority thereof that imposes such Tax, and the agency,
commission or authority (if any) charged with the assessment, determination or collection of such Tax for such entity or subdivision. 

        "Tax
Contest" means an audit, review, examination, or any other administrative or judicial proceeding with the purpose, potential or effect of redetermining Taxes of any member of either
Group (including any administrative or judicial review of any claim for refund). 

        "Tax
Counsel" means Skadden, Arps, Slate, Meagher & Flom LLP. 

        "Tax
Item" means, with respect to any Tax, any item of income, gain, loss, deduction, credit or other attribute that may have the effect of increasing or decreasing any Tax. 

        "Tax
Law" means the law of any governmental entity or political subdivision thereof, and any controlling judicial or administrative interpretations of such law, relating to any Tax. 

        "Tax
Materials" means (i) the Ruling and each Supplemental Ruling issued by the IRS in connection with the Distribution, (ii) each IRS Submission and Supplemental IRS
Submission, (iii) the representation letters delivered to Tax Counsel in connection with the delivery of the Tax Opinions, and (iv) any other materials delivered or deliverable by LMC,
LEI and others in connection with the rendering by Tax Counsel of the Tax Opinions or the issuance by the IRS of any Ruling or Supplemental Ruling. 

        "Tax
Matters Agreement" means the Tax Matters Agreement entered into as of December 22, 2006, by and among News and LMC. 

        "Tax
Opinions" means the opinions to be delivered by Tax Counsel to LMC and LEI in connection with the Distribution to the effect that (i) the Contribution and the Distribution
will qualify as a tax-free transaction described under Sections 368(a) and 355 of the Code to LMC and the holders of Liberty Entertainment Common Stock (except, in the case of the
holders of Liberty Entertainment Common Stock, with respect to cash received in lieu of fractional shares), and (ii) the Distribution will 

6

 

not
affect the tax-free treatment under Sections 368(a) and/or 355 of the Code of, and will not cause Section 355(e) of the Code to apply to, any of the News Distributions. 

        "Tax
Records" means Tax Returns, Tax Return work papers, documentation relating to any Tax Contests, and any other books of account or records required to be maintained under applicable
Tax Laws (including but not limited to Section 6001 of the Code) or under any record retention agreement with any Tax Authority. 

        "Tax
Return" means any report of Taxes due, any claims for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or
document filed or required to be filed (by paper, electronically or otherwise) under any applicable Tax Law, including any attachments, exhibits, or other materials submitted with any of the
foregoing, and including any amendments or supplements to any of the foregoing. 

        "Tax
Year" means, with respect to any Tax, the year, or shorter period, if applicable, for which the Tax is reported as provided under applicable Tax Law. 

        "Third
Party Claim" has the meaning set forth in Section 7.8. 

        "Transaction
Taxes" means any Taxes resulting from the Restructuring and the Distribution, other than (i) Transfer Taxes, and (ii) any Taxes attributable to "deferred
intercompany transactions" or "excess loss accounts" (as those terms are defined by Treasury Regulations), except for any Taxes from "deferred intercompany transactions" or "excess loss accounts" (as
those terms are defined by Treasury Regulations) that are created as a result of the transactions comprising the Restructuring. 

        "Transaction
Tax-Related Losses" means any Losses resulting from the failure of (i) the LDIG Gamenet Restructuring to qualify as a tax-free reorganization
under Section 368(a) of the Code, (ii) the Restructuring to qualify in whole for nonrecognition of income, gain and loss for U.S. federal income tax purposes to LMC, LEI and each of
their respective Subsidiaries immediately prior to the Distribution, (iii) the Contribution and Distribution to qualify as a tax-free transaction described under
Sections 368(a), 355 and 361 of the Code, or (iv) the Contribution and Distribution to qualify in whole for nonrecognition of income, gain and loss for U.S. federal income tax purposes
to LMC, LEI, each of their respective Subsidiaries at the Effective Time, and the holders of Liberty Entertainment Common Stock that receive stock of LEI in the Distribution (except with respect to
cash received in lieu of fractional shares). 

        "Transfer
Taxes" means all U.S. federal, state, local or foreign sales, use, privilege, transfer, documentary, gains, stamp, duties, recording, and similar Taxes and fees (including any
penalties, interest or additions thereto) imposed upon any party hereto or any of its Affiliates in connection with the Restructuring or the Distribution. 

        "Treasury
Regulations" means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Year. 

        SECTION 2.    Allocation of Taxes and Tax-Related Losses    

        2.1    Allocation of Taxes.    Except as provided in Section 2.2 (Special Rules) and Section 3.4(d)
(Compensatory Equity Interests), Taxes shall be allocated as follows: 

        (a)    Combined Returns.    

        (i)    Allocation of Taxes for Combined Returns.    LMC shall be allocated: (A) all Taxes that are attributable
to members of the LMC Group and reported on, or required to be reported on, a Combined Return; and (B) all Taxes that are attributable to members of the LEI Group for the
Pre-Distribution Period and reported on, or required to be reported on, a Combined Return. LEI shall be allocated all Taxes that are attributable to members of the LEI Group 

7

 

for
the Post-Distribution Period and reported on, or required to be reported on, a Combined Return. 

        (ii)    Transactions Occurring on the Distribution Date.    Notwithstanding the foregoing provisions of this
Section 2.1(a) (but subject to the provisions of Section 2.2), Taxes attributable to any transaction or action taken by or with respect to any member of the LEI Group outside the
ordinary course of business before the Distribution on the Distribution Date shall be allocated to the Pre-Distribution Period, and Taxes attributable to any transaction or action taken by
or with respect to any member of the LEI Group outside the ordinary course of business after the Distribution on the Distribution Date shall be allocated to the Post-Distribution Period. 

        (b)    Separate Returns.    

        (i)    LEI Separate Returns.    LEI shall be allocated all Taxes that are attributable to members of the LEI Group and
reported on, or required to be reported on, a Separate Return that is required to be filed by a member of the LEI Group. 

        (ii)    LMC Separate Returns.    LMC shall be allocated all Taxes that are attributable to members of the LMC Group
and reported on, or required to be reported on, a Separate Return that is required to be filed by a member of the LMC Group. 

        (c)    Taxes Not Reported on Tax Returns.    LEI shall be allocated any Tax attributable to members of the LEI Group
that is not required to be reported on a Tax Return, and LMC shall be allocated any Tax attributable to members of the LMC Group that is not required to be reported on a Tax Return. 

        2.2    Special Rules.    

        (a)    Transaction Taxes and Transaction Tax-Related Losses.    Notwithstanding any other provision in
this Section 2: 

        (i)    LEI
shall be allocated all Transaction Taxes and Transaction Tax-Related Losses other than any Transaction Taxes and Transaction Tax-Related
Losses allocated to LMC pursuant to clause (ii) of this Section 2.2(a). 

        (ii)   LMC
will be allocated any Transaction Taxes and Transaction Tax-Related Losses that (x) result primarily from, individually or in the aggregate, any
breach by LMC of any of its covenants set forth in Section 7.1 hereof, (y) result from the Liberty Entertainment Common Stock not being treated as stock of LMC for U.S. federal income
tax purposes, or (z) result from a LMC Section 355(e) Event. 

        (b)    News Transaction Taxes and News Tax-Related Losses.    Notwithstanding any other provision in this
Section 2: 

        (i)    LMC
will be allocated all News Transaction Taxes and News Tax-Related Losses other than any News Transaction Taxes and News Tax-Related Losses
allocated to LEI pursuant to clause (ii) of this Section 2.2(b). 

        (ii)   LEI
shall be allocated any News Transaction Taxes and News Tax-Related Losses that (x) result primarily from, individually or in the aggregate, any
breach by LEI of any of its covenants set forth in Section 7.1 hereof, or (y) result from Section 355(e) of the Code applying to any of the News Transactions as a result of the
Distribution, actions taken by LEI or its Subsidiaries following the Effective Time, or any change in ownership (by vote or value) of LEI Stock following the Effective Time, except to the extent that
such News Transaction Taxes and News Tax-Related Losses result primarily from, individually or in the aggregate, any breach by LMC of any of its covenants set forth in Section 7.1
hereof. 

        (c)    Transfer Taxes.    Notwithstanding any other provision in this Section 2, all Transfer Taxes shall be
allocated 50% to LEI and 50% to LMC. 

8

 

  
        2.3    Tax Payments.    Each Company shall pay the Taxes allocated to it by this Section 2 either to the
applicable Tax Authority or to the other Company in accordance with Section 4 and the other applicable provisions of this Agreement. 

        SECTION 3.    Preparation and Filing of Tax Returns.    

        3.1    Combined Returns.    

        (a)    Preparation of Combined Returns.    LMC shall be responsible for preparing and filing (or causing to be
prepared and filed) all Combined Returns for any Tax Year. 

        3.2    Separate Returns.    

        (a)    Tax Returns to be Prepared by LMC.    LMC shall be responsible for preparing and filing (or causing to be
prepared and filed) all Separate Returns which relate to one or more members of the LMC Group for any Tax Year. 

        (b)    Tax Returns to be Prepared by LEI.    LEI shall be responsible for preparing and filing (or causing to be
prepared and filed) all Separate Returns which relate to one or more members of the LEI Group for any Tax Year. 

        3.3    Provision of Information.    

        (a)   LMC
shall provide to LEI, and LEI shall provide to LMC, any information about members of the LMC Group or the LEI Group, respectively, that the Preparer needs to
determine the amount of Taxes due on any Payment Date with respect to a Tax Return for which the Preparer is responsible pursuant to Section 3.1 or 3.2 and to properly and timely file all such
Tax Returns. 

        (b)   If
a member of the LEI Group supplies information to a member of the LMC Group, or a member of the LMC Group supplies information to a member of the LEI Group, and an
officer of the requesting member intends to sign a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then a duly authorized officer of the
member supplying such information shall certify, to the best of such officer's knowledge, the accuracy of the information so supplied. 

        3.4    Special Rules Relating to the Preparation of Tax Returns.    

        (a)    In General.    All Tax Returns that include any members of the LEI Group or LMC Group, or any of their
respective Affiliates, shall be prepared in a manner that is consistent with the Ruling Request, the Ruling, and the Tax Opinions. Except as otherwise set forth in this Agreement, all Tax Returns for
which LMC is responsible under Section 3.1 shall be prepared in accordance with elections, Tax accounting and other practices used with respect to such Tax Returns filed prior to the
Distribution Date (unless such past practices are not permissible under applicable Law), and to the extent any items are not covered by past practices (or in the event such past practices are not
permissible under applicable Tax Law), in accordance with reasonable practices selected by LMC with the consent, not to be unreasonably withheld or delayed, of LEI, unless (i) the use of such
election, accounting or other practice proposed to be used by LMC would not reasonably be expected to result in a material increase in the amount of Taxes or Losses for which LEI may be responsible
under this Agreement, (ii) otherwise required as a result of a Final Determination, or (iii) LMC indemnifies LEI and the members of the LEI Group for any additional amount for which they
may be liable as a result. For the avoidance of doubt, LMC shall not make any election to apply Treasury Regulation Section 1.1502-76(b)(2). 

