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Exhibit 10.6  

 
 

FORM OF CREDIT FACILITY    
    

        THIS CREDIT FACILITY dated as of                        , 2004 is
between LIBERTY MEDIA CORPORATION, a Delaware corporation ("LMC"), and LIBERTY MEDIA
INTERNATIONAL, INC., a Delaware corporation ("LMI"). 

RECITALS

        A.    LMI
has requested that LMC establish a revolving credit facility pursuant to which LMI may obtain loans in an aggregate principal amount outstanding at any one time not
exceeding $[500,000,000 less the amount as of the Distribution Date of the note payable by Liberty Japan, Inc.].

        B.    LMC
is willing to extend such revolving credit loans on the terms and conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the parties agree as follows: 

ARTICLE I.

CERTAIN DEFINITIONS 

        "Business
Day" shall mean any day other than a Saturday, Sunday or other day on which banks in New York, New York or Denver, Colorado are authorized to close their regular banking
business. 

        "Capital
Lease" shall mean, with respect to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee which, in accordance with GAAP, is or should
be accounted for as a capital lease on the balance sheet of that Person. 

        "Default"
shall mean an event that, with the giving of notice or the passage of time (or both), would constitute an Event of Default. 

        "Distribution
Date" shall mean the date on which LMC distributes all of the issued and outstanding common stock of LMI to holders of Series A Common Stock and Series B
Common Stock. 

        "Event
of Default" or "Events of Default" shall have the meanings set forth in Article VI. 

        "Facilities
and Services Agreement" shall mean the Facilities and Services Agreement between LMC and LMI, as such agreement may be amended from time to time, pursuant to which LMC will
provide, among other things, certain facilities and services to LMI. 

        "GAAP"
shall mean generally accepted accounting principals in the United States of America consistently applied (except for accounting changes in response to FASB releases, or other
authoritative pronouncements). 

        "Indebtedness"
shall mean, with respect to any Person, without duplication, all obligations of such Person (i) for borrowed money, (ii) evidenced by bonds, notes,
debentures or similar instruments, (iii) upon which interest charges are customarily paid, (iv) issued or assumed as the deferred purchase price of property or services (other than
accounts payable to suppliers incurred in the ordinary course of business), (v) in respect of letters of credit and bankers acceptances, (vi) obligations of such Person under Capital
Leases, (vii) Indebtedness of others of the type described in clauses (i) through (vi) hereof which such Person has directly or indirectly assume or guaranteed, or secured by a
lien on the assets of such Person whether or not such Person has assumed such Indebtedness. 

        "Maturity
Date" shall mean March 31, 2005.

        "Maximum
Rate" shall have the meaning set forth in section 2.02(d). 

        "Note"
shall have the meaning set forth in Section 2.01(c).

 

        "Person"
shall mean any natural person, corporation, limited liability company, partnership, business trust, joint stock company, trust, unincorporated association, joint venture,
governmental authority or any other entity, whether acting in an individual, fiduciary or other capacity. 

        "Prepayment
Notice" shall have the meaning set forth in Section 2.03(b). 

        "Relevant
Subsidiary" shall mean each of the following: Liberty Cablevision of Puerto Rico, Ltd., Liberty IFE, Inc., Liberty Media International Holdings, LLC, Liberty NC
X, Inc., Liberty PR, Inc., Pramer SCA, those Subsidiaries through which LMI from time to time holds it equity interests in Jupiter Telecommunications Co., Ltd., Liberty Jupiter
Finance, Inc., those Subsidiaries through which LMI from time to time holds it equity interests in Jupiter Programming Co., Ltd., those Subsidiaries through which LMI from time to time
holds it equity interests in United GlobalCom, Inc., and United GlobalCom, Inc. 

        "Reorganization
Agreement" shall mean the Reorganization Agreement entered into by LMC, LMI and Liberty Media International Holdings, LLC on or before the Distribution Date. 

        "Revolving
Loan Commitment" shall mean the commitment of LMC to make Revolving Loans hereunder in an aggregate outstanding principal amount of
$[500,000,000 less the amount as of the Distribution Date of the note payable by Liberty Japan, Inc.], as such amount may
be adjusted from time to time pursuant to Section 2.04. 

        "Revolving
Loan Commitment Termination Date" shall mean the date on which the commitment of LMC to make Revolving Loans under this Agreement terminates in accordance with
Section 2.04. 

        "Revolving
Loans" shall have the meaning set forth in Section 2.01. 

        "Series A
Common Stock" shall mean the Series A Common Stock of LMC. 

        "Series B
Common Stock" shall mean the Series B Common Stock of LMC. 

        "Subsidiary"
shall mean (with respect to any Person) any corporation, limited liability company, partnership, joint venture or other entity, whether now existing or hereafter organized
or acquired, in which: (i) ownership interests having a majority of the voting power in the election of directors or similar officers (excluding for these purposes ownership interests that
entitle the holder to vote only upon the occurrence of a contingency) are at the time owned, directly or indirectly, by such Person and/or one or more of its Subsidiaries, or (ii) the managing
owner is such Person or one or more of its Subsidiaries. 

ARTICLE II.

THE LOANS 

        SECTION
2.01.    Revolving Loans.

        (a)   Upon
the terms and subject to the conditions set forth in this Agreement, LMC agrees to make loans (each a "Revolving Loan," and collectively the "Revolving Loans") on a
revolving credit basis to LMI, from time to time, from the date hereof to but excluding the Revolving Loan Commitment Termination Date, at such time and in such amounts as LMI shall request, in an
aggregate principal amount at any time outstanding not in excess of the amount of the Revolving Loan Commitment. Upon the terms and subject to the conditions set forth in this Agreement, LMI may
borrow, repay and reborrow funds from LMC. 

        (b)   In
order to effect a borrowing under the Revolving Loan Commitment, LMI shall give LMC prior irrevocable written notice not less than three Business Days before a
requested borrowing. Each such notice shall be signed by an authorized officer of LMI, shall refer to this Agreement and shall specify: (i) the amount of the requested borrowing under this
Agreement, (ii) the date (which shall be

 
a Business Day) on which LMI is requesting the proceeds of such borrowing and (iii) that all conditions to such borrowing set forth in Article IV of this Agreement have been satisfied. 

        (c)   LMI's
obligation to repay the Revolving Loans made by LMC shall be evidenced by a promissory note (the "Note") (which shall be substantially in the form of
Exhibit A) dated the date hereof, duly executed on behalf of LMI and payable to the order of LMC. LMC shall endorse on the schedule attached to the Note, or otherwise record in its internal
records, an appropriate notation evidencing the date and amount of each Revolving Loan, each payment and prepayment of the principal amount of any Revolving Loan and other information provided for on
such schedule. Any failure of LMC to make such a notation or any error in such notation shall not affect the obligation of LMI to repay the Revolving Loans in accordance with the terms of this
Agreement and the Note. 

        SECTION
2.02.    Interest on Revolving Loans and Other Payments.

        (a)   Subject
to Section 2.02(d) below, the unpaid principal amount of each Revolving Loan shall bear interest at a rate per annum (computed on the basis of the actual
number of days elapsed over a year of 365 or 366 days, as applicable) equal to 6.0% until the earlier of (i) the occurrence and continuation, of an Event of Default or (ii) the
Maturity Date. Accrued interest shall compound semiannually until paid. 

        (b)   Interest
on each Revolving Loan shall be due and payable on the date the principal amount of such Revolving Loan is prepaid, upon acceleration of such Revolving Loan or
on the Maturity Date. LMI shall have the right, at any time and from time to time on any Business Day, to pay any outstanding amount of accrued interest owing but not yet payable on the Revolving
Loans by delivery of the amount of any such payment to LMC and designating such payment as a payment of accrued interest. 

