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ON COMMAND CORPORATION
  AMENDMENT NO. 2    
  

        AMENDMENT NO. 2 (this "Amendment"), dated as of November 14, 2001, to the Credit Agreement, dated as of
July 18, 2000, by and among ON COMMAND CORPORATION, a Delaware corporation (the "Borrower"), the Lenders party thereto, TORONTO DOMINION
(TEXAS), INC. and FLEET NATIONAL BANK, as the Documentation Agents, BANK OF AMERICA, N.A., as the Syndication Agent, THE BANK OF NEW YORK COMPANY, INC., as the Swingline Lender, and THE
BANK OF NEW YORK, as the Issuing Bank and as the Administrative Agent for the Lenders thereunder, as amended by Amendment No. 1, dated as of March 27, 2001 (the
"Credit Agreement"). 

RECITALS 

        I.    Except
as otherwise provided herein, capitalized terms used herein that are not defined herein shall have the meanings set forth in the Credit Agreement. 

        II.    The
parties hereto wish to amend and restate the Credit Agreement on the terms and conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the covenants, conditions and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are
hereby 

 

acknowledged, and pursuant to Section 9.8 of the Credit Agreement, the parties hereto hereby agree as follows: 

        1.    The
Credit Agreement is hereby amended and restated in its entirety so as to read as presently set forth therein with the following exceptions: 

        2.    Section 1.1
of the Credit Agreement is amended to amend and restate the defined term "Applicable Margin" in its
entirety, effective for the period from and after November 14, 2001, to read as follows: 

        "Applicable Margin" shall mean, for any day, with respect to any Eurodollar Loan or any ABR Loan, the percentage set forth below under the
caption "Eurodollar Margin" or "ABR Margin", as the case may be, based upon the Leverage Ratio, then in
effect for purposes hereof: 

	Leverage Ratio
 
	 	Eurodollar Margin
	 	ABR Margin
	 
	Category 1	 	 	 	 	 
	Greater than or equal to 4.50 to 1.00	 	2.750	%	1.750	%
	

Category 2	
 	

 	
 	

 	
 
	Greater than or equal to 4.00 to 1.00 but less than 4.50 to 1.00	 	2.500	%	1.500	%
	

Category 3	
 	

 	
 	

 	
 
	Greater than or equal to 3.50 to 1.00 but less than 4.00 to 1.00	 	2.000	%	1.000	%
	

Category 4	
 	

 	
 	

 	
 
	Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00	 	1.950	%	0.950	%
	

Category 5	
 	

 	
 	

 	
 
	Greater than or equal to 2.50 to 1.00 but less than 3.00 to 1.00	 	1.750	%	0.750	%
	

Category 6	
 	

 	
 	

 	
 
	Greater than or equal to 2.00 to 1.00 but less than 2.50 to 1.00	 	1.550	%	0.550	%
	

Category 7	
 	

 	
 	

 	
 
	Greater than or equal to 1.00 to 1.00 but less than 2.00 to 1.00	 	1.325	%	0.3250	%
	

Category 8	
 	

 	
 	

 	
 
	Less than 1.00 to 1.00	 	1.100	%	0.100	%

Except
as set forth below, the Leverage Ratio utilized for purposes of determining the Applicable Margin shall be that in effect as of the last day of the most recent fiscal quarter of the Borrower in
respect of which financial statements have been delivered pursuant to this Agreement. The Applicable Margin from time to time in effect shall be based on the Leverage Ratio from time to time in
effect, and each change in the Applicable Margin resulting from a change in (or the initial establishment of) the Leverage Ratio shall be effective with respect to all Loans, the Revolving Loan
Commitment and Letters of Credit outstanding on and after the date of delivery to the Administrative Agent of the financial statements and certificates required by Section 5.4(a) or
(b) indicating such change to and including the date immediately preceding the next date of delivery of such financial statements and certificates indicating another such change.
Notwithstanding the foregoing, at all times during which the Borrower has failed to deliver the 

2

 

financial statements and certificates required by Section 5.4(a) or (b) and at all times after the occurrence and during the continuance of an Event of Default, the Leverage Ratio
shall, in each case, be deemed to be in Category 1 above. 

        1.    Section 1.1
of the Credit Agreement is amended to amend and restate the defined term "Change in Control" in its
entirety to read as follows: 

        (a)  the
failure of Liberty Media Corporation, at all times, to own, directly or indirectly, at least 37.5% of the issued and outstanding Capital Stock of the Borrower and
(ii) at least 37.5% of the issued and outstanding Voting Securities of the Borrower, or 

        (b)  the
acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and
the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), other than Liberty Media Corporation or its Subsidiaries, of shares representing more than the
percentage owned, directly or indirectly, at such time by Liberty Media Corporation or Affiliates of Liberty Media Corporation) of the issued and outstanding Capital Stock or Voting Securities of the
Borrower. 

