Document:

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                                  EXHIBIT 10.9

                             UIH LATIN AMERICA, INC.

                                STOCK OPTION PLAN

                            (EFFECTIVE JUNE 6, 1997)

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                                TABLE OF CONTENTS

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ARTICLE I     INTRODUCTION......................................................   1
         1.1  Establishment.....................................................   1
         1.2  Purposes..........................................................   1
         1.3  Effective Date....................................................   1

ARTICLE II    DEFINITIONS.......................................................   1
         2.1  Definitions.......................................................   1
         2.2  Gender and Number.................................................   4

ARTICLE III   PLAN ADMINISTRATION...............................................   4

ARTICLE IV    STOCK SUBJECT TO THE PLAN.........................................   4
         4.1  Number of Shares..................................................   4
         4.2  Adjustments for Stock Split, Stock Dividend, Etc..................   5
         4.3  Adjustments for Certain Distributions of Property.................   5
         4.4  Distributions of Capital Stock and Indebtedness...................   5
         4.5  No Rights as Stockholder..........................................   5
         4.6  Certain Issuances of Capital Stock................................   6
         4.7  Fractional Shares.................................................   6
         4.8  Determination by the Committee, Etc...............................   6

ARTICLE V     PARTICIPATION.....................................................   6

ARTICLE VI-A PHANTOM OPTIONS....................................................   7
         6A.1 Grant of Phantom Options..........................................   7
         6A.2 Phantom Stock Option Certificates.................................   7
         6A.3 Initial Public Offering...........................................   9

ARTICLE VI-B  STOCK OPTIONS.....................................................   9
         6B.1 Grant of Stock Options............................................   9
         6B.2 Stock Option Certificates.........................................  10
         6B.3 Restrictions on Incentive Options.................................  13

ARTICLE VII   CORPORATE REORGANIZATION; CHANGE IN CONTROL.......................  14
         7.1  Reorganization....................................................  14
         7.2  Required Notice...................................................  14
         7.3  Acceleration of Exercisability....................................  14
         7.4  Change in Control.................................................  14
         7.5  Payment for Outstanding Phantom Options...........................  16
ARTICLE VIII  RESTRICTION ON TRANSFER OF STOCK..................................  16
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         8.1  No Transfer.......................................................  16
         8.2  Sale to UIH Latin America During Employment.......................  17
         8.3  Sale to UIH Latin America Following Termination of Employment.....  17
         8.4  Determination of Fair Market Value................................  17
         8.5  Purchase; Information to Option Holder............................  18

ARTICLE IX    EMPLOYMENT; TRANSFERABILITY.......................................  19
         9.1  Employment........................................................  19
         9.2  Other Employee Benefits...........................................  19
         9.3  Nontransferability................................................  19

ARTICLE X     SECURITIES LAW RESTRICTIONS.......................................  19

ARTICLE XI    WITHHOLDING.......................................................  20
         11.1 Withholding Requirement...........................................  20
         11.2 Withholding With Stock............................................  20

ARTICLE XII   MISCELLANEOUS.....................................................  20
         12.1 Expiration........................................................  20
         12.2 Amendments, Etc...................................................  20
         12.3 Treatment of Proceeds.............................................  21
         12.4 Section Headings..................................................  21
         12.5 Severability......................................................  21
         12.6 Gender and Number.................................................  21

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                             UIH LATIN AMERICA, INC.

                                STOCK OPTION PLAN

                                    ARTICLE I

                                  INTRODUCTION

     1.1  ESTABLISHMENT. UIH Latin America, Inc., a Colorado corporation ("UIH
Latin America"), hereby establishes the UIH Latin America, Inc. Stock Option
Plan (the "Plan") for certain key employees of the Company (as defined in
Article II) and certain consultants to the Company. The Plan permits the grant
of phantom stock options to certain key employees of, and consultants to, the
Company, incentive stock options within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended, to certain key employees of the
Company and non-qualified stock options, to certain key employees of, and
certain consultants to, the Company.

     1.2  PURPOSES. The purposes of the Plan are to provide those who are
selected for participation in the Plan with added incentives to continue in the
long-term service of the Company and to create in such persons a more direct
interest in the future success of the operations of the Company by relating
incentive compensation to increases in shareholder value, so that the income of
those participating in the Plan is more closely aligned with the income of the
Company's shareholders. The Plan is also designed to provide a financial
incentive that will help the Company attract, retain and motivate the most
qualified employees and consultants.