        (c)   From
and after the Maturity Date and after the occurrence and during the continuation of an Event of Default, LMI shall, on demand from time to time, pay interest, to
the extent permitted by law, on all amounts payable hereunder (including interest) up to the date of actual payment (after as well as before judgment) at a rate per annum (computed on the basis of the
actual number of days elapsed over a year of 365 or 366 days, as applicable) equal to 8.0%. 

        (d)   All
agreements between LMI and LMC are expressly limited so that in no event whatsoever shall the interest paid or agreed to be paid to LMC for the use, forbearance or
detention of the indebtedness evidenced by the Note exceed the maximum rate permissible under applicable law (the "Maximum Rate"). If LMC ever receives an amount which would represent interest in
excess of the Maximum Rate, such amount as would be excessive interest shall be applied to reduce the principal amount owing under the Note and not to the payment of interest. In determining whether
the interest paid or payable exceeds such Maximum Rate, LMI and LMC shall to the maximum extent permitted by applicable law: (i) characterize any non-principal payment as an
expense, fee or premium rather than as interest; (ii) exclude voluntary prepayments and the effects thereof; and (iii) amortize, prorate, allocate and spread the total amount of interest
throughout the full term of the Note so that the actual rate of such interest does not exceed such Maximum Rate. For purposes of the Note, the term "applicable law" shall mean that law in effect from
time to time and applicable to the credit transaction between LMI and LMC which lawfully permits the charging and collection of the highest permissible, lawful, non-usurious rate of
interest on such transaction and the Note, including laws of the State of Colorado and, to the extent controlling, laws of the United States of America. 

        SECTION
2.03.    Payment; Maturity; Prepayment.

        (a)   Unless
accelerated hereunder, the principal amount of each Revolving Loan, together with all interest accrued thereon, shall be due and payable on the Maturity Date.

 

        (b)   LMI
shall have the right, at any time and from time to time, to prepay any Revolving Loan, in whole or in part, without premium or penalty, upon giving written notice (a
"Prepayment Notice") to LMC at least three Business Days prior to such prepayment. Each Prepayment Notice shall specify the principal amount of each Revolving Loan (or portion thereof) to be prepaid
and the date of prepayment and shall commit LMI to prepay such borrowing on the date specified therein. All prepayments shall be accompanied by accrued interest on the principal amount being prepaid
to the date of prepayment. 

        (c)   LMI
shall prepay the outstanding Revolving Credit Loans upon the closing of any equity or debt financing by LMI in an amount equal to 100% of the amount of the net
proceeds of such equity financing or the borrowings available under the commitments obtained in connection with such debt financing. LMI shall give three Business Days' prior written notice to LMC of
the closing date of any such equity or debt financing. Any prepayments under this section 2.03(c) may not be reborrowed, and pursuant to section 2.04(a) will reduce the Revolving Loan
Commitment. 

        SECTION
2.04.    Reduction and Termination of Revolving Loan Commitment.

        (a)   Any
prepayments on the Revolving Loans under section 2.03(c) shall immediately and irrevocably reduce the Revolving Loan Commitment by the principal amount so
prepaid. 

        (b)   Upon
at least three Business Days' prior irrevocable written notice to LMC, LMI may at any time, from time to time, in whole or in part permanently reduce the amount of
the Revolving Loan Commitment. 

        (c)   The
Revolving Loan Commitment shall terminate on the earlier of (i) the Maturity Date or (ii) termination pursuant to Section 6.01. 

        SECTION
2.05.    Manner of Payment

        (a)   Each
payment (including any prepayment) by LMI on the account of the principal of or interest on the Revolving Loans, and any other amount owed to LMC under this
Agreement or the Note, shall be made not later than 1:00 p.m. (Denver, Colorado time) on the date specified for payment under this Agreement to LMC to an account designated by LMC, in lawful
money of the United States of America in immediately available funds. The failure of LMI to make any such payment by such time shall not constitute an Event of Default hereunder, provided that such
payment is received by LMC in immediately available funds by 4:00 p.m. (Denver, Colorado time) on such due date. Any payment made after 1:00 p.m. (Denver, Colorado time) on any date
shall be deemed to have been made on the next Business Day for the purpose of calculating interest on amounts outstanding on the Revolving Loans. All payments made by LMI under this Agreement or the
Note shall be applied first to costs and expenses, if any, then to accrued and unpaid interest and then to the principal amount outstanding. 

        (b)   If
any payment under this Agreement or the Note shall be specified to be made upon a day which is not a Business Day, it shall be made on the next day which is a
Business Day, and such extension of time shall in such case be included in computing interest and fees, if any, in connection with such payment. 

        (c)   LMI
agrees to pay principal, interest and all other amounts due hereunder or under the Note without set-off or counterclaim or any deduction whatsoever and
free and clear of all taxes, levies and withholding. If LMI is required by applicable law to deduct any taxes from or in respect of any sum payable to LMC hereunder or under the Note: (i) the
sum payable hereunder and thereunder, as applicable, shall be increased to the extent necessary to provide that, after making all required deductions (including deductions applicable to additional
sums payable under this Section 2.05(c)), LMC receives an amount equal to the sum it would have received had no such deductions been made; (ii) LMI shall make such deductions from such
sums payable hereunder and thereunder, as applicable,

 
and pay the amount so deducted to the relevant taxing authority as required by applicable law; and (iii) LMI shall provide LMC with evidence satisfactory to it that such deducted amounts have
been paid to the relevant taxing authority. 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES 

        SECTION
3.01.    Representations and Warranties.    As an inducement to LMC to enter into this Agreement and to make
the Revolving Credit Loans, LMI hereby represents and warrants to LMC that: 

        (a)   It
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power to own, lease and
operate its properties, to carry on its business as presently conducted and to carry out the transactions contemplated by this Agreement. 

        (b)   It
has duly and validly taken all corporate action necessary to authorize the execution, delivery and performance of this Agreement and the Note. 

        (c)   Each
of this Agreement and the Note has been duly executed and delivered by it and constitutes its legal, valid and binding obligation enforceable in accordance with its
terms, except as enforceability may be limited by laws affecting creditors' rights generally or by principles governing the availability of equitable remedies. 

        (d)   None
of the execution and delivery of this Agreement and the Note or the compliance with any of the provisions of this Agreement and the Note will (i) conflict
with or result in a breach of any provision of its corporate charter or bylaws, (ii) breach, violate or result in a default under any of the terms of any agreement or other instrument or
obligation (including, without limitation, those in respect of Indebtedness) to which it or any of its Subsidiaries is a party or by which it or any of its Subsidiaries' properties or assets may be
bound or (ii) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to it or any of its Subsidiaries or affecting any of its or any of its Subsidiaries' properties or assets. 

ARTICLE IV.

CONDITIONS OF LENDING 

        SECTION
4.01.    Conditions Precedent.    The obligation of LMC to make a Revolving Loan hereunder on any date shall
be subject to the satisfaction of the following conditions precedent each in form and substance satisfactory to LMC in its sole discretion: 

        (a)   LMC
shall have received a notice of such borrowing as required by Section 2.01(b). 

        (b)   The
representations and warranties of LMI set forth in Article III shall be true and correct with the same effect as though made on and as of such date. 

        (c)   LMI
shall be in compliance with all of the terms and conditions of this Agreement and the Note, and at the time of, and immediately after, such borrowing no Default or
Event of Default shall have occurred and be continuing. 