        2.    Section 1.1
of the Credit Agreement is amended to amend and restate the defined term "EBITDA" in its entirety,
effective for the period from and after September 30, 2001, to read as follows: 

        "EBITDA" shall mean, for any period, the consolidated net income of the Borrower and the Restricted Subsidiaries for such period, computed
on a consolidated basis in accordance with GAAP, plus, to the extent deducted in computing such consolidated net income and without duplication, the sum
of (a) income tax expense, (b) interest expense, (c) depreciation, amortization and stock based compensation expense, (d) allocation of income to minority interests in
earnings of consolidated Subsidiaries, (e) extraordinary losses (including restructuring provisions) and all other non-operating losses during such period, (f) expenses
incurred during the fiscal years ending December 31, 2000 and December 31, 2001 in connection with the relocation of the Borrower's executive offices to the Denver, Colorado metropolitan
area in a maximum aggregate amount of $16,100,000, (g) legal expenses incurred on or prior to December 31, 2000 with respect to the MagiNet settlement in an aggregate amount not
exceeding $1,500,000, and (h) legal expenses incurred during the fiscal year ending December 31, 2001 with respect to the MagiNet settlement in an aggregate amount not exceeding
$500,000, plus with respect to any determination of EBITDA for the four fiscal quarter period ending September 30, 2001, $10,800,000, for the
four fiscal quarter period ending December 31, 2001, $7,200,000, and for the four fiscal quarter period ending March 31, 2002, $3,600,000,  minus, to the extent added in computing such
consolidated net income and without duplication, (i) extraordinary gains and all other
non-operating gains during such period and (ii) allocation of losses to minority interests in earnings of consolidated Subsidiaries. EBITDA shall be calculated in accordance with
GAAP as in effect and applied by the Borrower on the date of this Agreement and, accordingly, shall exclude the effects of any changes in GAAP or its application by the Borrower after the date hereof. 

        3.    Section 1.1
of the Credit Agreement is amended to add a new defined term "Excess Cash Flow 2002" to read as
follows: 

        "Excess Cash Flow 2002" shall mean, for the Borrower and the Subsidiaries on a consolidated basis, EBITDA for the fiscal year ending
December 31, 2002, minus the sum of (i) Consolidated Cash Interest Expense, (ii) consolidated cash taxes paid and (iii) consolidated Capital Expenditures made, in each case
for such fiscal year, and minus the increase (plus the decrease) of the change in working capital
(current assets (excluding cash and cash equivalents) over current liabilities, in 

3

 

each case for the Borrower and the Subsidiaries on a consolidated basis) between the first day of such fiscal year and the last day of such fiscal year. 

        4.    Section 1.1
of the Credit Agreement is amended to amend and restate the defined term "Revolving Loan Commitment" in
its entirety to read as follows: 

        "Revolving Loan Commitment" shall mean $275,000,000, (a) as the same may be reduced from time to time pursuant to
Section 2.10 hereof and (b) with respect to each Lender, the commitment of the
Lenders to make Revolving Loans hereunder in its Pro Rata Percentage of the Revolving Loan Commitment as set forth in Schedule 1.1 as the same may be reduced from time to time pursuant to
Section 2.20 hereof, or in any Assignment and Acceptance executed in accordance with this Agreement, as applicable. 

        5.    Section 1.1
of the Credit Agreement is amended by amending the defined term "Revolving Loan Maturity Date" to
replace the date July 18, 2005 contained therein with the date July 18, 2004. 

        6.    Section 2.6(b)
of the Credit Agreement is amended and restated in its entirety, effective for the period from and after November 14, 2001, to read as
follows: 

        (b)  Subject
to Section 9.9, on the last day of March, June, September and December of each year on and until the date on which the Revolving Loan Commitment shall be
terminated as provided herein, the Borrower shall pay, in arrears, to the Administrative Agent, for the account of the Lenders, facility fees (the "Facility
Fees") on the average daily amount of the Revolving Loan Commitment at a per annum rate (the "facility fee rate") based on the
Leverage Ratio for the most recently completed full fiscal quarter as set forth below: 

	Leverage Ratio
 
	 	Facility Fee Rate
	 
	

Category 1	
 	

 	
 
	Greater than or equal to 4.50 to 1.00	 	0.500	%
	

Category 2	
 	

 	
 
	Greater than or equal to 4.00 to 1.00 but less than 4.50 to 1.00	 	0.500	%
	

Category 3	
 	

 	
 
	Greater than or equal to 3.50 to 1.00 but less than 4.00 to 1.00	 	0.500	%
	

Category 4	
 	

 	
 
	Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00	 	0.300	%
	

Category 5	
 	

 	
 
	Greater than or equal to 2.50 to 1.00 but less than 3.00 to 1.00	 	0.250	%
	

Category 6	
 	

 	
 
	Greater than or equal to 2.00 to 1.00 but less than 2.50 to 1.00	 	0.200	%
	

Category 7	
 	

 	
 
	Greater than or equal to 1.00 to 1.00 but less than 2.00 to 1.00	 	0.175	%
	

Category 8	
 	

 	
 
	Less than 1.00 to 1.00	 	0.150	%

Except
as set forth below, the Leverage Ratio utilized for purposes of determining the facility fee rate shall be that in effect as of the last day of the most recent fiscal quarter of the Borrower in
respect of which financial statements have been delivered pursuant to this Agreement. The facility fee rate from time to time in effect shall be based on the Leverage Ratio from time to time in
effect, and each change in the facility fee rate resulting from a change in (or the initial establishment of) the Leverage Ratio shall be effective with respect to the facility fee rate 

4

 

outstanding on and after the date of delivery to the Administrative Agent of the financial statements and certificates required by Section 5.4(a) or (b) indicating such change to and
including the date immediately preceding the next date of delivery of such financial statements and certificates indicating another such change. Notwithstanding the foregoing, at all times during
which the Borrower has failed to deliver the financial statements and certificates required by Section 5.4(a) or (b) and at all times after the occurrence and during the continuance of
an Event of Default, the Leverage Ratio shall, in each case, be deemed to be in Category 1 above. Subject to Section 9.9 and Applicable Law, all Facility Fees shall be computed on the
basis of the actual number of days elapsed in a year of 365 or 366 days, as applicable. 