        (b)    LEI Tax Returns.    With respect to any Separate Return for which LEI is responsible pursuant to
Section 3.2(b), LEI and the other members of the LEI Group must allocate Tax Items between such Separate Return for which LEI is responsible pursuant to Section 3.2(b) and any 

9

 

related
Combined Return for which LMC is responsible pursuant to Section 3.1 that are filed with respect to the same Tax Year in a manner that is consistent with the reporting of such Tax Items
on the related Combined Return for which LMC is responsible pursuant to Section 3.1. 

        (c)    Election to File Consolidated, Combined or Unitary Tax Returns.    LMC shall have the sole discretion of filing
any Tax Return on a consolidated, combined or unitary basis, if such Tax Return would include at least one member of each Group and the filing of such Tax Return is elective under the relevant Tax
Law. 

        (d)    Compensatory Equity Interests.    

        (i)    Deductions Related to Compensatory Equity Interests.    To the extent permitted by applicable Tax Law, Income
Tax deductions with respect to the issuance, exercise, vesting or settlement after the Distribution Date of any Compensatory Equity Interests held by any Person shall be claimed (A) in the case
of an active employee, solely by the Group that employs such Person at the time of such issuance, exercise, vesting, or settlement, as applicable; (B) in the case of a former employee, solely
by the Group that was the last to employ such Person; and (C) in the case of a director or former director (who is not an employee or former employee of a member of either Group),
(x) solely by the LEI Group, if (i) such Income Tax deductions arise with respect to LEI Stock (or any options, stock appreciation rights, restricted stock, stock units or other rights
with respect thereto) and (ii) such Person is or was a director of any member of the LEI Group at any time following the Distribution Date, and (y) solely by the LMC Group in all other
cases (the party whose Group is described in (A), (B), or (C), the "Employing Party"). 

        (ii)    Withholding and Reporting.    For any Tax Year (or portion thereof), the Employing Party shall
(A) satisfy, or shall cause to be satisfied, all applicable Tax reporting obligations with respect to the issuance, exercise, vesting or settlement of Compensatory Equity Interests and
(B) satisfy, or cause to be satisfied, all liabilities for Taxes imposed in connection with such issuance, exercise, vesting or settlement (including the employer portion of any employment
taxes); provided that, (x) in the event Compensatory Equity Interests are settled by the corporation that is the issuer or obligor under the
Compensatory Equity Interest (the "issuing corporation") and the issuing corporation is not a member of the same Group as the Employing Party, the issuing corporation shall promptly remit to the
Employing Party an amount of cash equal to the amount required to be withheld in respect of any withholding or other Taxes, and (y) the Employing Party shall not be liable for failure to remit
to the applicable Tax Authority any amount required to have been withheld from the recipient of the Compensatory Equity Interest in connection with such issuance, exercise, vesting or settlement,
except to the extent that the issuing corporation shall have remitted such amount to the Employing Party. LMC shall promptly notify LEI, and LEI shall promptly notify LMC, regarding the exercise of
any option or the issuance, vesting, exercise or settlement of any other Compensatory Equity Interest to the extent that, as a result of such issuance, exercise, vesting or settlement, any other party
may be entitled to a deduction or required to pay any Tax, or such information otherwise may be relevant to the preparation of any Tax Return or payment of any Tax by such other party or parties. 

        (iii)    LMC Employees.    For purposes of this Section 3.4(d), (x) if an officer or employee is on the
payroll of LMC or any member of the LMC Group for any Tax Year (or portion thereof), then such officer or employee will exclusively be considered to be an employee of LMC (or the applicable member of
the LMC Group) for such Tax Year (or portion thereof); and (y) if a Person is an officer or employee of LMC (or any member of the LMC Group) immediately prior to an LEI Transaction and ceases
to be an officer or employee of LMC and each other member of the LMC Group as a result of an LEI Transaction, or the LMC Group 

10

 

was
the last Group to employ such Person immediately prior to an LEI Transaction, then such Person will exclusively be considered to be an employee of LMC (or the applicable member of the LMC Group)
on the date the LEI Transaction is effected (regardless of whether such Person becomes an officer or employee of the LEI Group as a result of the LEI Transaction). 

        3.5    Refunds, Credits or Offsets.    

        (a)   Except
as otherwise contemplated by this Section 3.5 or Section 3.6, any refunds, credits or offsets with respect to Taxes of any member of (i) the
LMC Group that were reported on any Combined Return shall be for the account of LMC, (ii) the LEI Group that were reported on any Combined Return and are attributable to the
Pre-Distribution Period shall be for the account of LMC, (iii) the LEI Group that were reported on any Combined Return and are attributable to the Post-Distribution
Period shall be for the account of LEI, (iv) the LMC Group that were reported on any Separate Return required to be filed by a member of the LMC Group shall be for the account of LMC, and
(v) the LEI Group that were reported on any Separate Return required to be filed by a member of the LEI Group shall be for the account of LEI. 

        (b)   Notwithstanding
Section 3.5(a), (i) any refunds, credits or offsets with respect to Taxes, including Transaction Taxes and News Transaction Taxes,
allocated to, and actually paid by, LMC pursuant to this Agreement shall be for the account of LMC, and (ii) any refunds, credits or offsets with respect to Taxes, including Transaction Taxes
and News Transaction Taxes, allocated to, and actually paid by, LEI pursuant to this Agreement shall be for the account of LEI. 

        (c)   LMC
shall forward to LEI, or reimburse LEI for, any such refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the
receipt or accrual thereof and any expenses incurred in connection therewith, that are for the account of LEI within five business days from receipt thereof by LMC or any of its Affiliates. LEI shall
forward to LMC, or reimburse LMC for, any refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses
incurred in connection therewith, that are for the account of LMC within five business days from receipt thereof by LEI or any of its Affiliates. Any refunds, credits or offsets, plus any interest
received thereon, or reimbursements not forwarded or made within the five business day period specified above shall bear interest from the date received by the refunding or reimbursing party (or its
Affiliates) through and including the date of payment at the Interest Rate (treating the date received as the Due Date for purposes of determining such Interest
Rate). If, subsequent to a Tax Authority's allowance of a refund, credit or offset, such Tax Authority reduces or eliminates such allowance, any refund, credit or offset, plus any interest received
thereon, forwarded or reimbursed under this Section 3.5 shall be returned to the party who had forwarded or reimbursed such refund, credit or offset and interest upon the request of such
forwarding party in an amount equal to the applicable reduction, including any interest received thereon. 

        3.6    Carrybacks.    To the extent permitted by applicable Tax Law, LEI and its Affiliates shall waive the right to
carryback any Tax attribute of the members of the LEI Group arising in a Post-Distribution Period to a Pre-Distribution Period. If and to the extent that LEI or any of its
Affiliates is not permitted by applicable Tax Law to elect to forego such carryback and LEI requests in writing that LMC or any of its Affiliates obtain a refund, credit or offset of Taxes with
respect to such carryback, and provided that LMC or any of its Affiliates would not otherwise be required to forego a refund, credit or offset of Taxes for its own account or otherwise be adversely
affected as a result of such carryback, then (i) LMC (or its Affiliate) shall take all reasonable measures to obtain a refund, credit or offset of Tax with respect to such carryback (including
by filing an amended Tax Return), and (ii) to the extent that LMC or any of its Affiliates receives any refund, credit or offset of Taxes attributable (on a last dollar basis) to such
carryback, LMC shall pay such refund, credit or offset, plus any interest received thereon, to LEI within five business days from receipt thereof by LMC or any of its Affiliates; 

11

 

 provided, however, that LMC shall be entitled to reduce the amount of any such refund, credit or offset for its reasonable out-of-pocket costs and
expenses incurred in connection therewith and any Taxes incurred with respect to the receipt or accrual thereof; and provided further, that LEI, upon
the request of LMC, agrees to repay such refund, credit or offset, plus any interest received thereon and net of Taxes, to LMC in the event, and to the extent, that LMC is required to repay such
refund, credit or offset, plus any interest received thereon, to a Tax Authority. 

        3.7    Amended Returns.    Any amended Tax Return or claim for Tax refund, credit or offset with respect to any member
of the LEI Group may be made only by the Company (or its Affiliates) responsible for preparing the original Tax Return with respect to such member pursuant to Sections 3.1 and 3.2. Such Company
(or its Affiliates) shall not, without the prior written consent of the other Company (which consent shall not be unreasonably withheld or delayed), file, or cause to be filed, any such amended Tax
Return or claim for Tax refund, credit or offset to the extent that such filing, if accepted, is likely to materially increase the Taxes allocated to, or the Tax indemnity obligations under this
Agreement of, such other Company for any Tax Year (or portion thereof); provided, however, that such consent need not be obtained if the Company filing
the amended Tax Return agrees to indemnify the other Company for the incremental Taxes allocated to, or the incremental Tax indemnity obligation resulting under this Agreement to, such other Company
as a result of the filing of such amended Tax Return. 

        SECTION 4.    Tax Payments.    

        4.1    Payment of Taxes to Tax Authority.    LMC shall be responsible for remitting to the proper Tax Authority the
Tax shown on any Tax Return for which it is responsible for the preparation and filing pursuant to Section 3.1 or Section 3.2, and LEI shall be responsible for remitting to the proper
Tax Authority the Tax shown on any Tax Return for which it is responsible for the preparation and filing pursuant to Section 3.2. 

        4.2    Indemnification Payments.    

        (a)    Tax Payments Made by the LMC Group.    If any member of the LMC Group is required to make a payment to a Tax
Authority for Taxes allocated to LEI under this Agreement, LEI will pay the amount of Taxes allocated to it to LMC not later than the later of (i) five business days after receiving
notification requesting such amount, and (ii) one business day prior to the date such payment is required to be made to such Tax Authority. 

        (b)    Tax Payments Made by the LEI Group.    If any member of the LEI Group is required to make a payment to a Tax
Authority for Taxes allocated to LMC under this Agreement, LMC will pay the amount of Taxes allocated to it to LEI not later than the later of (i) five business days after receiving
notification requesting such amount, and (ii) one business day prior to the date such payment is required to be made to such Tax Authority. 

        4.3    Interest on Late Payments.    Payments pursuant to this Agreement that are not made by the date prescribed in
this Agreement or, if no such date is prescribed, not later than five business days after demand for payment is made (the "Due Date") shall bear interest for the period from and including the date
immediately following the Due Date through and including the date of payment at the Interest Rate. Such interest will be payable at the same time as the payment to which it relates. 