        (d)   LMI
shall be in compliance, in all material respects and subject to all applicable cure periods contained therein, with all of the terms and conditions of the
Reorganization Agreement and the Facilities and Services Agreement. 

        (e)   LMC
shall have received from LMI such additional information and materials as LMC shall have reasonably requested, and all documents in connection with any Revolving
Loan shall be satisfactory to counsel for LMC.

 

        The
acceptance of the proceeds of any Revolving Loan shall be deemed to be a representation and warranty by LMI as to compliance with this Section 4.01 on the borrowing date for
any such Revolving Loan. 

ARTICLE V.

COVENANTS 

        On
and after the date hereof until the termination of the Revolving Loan Commitment and the payment in full of the Revolving Loans and the performance by LMI of all other obligations of
LMI hereunder, LMI covenants and agrees that: 

        SECTION
5.01.    Corporate Existence.    It will, and will use commercially reasonable efforts to cause each of its
Relevant Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence; provided, however, that (i) LMI may merge or
consolidate with a wholly-owned Subsidiary of LMI (so long as LMI is the surviving entity) and (ii) wholly-owned Subsidiaries of LMI may merge or consolidate with other wholly-owned
Subsidiaries of LMI or with LMI, and (iii) wholly-owned Subsidiaries of LMI may be dissolved. 

        SECTION
5.02.    Businesses and Properties.    It will, and will use commercially reasonable efforts to cause each of
its Relevant Subsidiaries to, at all times do or cause to be done all things necessary to preserve, renew and keep in full force and effect the rights, licenses, permits, franchises, patents,
copyrights, trademarks and trade names material to the conduct of its business; comply in all material respects with all laws and regulations applicable to the operation of such business whether now
in effect or hereafter; take all actions which are required to obtain, preserve, renew and extend all licenses, permits and other authorizations which are material to the operation of such business;
and at all times maintain, preserve and protect all property material to the conduct of such business and keep such property in good repair, working order and condition. 

        SECTION
5.03.    Obligations and Taxes.    It will, and will use commercially reasonable efforts to cause each of its
Relevant Subsidiaries to, pay and discharge promptly when due all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or in respect of its
property before the same shall become delinquent or in default, as well as all lawful claims for labor, materials and supplies or otherwise, which, if unpaid, might give rise to material liens or
charges upon such properties or any part thereof; provided, however, that neither LMI nor any Relevant
Subsidiary shall be required to pay and discharge or to cause to be paid and discharged any such tax, assessment, charge, levy or claim so long as the validity or amount thereof is being contested in
good faith by appropriate proceedings and LMI or any such Relevant Subsidiary shall, to the extent required by generally accepted accounting principles applied on a consistent basis, have set aside on
its books adequate reserves with respect thereto. 

        SECTION
5.04.    Financial Statements; Reports, Etc.    It will furnish to LMC: 

        (a)   promptly
after the same become publicly available, copies of such annual, periodic and other reports, and such proxy statements and other information, as LMI files with
the Securities and Exchange Commission (the "SEC") pursuant to the requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including, without limitation, copies of the
annual report and the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which LMI is required to file with
the SEC pursuant to Section 13 or 15(d) of the Exchange Act; provided, however, that LMI shall be permitted to deliver its annual report on Form 10-K and its quarterly
reports on Form 10-Q at the same times as LMI is required to file the corresponding certificate described in section 5.04 (b) below;

 

        (b)   within
60 days after the end of each of the first three fiscal quarters and within 90 days after the end of the last fiscal quarter of LMI, a certificate
of the Chief Financial Officer of LMI certifying that to the best of his knowledge no Default or Event of Default has occurred, and, if such a Default or Event of Default has occurred, specifying the
nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto; and 

        (c)   promptly,
from time to time, such other information regarding the affairs, operations or condition (financial or otherwise) of LMI or any of its Subsidiaries as LMC may
reasonably request and which is capable of being obtained, produced or generated by LMI or any of its Relevant Subsidiaries. 

        SECTION
5.05.    Litigation and Other Notices.    It will give LMC prompt written notice of the following: 

        (a)   the
issuance by any court or governmental agency or authority of any injunction, order, decision or other restraint prohibiting, or having the effect of prohibiting, the
making of the Revolving Loans or invalidating, or having the effect of invalidating, any provision of this Agreement or the Note, or the initiation of any litigation or similar proceeding seeking any
such injunction, order or other restraint; 

        (b)   the
filing or commencement of any action, suit or proceeding against LMI or any of its Subsidiaries, whether at law or in equity or by or before any court or any
federal, state, municipal, foreign or other governmental agency or authority as to which there is a reasonable possibility of an adverse determination and which, if adversely determined against LMI or
any such Subsidiary, could materially impair LMI's ability to perform its obligations under this Agreement or the Note or materially and adversely affect the business, assets, operations, prospects or
condition (financial or otherwise) of LMI and its Subsidiaries, considered as a whole; 

        (c)   any
Default or Event of Default, specifying the nature and extent thereof and the action (if any) which is proposed to be taken with respect thereto; and 

        (d)   any
event or condition which would permit the holder or obligee of any Indebtedness of LMI or any of its Relevant Subsidiaries in an aggregate amount in excess of
$10,000,000 to accelerate the maturity of such Indebtedness. 

        SECTION
5.06.    Maintaining Records; Access to Properties and Inspections.    It will maintain financial records in
accordance with generally accepted accounting practices in effect from time to time in the United States of America and, upon reasonable notice, at all reasonable times and as often as LMC may
request, permit any authorized representative designated by LMC to inspect the properties and financial records of LMI, and to make extracts from such financial records at LMC's expense, and permit
any authorized representative designated by LMC to discuss the affairs, finances and condition of LMI and its Subsidiaries with LMI's Chief Financial Officer and such other officers as LMI shall deem
appropriate and with LMI's independent public accountants. 

        SECTION
5.07.    Sales of Assets.    It will not, in one transaction or any series of related transactions, sell,
transfer or otherwise dispose of all or substantially all of its assets without either the prior written consent of LMC to such sale, transfer or disposition or applying the proceeds of such
transaction to pay in full the Revolving Loans. 

        SECTION
5.08.    Dividends, Etc.    It will not declare or pay any dividend or make any distribution on its capital
stock (other than dividends or distributions payable in common stock), or purchase, redeem or otherwise acquire or retire for value any capital stock of LMI and it will use commercially reasonable
efforts to prohibit any Relevant Subsidiary (other than United GlobalCom, Inc.) from purchasing or otherwise acquiring or retiring for value any capital stock of LMI. Notwithstanding the
preceding sentence, LMI may issue and distribute to its stockholders rights to purchase shares of LMI's

 
common stock, including rights to purchase such stock at a discount from the trading price thereof determined by LMI's board of directors. 

        SECTION
5.09.    Use of Proceeds.    LMI shall use the proceeds of the Revolving Loans only (a) to fund working
capital needs and (b) to fund investments and acquisitions. 

        SECTION
5.10.    Debt or Equity Financing.    LMI shall use commercially reasonable efforts to consummate an equity or
debt financing as soon as practicable in an amount sufficient to repay all amounts due and owing under the Revolving Loans and, in the case of debt financing, in an amount sufficient to replace the
Revolving Loan Commitment hereunder, in each case by the Maturity Date. 

ARTICLE VI.