     1.3  EFFECTIVE DATE. The effective date of the Plan shall be June 6, 1997
(the "Effective Date"), subject to approval by the affirmative votes of the
holders of a majority of the shares of the Company present or represented and
entitled to vote at a meeting duly held in accordance with law within one year
following the Effective Date. If the stockholders of the Company do not approve
the Plan as specified above, Phantom Options and Stock Options granted under the
Plan shall be deemed to be rescinded without any further action by the Board or
the Company, and the Plan shall automatically terminate.

                                   ARTICLE II

                                   DEFINITIONS

     2.1  DEFINITIONS. The following terms shall have the meanings set forth
below:

          (a)  "AFFILIATED CORPORATION" means any corporation or other entity
that is affiliated with UIH Latin America through stock ownership or otherwise
and is designated as an "Affiliated Corporation" by the Board, provided,
however, that for purposes of Incentive Options granted pursuant to the Plan, an
"Affiliated Corporation" means any parent or subsidiary of the

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Company as defined in Section 424 of the Code.

          (b)  "BOARD" means the Board of Directors of UIH Latin America.

          (c)  "CODE" means the Internal Revenue Code of 1986, as it may be
amended from time to time.

          (d)  "COMMITTEE" means a committee consisting of members of the Board
who are empowered hereunder to take actions in the administration of the Plan.
During all periods when the Company is subject to the reporting requirements of
the Securities Exchange Act of 1934 (the "1934 Act"), the Committee shall be so
constituted at all times as to permit the Plan to comply with Rule 16b-3 or any
successor rule promulgated under the 1934 Act. Members of the Committee and any
subcommittee or special committee shall be appointed from time to time by the
Board, shall serve at the pleasure of the Board and may resign at any time upon
written notice to the Board. The Committee shall recommend to the Board the
Eligible Employees and Eligible Consultants who shall be granted Phantom Options
and Stock Options and the terms and conditions thereof.

          (e)  "COMPANY" means UIH Latin America and the Affiliated
Corporations.

          (f)  "DISABLED" or "DISABILITY" shall have the meaning given to such
terms in Section 22(e)(3) of the Code.

          (g)  "ELIGIBLE CONSULTANTS" means those consultants and other
individuals who provide services to the Company and whose judgment, initiative
and effort are important to the Company for the management and growth of its
business. For purposes of the Plan, Eligible Consultants include only those
individuals who do not receive wages subject to the withholding of federal
income tax under section 3401 of the Code. Eligible Consultants do not include
the Company's directors who are not employees of the Company.

          (h)  "ELIGIBLE EMPLOYEES" means those employees (including, without
limitation, officers and directors who are also employees) of the Company or any
subsidiary or division thereof, whose judgment, initiative and efforts are
important to the Company for the management and growth of its business. For
purposes of the Plan, an employee is an individual whose wages are subject to
the withholding of federal income tax under section 3401 of the Code.

          (i)  "FAIR MARKET VALUE" of a Share of Stock shall be the last
reported sale price of the Stock on the NASDAQ National Market System on the day
the determination is to be made, or if no sale took place on such day, the
average of the closing bid and asked prices of the Stock on the NASDAQ National
Market System on such day, or if the market is closed on such day, the last day
prior to the date of determination on which the market was open for the
transaction of business, as reported by NASDAQ. If, however, the Stock should be
listed or admitted for trading on a national securities exchange, the Fair
Market Value of a Share of the

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Stock shall be the last sales price, or if no sales took place, the average of
the closing bid and asked prices on the day the determination is to be made, or
if the market is closed on such day, the last day prior to the date of
determination on which the market was open for the transaction of business, as
reported in the principal consolidated transaction reporting system for the
principal national securities exchange on which the Stock is listed or admitted
for trading. If the Stock is not Publicly Traded, the Fair Market Value of the
Stock for purposes of the grant of Options under the Plan shall be determined by
the Committee in accordance with Section 8.4.

          (j)  "INCENTIVE OPTION" means a Stock Option designated as such and
granted in accordance with Section 422 of the Code.

          (k)  "INITIAL PUBLIC OFFERING" or "IPO" means an underwritten public
offering of the common stock of UIH Latin America that is registered under the
Securities Act of 1933, as amended.

          (l)  "NON-QUALIFIED OPTION" means any Stock Option other than an
Incentive Option.

          (m)  "OPTION HOLDER" means a Participant who has been granted one or
more Phantom Options or Stock Options under the Plan.

          (n)  "PHANTOM OPTION" means a right to elect to receive, for a stated
period of time, cash equal to the excess of the Fair Market Value of Stock over
the Phantom Option Price.

          (o)  "PHANTOM OPTION CERTIFICATE" shall have the meaning given to such
term in Section 6A.2 hereof.