        1.    Section 2.10
of the Credit Agreement is amended to re-letter subsection (f) as subsection (g) and to add a new subsection (f) to
read as follows: 

        (f)    Revolving Loan Commitment Mandatory Reduction. On March 31, 2003, the Revolving Loan Commitment shall be
automatically and permanently reduced by an amount equal to the lesser of (i) 75% of Excess Cash Flow 2002 and (ii) $15,000,000. 

        2.    Section 2.22
of the Credit Agreement is amended to replace the date January 18, 2005 with the date January 18, 2004. 

        3.    Section 6.9
of the Credit Agreement is amended and restated in its entirety to read as follows: 

        SECTION
6.9 Leverage Ratio. The Borrower will not permit the Leverage Ratio at any time during any period set forth below to be more than
the ratio set forth below for such period: 

	Period
 
	 	Ratio

	November 14, 2001 through September 29, 2002	 	4.75 to 1.00
	September 30, 2002 through December 30, 2002	 	4.50 to 1.00
	December 31, 2002 through March 29, 2003	 	4.25 to 1.00
	March 30, 2003 through December 31, 2003	 	3.50 to 1.00
	Thereafter	 	3.00 to 1.00

Notwithstanding
anything to the contrary in any Loan Document, in the event that the Borrower shall complete, directly or through a Restricted Subsidiary, a permitted acquisition or disposition
hereunder, or any Subsidiary is designated as an Unrestricted Subsidiary hereunder, the Leverage Ratio shall be determined thereafter, to the extent necessary, by computing such ratio on a pro forma
basis as if (i) in the case of such acquisition or disposition, such acquisition or disposition, as the case may be, had been completed on the first day of the period of four consecutive fiscal
quarters ending on the relevant dates indicated above occurring after the date of such acquisition or disposition, as the case may be, and (ii) in the case of such designation, the relevant
Subsidiary had been disposed of on the first day of the period of four consecutive fiscal quarters ending on the relevant dates indicated above occurring after the date of such designation. 

        1.    Section 6.10
of the Credit Agreement is amended and restated in its entirety, effective for the period from and after September 30, 2001, to read as
follows: 

        SECTION
6.10 Coverage Ratio. The Borrower will not permit the Coverage Ratio as of the last day of any fiscal quarter ending during any
period set forth below to be less than: 

	Period
 
	 	Ratio

	September 30, 2001 through September 29, 2002	 	2.25 to 1.00
	September 30, 2002 through December 30, 2002	 	2.50 to 1.00
	Thereafter	 	2.75 to 1.00

5

 

        1.    Section 6.12
of the Credit Agreement is amended and restated in its entirety to read as follows: 

        SECTION
6.12. Capital Expenditures. The Borrower will not permit Capital Expenditures made or obligated to be made by the Borrower and the
Restricted Subsidiaries to exceed: 

        (i)    $14,000,000
in respect of the fourth quarter of fiscal year 2001; 

        (ii)  $60,000,000
in respect of fiscal year 2002 plus the unused amount of Capital Expenditures permitted under clause (i) above, provided that such Capital
Expenditures do not exceed $20,000,000 in any fiscal quarter; and 

        (iii)  $125,000,000
in respect of the fiscal year 2003. 

        2.    Section 9.1(a)
of the Credit Agreement is amended and restated in its entirety to read as follows: 

        (a)  if
to the Borrower, to it at: 

On
Command Corporation

7900 East Union Avenue

Denver, Colorado 80237

Attention: William Myers

Telephone No.: (720) 873-3420

Telecopy No.: (720) 873-3393; 

        With
a copy to: 

Sherman &
Howard L.L.C.

633 Seventeenth Street

Denver, Colorado 80202

Attention: Steven D. Miller, Esq.

Telephone No.: (303) 299-8144

Telecopy No.: (303) 298-0940 and; 

        3.    Paragraphs
1-14 of this Amendment shall not become effective until: 

        (a)  the
Administrative Agent shall have received the financial statements for the fiscal quarter ending September 30, 2001 and accompanying certificate, dated the
date hereof (and prepared after giving effect to this Amendment for purposes of calculating compliance with Sections 6.9, 6.10, and 6.12), of a Financial Officer of the Borrower pursuant to Sections
5.4(b) and 5.4(c)(ii) of the Credit Agreement; 

        (b)  the
Total Exposure shall not exceed the Revolving Loan Commitment as reduced pursuant to this Amendment; 

        (c)  the
Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrower, the Guarantors, the Administrative Agent and the Required
Lenders; 

        (d)  the
Administrative Agent shall have received a certificate, dated the date hereof, of the Secretary or an Assistant Secretary of each Obligor (i) attaching a true
and complete copy of the resolutions of its Board of Directors or other authorizing documents and of all documents evidencing all necessary corporate or other action (in form and substance reasonably
satisfactory to the Administrative Agent) taken by it to authorize the execution, delivery and performance of this Amendment and the transactions contemplated hereby and thereby; 

        (e)  the
Administrative Agent shall have received a favorable opinion of Sherman & Howard L.L.C. addressed to the Administrative Agent and the Lenders in form and
substance satisfactory 

6

 

to the Administrative Agent. It is understood that such opinion is being delivered to the Administrative Agent and the Lenders upon the direction of the Borrower and the other Obligors and that the
Administrative Agent and the Lenders may and will rely upon such opinion; 