EVENTS OF DEFAULT 

        SECTION
6.01.    Consequences of Event of Default.    If any one or more of the following events ("Events of Default")
shall occur and be continuing, LMC may by notice to LMI terminate the Revolving Loan Commitment and/or declare the entire unpaid balance of the principal of and interest on any outstanding Revolving
Loans to be forthwith due and payable, and thereupon the same and all other liabilities of LMI accrued hereunder shall immediately become due and payable without further act, except that in the case
of the occurrence of an Event of Default described in Section 6.06, the Revolving Loan Commitment shall automatically terminate and the unpaid balance of the principal of and interest on all of
the outstanding Revolving Loans and all other liabilities of LMI accrued hereunder shall automatically become due and payable without any requirement of notice. Except for the notice provided for in
the immediately preceding sentence, LMI hereby irrevocably waives any presentment, demand, protest, notice of protest or other notice of any kind. 

        SECTION
6.02.    Failure to Pay.    Failure by LMI to make any payment of principal of or interest on the Revolving
Loans when due, whether at maturity or at a date fixed for prepayment or otherwise; provided, however, that no event of default shall be deemed to occur upon a failure by LMI to pay an optional
prepayment under section 2.03(b). 

        SECTION
6.03.    Breach of Covenants.

        (a)   Failure
by LMI to perform or observe any of the agreements or covenants of LMI set forth in Sections 5.01, 5.03, 5.07, 5.08 or 5.09; or 

        (b)   Failure
by LMI to perform or observe any other term, covenant or condition of this Agreement which remains unremedied for a period of 30 days after LMC has
notified LMI of such failure. 

        SECTION
6.04.    Breach of Debt Instrument.    A default by LMI or any of its Relevant Subsidiaries in the payment of
principal of or interest on any Indebtedness in excess of $10,000,000, or the failure to observe or perform any other agreement or condition relating to any such Indebtedness, or the occurrence or
failure to occur of any other event or condition, so that, as a result such Indebtedness is accelerated or may be declared due and payable prior to the date on which such Indebtedness otherwise would
become due and payable, unless prior to the exercise by LMC of any of its remedies hereunder (including acceleration of the maturity of the Revolving Loans): (i) such default, failure to
observe or perform, occurrence or failure to occur has been cured in full or unconditionally waived with the result that the payment of such Indebtedness may not thereafter be accelerated on the basis
thereof, or (ii) such declaration of acceleration has been rescinded or annulled on terms satisfactory to LMC or (iii) LMI or such Relevant Subsidiary, as the case may be, has contested
such declaration of acceleration in good faith and by appropriate proceedings and has obtained and thereafter maintained the stay of such acceleration and all consequences thereof that would have a
material adverse effect on LMI and its Subsidiaries (considered as a whole) or the rights of LMC hereunder.

 

        SECTION
6.05.    Breach of Representation.    Any representation or warranty made by LMI to LMC in this Agreement or
in any certificate or other document furnished by LMI at any time under or in connection with this Agreement, proves to have been false in any material respect when made. 

        SECTION
6.06.    Bankruptcy, Etc.    LMI shall make an assignment for the benefit of creditors, file a petition
in bankruptcy, be adjudicated insolvent or bankrupt, suffer an order for relief under any federal bankruptcy law, petition or apply to any tribunal for the appointment of a custodian, receiver or any
trustee for it or a substantial part of its assets, or shall commence any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute
of any jurisdiction, whether now or hereafter in effect; or if there shall have been filed any such petition or application, or any such proceeding shall have been commenced against it, which remains
undismissed for a period of 60 days or more; or LMI, by any act or omission, indicates its consent to, approval of or acquiescence in any such petition, application or proceeding or the
appointment of a custodian, receiver or any trustee for it or any substantial part of any of its properties, or suffers any custodianship, receivership or trusteeship to continue undischarged for a
period of 60 days or more. 

        SECTION
6.07.    Judgments, Etc.    Any judgment against LMI or any of its Relevant Subsidiaries for any amount in
excess of $10,000,000 shall remain unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of 60 days or more. 

ARTICLE VII.

MISCELLANEOUS 

        SECTION
7.01.    Severability.    If any term, provision, covenant or restriction of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and
restrictions without including any of such which may be hereafter declared invalid, void or unenforceable. In the event that any such term, provision, covenant or restriction is so held to be invalid,
void or unenforceable, the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term,
provision or restriction. 

        SECTION
7.02.    Assignment.    This Agreement shall not be assignable, in whole or in part, directly or indirectly,
by LMI without the prior written consent of LMC, and any attempt by LMI to assign any rights or obligations arising under this Agreement without such consent shall be void. LMC may not assign this
Agreement or the Note, in whole or in part, directly or indirectly, without the prior written consent of LMI, and any attempt by LMC to assign any rights or obligations arising under this Agreement or
the Note without such consent shall be void. The provisions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by LMC and LMI and their respective successors and
permitted assigns. 

        SECTION
7.03.    Further Assurances.    Subject to the provisions hereof, each of LMC and LMI shall make, execute,
acknowledge and deliver such other instruments and documents, and take all such other actions as may reasonably be required to effect the purposes of this Agreement and to consummate the transactions
contemplated hereby. Subject to the provisions hereof, each of LMC and LMI shall, in connection with entering into this Agreement, performing its obligations hereunder and taking any and all actions
relating thereto, comply with all applicable laws, regulations, orders and decrees, obtain all required consents and approvals and make all required filings with any governmental agency, regulatory or
administrative agency, commission or similar authority and promptly provide the other with all such information as the other may reasonably request in order to be able to comply with the provisions of
this sentence.

 

        SECTION
7.04.    Parties in Interest.    Nothing in this Agreement expressed or implied is intended or shall be
construed to confer any right or benefit upon any person or entity other than LMC and LMI and their respective successors and permitted assigns. 

        SECTION
7.05.    Waivers, Etc.    No failure or delay on the part of LMC in exercising any power or right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. No modification or waiver of any provision of this Agreement nor consent to any departure by LMC therefrom shall in any
event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and only for the purpose for which given. 

        SECTION
7.06.    Setoff.    All payments to be made by LMI under this Agreement shall be made without setoff,
counterclaim or withholding, all of which are irrevocably waived. 

        SECTION
7.07.    Confidentiality.    Subject to any contrary requirement of law and the right of each party to enforce
its rights hereunder in any legal action, each party shall keep strictly confidential, and shall cause its employees and agents to keep strictly confidential, any information which it or any of its
agents or employees may acquire pursuant to, or in the course of performing its obligations under, this Agreement. Such obligation to maintain confidentiality shall not apply to information which
(a) at the time of disclosure was in the public domain not as a result of acts by the receiving party, (b) is received from a third party who is not bound by an obligation of
confidentiality to LMC or LMI with respect to such information, (c) is disclosed in compliance with an order of a court of competent jurisdiction or to comply with applicable laws or
regulations or (d) is developed independently by the receiving party and its officers, employees or agents. To the extent that a party is required to disclose such information to comply with
applicable laws and regulations such party will (i) give the other party reasonable prior notice to allow it to seek a protective order or other appropriate remedy (to the extent such notice is
not in breach of applicable laws or regulations), (ii) disclose only such information as is required by law or regulation, and (iii) use commercially reasonable efforts to obtain
confidential treatment for any information so disclosed. 

        SECTION
7.08.    Expenses. LMI agrees to promptly pay: 

        (a)   All
reasonable out-of-pocket expenses of LMC in connection with the preparation, negotiation, execution, and delivery of this Agreement and the
Note and the transactions contemplated hereunder and thereunder; and 

        (b)   All
reasonable out-of pocket costs and expenses of enforcement of rights and collection if an Event of Default occurs in the payment of the Note, which in
each case shall include reasonable fees and out-of-pocket expenses of counsel for LMC. 

        SECTION
7.09.    Entire Agreement.    This Agreement and the Note contain the entire agreement of the parties with
respect to the transactions contemplated hereby. 