          (p)  "PHANTOM OPTION PRICE" means the base price for determining the
increase in value of a Share of Stock, determined in accordance with subsection
6A.2(b).

          (q)  "PUBLICLY TRADED" means listing or trading on the NASDAQ National
Market System or a national securities exchange.

          (r)  "SHARE" means a share of Stock.

          (s)  "STOCK" means the Class A common stock of UIH Latin America.

          (t)  "STOCK OPTION" means a right to purchase Stock at a stated or
formula price for a specified period of time. Stock Options granted under the
Plan shall be either Incentive Options or Non-Qualified Options.

          (u)  "STOCK OPTION CERTIFICATE" shall have the meaning given to such
term in Section 6B.2 hereof.

          (v)  "STOCK OPTION PRICE" means the price at which each Share of Stock
subject to an Option may be purchased, determined in accordance with subsection
6B.2(b).

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          (w)  "UIH" means United International Holdings, Inc..

          (x)  "UIH LATIN AMERICA" means UIH Latin America, Inc. and any
successor thereto.

          2.2  GENDER AND NUMBER. Except when otherwise indicated by the
context, the masculine gender shall also include the feminine gender, and the
definition of any term herein in the singular shall also include the plural.

                                   ARTICLE III

                               PLAN ADMINISTRATION

     The Plan shall be administered by the Committee. The Committee shall
determine the form or forms of the Stock Option Certificates, and other
agreements with Option Holders that shall evidence the particular provisions,
terms, conditions, rights and duties of UIH Latin America and the Option Holders
with respect to Phantom Options and Stock Options granted pursuant to the Plan,
which provisions need not be identical except as may be provided herein. The
Committee may from time to time adopt such rules and regulations for carrying
out the purposes of the Plan as it may deem proper and in the best interests of
the Company. The Committee may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or in any agreement entered into
hereunder in the manner and to the extent it shall deem expedient and it shall
be the sole and final judge of such expediency. No member of the Committee shall
be liable for any action or determination made in good faith. The
determinations, interpretations and other actions of the Committee pursuant to
the provisions of the Plan shall be binding and conclusive for all purposes and
on all persons.

                                   ARTICLE IV

                            STOCK SUBJECT TO THE PLAN

     4.1  NUMBER OF SHARES. The number of Shares that are authorized for
issuance under the Plan in accordance with the provisions of the Plan and
subject to such restrictions or other provisions as the Committee may from time
to time deem necessary shall not exceed 1,631,000, subject to the provisions
regarding changes in capital described below. The maximum number of Shares with
respect to which a Participant may receive Phantom Options and Stock Options
under the Plan in any calendar year is 500,000 Shares. The Shares may be either
authorized and unissued Shares or previously issued Shares acquired by UIH Latin
America. This authorization may be increased from time to time by approval of
the Board and by the stockholders of UIH Latin America if, in the opinion of
counsel for UIH Latin America, stockholder approval is required. Shares of Stock
that may be issued upon exercise of Stock Options and with respect to

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which Phantom Options are exercised shall be applied to reduce the maximum
number of Shares remaining available for use under the Plan. UIH Latin America
shall at all times during the term of the Plan and while any Stock Options are
outstanding retain as authorized and unissued Stock at least the number of
Shares from time to time required under the provisions of the Plan, or otherwise
assure itself of its ability to perform its obligations hereunder. Any Shares of
Stock that are subject to a Phantom Option or Stock Option that expires or for
any reason is terminated unexercised and any Shares of Stock withheld for the
payment of taxes or received by UIH Latin America as payment of the exercise
price of a Stock Option shall automatically become available for use under the
Plan.

     4.2  ADJUSTMENTS FOR STOCK SPLIT, STOCK DIVIDEND, ETC. If UIH Latin America
shall at any time increase or decrease the number of its outstanding Shares or
change in any way the rights and privileges of such Shares by means of the
payment of a stock dividend or any other distribution upon such Shares payable
in Stock, or through a stock split, subdivision, consolidation, combination,
reclassification or recapitalization involving the Stock, then in relation to
the Stock that is affected by one or more of the above events, the numbers,
rights and privileges of the following shall be increased, decreased or changed
in like manner as if they had been issued and outstanding, fully paid and
nonassessable at the time of such occurrence: (i) the Shares as to which Phantom
Options and Stock Options may be granted under the Plan and (ii) the Shares then
included in each outstanding Phantom Option and Stock Option granted hereunder.
Upon any occurrence described in this Section 4.2, the total Phantom Option
Price or Stock Option Price, as the case may be, under each then outstanding
Phantom Option or Stock Option shall remain unchanged but shall be apportioned
ratably over the increased or decreased number of Shares subject to the Phantom
Option or Stock Option.