        (f)    the
Administrative Agent shall have received for the account of the Lenders, payment of the accrued Facility Fees on the amount of the reduction of the Revolving Loan
Commitment made pursuant to this Amendment; 

        (g)  the
Administrative Agent shall have received for the account of each Lender executing and delivering (without condition) this Amendment to the Administrative Agent
before 11:00 a.m. (New York City time) on November 14, 2001, a structuring fee equal to 0.250% of such Lender's Revolving Loan Commitment on such date after giving effect to this
Amendment; and 

        (h)  the
Administrative Agent shall have received payment, or confirmation of payment, of all legal fees and expenses of counsel to the Administrative Agent in connection
with the Credit Agreement and this Amendment to the extent an invoice has been presented to the Borrower. 

        4.    In
all other respects the Credit Agreement and other Loan Documents shall remain in full force and effect. 

        5.    In
order to induce the Administrative Agent and the Required Lenders to execute and deliver this Amendment, the Borrower and the other Obligors each (a) certifies
that, immediately before and after giving effect to this Amendment, all representations and warranties contained in the Loan Documents to which it is a party shall be true and correct in all respects
with the same effect as though such representations and warranties had been made on the date hereof, except as the context otherwise requires or as otherwise permitted by the Loan Documents or this
Amendment, (b) certifies that, immediately before and after giving effect to this Amendment, no Default or Event of Default shall exist under the Loan Documents, as amended, and
(c) agrees to pay all of the reasonable fees and disbursements of counsel to the Administrative Agent incurred in connection with the preparation, negotiation and closing of this Amendment. 

        6.    Each
of the Borrower and the other Obligors (a) reaffirms and admits the validity, enforceability and continuing effect of all Loan Documents to which it is a
party, and its obligations thereunder, and (b) agrees and admits that as of the date hereof it has no valid defenses to or offsets against any of its obligations to the Administrative Agent or
any Lender under any Loan Document to which it is a party. 

        7.    This
Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which
when taken together shall constitute a single contract. Delivery of an executed signature page to this Amendment by facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Amendment. 

        8.    This
Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York. 

        9.    The
parties have caused this Amendment to be duly executed as of the date first written above. 

7

  

 
 

ON COMMAND CORPORATION
  AMENDMENT NO. 2 TO CREDIT AGREEMENT    

	 	 	ON COMMAND CORPORATION
	

 	
 	

By:	
 	

/s/  WILLIAM D. MYERS      

	 	 	Name:	 	William D. Myers

	 	 	Title:	 	Executive Vice President and CFO

	

 	
 	

AGREED AND CONSENTED:
	

 	
 	

ON COMMAND VIDEO CORPORATION

ON COMMAND DEVELOPMENT CORPORATION

SPECTRADYNE INTERNATIONAL, INC.

SPECTRAVISION, INC.

HOTEL DIGITAL NETWORK, INC.
	

 	
 	

By:	
 	

/s/  WILLIAM D. MYERS      

	 	 	Name:	 	William D. Myers

	 	 	Title:	 	Executive Vice President and CFO

	

 	
 	

THE BANK OF NEW YORK, as Issuing Bank and as Administrative Agent
	

 	
 	

By:	
 	

/s/  STEPHEN M. NETTLER      

	 	 	Name:	 	Stephen M. Nettler

	 	 	Title:	 	Vice President

	

 	
 	

THE BANK OF NEW YORK COMPANY, INC., as Lender and as Swingline Lender
	

 	
 	

By:	
 	

/s/  JOHN C. LAMBERT      

	 	 	Name:	 	John C. Lambert

	 	 	Title:	 	Authorized Signer

	

 	
 	

BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  MATTHEW KOENIG      

	 	 	Name:	 	Matthew Koenig

	 	 	Title:	 	Managing Director

8

 

	

 	
 	

FLEET NATIONAL BANK
	

 	
 	

By:	
 	

/s/  SRBUI SEFERIAN      

	 	 	Name:	 	Srbui Seferian

	 	 	Title:	 	Assistant Vice President

	

 	
 	

TORONTO DOMINION (TEXAS), INC.
	

 	
 	

By:	
 	

/s/  ANN S. SLANIS      

	 	 	Name:	 	Ann S. Slanis

	 	 	Title:	 	Vice President

	

 	
 	

THE INDUSTRIAL BANK OF JAPAN, LIMITED
	

 	
 	

By:	
 	

/s/  CARL-ERIC BENZINGER      

	 	 	Name:	 	Carl-Eric Benzinger

	 	 	Title:	 	Senior Vice President & Senior Deputy General Manager

	

 	
 	

U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/  MELISSA S. FORBIS      

	 	 	Name:	 	Melissa S. Forbis

	 	 	Title:	 	Vice President

	

 	
 	

BNP PARIBAS
	

 	
 	

By:	
 	

/s/  SERGE DESRAYAUD      

	 	 	Name:	 	Serge Desrayaud

	 	 	Title:	 	Head of Asset Management Media & Telecommunications Group

	

 	
 	

By:	
 	

/s/  ERICK CAUSSOU      

	 	 	Name:	 	Erick Caussou

	 	 	Title:	 	Associate

9

 

	

 	
 	

CREDIT LYONNAIS NEW YORK BRANCH
	

 	
 	

By:	
 	

/s/  BRUCE M. YEAGER      

	 	 	Name:	 	Bruce M. Yeager

	 	 	Title:	 	Senior Vice President

	