        SECTION
7.10.    Headings.    Descriptive headings are for convenience only and shall not control or affect the
meaning or construction of any provision of this Agreement. 

        SECTION
7.11.    Counterparts.    For the convenience of the parties, any number of counterparts of this Agreement may
be executed by the parties hereto, and each such executed counterpart shall be, and shall be deemed to be, an original instrument.

 

        SECTION
7.12.    Notices.    All notices and other communications provided for herein or made hereunder shall be in
writing and shall be hand delivered, telecopied or mailed to the intended recipient as specified below: 

	LMI:	 	Liberty Media International, Inc.

12300 Liberty Boulevard

Englewood, CO 80112

Attn: Elizabeth M. Markowski, Esq.

Facsimile: (720) 875-5858
	

LMC:	
 	

Liberty Media Corporation

12300 Liberty Boulevard

Englewood, CO 80112

Attn: Charles Y. Tanabe, Esq.

Facsimile: (720) 875-5382

or
to such other telephone number or address as shall be designated by such party in a notice to the other party. All notices and other communications hereunder (other than a notice of change of
address or telephone number) shall be deemed delivered and received: (a) in the case of a telecopy, when transmitted by telecopier, answer-back received, (b) in the case of
personal delivery, when delivered, and (c) in the case of a mailing, three Business Days after it is deposited in the mails
(registered or certified mail, return receipt requested, postage prepaid), in each case given or addressed as aforesaid. Telephonic notice may be given, provided it is promptly confirmed by the sender
by telecopy. A notice designating a change of address or telephone number shall be deemed delivered when actually received by the recipient. 

        SECTION
7.13.    Governing Law.    This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of Colorado applicable to contracts made and to be performed exclusively therein. 

 

        IN WITNESS WHEREOF, LMC and LMI have caused this Credit Agreement to be duly executed by their respective officers, each of whom is duly
authorized, all as of the day and year first above written. 

	 	 	LIBERTY MEDIA CORPORATION
	

 	
 	

 By:

Title:
	

 	
 	

LIBERTY MEDIA INTERNATIONAL, INC.
	

 	
 	

 By:

Title:

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Exhibit 10.7  

 
 

FORM OF SERVICES AGREEMENT    
    

        This Services Agreement (this "Agreement") is entered into effective as of June 7, 2004 (the "Effective Date") by and between Liberty Media
International, Inc., a Delaware corporation (the "Company"), and UnitedGlobalCom, Inc., a Delaware corporation ("Provider"). 

Recitals  

        A.    The
Company commenced business as an independent publicly-traded company on the date hereof following the distribution of the Company's stock by its sole stockholder
Liberty Media Corporation ("LMC") to LMC's stockholders (the "Spin-Off"). The Company owns and operates certain subscription television, telecommunications, television programming and
other related businesses outside of the United States of America (the "Company Business"). The Company and Provider agree that it is in their mutual best interests for Provider to perform certain
services for the Company in connection with the Company Business and for the Company to compensate Provider for the performance of such services. 

        B.    The
parties desire to set forth in this Agreement the services to be performed by Provider and the basis upon which Provider will be compensated by the Company. 

Agreement  

        For good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties, intending to be bound legally, agree as follows: 

SECTION
1 SERVICES TO BE PROVIDED 

        1.1.    Engagement.    The Company engages Provider to provide to the Company the services set forth in
Section 1.2 in connection with the Company Business, and Provider accepts such engagement, subject to and upon the terms and conditions of this Agreement. In addition, certain services will be
provided by the Company to Provider, as set forth in Section 1.4. 

        1.2.    Services to be Provided by Provider.    Provider will provide the following services for employees of the
Company and employees of Liberty Media International Holdings, LLC ("LMINT") during the term of this Agreement: 

        (a)   With
respect to persons employed by the Company and by LMINT following the Spin-Off who are employed in the U.S. ("U.S. Employees"), enrollment in and
coverage under each of Provider's employee benefit plans (including, without limitation, each employee welfare benefit plan and each employee pension benefit plan) to the same extent as similarly
situated U.S. employees of Provider according to the terms of such plans, employee benefit administration, payroll services (including all withholding obligations), tax reporting, workers'
compensation administration and all other services typically performed by Provider's accounting, benefits and tax department personnel for similarly situated employees of Provider; provided, however,
that nothing in this paragraph will be interpreted to cause the Company's employees or LMINT's employees to be treated as common-law employees of Provider. As of the date of this
Agreement, the employee benefit plans of Provider which will be available to U.S. Employees include: 

        (i)    UnitedGlobalCom, Inc.
401(k) Savings and Stock Ownership Plan (the "UGC 401(k) Plan"); 

        (ii)   Employee
Health Plan (self-insured medical coverage, including pharmacy benefits); 

        (iii)  Group
Dental Plan; 

        (iv)  Group
Life and Accidental Death and Dismemberment Insurance; 

        (v)   Group
Short Term Disability;

 

        (vi)  Group
Long Term Disability; 

        (vii) Group
Long Term Care Insurance; 

        (viii)   Vision
Service Plan; and 

        (ix)  Flexible
Spending Accounts (dependent care and medical expense reimbursements). 

        (b)   Except
as provided in Section 1.2(c) below, with respect to persons employed by the Company and LMINT following the Spin-Off who are employed
outside of the U.S. ("Ex-Pats"), enrollment in and coverage under those Provider's employee benefit plans that are listed below, to the same extent as similarly situated
non-U.S. employees of Provider according to the terms of such plans, employee benefit administration, payroll services (including all withholding obligations, COLA's and foreign exchange
matters), tax reporting, workers' compensation administration and all other services typically performed by Provider's accounting, benefits and tax department personnel for similarly situated
employees of Provider; provided, however, that nothing in this paragraph will be interpreted to cause the Company's employees or LMINT's employees to be treated as common-law employees of
Provider. As of the date of this Agreement, the employee benefit plans of Provider which will be available to Ex-Pats will include: 

        (i)    UGC
401(k) Plan; 

        (ii)   Group
Life and Accidental Death and Dismemberment Insurance; 

        (iii)  Group
Short Term Disability; 

        (iv)  Group
Long Term Disability; 

        (v)   Group
Long Term Care Insurance (not available for third country nationals); and 

        (vi)  Flexible
Spending Accounts (dependent care and medical expense reimbursements). 

        (c)   Notwithstanding
Section 1.2(b) above, the Company will retain responsibility for providing the following services to Ex-Pats: 

        (i)    Employee
Health Plan (insured medical coverage under Cigna, including vision and dental); 

        (ii)   Contract
management; 

        (iii)  Relocation;

        (iv)  Benefits
administration to the extent the Company is providing benefits to the Ex-Pats; 

        (v)   Liaising
with KPMG in regard to international assignees (tax equalization issues and non-cash compensation issues), including settlement and payment of all
tax equalizations; 

        (vi)  Home
leave arrangements; 

        (vii) Travel
and conferences in the U.S.; 

        (viii)   Vendor
selection for Ex-Pat matters; 

        (ix)  Repatriation;

        (x)   International
contractors; and 

        (xi)  Special
projects. 

        (d)   Such
other services as the Company and Provider mutually agree to be necessary or desirable from time to time during the term of this Agreement.

 

        1.3.    Commencement of Provider's Services.    Notwithstanding any other provision of this Agreement, the Provider
will commence all payroll and payroll related services, as provided above, on June 7, 2004. Coverage under the Provider's welfare benefit plans, as provided above, will commence on
July 1, 2004, and coverage under the UGC 401(k) Plan will commence on June 7, 2004. 