     4.3  ADJUSTMENTS FOR CERTAIN DISTRIBUTIONS OF PROPERTY. If UIH Latin
America shall at any time distribute with respect to its Stock assets or
securities of other persons (excluding cash dividends or distributions payable
out of capital surplus and dividends or other distributions referred to in
sections 4.2 or 4.4), then the Phantom Option Price or Stock Option Price, as
the case may be, of outstanding Phantom Options and Stock Options shall be
adjusted to reflect the fair market value of the assets or securities
distributed, the Company shall provide for the delivery upon exercise of such
Phantom Options or Stock Options of cash in an amount equal to the fair market
value of the assets or securities distributed or a combination of such actions
shall be taken, all as determined by the Committee in its discretion. Fair
market value of the assets or securities distributed for this purpose shall be
as determined by the Committee; provided however, that if UIH Latin America is
not Publicly Traded and the assets or securities represent an operating
business, the fair market value shall be determined in accordance with Section
8.4.

     4.4  DISTRIBUTIONS OF CAPITAL STOCK AND INDEBTEDNESS. If UIH Latin America
shall at any time distribute with respect to its stock shares of its capital
stock (other than Stock) or evidences of indebtedness, then a proportionate part
of such capital stock and evidences of indebtedness shall be set aside for each
outstanding Stock Option and, upon the exercise of such Stock Option, delivered
to the Option Holder.

     4.5  NO RIGHTS AS STOCKHOLDER. An Option Holder shall have none of the
rights of a stockholder with respect to the Shares subject to a Stock Option
until such Shares are transferred

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to the Option Holder upon the exercise of such Stock Option. Except as provided
in this Article IV, no adjustment shall be made for dividends, rights or other
property distributed to stockholders (whether ordinary or extraordinary) for
which the record date is prior to the date such Shares are so transferred.

     4.6  CERTAIN ISSUANCES OF CAPITAL STOCK. If any person, including without
limitation United International Holdings, Inc., acquires, whether by purchase,
capital contribution or otherwise, any shares of the capital stock of UIH Latin
America at a price less than $8.41 per share, and if the Committee shall in its
discretion determine that such acquisition equitably requires an adjustment in
the number of Shares subject to a Phantom Option or Stock Option, an adjustment
in the Phantom Option Price or Stock Option Price, or the taking of any other
action by the Committee, such adjustments shall be made or other action taken by
the Committee and shall be effective for all purposes of the Plan and each
outstanding Phantom Option or Stock Option.

     4.7  FRACTIONAL SHARES. No adjustment or substitution provided for in this
Article IV shall require the Company to issue a fractional share. The total
substitution or adjustment with respect to each Stock Option shall be limited by
deleting any fractional share.

     4.8  DETERMINATION BY THE COMMITTEE, ETC. Adjustments under this Article IV
shall be made by the Committee, whose determinations with regard thereto shall
be final and binding upon all parties thereto.

                                    ARTICLE V

                                  PARTICIPATION

     In accordance with the provisions of the Plan, the Committee shall, in its
sole discretion, select Option Holders from among Eligible Employees and
Eligible Consultants to whom Phantom Options and Stock Options will be granted
and shall specify the number of Shares subject to each Phantom Option or Stock
Option and such other terms and conditions of each Phantom Option or Stock
Option as the Committee may determine to be necessary or desirable and
consistent with the terms of the Plan. Eligible Employees shall be selected from
the employees of the Company who are performing services in the management,
operation and growth of the Company, and contribute, or are expected to
contribute, to the achievement of long-term corporate objectives. Eligible
Consultants shall be selected from the consultants and other individuals who
provide services to the Company with respect to the operation and growth of the
Company and who contribute, or are expected to contribute, to the achievement of
long-term corporate objectives. Eligible Employees and Eligible Consultants may
be granted from time-to-time one or more Phantom Options or Stock Options. The
grant of each such Phantom Option or Stock Option shall be separately approved
by the Committee, and receipt of one such Option shall not result in automatic
receipt of any other Phantom Option or Stock Option. Upon determination by the
Committee that a Phantom Option or Stock Option is to be granted to an Eligible
Employee or Eligible Consultant, written notice shall be given to such person,
specifying the terms, conditions, rights and duties related thereto.
Notwithstanding the

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foregoing, as long as UIH Latin America is not Publicly Traded, the
Committee may grant only Phantom Options under the Plan. After the closing of an
Initial Public Offering, the Committee may grant only Stock Options under the
Plan.