 	
 	

THE BANK OF NOVA SCOTIA
	

 	
 	

By:	
 	

/s/  P. A. WEISSENBERGER      

	 	 	Name:	 	P. A. Weissenberger

	 	 	Title:	 	Authorized Signatory

10

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ON COMMAND CORPORATION AMENDMENT NO. 2

ON COMMAND CORPORATION AMENDMENT NO. 2 TO CREDIT AGREEMENTQuickLinks
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PREFERRED STOCK PURCHASE AGREEMENT    
  

        This
Preferred Stock Purchase Agreement (this "Agreement") is made and entered into on March 5, 2001 by and among On Command
Corporation, a Delaware corporation (the "Company"), and Ascent Entertainment Group, Inc., a Delaware corporation
("Buyer"). 

        WHEREAS,
the Company desires to issue and sell, and Buyer desires to buy shares of a newly designated series of the Company's Preferred Stock, par value $0.01 per share, subject to the
terms and conditions set forth herein; and 

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

        1.    Purchase and Sale.    

        1.1.    Sale of Purchased Shares.    At the Closing, upon the terms and conditions contained herein, the Company shall
issue, sell and deliver to Buyer 15,000 shares (the "Purchased Shares") of the Company's Cumulative Redeemable Preferred Stock, Series B, par
value $.01 per share (the "Series B Preferred Shares"). Such issuance, sale and delivery shall be effected by the delivery to Buyer at the
Closing of (i) the certificate or certificates representing the Purchased Shares, issued in the name of Buyer or its designee and (ii) such other documents or instruments which may be
necessary, or which Buyer may reasonably request, in order to effectively vest in Buyer good and marketable title to the Purchased Shares, free and clear of all Liens and Restrictions other than
Permitted Restrictions. 

        1.2.    Purchase of Purchased Shares.    At the Closing, upon the terms and conditions set forth in this Agreement,
Buyer shall purchase all, but not less than all, of the Purchased Shares for a total purchase price (the "Purchase Price") equal to Fifteen Million
Dollars ($15,000,000). The Purchase Price shall be paid by wire transfer of immediately available funds to an account designated by the Company in writing. 

        1.3.    Closing.    The closing of the purchase and sale of the Purchased Shares (the
"Closing") shall be held at the offices of Buyer, 9197 South Peoria Street, Englewood, Colorado 80112, or at such other place as the parties may agree,
at 1:00 p.m., local time, on March 5, 2001, or at such other date and time as the parties may agree. (The date on which the Closing occurs is referred to as the
"Closing Date"). 

        2.    Representations and Warranties of the Company.    The Company represents and warrants to Buyer as follows: 

        2.1.    Authority.    (a) The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, and has all requisite power and authority to conduct its business as now being conducted and to enter into this Agreement and to perform its obligations
hereunder. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the
part of the Company. 

        (b)  The
Certificate of Designations establishing the rights and preferences of the Series B Preferred Shares (the "Certificate of
Designations") has been approved by the Company's Board of Directors in accordance with the Company's Amended and Restated Certificate of Incorporation and Delaware law and,
prior to the Closing will have been duly filed and become effective under Delaware law. 

        2.2.    Issuance of Shares.    The Purchased Shares, upon issuance and delivery against payment therefor in accordance
with the terms and conditions of this Agreement will be duly authorized, validly issued, fully paid and non-assessable, will possess all of the rights, privileges and preferences provided
therefor in the Certificate of Designations, will be free of all Liens and Restrictions other than Permitted Restrictions, and will not be issued in violation of any preemptive rights. 

 

        2.3.    Binding Agreement.    This Agreement has been duly executed and delivered by the Company and is a legal, valid
and binding obligation of the Company, enforceable in accordance with its terms, except insofar as enforceability may be limited by principles governing the availability of equitable remedies. 

        2.4.    Capitalization.    At the date hereof, the authorized capital stock of Company consists of
(a) 50,000,000 shares of common stock, par value $.01 per share ("Common Stock"), and (b) 10,000,000 shares of preferred stock, par value
$.01 per share ("Preferred Stock"). As of the close of business on December 31, 2000, (i) 30,554,388 shares of Common Stock were issued
and outstanding, (ii) 13,500 shares of Preferred Stock were issued and outstanding, all of which had been designated as "Convertible Participating Preferred Stock, Series A, par value,
$.01 per share" ("Series A Preferred Stock"), and (iii) an aggregate of 12,843,429 shares of Common Stock were reserved for issuance upon
the exercise, exchange or conversion of securities which are convertible into (including the Series A Preferred Stock) or exercisable or exchangeable for Common Stock, and no shares of Common
Stock were held (x) by the Company in its treasury or (y) by any Subsidiary of Company. Except as specified in this Section 2.4, there are no subscriptions, options, warrants,
calls, rights, commitments or any other agreements of any character to or by which the Company is a party or is bound which, directly or indirectly, obligate Company to issue, sell or deliver or cause
to be issued, sold or delivered any shares of Common Stock or Preferred Stock or any other capital stock or equity interest of Company or any securities convertible into, or exercisable or
exchangeable for, or evidencing the right to subscribe for, any such shares or interests, or obligating Company to grant, extend or enter into any such subscription, option, warrant, call or right.
All issued and outstanding shares of Common Stock and Series A Preferred Stock have been validly issued and are fully paid and nonassessable, are not subject to and have not been issued in
violation of any preemptive rights and have not been issued in violation of any Federal or state securities laws. 