        1.4.    Services to be Provided by Company.    The Company will make available to Provider on a nonexclusive basis
personnel to provide services typically performed by the Company's tax and accounting departments as may be requested by Provider (upon reasonable notice) from time to time. Provider acknowledges that
the employees of the Company performing services for Provider ("Non-Exclusive Employees") also will be performing services for the Company and may be performing services for other
affiliates of the Company. Provider also acknowledges that the Company may elect, in its discretion, to utilize the services of persons available to the Company under agreements with third parties
rather than employees of the Company to perform the services for Provider from time to time, and that such other persons will be included within the definition of Non-Exclusive Employees
under this Agreement, where applicable. Provider acknowledges that the Company will have the right to terminate the employment of (or use of the services of) any Non-Exclusive Employee at
any time. 

        1.5.    Books and Records.    Provider and the Company will maintain complete books and records in accordance with
good business practices with respect to their provision of services pursuant to this Agreement, including records supporting the allocation of costs and expenses pursuant to Section 2. Provider
and the Company will give the other party and its duly authorized representatives, agents and attorneys access to all such books and records during regular business hours upon reasonable advance
notice. 

SECTION
2 REIMBURSEMENT OF COSTS AND EXPENSES 

        2.1.    Allocated Expenses for Provider Services.    For the services provided by Provider under this Agreement, the
Company will pay to Provider the following amounts: 

        (a)   An
annual fee equal to $20,000; plus 

        (b)   Reimbursement
of the Company's allocable share of Provider's direct out-of-pocket costs for the administration of each employee welfare benefit
plan, including: 

        (i)    amounts
paid to a third party administrator for administrative costs; 

        (ii)   the
employer's portion of any insurance premiums paid for insured welfare benefits; 

        (iii)  the
employer's portion of any contributions toward coverage under any self-insured employee welfare benefit plan; 

        (iv)  the
cost of claims under the Health Plan; and 

        (v)   premiums
for stop-loss coverage under the Health Plan; plus 

        (c)   Reimbursement
of the Company's allocable share of Provider's direct out-of-pocket costs paid to a third party for the administration of the UGC
401(k) Plan; plus 

        (d)   Reimbursement
of the employer matching contributions and other employer contributions to the UGC 401(k) Plan made on behalf of the Company and LMINT employees. 

        (e)   With
respect to payroll amounts, which will include worker's compensation premiums and claim amounts and unemployment insurance premiums and claim amounts, the Company
will establish separate bank account(s) for Company employees and LMINT employees, which accounts will be funded by the Company on a bi-weekly basis for the next succeeding pay period with
the amounts due for payroll amounts for Company and LMINT employees, and the Provider will have access to such accounts for the purposes of directing payments to employees and deducting required
withholding amounts for remittance to applicable governmental agencies; provided,

 
however, that payments for worker's compensation premiums and unemployment insurance premiums will be paid from such accounts by check by the Company, as directed by the Provider. 

        2.2.    Determination of Company's Share of Costs.    The Company's share of Provider's costs under Section 2.1
will be determined as follows: 

        (a)   For
amounts paid to a third party for the administration of any employee welfare benefit plan under Section 2.1(b)(i) above, the actual amount paid by the
Provider for each covered Company and LMINT employee; 

        (b)   For
the employer's portion of any insurance premiums paid for insured welfare benefits and the employer's portion of any contributions toward coverage under any
self-insured employee welfare benefit plan under Sections 2.1(b)(ii) and (iii) above, the actual amount paid by the Provider for each covered Company and LMINT employee; 

        (c)   For
the cost of claims under the Health Plan and the cost of reimbursements under any flexible spending accounts under Section 2.1(b)(iv) above, the actual
amount paid by the Provider for each covered Company and LMINT employee; 

        (d)   For
premiums for stop-loss coverage under Section 2.1(b)(v) above, the actual amount paid by the Provider for each covered Company and LMINT
employee; 

        (e)   For
the costs paid to a third party for the administration of the UGC 401(k) Plan under Section 2.1(c) above, the Company Percentage of those
amounts; and 

        (f)    For
the employer matching contributions and other employer contributions to the UGC 401(k) Plan under Section 2.1(d) above, the actual amount paid
by the Provider for each covered Company and LMINT employee. 

        (g)   The
"Company Percentage" is a fraction, the numerator of which will be the number of Company employees and LMINT employees covered under the applicable employee benefit
plan as of the last day of each month, and the denominator of which will be the total number of Company, LMINT, and Provider employees covered under such plan as of such date. 

        (h)   For
2004, the annual fee set forth in Section 2.1(a) will be prorated for the number of full calendar months this Agreement is in effect, counting
June as one full calendar month. 

        2.3.    Allocated Expenses for Company Services.    Provider will pay the Company for the services of the
Non-Exclusive Employees based on an allocated portion of the personnel costs and expenses that are incurred by the Company (including pursuant to services agreements with third parties)
with respect to the Non-Exclusive Employees providing such services (the "Allocated Employee Expenses"). Such personnel costs and expenses will be based on 115% of the annual wage or base
salary of the applicable Non-Exclusive Employee (the "Annual Employee Expense") and will be allocated to Provider on the basis of either an hourly rate (determined by dividing the Annual
Employee Expense by 2,080) for the number of hours of service provided by the Non-Exclusive Employee or the anticipated percentage of usage of the services of the
Non-Exclusive Employee, as agreed by the Company and Provider in connection with any request for services. The Company and Provider will review and evaluate the Allocated Employee Expenses
for reasonableness semi-annually and will negotiate in good faith to reach agreement on any appropriate adjustment to such Allocated Employee Expenses based on such review and evaluation,
including agreeing on the appropriate effective date (which may be retroactive) of such adjustment, to take into account changes in the Annual Employee Expense and in hours or percentage of usage. 

        2.4.    Payment Procedures.    

        (a)   Any
payment to be made by the Company to the Provider pursuant to Section 2.2 will be paid by the Company to the Provider within 30 days after receipt by
the Company of any invoice

 
therefore, by wire or interbank transfer of funds or in such other manner specified by the Provider to the Company. The Provider will invoice the Company monthly for services provided by the Provider
under Section 2.1 during the preceding calendar month. Any invoice or statement pursuant to this Section 2.4(a) 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 payment. Each invoice will provide details regarding the breakdown of costs between
the Company employees and LMINT employees. 

        (b)   Any
payment to be made by the Provider to the Company pursuant to Section 2.3 will be paid by the Provider to the Company within 30 days after receipt by
the Provider of any invoice therefore, by wire or interbank transfer of funds or in such other manner specified by the Company to the Provider. The Company will invoice the Provider monthly for
services provided by the Company under Section 2.3 during the preceding calendar month. Any invoice or statement pursuant to this Section 2.4(b) will be accompanied by supporting
documentation in reasonable detail with respect to the actual costs or expenses incurred by the Company for which the Company is entitled to payment. 

SECTION
3 TERM 

        3.1.    Term Generally.    The term of this Agreement will commence on the Effective Date and will continue until
December 31, 2004. This Agreement will be renewed automatically for one-year periods thereafter, unless earlier terminated under Section 3.3 (the "Term"). 

        3.2.    Certain Services Discontinued.    At any time during the Term, upon at least 180 days' prior notice by
the Provider to the Company or 30 days' prior notice by the Company to the Provider, either Provider or the Company may elect to discontinue some or all of the services described in
Section 1.2 and 1.4. In such event, the Provider's or Company's obligation to provide any services that have been discontinued pursuant to this Section 3.2, and the Company's or the
Provider's obligation to compensate the other party for any such services will cease as of the end of such 180-day period or 30-day period, as the case may be, or such later
date as may be specified in the notice, and this Agreement will remain in effect with respect to any services that have not been so discontinued. 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. 