                                  ARTICLE VI-A

                                 PHANTOM OPTIONS

     6A.1 GRANT OF PHANTOM OPTIONS. Coincident with or following designation for
participation in the Plan, Eligible Employees and Eligible Consultants may be
granted one or more Phantom Options. A Phantom Option shall be considered as
having been granted on the date specified in the grant resolution of the
Committee. Phantom Options may be granted only while the Company is not Publicly
Traded.

     6A.2 PHANTOM STOCK OPTION CERTIFICATES. Each Phantom Option granted under
the Plan shall be evidenced by a written certificate or agreement (a "Phantom
Option Certificate"). A Phantom Option Certificate shall be issued by UIH Latin
America in the name of the Participant to whom the Phantom Option is granted
(the "Option Holder") and in such form as may be approved by the Committee. The
Phantom Option Certificate shall incorporate and conform to the conditions set
forth in this Section 6A.2 as well as such other terms and conditions that are
not inconsistent as the Committee may consider appropriate in each case.

          (a)  NUMBER OF SHARES. Each Phantom Option Certificate shall state
that it covers a specified number of Shares of Stock, as determined by the
Committee.

          (b)  PHANTOM OPTION PRICE. The base price for determining the increase
in value of a Share of Stock shall be determined in each case by the Committee
and set forth in the Option Certificate.

          (c)  DURATION OF PHANTOM OPTIONS; RESTRICTIONS ON EXERCISE. Each
Phantom Option Certificate shall state the period of time, determined by the
Committee, within which the Phantom Option may be exercised by the Option Holder
(the "Option Period"). The Option Period must end, in all cases, not more than
ten years from the date the Phantom Option is granted. Each Option Certificate
shall provide that the Phantom Option shall become exercisable (vest) in
increments if the Option Holder is continuously employed by UIH Latin America or
an Affiliated Corporation from the date of grant through the following vesting
dates: 1/48th of the number of Shares subject to the Phantom Option shall vest
on the same date of the month as the date of grant, commencing with the month
next following the month in which the Phantom Option was granted. If the vesting
formula results in a fractional share, the vested increment shall be rounded
down to the next whole share. The Phantom Option shall be fully vested on the
fourth anniversary of the date of grant. However, the Committee, with the
approval of the Board, may establish different vesting schedules for specified
Phantom Option grants. Except as set forth in Article VII, the Phantom Option
shall not be exercisable as to any Shares for which the continuous employment
requirement is not satisfied, regardless of the circumstances under which

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the Option Holder's employment by the Company is terminated. The number of
Shares as to which the Phantom Option may be exercised is cumulative, so that
once the Phantom Option is exercisable as to any Shares it shall continue to be
exercisable as to such Shares until expiration or termination of the Phantom
Option.

          (d)  TERMINATION OF SERVICES, DEATH, DISABILITY, ETC. The Committee
may specify the period, if any, after which a Phantom Option may be exercised
following termination of the Option Holder's services. The effect of this
subsection 6A.2(d) shall be limited to determining the consequences of a
termination and nothing in this subsection 6A.2(d) shall restrict or otherwise
interfere with the Company's discretion with respect to the termination of any
individual's services. If the Committee does not otherwise specify, the
following shall apply:

               (i)  If the employment or consulting relationship of an Option
Holder by or with the Company terminates for any reason other than death or
Disability within six months after the date the Phantom Option is granted or if
the employment or consulting relationship of the Option Holder by or with the
Company is terminated within the Option Period for cause, as determined by the
Company, the Phantom Option shall thereafter be void for all purposes. As used
in this subsection 6A.2(d), "cause" shall mean a gross violation, as determined
by the Company, of the Company's established policies and procedures.

               (ii) If the employment or consulting relationship of the Option
Holder terminates because the Option Holder becomes Disabled within the Option
Period, the Phantom Option may be exercised by the Option Holder (or, in the
case of his death after becoming Disabled, by those entitled to do so under his
will or by the laws of descent and distribution) within one year following such
termination (if otherwise within the Option Period), but not thereafter. In any
such case, the Phantom Option may be exercised only as to the Shares as to which
the Phantom Option had become exercisable on or before the date of termination
because of Disability.

               (iii) If the Option Holder dies within the Option Period, while
employed by the Company, while a consultant to the Company, or within the
three-month period referred to in (iv) below, the Phantom Option may be
exercised by those entitled to do so under his will or by the laws of descent
and distribution within one year following his death (if otherwise within the
Option Period), but not thereafter. In any such case the Phantom Option may be
exercised only as to the Shares as to which the Phantom Option had become
exercisable on or before the date of the Option Holder's death.