        2.5.    No Violation.    None of the execution or delivery by the Company of this Agreement, the performance by the
Company of its obligations hereunder, nor the consummation of the transactions contemplated hereby (i) has resulted or will result (with or without notice, lapse of time or otherwise) in a
breach of the terms or conditions of, a default under, a conflict with, or the acceleration of (or the creation in any person of any right to cause the acceleration of) any performance or any increase
in any payment required by, or the termination, suspension, modification, impairment or forfeiture (or the creation in any person of any right to cause the termination, suspension, modification,
impairment or forfeiture) of any material rights or privileges of the Company under (A) the certificate of incorporation, bylaws or other constituent documents of the Company, (B) any
agreement, contract, arrangement or understanding, written or oral (collectively, "Contract"), or any judgment, writ, order or decree (collectively,
"Judgment") to which the Company is a party or by or to which the Company, its properties, assets or business or any of the Purchased Shares being sold
by the Company are or may be subject, bound or affected or (C) any applicable law, rule or regulation (collectively, "Law"); (ii) has
resulted or will result (with or without notice, lapse of time or otherwise) in the creation, imposition, or foreclosure of or right to exercise or foreclose any Lien or Restriction of any nature
whatsoever upon or in any of (A) the assets of the Company (other than the Purchased Shares being sold by the Company) or (B) the Purchased Shares; or (iii) assuming that the
issuance, sale and delivery to Buyer of the Purchased Shares is a transaction exempt from registration under the Securities Act of 1933, as amended (the "Securities
Act"), and from qualification or registration under applicable state securities laws, requires or will require the Company to make any filing with, to give any notice to or to
obtain any permit, authorization, consent or approval of any person. 

        2.6.    Proceedings.    Except as set forth in the Company SEC Reports, there is no action, suit, investigation or
proceeding, governmental or otherwise ("Proceeding"), pending or, to the Company's knowledge, threatened against the Company or its affiliates,
directors, officers, employees or agents, nor is there any basis for such Proceeding known to the Company. 

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        2.7.    No Brokers.    None of the Company, its affiliates or any of their respective directors, officers, employees
or agents, as such have entered into any Contract with any person which will result in the obligation of Buyer to pay any finder's fees, brokerage or agent's commissions or other like payments in
connection with the negotiations leading to this Agreement or the consummation of the transactions contemplated hereby. 

        2.8.    SEC Filings; Financial Statements.    

        (a)  The
Company has filed all forms, reports and documents required to be filed by it with the Securities and Exchange Commission (the
"SEC") since December 31, 1999, and has heretofore made available to Buyer, in the form filed with the SEC (excluding any exhibits thereto),
(i) its Annual Reports on Form 10-K for the fiscal year ended December 31, 1999, (ii) its Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2000, June 30, 2000 and September 30, 2000, (iii) all proxy statements relating to the Company's meetings of stockholders (whether annual or special) held
on or after December 31, 1999, and (iv) all other forms, reports and other registration statements, including any and all amendments or supplements to any of the items referred to
herein, filed by the Company with the SEC since December 31, 1999 (the forms, reports and other documents referred to in clauses (i), (ii), (iii) and (iv) above being referred to
herein, collectively, as the "Company SEC Reports"). The Company SEC Reports (x) were prepared in accordance with the requirements of the
Securities Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as the case may be, and the rules and regulations thereunder,
and (y) did not at the time they were filed contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. 

        (b)  Each
of the consolidated financial statements (including, in each case, any notes thereto) contained in the Company SEC Reports was prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto), and each fairly presented the
consolidated financial position, results of operations and cash flows of the Company and its consolidated Subsidiaries as at the respective dates thereof and for the respective periods indicated
therein (subject, in the case of unaudited statements, to normal and recurring year-end adjustments which were not and are not expected, individually or in the aggregate, to be material in
amount). Since December 31, 1999, there has been no change in any of the significant accounting (including tax accounting) policies, practices or procedures of the Company or any of its
Subsidiaries. 

        (c)  Except
as and to the extent set forth in the Company SEC Reports filed with the SEC prior to the date of this Agreement, the Company and its Subsidiaries have not
incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise), other than liabilities and obligations which have been incurred in the ordinary course of
business. 

        2.9.    Absence of Certain Changes and Events.    Except as disclosed in the Company SEC Reports, since
December 31, 1999, (a) the Company and the its Subsidiaries have conducted their respective businesses only in the ordinary course and (b) there has not been any material adverse
change in the business, financial condition or results of operations of the Company and its Subsidiaries, taken as a whole. 

        3.    Representations, Warranties and Covenants of Buyer.    Buyer represents and warrants to the Company as follows: 

        3.1.    Authority.    Buyer is a corporation duly organized, validly existing and in good standing under the laws of
the State of Delaware and has all requisite power and authority to conduct its business and operations as now being conducted and to enter into this Agreement and to perform its obligations 

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hereunder. The execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action
on the part of Buyer. 

        3.2.    Binding Agreement.    This Agreement has been duly executed and delivered by Buyer and is a legal, valid and
binding obligation of Buyer, enforceable in accordance with its terms, except insofar as enforceability may be limited by principles governing the availability of equitable remedies. 