        4.4    Tax Consequences of Payments.    For all Tax purposes and to the extent permitted by applicable Tax Law, the
parties hereto shall treat any payment made pursuant to this Agreement as a capital contribution or a distribution, as the case may be, immediately prior to the Distribution. If the receipt or accrual
of any indemnity payment under this Agreement causes, directly or indirectly, an increase in the taxable income of the recipient under one or more applicable Tax Laws, such payment shall be increased
so that, after the payment of any Taxes with respect to the payment, the recipient thereof shall have realized the same net amount it would have realized had the payment not resulted in 

12

 

taxable
income. To the extent that Taxes for which any party hereto (the indemnifying party) is required to pay another party (the indemnified party) pursuant to this Agreement may be deducted or
credited in determining the amount of any other Taxes required to be paid by the indemnified party (for example, state Taxes which are permitted to be deducted in determining federal Taxes), the
amount of any payment made to the indemnified party by the indemnifying party shall be decreased by taking into account any resulting reduction in other Taxes of the indemnified party. If such a
reduction in Taxes of
the indemnified party occurs following the payment made to the indemnified Party with respect to the relevant indemnified Taxes, the indemnified party shall promptly repay the indemnifying party the
amount of such reduction when actually realized. If the Tax benefit arising from the foregoing reduction of Taxes described in this Section 4.4 is subsequently decreased or eliminated, then the
indemnifying party shall promptly pay the indemnified party the amount of the decrease in such Tax benefit. 

        SECTION 5.    Assistance and Cooperation.    

        5.1    Cooperation.    In addition to the obligations enumerated in Sections 3.3 and 7.7, LMC and LEI will
cooperate (and cause their respective Subsidiaries and Affiliates to cooperate) with each other and with each other's agents, including accounting firms and legal counsel, in connection with Tax
matters, including provision of relevant documents and information in their possession and making available to each other, as reasonably requested and available, personnel (including officers,
directors, employees and agents of the parties or their respective Subsidiaries or Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes, and
personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes. 

        5.2    Supplemental Rulings.    

        (a)   Each
of the parties agrees that, at the reasonable request of another party (the "Requesting Party"), LMC and LEI shall (and shall cause each member of its Group) to
cooperate and use reasonable best efforts to obtain, as expeditiously as reasonably practicable, a Supplemental Ruling from the IRS. Notwithstanding the foregoing, LMC shall not be required to file
any Supplemental IRS Submission unless LEI represents to LMC that (i) it has reviewed the Supplemental IRS Submission, and (ii) all information and representations, if any, relating to
any member of the LEI Group and their Affiliates contained in the Supplemental IRS Submission are true, correct and complete in all material respects. The Requesting Party shall reimburse the other
parties for all reasonable out-of-pocket costs and expenses incurred by such parties or their Affiliates in connection with obtaining or requesting such Supplemental Ruling
within five business days after receiving an invoice from such party therefor. 

        (b)   LMC
shall provide LEI with a reasonable opportunity to review and comment on each Supplemental IRS Submission to be filed by LMC prior to the filing of such Supplemental
IRS Submission with the IRS, and LEI shall provide LMC with a reasonable opportunity to review and comment on each Supplemental IRS Submission to be filed by LEI prior to the filing of such
Supplemental IRS Submission with the IRS. No Supplemental IRS Submission shall be filed by LEI with the IRS unless, prior to such filing LMC shall have agreed as to the contents of such Supplemental
IRS Submission to the extent that the Supplemental IRS Submission (i) includes statements or representations relating to facts that are or will be under the control of any member of the LMC
Group or any of its Affiliates or (ii) is relevant to, or creates, any actual or potential obligations of, or limitations on, any member of the LMC Group or any of their Affiliates;  provided, however, that if the IRS requests same-day filing of a Supplemental IRS Submission that does not include any material issue or
statement, then LEI is required only to make a good faith effort to notify LMC's representatives and to give such representatives an opportunity to review and comment on such Supplemental IRS
Submission prior to filing it with the IRS. No 

13

 

Supplemental
IRS Submission shall be filed by LMC with the IRS unless, prior to the filing, LEI shall have agreed as to the contents of such Supplemental IRS Submission to the extent that the
Supplemental IRS Submission (i) includes statements or representations relating to facts that are or will be under the control of any member of the LEI Group or any of its Affiliates or
(ii) is relevant to, or creates, any actual or potential obligations of, or limitations on, any member of the LEI Group or any of their Affiliates; provided,
however, that if the IRS requests same-day filing of a Supplemental IRS Submission that does not include any material issue or statement, then LMC is required only
to make a good faith effort to notify LEI's representatives and to give such representatives an opportunity to review and comment on such Supplemental IRS Submission prior to filing it with the IRS.
Each Company (or its representatives) shall provide the other Company (or its representatives) with copies of each Supplemental IRS Submission filed with the IRS promptly following the filing thereof.
Neither Company nor its representatives shall conduct any substantive communications with the IRS regarding any material issue arising with respect to any Supplemental Ruling, including meetings or
conferences with IRS personnel, whether telephonically, in person or otherwise, without first notifying the other Company (or its representatives) and giving the other Company (or its representatives)
a reasonable opportunity to participate, and a reasonable number of such Company's representatives shall have an opportunity to participate in all conferences or meetings with IRS personnel that take
place in person, regardless of the nature of the issues expected to be discussed; provided, however, that in the case of communications concerning a
Supplemental Ruling that occur during an unscheduled conference initiated by the IRS or a conference initiated by a Company or its representatives for a purpose unrelated to a Supplemental Ruling in
connection with which it is not reasonably practicable to provide to the other Company or its representatives advance notice and an opportunity to participate, such Company (or its representatives)
shall promptly update the other Company and its representatives as to the content of such communications. Each Company shall promptly provide the other Company (or its representatives) with copies of
any correspondence received by such Company (or its representatives) from the IRS relating to any Supplemental Ruling. 

        SECTION 6.    Tax Records.    

        6.1    Retention of Tax Records.    Each of LMC and LEI shall preserve, and shall cause their respective Subsidiaries
to preserve, all Tax Records that are in their possession, and that could affect the liability
of any member of the other Group for Taxes, for as long as the contents thereof may become material in the administration of any matter under applicable Tax Law, but in any event until the later of
(x) the expiration of any applicable statutes of limitation, as extended, and (y) seven years after the Distribution Date. 

        6.2    Access to Tax Records.    LEI shall make available, and cause its Subsidiaries to make available, to members of
the LMC Group for inspection and copying (x) all Tax Records in their possession that relate to a Pre-Distribution Period, and (y) the portion of any Tax Record in their
possession that relates to a Post-Distribution Period and which is reasonably necessary for the preparation of a Tax Return by a member of the LMC Group or any of their Affiliates or with
respect to an audit or litigation by a Tax Authority of such return. LMC shall make available, and cause its Subsidiaries to make available, to members of the LEI Group for inspection and copying the
portion of any Tax Record in their possession that relates to a Pre-Distribution Period and which is reasonably necessary for the preparation of a Tax Return by a member of the LEI Group
or any of their Affiliates or with respect to an audit or litigation by a Tax Authority of such return. 

14

 

  
        6.3    Confidentiality.    Each party hereby agrees that it will hold, and shall use its reasonable best efforts to
cause its officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold, in confidence all records and information prepared and shared by and among the parties in
carrying out the intent of this Agreement, except as may otherwise be necessary in connection with the filing of Tax Returns or any administrative or judicial proceedings relating to Taxes or unless
disclosure is compelled by a governmental authority. Information and documents of one party (the "Disclosing Party") shall not be deemed to be confidential for purposes of this Section 6.3 to
the extent such information or document (i) is previously known to or in the possession of the other party or parties (the "Receiving Party") and is not otherwise subject to a requirement to be
kept confidential, (ii) becomes publicly available by means other than unauthorized disclosure under this Agreement by the Receiving Party or (iii) is received from a third party
without, to the knowledge of the Receiving Party after reasonable diligence, a duty of confidentiality owed to the Disclosing Party. 

        6.4    Delivery of Tax Records.    On or before the Distribution Date, LMC shall provide to LEI (to the extent not
previously provided or held by any member of the LEI Group on the Distribution Date) copies of (i) the Separate Returns of any member of the LEI Group, (ii) the relevant portions of any
other Tax Returns with respect to any member of the LEI Group, and (iii) other existing Tax Records (or the relevant portions thereof) reasonably necessary to prepare and file any Tax Returns
of, or with respect to, the members of the LEI Group, or to defend or contest Tax matters relevant to the members of the LEI Group, including in each case, all Tax Records related to Tax attributes of
the members of the LEI Group and any and all communications or agreements with, or rulings by, any Tax Authority with respect to any member of the LEI Group. 

        SECTION 7.    Restriction on Certain Actions of LMC and LEI; Indemnity.    

        7.1    Restrictive Covenants.    

        (a)    General Restrictions.    Following the Effective Time, LEI shall not, and shall cause the members of the LEI
Group and their Affiliates not to, and LMC shall not, and shall cause the members of the LMC Group and their Affiliates not to, take any action that, or fail to take any action the failure of which,
(i) would be inconsistent with the LDIG Gamenet Restructuring qualifying, or would preclude the LDIG Gamenet Restructuring from qualifying, as a tax-free reorganization under
Section 368(a) of the Code, (ii) would cause LMC or any Subsidiary of LMC immediately prior to the Distribution to recognize gain or loss, or otherwise include any amount in income, as a
result of the Restructuring for U.S. federal income tax purposes, (iii) would be inconsistent with the Contribution and Distribution qualifying, or would preclude the Contribution and
Distribution from qualifying, as a tax-free transaction described under Sections 368(a), 355 and 361 of the Code, (iv) would cause LMC, LEI, any of their respective
Subsidiaries at the Effective Time, or the holders of Liberty Entertainment Common Stock that receive stock of LEI in the Distribution, to recognize gain or loss, or otherwise include any amount in
income, as a result of the Contribution and/or the Distribution for U.S. federal income tax purposes (except with respect to cash received in lieu of fractional shares), (v) would be
inconsistent with the News Transactions qualifying, or would preclude the News Transactions from qualifying, as tax-free transactions described under Sections 368(a), 355 and/or 361
of the Code, as applicable, or (vi) would cause News, any Subsidiary of News immediately prior to any of the News Transactions, LMC or any of its Subsidiaries on February 27, 2008 to
recognize gain or loss, or otherwise include any amount in income, as a result of the News Transactions for U.S. federal income tax purposes. 

        (b)    Restricted Actions.    Without limiting the provisions of Section 7.1(a) hereof, following the Effective
Time, LEI shall not, and shall cause the members of the LEI Group not to, and LMC shall not, and shall cause the members of the LMC Group not to, take any action that, or fail to take any action the
failure of which, (i) would be inconsistent with, or would cause any Person to be in breach of, any representation or covenant, or any material statement, made in the Tax 

15

 

Materials
or the News Tax Materials, or (ii) would be inconsistent with, or would cause LMC to be in breach of, any representation or covenant made in the Tax Matters Agreement. 

        (c)    Reporting.    Unless and until there has been a Final Determination to the contrary, each party agrees not to
take any position on any Tax Return, in connection with any Tax Contest, or otherwise for Tax purposes (in each case, excluding any position taken for financial accounting purposes) that is
inconsistent with the Ruling or the Tax Opinions. 