        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 Company to Provider; 

        (b)   at
any time upon at least 180 days' prior notice by Provider to the Company; 

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

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

        (e)   immediately
upon the occurrence of a Change in Control with respect to Provider (but termination of this Agreement will occur only with respect to services performed for
employees of LMINT if only LMINT ceases to be a controlled group member with the Provider) and the Company agrees to provide the Provider with at least 30 days' prior written notice of any
Change in Control. 

For
purposes of this Section 3.3, a "Change in Control" will be deemed to have occurred, with respect to the Provider, if a merger, consolidation, binding share exchange, acquisition,
disposition, or similar transaction (each, a "Transaction"), or series of related Transactions, occurs, as a result of which the Provider and the Company or LMINT no longer are members of the same
controlled group of

 
corporations or the same controlled group of trades or businesses, as such terms are defined in Sections 414(b) and (c) of the Internal Revenue Code of 1986, as amended (the
"Code") (which would occur if the Company does not hold, directly or indirectly, 80% or more of the total value of all classes of stock of the Provider or LMINT or 80% or more of the combined voting
power of all classes of stock entitled to vote of the Provider or LMINT outstanding immediately prior thereto). 

For
purposes of this Section 3.3, a "Bankruptcy Event" will be deemed to have occurred with respect to the Company or Provider, as the case may be, upon the Company's or Provider's (as
applicable) insolvency, general assignment for the benefit of creditors, the voluntary commencement by the Company or Provider (as applicable) of any case, proceeding, or other action seeking
reorganization, arrangement, adjustment, liquidation, dissolution, or consolidation of the Company's or Provider's (as applicable) 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 the Company or Provider (as applicable) or for all or any substantial part
of the Company's or Provider's (as applicable) assets (each, a "Bankruptcy Proceeding"), or the involuntary filing against the Company or Provider (as applicable) of any Bankruptcy Proceeding that is
not stayed within 60 days after such filing. 

SECTION
4 EMPLOYEES 

        Notwithstanding
the services provided by Provider under this Agreement, the parties acknowledge and agree that the Company and LMINT are and will remain the employer of all employees for
which Provider provides benefits and administrative services under this Agreement and, subject to the provisions of this Agreement, will be responsible for the employment and training of all Company
employees and for the payment of salaries, wages and other compensation payable to all Company and LMINT employees. All Company and LMINT employees will be entitled to participate in Provider's
employee benefit plans to the same extent as similarly situated employees of Provider performing services in connection with Provider's business. Provider will be responsible for the payment of all
federal, state and local withholding taxes on the U.S. compensation of all Company and LMINT employees and other U.S. employment-related taxes as agent of the Company and LMINT, subject to
reimbursement by the Company in accordance with Section 2. The Company agrees to cooperate with Provider to facilitate Provider's compliance with applicable federal, state and local laws,
rules, regulations and ordinances applicable to the provision of U.S. benefits to Company employees by Provider under this Agreement. 

        SECTION
5 REPRESENTATIONS AND WARRANTIES 

        5.1.    Representations and Warranties of Provider.    Provider represents and warrants to the Company as follows: 

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

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

        (c)   Provider
is under no 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 Provider has the authority to do so. 

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

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

 

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

        (c)   The
Company is under no 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 Company has the authority to do so. 

        (e)   The
Company, LMINT and the Provider are members of the same controlled group of corporations or the same controlled group of trades or businesses, as such terms are
defined in Sections 414(b) and (c) of the Code. 

SECTION
6 INDEMNIFICATION 

        6.1.    Indemnification by Provider.    Provider will indemnify, defend, and hold harmless the Company, its Affiliates
(but excluding the Provider), and each of their respective officers, directors, shareholders, members, partners, and employees, and the successors and assigns of any of them (collectively, the
"Company 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 Company Indemnitee may suffer arising from or out of, or relating to, (a) any breach by Provider of its obligations under this Agreement, (b) the negligence, willful misconduct,
fraud, or bad faith of Provider in performing its obligations under this Agreement, or (c) any act or omission of the Company in providing the services of the Non-Exclusive
Employees to be provided by the Company pursuant to this Agreement (except to the extent such Losses arise from or relate to any breach by the Company of its obligations under this Agreement or are
attributable to the negligence, willful misconduct, fraud or bad faith of the Company in performing its obligations under this Agreement). 

        6.2.    Indemnification by the Company.    The Company will indemnify, defend, and hold harmless the Provider, its
Affiliates (but excluding the Company), and each of their respective officers, directors, shareholders, members, partners, and employees, and the successors and assigns of any of them (collectively,
the "Provider 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 Provider Indemnitee may suffer arising from or out of, or relating to, (a) any breach by the Company of its obligations under this Agreement, (b) the negligence,
willful misconduct, fraud, or bad faith of Company in performing its obligations under this Agreement, or (c) any act or omission of Provider in providing the services to be provided by
Provider pursuant to this Agreement (except to the extent such Losses arise from or relate to any breach by Provider of its obligations under this Agreement or are attributable to the negligence,
willful misconduct, fraud or bad faith of Provider in performing its obligations under this Agreement) 

        6.3.    Indemnification Procedures.    

        (a)   In
connection with any indemnification provided for in this Section 6, the party seeking indemnification (the "Indemnitee") will give the party from which
indemnification is sought (the "Indemnitor") prompt notice whenever it comes to the Indemnitee's attention that the Indemnitee has suffered or incurred, or may suffer or incur, any Losses for which it
is entitled to indemnification under this Section 6, and, when known, the facts constituting the basis for such claim (in reasonable detail). Failure by the Indemnitee to so notify the
Indemnitor will not relieve the Indemnitor of any liability under this Agreement except to the extent that such failure prejudices the Indemnitor in any material respect. 

        (b)   After
receipt of a notice pursuant to Section 6.3(a), the Indemnitor 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 Indemnitee to handle and defend such claim, at the Indemnitor's cost, risk, and expense, upon written notice to the Indemnitee of such election,
which notice acknowledges the Indemnitor's obligation to provide indemnification under this Agreement. The Indemnitor will not settle any third-party claim that is the subject of indemnification
without the written consent of the Indemnitee, which consent will not be unreasonably withheld, delayed or conditioned; provided, however, that the Indemnitor may settle a claim without the
Indemnitee's consent if such settlement (i) makes no admission or acknowledgment of liability or culpability with respect to the Indemnitee, (ii) includes a complete release of the
Indemnitee, and (iii) does not require the Indemnitee to make any payment not covered by indemnification by the Indemnitor hereunder or forego or take any action. The Indemnitee will cooperate
in all reasonable respects with the Indemnitor 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 Indemnitee's name of appropriate cross claims and counterclaims). The Indemnitee may, at its own cost, participate in any investigation, trial, and defense of such lawsuit
or action controlled by the Indemnitor and any appeal arising therefrom. If there are one or more legal defenses available to the Indemnitee that conflict with those available to, or that are not
available to, the Indemnitor, the Indemnitee will have the right, at the expense of the Indemnitor, to engage separate counsel reasonably acceptable to the Indemnitor 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 Indemnitor does not undertake to defend any such claim, the Indemnitee may, but will have no
obligation to, contest any lawsuit or action with respect to such claim, and the Indemnitor will be bound by the result obtained with respect thereto by the Indemnitee. The Indemnitee may not settle
any lawsuit or action with respect to which the Indemnitee is entitled to indemnification hereunder without the consent of the Indemnitor, 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 Indemnitor may request the Indemnitee to agree in writing to the abandonment of such contest
or to the payment or compromise by the Indemnitor of such claim, whereupon such action will be taken unless the Indemnitee determines that the contest should be continued and so notifies the
Indemnitor in writing within 15 days of such request from the Indemnitor. Any request from the Indemnitor 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 Indemnitee determines that the contest
should be continued, the Indemnitor 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 Indemnitor made its request therefor to the Indemnitee, as specified in the Indemnitor's request, or (ii) the amount for which the Indemnitor
may be liable with respect to such claim by reason of the provisions of this Agreement. 