        3.3.    No Violations.    Except, as to clauses (ii), (iii), and (iv) below, as would not have, individually or
in the aggregate, a material adverse effect on the transactions contemplated hereby (including, without limitation, on Buyer's ability to perform its obligations hereunder), none of the execution or
delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder or the consummation of the transactions contemplated hereby will (i) violate or conflict with any term
or provision of the certificate of incorporation or bylaws (or other constituent documents) of Buyer, (ii) violate any provision of any Law or Judgment applicable to Buyer or by which any of
its properties or assets are bound or affected, (iii) require any consent, approval, filing or notice under any provision of any Law or Judgment applicable to Buyer, or (iv) require any
consent, approval or notice under, or violate, or be in conflict with, or constitute a breach of or default under (with or without the giving of notice or the lapse of time or both), or permit the
termination of any provision of, or result in the acceleration of (or give anyone the right to accelerate) the maturity or performance of any obligation of Buyer under, any note, bond, indenture,
mortgage, deed of trust, lease, franchise, permit, authorization, license, contract, instrument or other agreement or commitment to which Buyer is a party or by which Buyer, or any of its assets or
properties are bound or encumbered. 

        3.4.    No Brokers.    None of Buyer, its affiliates or any of their respective directors, officers, employees or
agents, as such have entered into any Contract with any person which will result in the obligation of the Company to pay any finder's fees, brokerage or agent's commissions or other like payments in
connection with the negotiations leading to this Agreement or the consummation of the transactions contemplated hereby. 

        3.5.    Investment Representations and Covenants.    

        (a)  Buyer
acknowledges that it is acquiring the Purchased Shares solely for Buyer's own account, for investment purposes, and not with a view to, or for resale in connection
with, any distribution of the Purchased Shares. Buyer understands that the Purchased Shares have not been registered under the Securities Act or registered or qualified under any state securities laws
by reason of specific exemptions under the provisions thereof which depend in part upon Buyer's investment intent and on the other representations made by Buyer in this Purchase Agreement. Buyer
understands that the Company is relying upon Buyer's representations and agreements contained in this Purchase Agreement for the purpose of determining whether this transaction meets the requirements
for such exemptions. 

        (b)  Buyer
agrees that (i) Buyer will not sell, assign, pledge, give, transfer or otherwise dispose of the Purchased Shares or any interest therein, or make any offer
or attempt to do any of the foregoing, unless such transaction is pursuant to a registration of the Purchased Shares under the Securities Act and all applicable state securities laws or a transaction
that is exempt from the registration provisions of the Securities Act and all applicable state securities laws, (ii) the certificate(s) representing the Purchased Shares bear a legend making
reference to the foregoing restrictions, and (iii) the Company and any transfer agent for the Purchased Shares shall not be required to register or give effect to any purported transfer of the
Purchased Shares except upon evidence of compliance with the foregoing restrictions. 

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        4.    Indemnification.    

        4.1.    Mutual Indemnification.    

        (a)  Subject
to written notice of such claim for indemnification being given to such party within the appropriate survival period referred to in Section 4.2 and
further subject to the proviso set forth in clause (ii) below, the Company covenants and agrees to indemnify, defend and hold harmless Buyer and its affiliates and their respective
stockholders, directors, officers, employees, agents, successors and assigns, and Buyer covenants and agrees to indemnify, defend and hold harmless the Company and its affiliates and their respective
stockholders, directors, officers, employees, agents, successors and assigns from and against: 

	(i)
	all
losses, damages, liabilities, deficiencies, obligations, costs and expenses resulting from or arising out of any misrepresentation or breach of
warranty or any nonperformance or breach of any covenant or agreement of such indemnifying party contained in this Agreement; and

	(ii)
	all
claims, actions, suits, proceedings, demands, Judgments, assessments, fines, interest, penalties, costs and expenses (including, without
limitation, settlement costs and reasonable legal, accounting, experts and other fees, costs and expenses) incident or relating to or resulting from any of the foregoing. 

        (b)  Any
party entitled to indemnification under Section 4.1(a) (an "indemnified party") seeking indemnification from a
party obligated to indemnify such party under Section 4.1(a) (an "indemnifying party") shall give prompt notice to the indemnifying party of any
claim as to which indemnification is sought and will give the indemnifying party the right to participate in and, if it so desires, to control, at its own expense, the conduct of the defense of any
such claim and any litigation arising out of such claim, with counsel reasonably satisfactory to the indemnified party. Notwithstanding an indemnifying party's election to assume control of the
defense of such claim, the indemnified party shall have the right to employ separate counsel and to participate in the defense of such claim, and the indemnifying party shall bear the reasonable fees
and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest,
(ii) the actual or potential defendants in, or targets of, any such claim include both the indemnifying party and the indemnified party, and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it which are different from or additional to those available to the indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such claim on behalf of the indemnified party) or (iii) the indemnifying party has failed to retain counsel reasonably satisfactory to the indemnified party
within a reasonable time of the notice of the claim. An indemnifying party shall not be liable for any settlement of any action or claim effected without its consent, which consent shall not be
unreasonably withheld. If an indemnifying party assumes the defense of a claim, no settlement thereof may be effected without the indemnified party's consent unless the sole relief is monetary damages
that are to be paid in full by the indemnifying party and there is no finding or admission of any violation of law. 

        4.2.    Survival of Representations and Warranties.    The representations and warranties contained in this Agreement
shall survive the Closing and remain in full force and effect for a period of twelve (12) months after the Closing Date; provided that the Company's representations and warranties set forth in
Sections 2.1, 2.2 and 2.3 shall survive indefinitely. 