        7.2    LMC Indemnity.    LMC agrees to indemnify and hold harmless each member of the LEI Group and their respective
directors, officers, employees, agents, successors and assigns (the "LEI Indemnitees") from and against any and all (without duplication) (a) Taxes allocated to LMC pursuant to
Section 2.1, (b) liabilities of the members of the LEI Group for Taxes of any Person (other than any member of the LEI Group) as a result of such member being, or having been, on or
before the Distribution Date, a member of an affiliated, consolidated, combined or unitary group, pursuant to Treasury Regulations Section 1.1502-6 or any other provision of
federal, state, local or foreign Tax Law, (c) Transaction Taxes and Transaction Tax-Related Losses allocated to LMC pursuant to Section 2.2, (d) News Transaction Taxes
and News Tax-Related Losses allocated to LMC
pursuant to Section 2.2, (e) Taxes and Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by LMC contained in this
Agreement, (f) Transfer Taxes allocated to LMC pursuant to Section 2.2, and (g) reasonable out-of-pocket legal, accounting and other advisory and court
fees and expenses incurred in connection with the items described in clauses (a) through (f); provided, however, that notwithstanding
clauses (a), (b), (e) and (g) of this Section 7.2, LMC shall not be responsible for, and shall have no obligation to indemnify or hold harmless any LEI Indemnitee for,
(x) any Transaction Taxes, Transaction Tax-Related Losses, News Transaction Taxes or News Tax-Related Losses that are allocated to LEI pursuant to Section 2.2, or
(y) any Taxes or Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by LEI contained in this Agreement. 

        7.3    LEI Indemnity.    LEI agrees to indemnify and hold harmless each member of the LMC Group and their respective
directors, officers, employees, agents, successors and assigns (the "LMC Indemnitees") from and against any and all (without duplication) (a) Taxes allocated to LEI pursuant to
Section 2.1, (b) Transaction Taxes and Transaction Tax-Related Losses allocated to LEI pursuant to Section 2.2, (c) News Transaction Taxes and News
Tax-Related Losses allocated to LEI pursuant to Section 2.2, (d) Taxes and Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made
or to be performed by LEI contained in this Agreement, (e) Transfer Taxes allocated to LEI pursuant to Section 2.2, and (f) reasonable out-of-pocket legal,
accounting and other advisory and court fees incurred in connection with the items described in clauses (a) through (e); provided, however, that
notwithstanding clauses (a), (d) and (f) of this Section 7.3, LEI shall not be responsible for, and shall have no obligation to indemnify or hold harmless any LMC
Indemnitee for, (x) any Transaction Taxes, Transaction Tax-Related Losses, News Transaction Taxes or News Tax-Related Losses that are allocated to LMC pursuant to
Section 2.2, or (y) any Taxes or Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by LMC contained in this Agreement. 

        7.4    Scope.    The provisions of this Section 7 are intended to be for the benefit of, and shall be
enforceable by, each LMC Indemnitee and its successors in interest and each LEI Indemnitee and its successors in interest. 

        7.5    Notices of Tax Contests (Other than Third Party Claims).    Each Company shall provide prompt notice to the
other Company of any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware relating to Taxes for which it is or may be indemnified by such other
Company hereunder (other than any Transaction Taxes or News Transaction Taxes which shall be governed by Section 7.8). Such notice shall contain factual information (to the extent known) 

16

 

describing
any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters;  provided, however,
that failure to give such notification shall not affect the indemnification provided hereunder except, and only to the extent that,
the indemnifying Company shall have been actually prejudiced as a result of such failure. Thereafter, the indemnified Company shall deliver to the indemnifying Company
such additional information with respect to such Tax Contest in its possession that the indemnifying Company may reasonably request. 

        7.6    Control of Tax Contests (Other than Third Party Claims).    

        (a)    General Rule.    Except as provided in Sections 7.6(b) and 7.8, each Company (or the appropriate member
of its Group) shall have full responsibility, control and discretion in handling, defending, settling or contesting any Tax Contest involving a Tax reported (or that, it is asserted, should have been
reported) on a Tax Return for which such Company is responsible for preparing and filing (or causing to be prepared and filed) pursuant to Section 3 of this Agreement. 

        (b)    Non-Preparer Participation Rights.    With respect to a Tax Contest (other than with respect to a
Third Party Claim) of any Tax Return which involves a Tax liability for which the Non-Preparer may be liable under this Agreement, (i) the Non-Preparer shall, at its own
cost and expense, be entitled to participate in such Tax Contest, (ii) the Preparer shall keep the Non-Preparer updated and informed, and shall consult with the
Non-Preparer, (iii) the Preparer shall act in good faith with a view to the merits in connection with the Tax Contest, and (iv) the Preparer shall not settle or compromise
such Tax Contest without the prior written consent of the Non-Preparer (which consent shall not be unreasonably withheld) if the settlement or compromise could materially adversely affect
the Non-Preparer. 

        7.7    Cooperation.    The parties shall provide each other with all information relating to a Tax Contest which is
needed by the other party or parties to handle, participate in, defend, settle or contest the Tax Contest. At the request of any party, the other parties shall take any action
(e.g., executing a power of attorney) that is reasonably necessary in order for the requesting party to exercise its rights under this Agreement
in respect of a Tax Contest. LEI shall assist LMC, and LMC shall assist LEI, in taking any remedial actions that are necessary or desirable to minimize the effects of any adjustment made by a Tax
Authority. The indemnifying party or parties shall reimburse the indemnified party or parties for any reasonable out-of-pocket costs and expenses incurred in complying with
this Section 7.7. 

        7.8    Third Party Claims.    Each Company shall promptly give notice to the other Company of any pending or
threatened Tax Contest, claim, action, suit, investigation or proceeding brought by a third party relating to (x) any Transaction Taxes or News Transaction Taxes or (y) any Transaction
Tax-Related Losses or News Tax-Related Losses for which such Company is or may be indemnified by the other Company under this Section 7 (each, a "Third Party Claim").
Such notice shall contain (i) factual information (to the extent known) describing any asserted Tax liability or other claim in reasonable detail and shall be accompanied by copies of any
notice and other documents received from any Tax Authority or third party relating to the Third Party Claim, and (ii) the amount of the Third Party Claim. Such notice shall be given within a
reasonable period of time after notice thereof was received by such Company, but any failure to give timely notice shall not affect the indemnities given hereunder except, and only to the extent that,
the indemnifying Company shall have been actually prejudiced as a result of such failure. Thereafter, each Company shall deliver to the other Company such additional information with respect to such
Third Party Claim in its possession that the other Company may reasonably request. LMC and LEI will have the right to jointly control the defense, compromise or settlement of any Third Party Claim;  provided,
however, that with respect to any Third Party Claim arising under the Tax Matters Agreement (or otherwise subject to the indemnification
provisions of the Tax Matters Agreement), LEI's rights to jointly control, or otherwise participate in the defense of, such Third Party Claim will be subject to the terms of the Tax Matters Agreement,
and LEI 

17

 

acknowledges
that it will be limited to those rights that LMC is able, through use of reasonable efforts, to obtain on behalf of LEI under the Tax Matters Agreement. LMC shall use reasonable efforts
to provide LEI with the right to jointly control with LMC any Third Party Claim arising under the Tax Matters Agreement (or otherwise subject to the indemnification provisions of the Tax Matters
Agreement); provided, however, that LMC shall not be required to relinquish any rights that it has to control the defense, compromise or settlement of
any such Third Party Claim (other than to LEI pursuant to the foregoing). LMC hereby agrees to make a partial assignment to LEI of any rights it has under the Tax Matters Agreement to allow LEI to
jointly control with LMC and News the defense, compromise or settlement of any Tax Contest relating to a News Transaction Tax for which LEI has any indemnity obligation hereunder. No indemnified
Company shall settle or compromise or consent to entry of any judgment with respect to any such Third Party Claim without the prior written consent of the indemnifying Company, which consent may be
withheld in the indemnifying Company's sole discretion. No indemnifying Company shall settle or compromise or consent to entry of any judgment with respect to any such Third Party Claim without the
prior written consent of the indemnified Company, which consent may not be unreasonably withheld or delayed. 

        7.9    Other Claims.    In the event any LMC Indemnitee should have a claim against LEI, or any LEI Indemnitee should
have a claim against LMC, under this Section 7 that does not involve a third party action, such indemnified Company (or LMC on behalf of all LMC Indemnitees or LEI on behalf of all LEI
Indemnitees, as applicable) shall as promptly as practicable notify the indemnifying Company of such claim, describing such claim and the factual basis thereof, the amount of such claim (if known) and
the method of computation of such amount, all with reasonable particularity. 

        SECTION 8.    General Provisions.    

        8.1    Termination.    This Agreement shall terminate at such time as all obligations and liabilities of the parties
hereto have been satisfied. The obligations and liabilities of the parties arising under this Agreement shall continue in full force and effect until all such obligations have been satisfied and such
liabilities have been paid in full, whether by expiration of time, operation of law, or otherwise. 

        8.2    Predecessors or Successors.    Any reference to LMC, LEI, News, DTV, a Person, or a Subsidiary in this
Agreement shall include any predecessors or successors (e.g., by merger or other reorganization, liquidation, conversion, or election under Treasury
Regulations Section 301.7701-3) of LMC, LEI, News, DTV, such Person, or such Subsidiary, respectively. 

        8.3    Expenses.    Except as otherwise expressly provided for herein, each party and its Subsidiaries shall bear
their own expenses incurred in connection with preparation of Tax Returns and other matters related to Taxes under the provisions of this Agreement for which they are liable. 

        8.4    Governing Law.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement will be brought exclusively in the Delaware Chancery Courts, or, if the Delaware Chancery Courts do not have subject matter jurisdiction, in the state courts of the
State of Delaware located in Wilmington, Delaware, or in the federal courts located in the State of Delaware. Each of the parties hereby consents to personal jurisdiction in any such action, suit or
proceeding brought in any such court (and of the appropriate appellate courts therefrom) and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have
to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each
party agrees that service of process on such party as provided in Section 8.6 shall be deemed effective service of process on such party. 

18

 

        8.5    Waiver of Jury Trial.    EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER
THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO CERTIFIES
AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH ACTION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH
PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.5. 

        8.6    Notices.    All notices and other communications hereunder shall be in writing and shall be delivered in
person, by facsimile (with confirming copy sent by one of the other delivery methods specified herein), by overnight courier or sent by certified, registered or express air mail, postage prepaid, and
shall be deemed given when so delivered in person, or when so received by facsimile or courier, or, if mailed, three (3) calendar days after the date of mailing, as
follows: 

	(a)
	If to LMC, to:

Liberty
Media Corporation

12300 Liberty Boulevard

Englewood, Colorado 80112 

Attn:
Albert Rosenthaler

Facsimile: (720) 875-5447 

	(b)
	If to LEI, to:

Liberty
Entertainment, Inc.