               (iv) If the employment or consulting relationship of the Option
Holder by or with the Company terminates within the Option Period for any reason
other than for cause, Disability or death, and such termination occurs more than
six months after the Phantom Option is granted, the Phantom Option may be
exercised by the Option Holder within three months following the date of such
termination (if otherwise within the Option Period), but not thereafter. In any
such case, the Phantom Option may be exercised only as to the Shares as to which
the Phantom Option had become exercisable on or before the date of termination.

          (e)  CONSIDERATION FOR GRANT OF PHANTOM OPTION. The Company may
require

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each Eligible Employee who is granted a Phantom Option to agree to remain in the
employment of the Company, at the pleasure of the Company, for a continuous
period of at least six months after the date the Phantom Option is granted, at
the salary rate or other compensation in effect on the date of such agreement or
at such changed rate as may be fixed, from time to time, by the Company. Nothing
in this paragraph shall limit or impair the Company's right to terminate the
employment of any employee. The Committee may require each Eligible Consultant
who is granted a Phantom Option to agree to comply with all of the terms and
conditions or specified terms and conditions of the agreement between the
Eligible Consultant and the Company.

          (f)  EXERCISE. The method for exercising each Phantom Option granted
hereunder shall be by delivery to UIH Latin America of written notice specifying
the number of Shares with respect to which the Phantom Option is exercised. The
Phantom Option shall be exercised on the date UIH Latin America receives the
notice of exercise. Within 30 days after the date of receipt of the notice, UIH
Latin America shall deliver to the Option Holder payment (net of the amount
required to be withheld under applicable federal, state, and local tax laws) for
an amount equal to the Fair Market Value of the Shares of Stock on the date of
exercise over the Phantom Option Price for the Shares. Payment shall be made, as
the Company determines in its sole discretion, in (i) cash, (ii) freely tradable
shares of Class A Common Stock of UIH, which shall be valued at the closing
price on the day before the date the Company makes payment to the Option Holder,
or (iii) if the Stock is Publicly Traded, freely tradable shares of Stock. If
Phantom Options on less than all Shares evidenced by a Phantom Option
Certificate are exercised, UIH Latin America shall deliver a new Phantom Option
Certificate evidencing the Phantom Option on the remaining Shares upon delivery
of the Phantom Option Certificate for the Phantom Option being exercised.

     6A.3 INITIAL PUBLIC OFFERING. Upon the closing of an Initial Public
Offering, each holder of a Phantom Option shall be permitted to convert the
Phantom Option to a Non-Qualified Option covering the same number of shares and
having a Stock Option Price equal to the Phantom Option Price. The Non-Qualified
Option shall be vested to the same extent the Phantom Option was vested and
shall continue to vest, if applicable, according to the same vesting schedule
that applied to the Phantom Option. The Option Holder shall have a period of 10
days before the pricing meeting at which the price to the public is determined
in which to elect whether or not to convert the Phantom Option. If the Option
Holder elects to convert the Phantom Options, they shall be converted to Non-
Qualified Options immediately after the pricing meeting and before the closing
of the IPO. Phantom Options that are not converted shall continue to be
outstanding and shall continue to be subject to their terms and conditions and
the terms and conditions of this Article VI-A.

                                 ARTICLE VI - B

                                  STOCK OPTIONS

     6B.1 GRANT OF STOCK OPTIONS. Coincident with or following designation for
participation in the Plan, Eligible Employees and Eligible Consultants may be
granted one or more Stock Options. The Committee in its sole discretion shall
designate whether a Stock

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Option is an Incentive Option or a Non-Qualified Option. Incentive Options may
be granted only to Eligible Employees. The Committee may grant both an Incentive
Option and a Non-Qualified Option to an Eligible Employee at the same time or at
different times. Incentive Options and Non-Qualified Options, whether granted at
the same time or at different times, shall be deemed to have been awarded in
separate grants and shall be clearly identified, and in no event shall the
exercise of one Stock Option affect the right to exercise any other Stock Option
or affect the number of Shares for which any other Stock Option may be
exercised. A Stock Option shall be considered as having been granted on the date
specified in the grant resolution of the Committee.

     6B.2 STOCK OPTION CERTIFICATES. Each Stock Option granted under the Plan
shall be evidenced by a written stock option certificate or agreement (a "Stock
Option Certificate"). A Stock Option Certificate shall be issued by UIH Latin
America in the name of the Participant to whom the Stock Option is granted (the
"Option Holder") and in such form as may be approved by the Committee. The Stock
Option Certificate shall incorporate and conform to the conditions set forth in
this Section 6B.2 as well as such other terms and conditions that are not
inconsistent as the Committee may consider appropriate in each case.