        6.4.    Limitation on Liability.    In no event will any Indemnitor be liable to any Indemnitee for any indirect,
special, incidental, or consequential damages with respect to any matter relating to this Agreement. 

        6.5.    Survival.    The terms and conditions of this Section 6 will survive the expiration or termination of
this Agreement, regardless of the reason for such expiration or termination. 

SECTION
7 MISCELLANEOUS 

        7.1.    Entire Agreement; Severability.    This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. Each provision
hereof will be considered severable. If for any reason any provision of this Agreement is

 
determined to be invalid or unenforceable, such invalidity or unenforceability will not impair the operation of or affect the enforceability of the other provisions of this Agreement, and the
remainder of this Agreement will continue in full force and effect. 

        7.2.    Notices.    All notices and other communications under this Agreement will be given in writing and will be
deemed to have been duly given when delivered in person, by telecopy or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties as follows: 

	If to Provider:	 	4643 South Ulster Street, Suite #1300

Denver, CO 80237

Attention: Legal Department

Telecopy: (303) 220-3117
	

If to the Company:	
 	

12300 Liberty Boulevard

Englewood, CO 80112

Attention: Elizabeth Markowski, Esq.

Telecopy: (720) 875-5858

or
to such other address as the party has previously furnished to the other in writing in the manner set forth above. Any notice or communication delivered in person will be deemed effective on
delivery. Any notice or communication sent by telecopy will be deemed effective when confirmed. Any notice or communication sent by registered or certified mail, return receipt requested, will be
deemed effective when received, as evidenced by the return receipt. 

        7.3.    GOVERNING LAW.    THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
COLORADO, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER PRINCIPLES OF CONFLICTS OF LAWS APPLICABLE THERETO. 

        7.4.    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" is not limiting, and the word "or" is not exclusive. 

        7.5.    Parties in Interest.    This Agreement will be binding on and inure solely to the benefit of each party to
this Agreement, and nothing in this Agreement, express or implied, is intended to confer upon any other person or entity any rights or remedies of any nature whatsoever under or by reason of this
Agreement. 

        7.6.    Counterparts.    This Agreement may be executed in counterparts, each of which will be deemed to be an
original, but all of which will constitute one and the same agreement. 

        7.7.    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 the negotiation and performance of this Agreement. 

        7.8.    No Personal Liability.    This Agreement will not create or be deemed to create or permit any personal
liability or obligation on the part of any direct or indirect member, manager or shareholder of either party to this Agreement or any officer, director, employee, agent, representative or investor of
either party, or of any member, manager or shareholder of either party, to this Agreement.

 

        7.9.    Binding Effect; Assignment.    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. This Agreement may not be assigned by either party, except that either party may assign its rights and
delegate its duties under this Agreement to any person or entity that acquires substantially all the assets of such party (by merger, operation of law or otherwise) and Provider may delegate duties
hereunder to one or more of its wholly-owned subsidiaries. 

        7.10.    Amendment.    This Agreement may not be amended except by an instrument in writing signed on behalf of both
parties. 

        7.11.    Extension; Waiver.    Either party to this Agreement may (a) extend the time for the performance of
any of the obligations of the other party to this Agreement, (b) waive any inaccuracies in the representations and warranties of the other party contained herein or in any document, certificate
or writing delivered pursuant to this Agreement by the other party and (c) 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. 

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

        7.13.    Force Majeure.    Provider will not be liable to the Company 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 by any third party beyond Provider's reasonable control or any other cause beyond
Provider's reasonable control. Provider agrees that it will use all commercially reasonably 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 Provider's reasonable control. 

        7.14.    Specific Performance.    If either party threatens to take or takes any action in violation of this
Agreement, the other party may apply to any court of competent jurisdiction for an injunctive order prohibiting such 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 irrevocably 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 an adequate remedy at law exists. 

        7.15.    Arbitration.    Except as provided in Section 7.14, all disputes arising under this Agreement that are
not settled by agreement of the parties will be submitted to binding arbitration under the then-existing Commercial Arbitration Rules of the American Arbitration Association.
Arbitration proceedings will be held in Denver, Colorado, or such other location as is agreed to by the parties. The parties to the arbitration may agree on an arbitrator; otherwise, there will be a
panel of three arbitrators, one named in writing by each party within 20 days after either party serves a notice of arbitration and the third arbitrator named by the two arbitrators named by
the parties. No person who is financially interested in this Agreement or in either party may serve as an arbitrator. The costs of the arbitration and the fees of the arbitrator or arbitrators will be
borne by the parties equally. The decision of the arbitrator or arbitrators will be final and conclusive and binding on both parties, and judgment thereon may be entered in any court of competent
jurisdiction.

 

        7.16.    Confidentiality.    

        (a)   Definition. "Confidential Information" means any information marked, noticed, or treated as confidential by a party which
such party holds in confidence, including all trade secret, technical, business, or other information, including customer or client information, however communicated or disclosed, relating to past,
present and future research, development and business activities. 

        (b)   Obligations. Except with the prior consent of the disclosing party, each party will: 

        (i)    limit
access to the Confidential Information to its employees, agents, representatives, and consultants who have a need-to-know; 

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

        (iii)  safeguard
the 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. 

        (c)   Exceptions to Confidentiality. A party's obligations respecting confidentiality under Section 7.16 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) that disclosure is necessary 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 (c), 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. 

        (d)   Survival. The provisions of this Section 7.16 will survive the expiration or termination of this Agreement,
regardless of the reason for such expiration or termination.

 

        This
Agreement is executed by the parties as of the date first written above. 

	

 	
 	
COMPANY:
	
 	
 	

LIBERTY MEDIA INTERNATIONAL, INC.
	

 	
 	

By:	
 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

	

 	
 	
PROVIDER:
	
 	
 	

UNITEDGLOBALCOM, INC.
	

 	
 	

By:	
 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

   APPENDIX A

Definitions  

        A.1    Defined Terms.    The following terms will have the following meanings for all purposes of this Agreement: 

        "Affiliate"
means, with respect to any Person, any other Person controlling, controlled by, or under common control with 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. 

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

        A.2    Other Definitions.    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
	Allocable Company Share	 	2.2(i)
	Allocated Employee Expenses	 	2.3
	Bankruptcy Event	 	3.3
	Bankruptcy Proceeding	 	3.3
	Change in Control	 	3.3
	Company	 	Preamble
	Company Business	 	Recital A
	Company Indemnitees	 	6.1
	Company Percentage	 	2.2(f)
	Confidential Information	 	7.16
	Effective Date	 	Preamble
	Ex-Pats	 	1.2(b)
	Indemnitee	 	6.3(a)
	Indemnitor	 	6.3(a)
	Losses	 	6.1
	LMINT	 	1.2
	Non-Exclusive Employee	 	1.4
	Provider	 	Preamble
	Provider Indemnitees	 	6.2
	Spin-Off	 	Recital A
	Term	 	3.1
	Transaction	 	3.3
	UGC 401(k) Plan	 	1.2(a)(i)
	U.S. Employees	 	1.2(a)

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