12300 Liberty Boulevard

Englewood, Colorado 80112

Attn:
[                                    ]

Facsimile: [                                    ] 

or
to such other address as the party to whom notice is given may have previously furnished to the other parties in writing in the manner set forth above. 

        8.7    Counterparts.    This Agreement may be executed in two or more identical counterparts, each of which shall be
deemed to be an original, and all of which together shall constitute one and the same agreement. The Agreement may be delivered by facsimile transmission of a signed copy thereof. 

        8.8    Binding Effect; Assignment.    This Agreement and all of the provisions hereof shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and permitted assigns. Except with respect to a merger of a party, neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any party hereto without the prior written consent of the other parties; provided, however, that LMC and LEI may assign their respective rights, interests,
duties, liabilities and obligations under this Agreement to any other member of their Group, but such assignment shall not relieve LMC or LEI, as the assignor, of its obligations hereunder. In the
event of (i) any sale, assignment, transfer or other disposition of all or substantially all of the assets of LEI (on a consolidated basis) to any person or group, including by means of a stock
dividend, stock 

19

 

redemption,
spinoff, split-off or similar transaction or event (the Person whose securities are issued in payment therefor or, if no securities are so issued, the Person(s) who hold title to such
assets, a "LEI Asset Successor"), in one or a series of related transactions, or (ii) any merger, consolidation, statutory share exchange, conversion of LEI from a corporation to a limited
liability company or other legal entity or other business combination or similar transaction affecting LEI, that results in the exchange or conversion of equity securities of LEI for or into equity
securities or other consideration (x) consisting of securities issued by the successor or the surviving entity to LEI upon consummation of such transaction (the "LEI Successor Entity") or, if
the successor or surviving entity in such transaction is a Subsidiary of a publicly traded or privately held parent company (the "LEI Successor Parent"), securities of the LEI Successor Parent
delivered in such transaction, or (y) consisting of cash or other consideration paid or payable by any LEI Successor Entity or LEI Successor Parent (the applicable of the LEI Asset Successor,
the LEI Successor Entity and the LEI Successor Parent, the "LEI Successor"), then (i) all references herein to capital stock or other equity interests of LEI shall mean and refer to, for
periods (or portions thereof) beginning after the consummation of such transaction, the equivalent securities of or ownership interest in the LEI Successor, as applicable, and (ii) prior to,
and as a condition to effecting any such asset transfer or business combination (or in the case of a series of transactions, the first such transaction), the LEI Successor shall have executed and
delivered to LMC an instrument, in form and substance reasonably acceptable to LMC, pursuant to which such LEI Successor has agreed, effective upon the consummation of such transaction, to be bound by
and perform all of the covenants and agreements made by LEI hereunder and upon such consummation such LEI Successor will be jointly and severally liable with LEI for all of the obligations and
liabilities
of LEI under this Agreement. The foregoing provisions of this Section 8.8 will be applicable to any successor or any parent thereof (as determined in accordance with the foregoing) to any LEI
Successor. 

        8.9    Severability.    Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Upon a determination that any provision of this Agreement is prohibited or unenforceable in any
jurisdiction, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the
provisions contemplated hereby are consummated as originally contemplated to the fullest extent possible. 

        8.10    Amendments; Waivers.    Any provision of this Agreement may be amended or waived if, but only if, such
amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. Except as otherwise provided herein, the rights and remedies herein provided shall be cumulative and not exclusive of any
rights or remedies provided by applicable law. Any consent provided under this Agreement must be in writing, signed by the party against whom enforcement of such consent is sought. 

        8.11    Effective Date.    This Agreement shall become effective on the date recited above on which the parties
entered into this Agreement. 

        8.12    Change in Law.    Any reference to a provision of the Code or any other Tax Law shall include a reference to
any applicable successor provision or law. 

        8.13    Authorization, Etc.    Each of the parties hereto hereby represents and warrants that it has the power and
authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such party, that this Agreement 

20

 

constitutes
a legal, valid and binding obligation of such party and that the execution, delivery and performance of this Agreement by such party does not contravene or conflict with any provision of
law or of its charter or bylaws or any agreement, instrument or order binding such party. 

        8.14    No Third Party Beneficiaries.    Except as provided in Sections 7.2 and 7.3 of this Agreement, this
Agreement is solely for the benefit of LMC, LEI, and their Subsidiaries and is not intended to confer
upon any other Person any rights or remedies hereunder. Notwithstanding anything in this Agreement to the contrary, this Agreement is not intended to confer upon any LEI Indemnitees any rights or
remedies against LEI hereunder, and this Agreement is not intended to confer upon any LMC Indemnitees any rights or remedies against LMC hereunder. 

        8.15    Entire Agreement.    This Agreement embodies the entire understanding among the parties relating to its
subject matter and supersedes and terminates any prior agreements and understandings among the parties with respect to such subject matter, and no party to this Agreement shall have any right,
responsibility, obligation or liability under any such prior agreement or understanding. Any and all prior correspondence, conversations and memoranda are merged herein and shall be without effect
hereon. No promises, covenants or representations of any kind, other than those expressly stated herein, have been made to induce any party to enter into this Agreement. 

        8.16    No Strict Construction; Interpretation.    

        (a)   LMC
and LEI each acknowledge that this Agreement has been prepared jointly by the parties hereto and shall not be strictly construed against any party hereto. 

        (b)   When
a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of, or an Exhibit or Schedule
to, this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words "include", "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation". The words
"hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms
defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained
in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument or
statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented,
including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and
instruments incorporated therein. References to a Person are also to its permitted successors and assigns. 

        8.17    Headings.    The headings contained in this Agreement are for reference purposes only and will not affect in
any way the meaning or interpretation of this Agreement. 

        8.18    Assignment of Rights under the Tax Matters Agreement.    LMC hereby assigns to LEI all its rights to
indemnification and related rights under the Tax Matters Agreement with respect to any liability for Taxes or related Losses (other than News Transaction Taxes or News Tax-Related
Losses) that are allocated to LEI hereunder. LMC shall not amend, modify or terminate the Tax Matters Agreement, or waive any rights thereunder, without the prior written consent of LEI. 

21

 

        IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by the respective officers as of the date set forth above. 

					
	 	 	LIBERTY MEDIA CORPORATION
	

 	
 	
    By:	
 	
 

 
	 	 	    Name:

    Title:	 	 
	

 	
 	
LIBERTY ENTERTAINMENT, INC.
	

 	
 	
    By:	
 	
 

 
	 	 	    Name:

    Title:

	 	 

22

QuickLinks

Exhibit 10.4

FORM OF TAX SHARING AGREEMENT BETWEEN LIBERTY MEDIA CORPORATION AND LIBERTY ENTERTAINMENT, INC.

TABLE OF CONTENTS

TAX SHARING AGREEMENT

RECITALSQuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 10.5    
    

 
    FORM OF SERVICES AGREEMENT    
    

        SERVICES AGREEMENT (this "Agreement"), dated as of
[                        ], 2009 (the "Effective Date"), is entered into by and
between Liberty Entertainment, Inc., a Delaware
corporation (the "Corporation"), and Liberty Media Corporation, a Delaware corporation (the "Provider"). 

 RECITALS  

        WHEREAS, the Corporation is a wholly owned subsidiary of the Provider, formed for the purpose of receiving and holding certain of the
assets and liabilities attributed to the Provider's Liberty Entertainment group in accordance with the plan of restructuring set forth in Schedule 1.1 to the Reorganization Agreement, dated as
of [                        ], 2009 ("Reorganization Agreement"), to which the
Corporation and the Provider are each parties; 

        WHEREAS,
in accordance with the Reorganization Agreement and the Restated Certificate of Incorporation of the Provider, the Provider will effect the redemption of 90% of the issued and
outstanding shares of the Provider's Liberty Entertainment common stock for all of the issued and outstanding shares of common stock of the Corporation, subject to the conditions set forth in the
Reorganization Agreement, with the effect that the Corporation will be split-off ("Split-Off") from the Provider; 

        WHEREAS,
as a result of the Split-Off , the Corporation will cease to be a wholly owned subsidiary of the Provider; 

        WHEREAS,
as a result of the Split-Off, the Corporation will be a publicly-traded holding company, with subsidiaries that include Liberty Genius, Inc., LDIG
Gamenet LLC, Liberty Freedom, LLC, Greenlady Corp., and Game Show Network, LLC ("GSN") (collectively, the
"Operating Subsidiaries"); 

        WHEREAS,
the Corporation and the Provider desire that, following the Split-Off, the Corporation obtain certain transitional services from the Provider and for the Corporation
to compensate the Provider for the performance of such services; and 

        WHEREAS,
the parties desire to set forth in this Agreement the transitional services to be performed by the Provider for the Corporation and the basis upon which the Provider will be
compensated therefor by the Corporation. 

 AGREEMENT  

        NOW THEREFORE, in consideration of the foregoing recitals, the mutual agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be bound legally, agree as follows: 

 
 

  ARTICLE I    
    
    ENGAGEMENT AND SERVICES    
    

        Section 1.1    Engagement.    The Corporation engages the Provider to provide to the Corporation the services
set forth in Section 1.2 (collectively, the "Services"), and the Provider accepts such engagement, subject to and upon the terms and conditions
of this Agreement. 

        Section 1.2    Services.    

        (a)   The
Services will include the following, if and to the extent requested by the Corporation (upon reasonable notice) during the Term of this Agreement: 

          (i)  office
space at 12300 Liberty Boulevard, Englewood, Colorado 80112, including furniture, furnishings, and office equipment, to the extent necessary or appropriate in
order to facilitate the provision of the Services hereunder; 

 

         (ii)  insurance
administration and risk management services as may be required by the Corporation; 

        (iii)  technical
and information technology assistance (including management information systems, computer, data storage network and telecommunications services), software,
computers, office supplies, postage, courier service and other office services; 

        (iv)  personnel
to perform services typically performed by the Provider's finance, accounting, payroll, treasury, cash management, legal, human resources, investor relations,
tax and real estate management departments and personnel; and 

         (v)  such
other services as the Corporation and the Provider may from time to time mutually determine to be necessary or desirable. 

        (b)   The
Services are intended to be those services that are necessary or appropriate for the operation and management of a publicly-traded holding company, and are not
intended to be duplicative of services and functions that in the ordinary course of business are performed by officers and employees of the Operating Subsidiaries for those companies. 

        Section 1.3    Services Not to Interfere with the Provider's Business.    The Corporation acknowledges and
agrees that in providing Services hereunder the Provider will not be required to take any action that would disrupt, in any material respect, the orderly operations of the Provider's business
activities. 

        Section 1.4    Books and Records.    The Provider will maintain books and records, in accordance with the
Provider's standard business practices, with respect to its provision of the Services to the Corporation pursuant to this Agreement, including records supporting the allocation of costs and expenses
to the Corporation pursuant to Article II (collectively, "Supporting Records"). The Provider will give the Corporation and its duly authorized
representatives, agents, and attorneys reasonable access to all such Supporting Records during the Provider's regular business hours upon the Corporation's request after reasonable advance notice. 