          (a)  NUMBER OF SHARES. Each Stock Option Certificate shall state that
it covers a specified number of Shares of Stock, as determined by the Committee.

          (b)  PRICE. The price at which each Share of Stock covered by a Stock
Option may be purchased shall be determined in each case by the Committee and
set forth in the Stock Option Certificate, but in no event shall the price for
an Incentive Option be less than 100 percent of the Fair Market Value of the
Stock on the date the Incentive Option is granted.

          (c)  DURATION OF STOCK OPTIONS; RESTRICTIONS ON EXERCISE. Each Stock
Option Certificate shall state the period of time, determined by the Committee,
within which the Stock Option may be exercised by the Option Holder (the "Option
Period"). The Option Period must end, in all cases, not more than ten years from
the date the Option is granted. Each Stock Option Certificate shall provide that
the Stock Option shall become exercisable (vest) in increments if the Option
Holder is continuously employed by UIH Latin America or an Affiliated
Corporation from the date of grant through the following vesting dates: 1/48th
of the number of Shares subject to the Stock Option shall vest on the same date
of the month as the date of grant, commencing with the month next following the
month in which the Stock Option was granted. If the vesting formula results in a
fractional share, the vested increment shall be rounded down to the next whole
share. The Stock Option shall be fully vested on the fourth anniversary of the
date of grant. However, the Committee, with the approval of the Board, may
establish different vesting schedules for specified Stock Option grants. Except
as set forth in Sections 7.3 and 7.4, the Stock Option shall not be exercisable
as to any Shares for which the continuous employment requirement is not
satisfied, regardless of the circumstances under which the Option Holder's
employment by the Company is terminated. The number of Shares as to which the
Stock Option may be exercised is cumulative, so that once the Stock Option is
exercisable as to any Shares it shall continue to be exercisable as to such
Shares until expiration or termination of the Option.

          (d)  TERMINATION OF SERVICES, DEATH, DISABILITY, ETC. The Committee
may specify the period, if any, after which a Stock Option may be exercised
following termination of

                                       10
<PAGE>

the Option Holder's services. The effect of this subsection 6B.2(d) shall be
limited to determining the consequences of a termination and nothing in this
subsection 6B.2(d) shall restrict or otherwise interfere with the Company's
discretion with respect to the termination of any individual's services. If the
Committee does not otherwise specify, the following shall apply:

               (i)  If the employment or consulting relationship of an Option
Holder by or with the Company terminates for any reason other than death or
Disability within six months after the date the Stock Option is granted or if
the employment or consulting relationship of the Option Holder by or with the
Company is terminated within the Option Period for cause, as determined by the
Company, the Stock Option shall thereafter be void for all purposes. As used in
this subsection 6B.2(d), "cause" shall mean a gross violation, as determined by
the Company, of the Company's established policies and procedures.

               (ii) If the employment or consulting relationship of the Option
Holder terminates because the Option Holder becomes Disabled within the Option
Period, the Stock Option may be exercised by the Option Holder (or, in the case
of his death after becoming disabled, by those entitled to do so under his will
or by the laws of descent and distribution) within one year following such
termination (if otherwise within the Option Period), but not thereafter. In any
such case, the Stock Option may be exercised only as to the Shares as to which
the Stock Option had become exercisable on or before the date of termination
because of Disability.

               (iii) If the Option Holder dies within the Option Period, while
employed by the Company, while a consultant to the Company, or within the
three-month period referred to in (iv) below, the Stock Option may be exercised
by those entitled to do so under his will or by the laws of descent and
distribution within one year following his death (if otherwise within the Stock
Option Period), but not thereafter. In any such case the Stock Option may be
exercised only as to the Shares as to which the Stock Option had become
exercisable on or before the date of the Option Holder's death.

               (iv) If the employment or consulting relationship of the Option
Holder by or with the Company terminates within the Option Period for any reason
other than for cause, Disability or death, and such termination occurs more than
six months after the Option is granted, the Stock Option may be exercised by the
Option Holder within three months following the date of such termination (if
otherwise within the Option Period), but not thereafter. In any such case, the
Stock Option may be exercised only as to the Shares as to which the Stock Option
had become exercisable on or before the date of termination.