        5.    Miscellaneous.    

        5.1.    Governing Law.    This Agreement shall be construed in accordance with and governed by the laws of the State
of Delaware, without regard to principles of conflicts of laws. 

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        5.2.    Definitions.    As used in this Agreement, the following terms have the following meanings: 

        (a)  "person" shall mean and include any individual, partnership, joint venture, corporation, trust, unincorporated
organization or association or any other entity or association of any kind and any governmental or regulatory authority, federal, state, local or foreign government, any political subdivision of any
thereof and any court, panel, judge, board, bureau, commission, agency or other entity or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to
government. 

        (b)  "Lien" shall mean any security interest, lien, claim, charge, restrictive agreement, pledge, adverse interest or other
encumbrance of any kind. 

        (c)  "Permitted Restriction", with respect to the Purchased Shares, as the case may be, shall mean Restrictions (i) on
the transfer of such shares under applicable federal and state securities laws or (ii) applicable to such shares created by Purchaser. 

        (d)  "Restriction", with respect to any capital stock or other security, shall mean any voting or other trust or agreement,
option, warrant, escrow arrangement, proxy, buy-sell agreement, power of attorney, stockholders' agreement or other Contract, any Judgment or any Law which, conditionally or
unconditionally, (i) grants to any person the right to purchase or otherwise acquire, or obligates any person to sell or otherwise dispose of or issue, or otherwise results or, whether upon the
occurrence of any event or with notice or lapse of time or both or otherwise, may result in any person acquiring (A) any of such capital stock or other security, (B) any of the proceeds
of, or any distributions paid or which are or may become payable with respect to, any of such capital stock or other security, or (C) any interest in such capital stock or other security or any
such proceeds or distributions; (ii) restricts or, whether upon the occurrence of any event or with notice or lapse of time or both or otherwise, may restrict the transfer or voting of, or the
exercise of any rights or the enjoyment of any benefits arising by reason of ownership of, any of such capital stock or other security or any such proceeds or distributions; or (iii) creates
or, whether upon the occurrence of any event or with notice or lapse of time or both or otherwise, may create a Lien or purported Lien affecting such capital stock or other security, proceeds or
distributions. 

        (e)  "Subsidiary" means, with respect to any person, (i) a corporation a majority of the voting power of whose capital
stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such person, by a subsidiary of such person, or by such person and one or
more subsidiaries of such person, (ii) a partnership in which such person or a subsidiary of such person is, at the date of determination, a general partner of such partnership and has the
power to direct the policies and management of such partnership or (iii) any other person in which such person, a subsidiary of such person or such person and one or more subsidiaries of such
person, directly or indirectly, at the date of determination thereof, has (A) at least a majority ownership interest or (B) the power to elect or direct the election of a majority of the
members of the board of directors or other governing body of such person. 

        5.3.    Expenses.    The Company agrees to pay all expenses incurred by Buyer in connection with the negotiation and
execution of this Agreement and the consummation of the transactions contemplated hereby, including all fees and disbursements of its legal counsel and the payment of any stock transfer or stamp
taxes. 

        5.4.    Counterparts.    This Agreement may be executed in several counterparts and as so executed shall constitute
one agreement binding on the parties hereto. 

        5.5.    Further Actions After the Closing.    If, subsequent to the Closing Date, further documents are reasonably
requested in order to carry out the provisions and purposes of this Agreement, the parties hereto shall execute and deliver such further documents. 

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        5.6.    Severability.    In the event that any part or parts of this Agreement shall be held to be unenforceable to
its or their full extent, then it is the intention of the parties hereto that such part or parts shall be enforced to the full extent permitted under the laws, and, in any event, that all other parts
of this Agreement shall remain valid and fully enforceable as if the unenforceable part or parts had never been a part hereof. 

        5.7.    Amendments.    This Agreement may be amended only by written instrument signed by all parties. 

        5.8.    Notices.    Any notice or other communication required or contemplated by the terms of this Agreement shall be
delivered in person or sent by telecopy, overnight courier, or registered or certified mail, postage prepaid, return receipt requested. Any such notice or other communication shall be addressed to the
intended recipient at the address set forth below such party's signature on the signature page hereof, or at such other address of which such party shall have given notice as herein provided. Notice
shall be deemed given on the date of delivery, in the case of personal delivery or telecopy, or on the delivery or refusal date, as specified on the return receipt, in the case of overnight courier or
registered or certified mail. 

        5.9.    Entire Agreement.    The provisions of this Agreement set forth the complete understanding and intention of
the parties with respect to the subject matter hereof and supersede all prior agreements or understandings, whether written or oral, relating to the subject matter hereof. 

[SIGNATURE PAGE FOLLOWS]  

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        IN
WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the date first written above. 

	 	 	ON COMMAND CORPORATION
	

 	
 	

By:	
 	

/s/ Bertram Perkel
 Name: Bertam Perkel

Title: Senior Vice President
	

 	
 	

Address for Notices:
	

 	
 	

7900 East Union Avenue

Tower III

Denver, CO 80237

Attention: Bertram Perkel
	

 	
 	

ASCENT ENTERTAINMENT GROUP, INC.
	

 	
 	

/s/ Gary S. Howard
 Name: Gary S. Howard

Title: Exec. Vice President, COO & Director
	

 	
 	

Address for Notices:
	

 	
 	

c/o Liberty Media Corporation

9197 South Peoria Street

Englewood, Colorado 80112

Attention: Elizabeth M. Markowski

8

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PREFERRED STOCK PURCHASE AGREEMENT

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