        Section 1.5    Services to Subsidiaries.    Notwithstanding Section 1.2(b), the Corporation may direct
that the Provider provide Services to one or more Subsidiaries of the Corporation (including the Operating Subsidiaries) on the terms set forth in this Agreement. In rendering such Services, the
Provider will identify the costs and expenses allocated to the Corporation pursuant to Article II that are properly attributable to Services performed by the Provider for each Subsidiary of the
Corporation separately. All Services provided for any Subsidiary of the Corporation will be deemed to be Services performed for the Corporation for all purposes of this Agreement. 

 
 

  ARTICLE II    
    
    COMPENSATION    
    

        Section 2.1    Allocated Personnel Expenses.    

        (a)   The
Corporation will pay the Provider for the Services based on an allocated portion of the personnel costs and related expenses that are incurred by the Provider in
connection with rendering the Services under this Agreement (collectively, the "Allocated Employee Expenses"). The Allocated Employee Expenses will be
set forth in, or determined from time to time in the manner set forth in,  Schedule 2.1 attached hereto, as such Schedule 2.1 may be periodically
amended and revised
by the parties. 

        (b)    Adjustment to Allocated Employee Expenses.    The Allocated Employee Expenses will be estimated annually based
on the anticipated Services to be provided to the Corporation during the upcoming 12-month period. The Provider and the Corporation will review and evaluate the Allocated Employee Expenses
for reasonableness semi-annually and will negotiate in good faith to 

2

 

reach
agreement on any appropriate adjustment to the Allocated Employee Expenses based on such review and evaluation, including updating the aggregate salaries and benefits of the employees of the
Provider performing Services hereunder ("Provider Employees") (and any other costs or expenses included in Allocated Employee Expenses), revising the
allocated percentages of time spent providing Services to the Corporation and agreeing on the appropriate effective date (which may be retroactive) of any such adjustment to the Allocated Employee
Expenses. 

        Section 2.2    Cost Reimbursement.    In addition to the Allocated Employee Expenses payable pursuant to
Section 2.1, the Corporation also will reimburse the Provider for all direct out-of-pocket costs (with no markup) incurred by the Provider, unless such costs are paid
directly by the Corporation, for postage and out-of-town courier service charges, for any applicable software license fees attributable to desktop or laptop computers utilized
by employees of the Corporation, and for expenses incurred by the Provider Employees related to Services performed on behalf of the Corporation, including travel and meals and entertainment related to
such Services, and for any other miscellaneous expenses that may be incurred by the Provider on behalf of the Corporation. 

        Section 2.3    Payment Procedures.    

        (a)   The
Corporation will pay the Provider, by wire or intrabank transfer of funds or in such other manner specified by the Provider to the Corporation, in arrears on or
before the last day of each calendar month beginning [                        ], 2009, the Allocated Employee Expenses then in
effect, in equal monthly installments. 

        (b)   Any
reimbursement to be made by the Corporation to the Provider pursuant to Section 2.2 will be paid by the Corporation to the Provider within 15 days
after receipt by the Corporation of an invoice therefor, by wire or intrabank transfer of funds or in such other commercially acceptable manner as specified by the Provider to the Corporation. The
Provider will invoice the Corporation monthly for reimbursable expenses incurred by the Provider on behalf of the Corporation during the preceding calendar month;  provided, however, that the Provider may separately invoice the Corporation at any time for any single
reimbursable expense incurred by the Provider on behalf of the Corporation in an
amount equal to or greater than [$                        ]. Any invoice or statement pursuant to this Section 2.3(b) will be
accompanied by supporting documentation in
reasonable detail with respect to the actual costs or expenses incurred by the Provider for which the Provider is entitled to reimbursement. 

        (c)   Any
payments not made when due under this Section 2.3 will bear interest at the rate of 1.5% per month on the outstanding amount from and including the due date
to but excluding the date paid. 

 
 

  ARTICLE III    
    
    TERM    
    

        Section 3.1    Term Generally.    The term of this Agreement will commence on the Effective Date and will
continue until December 31, 2010 (the "Term"), unless earlier terminated in accordance with Section 3.3. 

        Section 3.2    Discontinuance of Certain Services.    At any time during the Term, on not less than
30 days' prior notice by the Corporation to the Provider, the Corporation may elect to discontinue obtaining from the Provider any of the Services. In such event, the Provider's obligation to
provide Services that have been discontinued pursuant to this Section 3.2, and the Corporation's obligation to compensate the Provider for such Services, will cease as of the end of such
30-day period (or such later date as may be specified in the notice), and this Agreement will remain in effect with respect to those Services that have not been so discontinued. The
Provider and the Corporation will promptly evaluate the Allocated Employee Expenses for reasonableness following the discontinuance of any Services and 

3

 

will
negotiate in good faith to reach agreement on any appropriate adjustment to the Allocated Employee Expenses. Each party will remain liable to the other for any required payment or performance
accrued prior to the effective date of discontinuance of any Service or termination of this Agreement in its entirety. 

        Section 3.3    Termination.    This Agreement will be terminated in the following events: 

        (a)   at
any time upon at least 30 days' prior notice by the Corporation to the Provider; 

        (b)   immediately
upon notice (or at any time specified in such notice) by the Provider to the Corporation if a Change in Control or Bankruptcy Event occurs with respect to
the Corporation; or 

        (c)   immediately
upon notice (or at any time specified in such notice) by the Corporation to the Provider if a Change in Control or Bankruptcy Event occurs with respect to
the Provider. 

        For
purposes of this Section 3.3, a "Change in Control" will be deemed to have occurred with respect to a party if a merger,
consolidation, binding share exchange, acquisition, or similar transaction (each, a "Transaction"), or series of related Transactions, involving such
party occurs as a result of which the voting power of all voting securities of such party outstanding immediately prior thereto represent (either by remaining outstanding or being converted into
voting securities of the surviving entity) less than 75% of the voting power of such party or the surviving entity of the Transaction outstanding immediately after such Transaction (or if such party
or the surviving entity after giving effect to such Transaction is a subsidiary of the issuer of securities in such Transaction, then the voting power of all voting securities of such party
outstanding immediately prior to such Transaction represent (by being converted into voting securities of such issuer) less than 75% of the voting power of the issuer outstanding immediately after
such Transaction. 

        For
purposes of this Section 3.3, a "Bankruptcy Event" will be deemed to have occurred with respect to a party upon such party's
insolvency, general assignment for the benefit of creditors, such party's voluntary commencement of any case, proceeding, or other action seeking reorganization, arrangement, adjustment, liquidation,
dissolution, or consolidation of such party's debts under any law relating to bankruptcy, insolvency, or reorganization, or relief of debtors, or seeking appointment of a receiver, trustee, custodian,
or other similar official for such party or for all or any substantial part of such party's assets (each, a "Bankruptcy Proceeding"), or the involuntary
filing against the Corporation or the Provider, as applicable, of any Bankruptcy Proceeding that is not stayed within 60 days after such filing. 

 
 

  ARTICLE IV    
    
    PERSONNEL AND EMPLOYEES    
    

        Section 4.1    Personnel to Provide Services.    

        (a)   The
Provider will make available to the Corporation on a non-exclusive basis, the appropriate personnel to perform the Services, as may be reasonably
requested by the Corporation to be performed by the Provider and as necessary and appropriate for the proper and efficient administration and operation of the business and operations of the
Corporation, to the extent and in a manner similar to that performed for the Provider in the operation of its business and operations. The Provider will be responsible for hiring, supervising,
instructing, discharging, and otherwise managing all Provider Employees, and for administering any employee benefit plans applicable to such employees. 

4

 

        (b)   The
Corporation acknowledges that: 

          (i)  the
Provider Employees also will be performing services for the Provider and may be performing services for certain Affiliates of the Provider; and 

         (ii)  the
Provider may elect, in its discretion, to utilize independent contractors rather than employees of the Provider to perform the Services from time to time, and such
independent contractors will be included within the definition of the Provider Employees under this Agreement, where applicable. 

        Section 4.2    Provider as Employer.    Notwithstanding the Services provided by the Provider Employees to the
Corporation, the parties acknowledge that the Provider is and will remain the employer of all Provider Employees and will be responsible for the employment and training of all Provider Employees and
for the payment of salaries, wages, benefits (including health insurance, retirement, and other similar benefits, if any) and other compensation applicable to all Provider Employees, subject to
payment by the Corporation of the Allocated Employee Expenses in accordance with Section 2.1 (and except as expressly provided in Section 4.3). All Provider Employees will be subject to
the personnel policies of the Provider and will be entitled to participate in the Provider's employee benefit plans to the same extent as similarly situated employees of the Provider performing
services in connection with the Provider's business. The Provider will be responsible for the payment of all federal, state, and local withholding taxes on the compensation of all Provider Employees
and other such employment related taxes as are required by law. The Corporation will cooperate with the Provider to facilitate the Provider's compliance with applicable federal, state, and local laws,
rules, regulations, and ordinances applicable to the employment of all Provider Employees by the Provider and their provision of Services to the Corporation pursuant to this Agreement. 

        Section 4.3    Additional Employee Provisions.    The Provider will have the right to terminate the employment
of any Provider Employee at any time. A portion of any severance payments payable to any Provider Employee spending 50% or more of such person's time over the Look-Back Period (as
defined below) in connection with providing Services to the Corporation at the Corporation's request who separates from employment with the Provider during the Term will be allocated to the
Corporation based on the percentage determined by dividing the total number of months that such person was a Provider Employee providing Services to the Corporation on a 50% or greater basis by the
total number of months that such person was employed by the Provider or its predecessors, in each case to the extent taken into account for purposes of determining any severance payments payable to
such person, or such other basis upon which the amount of the severance payments payable to such person may be determined, multiplied by the percentage of such person's time devoted to providing
Services to the Corporation, in each case with the percentage of such person's time devoted to providing Services to the Corporation determined for the one-year period (or such applicable
shorter period of time if such Provider Employee was a Provider Employee for less than one year) immediately preceding the date of separation of employment (the
"Look-Back Period"). The Corporation will not, during the Term, solicit any Provider Employee to become an employee of the Corporation
without the prior consent of the Provider, unless and until the Provider terminates the employment of such Provider Employee. 

 
 

  ARTICLE V    
    
    REPRESENTATIONS AND WARRANTIES    
    

        Section 5.1    Representations and Warranties of the Provider.    The Provider represents and warrants to the
Corporation as follows: 

        (a)   The
Provider is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware. 

5

 

        (b)   The
Provider has the power and authority to enter into this Agreement and to perform its obligations under this Agreement, including the Services. 

        (c)   The
Provider is not subject to any contractual or other legal obligation that materially interferes with its full, prompt, and complete performance under this Agreement. 

        (d)   The
individual executing this Agreement on behalf of the Provider has the authority to do so. 

        Section 5.2    Representations and Warranties of the Corporation.    The Corporation represents and warrants to
the Provider as follows: 

        (a)   The
Corporation is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware. 

        (b)   The
Corporation has the power and authority to enter into this Agreement and to perform its obligations under this Agreement. 

        (c)   The
Corporation is not subject to any contractual or other legal obligation that materially interferes with its full, prompt, and complete performance under this
Agreement. 

        (d)   The
individual executing this Agreement on behalf of the Corporation has the authority to do so. 

 
 

  ARTICLE VI    
    
    INDEMNIFICATION    
    

        Section 6.1    Indemnification by the Provider.    The Provider will indemnify, defend, and hold harmless the
Corporation and each of its officers, directors, employees and agents, successors and assigns (collectively, the "Corporation Indemnitees"), from and
against any and all claims, judgments, liabilities, losses, costs, damages, or expenses, including reasonable counsel fees, disbursements, and court costs
("Losses"), that any Corporation Indemnitee may suffer arising from or out of, or relating to, (a) any breach by the Provider of its obligations
under this Agreement or (b) the gross negligence, willful misconduct, fraud, or bad faith of the Provider in performing its obligations under this Agreement. 

        Section 6.2    Indemnification by the Corporation.    The Corporation will indemnify, defend, and hold harmless
the Provider and its officers, directors, employees and agents, successors and assigns (collectively, the "Provider Indemnitees"), from and against any
and all Losses that any Provider Indemnitee may suffer arising from or out of, or relating to (a) any breach by the Corporation of its obligations under this Agreement or (b) any acts or
omissions of the Provider in providing the Provider Employees or the Services pursuant to this Agreement (except to the extent such Losses (i) arise from or relate to any breach by the Provider
of its obligations under this Agreement, (ii) are attributable to the gross negligence, willful misconduct, fraud, or bad faith of the Provider or such other Provider Indemnitee seeking
indemnification under this Section 6.2, (iii) are fully covered by insurance maintained by the Provider or such other Provider Indemnitee, or (iv) are payable by the Provider
pursuant to Section 7.11). 

6

 

 

        Section 6.2    Indemnification by the Corporation.    The Corporation will indemnify, defend, and hold
harmless
the Provider and its officers, directors, employees and agents, successors and assigns (collectively, the "Provider Indemnitees"), from and against any
and all Losses that any Provider Indemnitee may suffer arising from or out of, or relating to (a) any breach by the Corporation of its obligations under this Agreement or (b) any acts or
omissions of the Provider in providing the Provider Employees or the Services pursuant to this Agreement (except to the extent such Losses (i) arise from or relate to any breach by the Provider
of its obligations under this Agreement, (ii) are attributable to the gross negligence, willful misconduct, fraud, or bad faith of the Provider or such other Provider Indemnitee seeking
indemnification under this Section 6.2, (iii) are fully covered by insurance maintained by the Provider or such other Provider Indemnitee, or (iv) are payable by the Provider
pursuant to Section 7.11). 

        Section 6.3    Indemnification Procedures.    

        (a)   In
connection with any indemnification provided for in this Article VI, the party seeking indemnification (the "Indemnified
Party") will give the party from which indemnification is sought (the "Indemnifying Party") prompt notice whenever it comes to
the Indemnified Party's attention that the Indemnified Party has suffered or incurred, or may suffer or incur, any Losses for which it is entitled to indemnification under this Article VI, and,
when known, the facts constituting the basis for such claim (in reasonable detail). Failure by the Indemnified Party to so notify the Indemnifying Party will not relieve the Indemnifying Party of any
liability under this Agreement except to the extent that such failure prejudices the Indemnifying Party in any material respect. 

        (b)   After
receipt of a notice pursuant to Section 6.3(a), the Indemnifying Party will be entitled, if it so elects, to take control of the defense and investigation
with respect to such claim and to employ and engage attorneys reasonably satisfactory to the Indemnified Party to handle and defend such claim, at the Indemnifying Party's cost, risk, and expense,
upon written notice to the Indemnified Party of such election, which notice acknowledges the Indemnifying Party's obligation to provide indemnification under this Agreement. The Indemnifying Party
will not settle any third-party claim that is the subject of indemnification without the written consent of the Indemnified Party, which consent will not be
unreasonably withheld, delayed or conditioned; provided, however, that, after reasonable notice, the
Indemnifying Party may settle a claim without the Indemnified Party's consent if such settlement (i) makes no admission or acknowledgment of liability or culpability with respect to the
Indemnified Party, (ii) includes a complete release of the Indemnified Party and its Affiliates and their respective officers, directors, employees and agents, and (iii) does not require
the Indemnified Party to make any payment not covered by indemnification by the Indemnifying Party hereunder or to forego or take any action. The Indemnified Party will cooperate in all reasonable
respects with the Indemnifying Party and its attorneys in the investigation, trial, and defense of any lawsuit or action with respect to such claim and any appeal arising therefrom (including the
filing in the Indemnified Party's name of appropriate cross claims and counterclaims). The Indemnified Party may, at its own cost, participate in any investigation, trial, and defense of such lawsuit
or action controlled by the Indemnifying Party and any appeal arising therefrom. If there are one or more legal defenses available to the Indemnified Party that conflict with those available to, or
that are not available to, the Indemnifying Party, the Indemnified Party will have the right, at the expense of the Indemnifying Party, to engage separate counsel reasonably acceptable to the
Indemnifying Party and to participate in the defense of the lawsuit or action. 

        (c)   If,
after receipt of a notice pursuant to Section 6.3(a), the Indemnifying Party does not undertake to defend any such claim, the Indemnified Party may, but will
have no obligation to, contest any lawsuit or action with respect to such claim, and the Indemnifying Party will be bound by the result obtained with respect thereto by the Indemnified Party. The
Indemnified Party may not settle any lawsuit or action with respect to which the Indemnified Party is entitled to 

7

 

indemnification
hereunder without the consent of the Indemnifying Party, which consent will not be unreasonably withheld, delayed, or conditioned. 

        (d)   At
any time after the commencement of defense of any lawsuit or action, the Indemnifying Party may request the Indemnified Party to agree in writing to the abandonment
of such contest or to the payment or compromise by the Indemnifying Party of such claim, whereupon such action will be taken unless the Indemnified Party determines that the contest should be
continued and so notifies the Indemnifying Party in writing within 15 days of such request from the Indemnifying Party. Any request from the Indemnifying Party that any contest be abandoned
will specify the amount that the other party or parties to the contested claim have agreed to accept in payment or compromise of the claim. If the Indemnified Party determines that the contest should
be continued, the Indemnifying Party will be liable under this Agreement only to the extent of the lesser of (i) the amount that the other party or parties to the contested claim had agreed to
accept in payment or compromise as of the time the Indemnifying Party made its request therefor to the Indemnified Party, as specified in the Indemnifying Party's request, or (ii) the amount
for which the Indemnifying Party may be liable with respect to such claim by reason of the provisions of this Agreement. 

        Section 6.4    Limitation on Liability.    In no event will any Indemnifying Party be liable to any Indemnified
Party for any special or punitive damages with respect to any matter relating to this Agreement. The foregoing will not be interpreted to limit indemnification for Losses incurred as a result of the
assertion
by a claimant (other than the parties hereto and their successors and assigns) in a third-party claim for damages of the foregoing type. 

        Section 6.5    Survival.    The terms and conditions of this Article VI will survive the expiration or
termination of this Agreement, regardless of the reason for such expiration or termination. 

 
 

  ARTICLE VII    
    
    MISCELLANEOUS    
    

        Section 7.1    Defined Terms.    

        (a)   The
following terms will have the following meanings for all purposes of this Agreement: 

        "Affiliate" means, with respect to any Person, any other controlled by such Person, with "control" for such purpose meaning the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or voting interests, by
contract, or otherwise. Notwithstanding the foregoing, for purposes of this Agreement, (i) none of The DIRECTV Group, Inc. ("DTV") and its
Subsidiaries will be deemed to be Affiliates of any of the Provider, the Corporation or any of their respective Subsidiaries and (ii) none of the Provider, the Corporation or any of their
respective Subsidiaries will be deemed to be Affiliates of DTV or any of its Subsidiaries. In addition, for purposes of this Agreement, (i) GSN and its Subsidiaries will be deemed to be
Affiliates of the Corporation, (ii) none of IAC/InteractiveCorp, Expedia, Inc. or any of their respective Affiliates will be deemed to be Affiliates of the Provider, the Corporation, or
any of their respective Subsidiaries for any purpose, and (iii) none of the Provider or any of its Subsidiaries will be deemed to be Affiliates of the Corporation or any of its Subsidiaries,
nor will the Corporation or any of its Subsidiaries be deemed to be Subsidiaries of Provider or any of its Subsidiaries 

        "Confidential Information" means any information marked, noticed, or treated as confidential by a party which such party holds in
confidence, including all trade secrets, technical, business, or other information, including customer or client information, however 

8

 

communicated
or disclosed, relating to past, present and future research, development and business activities. 

        "Person" means any natural person, corporation, limited liability corporation, partnership, trust, unincorporated organization,
association, governmental authority, or other entity. 

        "Subsidiary" when used with respect to any Person, means (i)(A) a corporation a majority in voting power of whose share capital or
capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more Subsidiaries of such Person, or by such
Person and one or more Subsidiaries of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a partnership or limited liability company in which
such Person or a Subsidiary of such Person is, at the date of determination, (1) in the case of a partnership, a general partner of such partnership with the power affirmatively to direct the
policies and management of such partnership or (2) in the case of a limited liability company, the managing member or, in the absence of a managing member, a member with the power affirmatively
to direct the policies and management of such limited liability company, or (C) any other Person (other than a corporation) in which such Person, one or more Subsidiaries of such Person or such
Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or direct the election of a majority of the
members of the governing body of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of such a governing body, at least a
majority ownership interest or (ii) any other Person of which an aggregate of 50% or more of the equity interests are, at the time, directly or indirectly, owned by such Person and/or one or
more Subsidiaries of such Person. Notwithstanding the foregoing, for purposes of this Agreement, none of DTV and its Subsidiaries will be deemed to be Subsidiaries of any of the Provider or the
Corporation or any of their respective Subsidiaries. In addition, for purposes of this Agreement, (A) GSN and its Subsidiaries will be deemed to be Subsidiaries of the Corporation,
(B) none of IAC/InteractiveCorp, Expedia, Inc. or any of their respective Subsidiaries will be deemed to be Subsidiaries of the Provider or the Corporation for any purpose, and
(C) none of the Subsidiaries of the Provider will be deemed to be Subsidiaries of the Corporation or any of its Subsidiaries, nor will any of the Corporation or any of its Subsidiaries be
deemed to be Subsidiaries of the Provider or any of its Subsidiaries. 

9

 

        (b)   The
following terms will have the meanings for all purposes of this Agreement set forth in the Section reference provided next to such term: 

			
	Definition

 
	 	Section Reference 
	 Agreement
	 	Preamble
	 Allocated Employee Expenses
	 	Section 2.1(a)
	 Bankruptcy Event
	 	Section 3.3
	 Bankruptcy Proceeding
	 	Section 3.3
	 Change in Control
	 	Section 3.3
	 Corporation
	 	Preamble
	 Corporation Indemnitees
	 	Section 6.1
	 DTV
	 	Section 7.1(a)
	 Effective Date
	 	Preamble
	 GSN
	 	Recitals
	 Indemnified Party
	 	Section 6.3(a)
	 Indemnifying Party
	 	Section 6.3(a)
	 Look-Back Period
	 	Section 4.3
	 Losses
	 	Section 6.1
	 Operating Subsidiaries
	 	Recitals
	 Provider
	 	Preamble
	 Provider Employees
	 	Section 2.1(b)
	 Provider Indemnitees
	 	Section 6.2
	 Reorganization Agreement
	 	Recitals
	 Services
	 	Section 1.1
	 Split-Off
	 	Recitals
	 Supporting Records
	 	Section 1.4
	 Term
	 	Section 3.1
	 Transaction
	 	Section 3.3

        Section 7.2    Entire Agreement; Severability.    This Agreement (including the Exhibits and Schedules attached
hereto), and the Reorganization Agreement, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and thereof, and supersedes all prior agreements and
understandings, oral and written, among the parties hereto with respect to such subject matter. It is the intention of the parties hereto that the provisions of this Agreement will be enforced to the
fullest extent permissible under all applicable laws and public policies, but that the unenforceability of any provision hereof (or the modification of any provision hereof to conform with such laws
or public policies, as provided in the next sentence) will not render unenforceable or impair the remainder of this Agreement. Accordingly, if any provision will be determined to be invalid or
unenforceable either in whole or in part, this Agreement will be deemed amended to delete or modify, as necessary, the invalid or unenforceable provisions and to alter the balance of this Agreement in
order to render the same valid and enforceable, consistent (to the fullest extent possible) with the intent and purposes hereof. 

10

 

        Section 7.3    Notices.    All notices and communications hereunder will be in writing and will be deemed to
have been duly given if delivered personally or mailed, certified or registered mail with postage prepaid, or sent by confirmed facsimile, addressed as follows: 

			
	If to the Provider:	 	 Liberty Media Corporation

12300 Liberty Boulevard

Englewood, Colorado 80112

Attention: General Counsel

Facsimile: (720) 875-5401
	
 If to the Corporation:	
 	
 Liberty Entertainment, Inc.

12300 Liberty Boulevard

Englewood, Colorado 80112

Attention: General Counsel

Facsimile: (720) 875-5401

or
to such other address (or to the attention of such other person) as the parties may hereafter designate in writing. All such notices and communications will be deemed to have been given on the date
of delivery if sent by facsimile or personal delivery, or the third day after the mailing thereof, except that any notice of a change of address will be deemed to have been given only when actually
received. 

        Section 7.4    Governing Law.    This Agreement and the legal relations among the parties hereto will be
governed in all respects, including validity, interpretation and effect, by the laws of the State of Delaware applicable to contracts made and performed wholly therein, without giving effect to any
choice or conflict of laws provisions or rules that would cause the application of the laws of any other jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on
any matter arising out of or in connection with, this Agreement will be brought exclusively in the Delaware Chancery Courts, or, if the Delaware Chancery Courts do not have subject matter
jurisdiction, in the state courts of the State of Delaware located in Wilmington, Delaware, or in the federal courts located in the State of Delaware. Each of the parties hereby consents to personal
jurisdiction in any such action, suit or proceeding brought in any such court (and of the appropriate appellate courts therefrom) and irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court
has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such
court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 7.3 shall be deemed effective service of process on such party. 

        Section 7.5    Rules of Construction.    The descriptive headings in this Agreement are inserted for
convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. Words used in this Agreement, regardless of the gender and number
specifically used, will
be deemed and construed to include any other gender, masculine, feminine, or neuter, and any other number, singular or plural, as the context requires. As used in this Agreement, the word "including"
or any variation thereof is not limiting, and the word "or" is not exclusive. The word day means a calendar day. If the last day for giving any notice or taking any other action is a Saturday, Sunday,
or a day on which banks in New York, New York are closed, the time for giving such notice or taking such action will be extended to the next day that is not such a day. 

        Section 7.6    No Third-Party Rights.    Nothing expressed or referred to in this Agreement is intended or will
be construed to give any Person other than the parties hereto and their respective successors and permitted assigns any legal or equitable right, remedy or claim under or with respect to this
Agreement, or any provision hereof, it being the intention of the parties hereto that this 

11

 

Agreement
and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their respective successors and assigns 

        Section 7.7    Counterparts.    This Agreement may be executed in one or more counterparts, each of which will
be an original and all of which together will constitute one and the same instrument. 

        Section 7.8    Payment of Expenses.    Except as otherwise expressly provided in this Agreement, each of the
parties to this Agreement will bear its own expenses, including the fees of any attorneys and accountants engaged by such party, in connection with this Agreement. 

        Section 7.9    Binding Effect; Assignment.    

        (a)   This
Agreement will inure to the benefit of and be binding on the parties to this Agreement and their respective legal representatives, successors and permitted assigns. 

        (b)   Except
as expressly contemplated hereby (including by Section 4.1), this Agreement, and the obligations arising hereunder, may not be assigned by either party to
this Agreement, except that the Provider may assign its rights and delegate its obligations under this Agreement to any Person that acquires substantially all the assets of the Provider (by merger,
operation of law, or otherwise) or to any Affiliate of the Provider. 

        Section 7.10    Amendment, Modification, Extension or Waiver.    Any amendment, modification or supplement of
or to any term or condition of this Agreement will be effective only if in writing and signed by all parties hereto. Either party to this Agreement may (a) extend the time for the performance
of any of
the obligations or other acts of the other party to this Agreement, or (b) waive compliance by the other party with any of the agreements or conditions contained herein or any breach thereof.
Any agreement on the part of either party to any such extension or waiver will be valid only if set forth in an instrument in writing signed on behalf of such party. No waiver of any term, provision
or condition of this Agreement, whether by conduct or otherwise, in any one or more instance, will be deemed or construed as a further or continuing waiver of any such term, provision or condition or
of any other term, provision or condition, but any party hereto may waive its rights in any particular instance by written instrument of waiver 

        Section 7.11    Legal Fees; Costs.    If either party to this Agreement institutes any action or proceeding to
enforce any provision of this Agreement, the prevailing party will be entitled to receive from the other party reasonable attorneys' fees, disbursements and costs incurred in such action or
proceeding, whether or not such action or proceeding is prosecuted to judgment. 

        Section 7.12    Force Majeure.    Neither party will be liable to the other party with respect to any
nonperformance or delay in performance of its obligations under this Agreement to the extent such failure or delay is due to any action or claims by any third party, labor dispute, labor strike,
weather conditions or any cause beyond a party's reasonable control. Each party agrees that it will use all commercially reasonable efforts to continue to perform its obligations under this Agreement,
to resume performance of its obligations under this Agreement, and to minimize any delay in performance of its obligations under this Agreement notwithstanding the occurrence of any such event beyond
such party's reasonable control. 

        Section 7.13    Specific Performance.    If either party threatens to take any action in violation of the terms
of this Agreement, the other party may apply to any court of competent jurisdiction for an injunctive order prohibiting such proposed action. Either party may institute and maintain any action or
proceeding against the other party to compel the specific performance of this Agreement. The party against which such action or proceeding is brought hereby waives the claim or defense that an
adequate remedy at law exists, and such party will not urge in any such action or proceeding the claim or defense that such remedy at law exists. 

12

 

        Section 7.14    Further Actions.    The parties will execute and deliver all documents, provide all
information, and take or forbear from all actions that may be necessary or appropriate to achieve the purposes of this Agreement. 

        Section 7.15    Confidentiality.    

        (a)   Except
with the prior consent of the disclosing party, each party will: 

          (i)  limit
access to the Confidential Information of the other party disclosed to such party hereunder to its employees, agents, representatives, and consultants on a
need-to-know basis; 

         (ii)  advise
its employees, agents, representatives, and consultants having access to such Confidential Information of the proprietary nature thereof and of the obligations
set forth in this Agreement; and 

        (iii)  safeguard
such Confidential Information by using a reasonable degree of care to prevent disclosure of the Confidential Information to third parties, but not less than
that degree of care used by that party in safeguarding its own similar information or material. 

        (b)   A
party's obligations respecting confidentiality under Section 7.15(a) will not apply to any of the Confidential Information of the other party that a party can
demonstrate: (i) was, at the time of disclosure to it, in the public domain; (ii) after disclosure to it, is published or otherwise becomes part of the public domain through no fault of
the recipient; (iii) was in the possession of the recipient at the time of disclosure to it without being subject to any obligation of confidentiality; (iv) was received after disclosure
to it from a third party who, to its knowledge, had a lawful right to disclose such information to it; (v) was independently developed by the recipient without reference to the Confidential
Information; (vi) was required to be disclosed to any regulatory body having jurisdiction over a party or any of their respective clients; or (vii) was required to be disclosed by reason
of legal, accounting, or regulatory requirements beyond the reasonable control of the recipient. In the case of any disclosure pursuant to clauses (vi) or (vii) of this paragraph (b), to
the extent practical, the recipient will give prior notice to the disclosing party of the required disclosure and will use commercially reasonable efforts to obtain a protective order covering such
disclosure. 

        (c)   The
provisions of this Section 7.15 will survive the expiration or termination of this Agreement, regardless of the reason for such expiration or termination. 

13

 

        IN
WITNESS WHEREOF, each of the parties has signed this Agreement, or has caused this Agreement to be signed by its duly authorized officer, as of the date first above written. 

					
	 	 	CORPORATION:
	

 	
 	
LIBERTY ENTERTAINMENT, INC.
	

 	
 	
By:	
 	
 

 
	 	 	Name:

Title:
	

 	
 	
PROVIDER:
	

 	
 	
LIBERTY MEDIA CORPORATION
	

 	
 	
By:	
 	
  

 
	 	 	Name:

Title:

14

   List of Omitted Exhibits and Schedules  

        The following schedule to the Services Agreement, dated as of
[                        ], 2009, by and between Liberty
Media Corporation and Liberty Entertainment, Inc., has not been provided herein: 

        Schedule 2.1—Allocated
Employee Expenses in Effect for Calendar Year 2009 

        The
undersigned registrant hereby undertakes to furnish supplementally a copy of any omitted exhibit or schedule to the Securities and Exchange Commission upon request. 

QuickLinks

Exhibit 10.5

FORM OF SERVICES AGREEMENT

ARTICLE I ENGAGEMENT AND SERVICES

ARTICLE II COMPENSATION

ARTICLE III TERM

ARTICLE IV PERSONNEL AND EMPLOYEES

ARTICLE V REPRESENTATIONS AND WARRANTIES

ARTICLE VI INDEMNIFICATION

ARTICLE VII MISCELLANEOUS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]