          (e)  CONSIDERATION FOR GRANT OF STOCK OPTION. The Company may require
each Eligible Employee who is granted a Stock Option to agree to remain in the
employment of the Company, at the pleasure of the Company, for a continuous
period of at least six months after the date the Stock Option is granted, at the
salary rate or other compensation in effect on the date of such agreement or at
such changed rate as may be fixed, from time to time, by the Company. Nothing in
this paragraph shall limit or impair the Company's right to terminate the
employment

                                       11
<PAGE>

of any employee. The Committee may require each Eligible Consultant who is
granted a Stock Option to agree to comply with all of the terms and conditions
or specified terms and conditions of the agreement between the Eligible
Consultant and the Company. If an Option Holder violates any such agreement, the
Company may, in its sole discretion, rescind the transfer of any Shares to the
Option Holder pursuant to the exercised portion of the Stock Option. Upon notice
of any such rescission, the Option Holder will deliver promptly to the Company
certificates representing the Shares, duly endorsed for transfer to the Company.

          (f)  EXERCISE, PAYMENTS, ETC.

               (i)  MANNER OF EXERCISE. The method for exercising each Stock
Option granted hereunder shall be by delivery to UIH Latin America of written
notice specifying the number of Shares with respect to which such Stock Option
is exercised. The purchase of such Shares shall take place at the principal
offices of UIH Latin America within thirty days following delivery of such
notice, at which time the Stock Option Price of the Shares shall be paid in full
by any of the methods set forth below or a combination thereof. Except as set
forth in the next sentence, the Stock Option shall be exercised when the Stock
Option Price for the number of Shares as to which the Stock Option is exercised
is paid to UIH Latin America in full. If the Stock Option Price is paid by means
of a broker's loan transaction described in subsection 6B.2(f)(ii)(D), in whole
or in part, the closing of the purchase of the Stock under the Stock Option
shall take place (and the Stock Option shall be treated as exercised) on the
date on which, and only if, the sale of Stock upon which the broker's loan was
based has been closed and settled, unless the Option Holder makes an irrevocable
written election, at the time of exercise of the Stock Option, to have the
exercise treated as fully effective for all purposes upon receipt of the Stock
Option Price by UIH Latin America regardless of whether or not the sale of the
Stock by the broker is closed and settled. A properly executed certificate or
certificates representing the Shares shall be delivered to or at the direction
of the Option Holder upon payment therefor. If Stock Options on less than all
Shares evidenced by an Option Certificate are exercised, UIH Latin America shall
deliver a new Stock Option Certificate evidencing the Stock Option on the
remaining Shares upon delivery of the Stock Option Certificate for the Stock
Option being exercised.

               (ii) The exercise price shall be paid by any of the following
methods or any combination of the following methods at the election of the
Option Holder, or by any other method approved by the Committee upon the request
of the Option Holder:

                    (A)  in cash;

                    (B)  by certified check, cashier's check or other check
acceptable to UIH Latin America, payable to the order of UIH Latin America;

                    (C)  by delivery to UIH Latin America of certificates
representing the number of shares then owned by the Option Holder, the Fair
Market Value of which equals the purchase price of the Stock purchased pursuant
to the Stock Option, properly endorsed for transfer to UIH Latin America;
provided however, that no Stock Option may be exercised by delivery to UIH Latin
America of certificates representing Stock, unless such Stock has been held by
the Option Holder unrestricted for more than six months or such other period as

                                       12
<PAGE>

specified by the Committee; for purposes of this Plan, the Fair Market Value of
any shares of Stock delivered in payment of the purchase price upon exercise of
the Stock Option shall be the Fair Market Value as of the exercise date; the
exercise date shall be the day of delivery of the certificates for the Stock
used as payment of the Option Price; or

                    (D)  by delivery to UIH Latin America of a properly executed
notice of exercise together with irrevocable instructions to a broker to deliver
to UIH Latin America promptly the amount of the proceeds of the sale of all or a
portion of the Stock or of a loan from the broker to the Option Holder required
to pay the Option Price.

          (g)  WITHHOLDING.

               (i)  NON-QUALIFIED OPTIONS. Upon exercise of a Non-Qualified
Option, the Option Holder shall make appropriate arrangements with the Company
to provide for the amount of additional withholding required by Sections 3102
and 3402 of the Code and applicable state income tax laws, including payment of
such taxes through delivery of shares of Stock or by withholding Stock to be
issued under the Non-Qualified Option, as provided in Article XI.

               (ii) INCENTIVE OPTIONS. If an Option Holder makes a disposition
(as defined in Section 424(c) of the Code) of any Stock acquired pursuant to the
exercise of an Incentive Option prior to the expiration of two years from the
date on which the Incentive Option was granted or prior to the expiration of one
year from the date on which the Incentive Option was exercised, the Option
Holder shall send written notice to the Company at the Company's principal place
of business of the date of such disposition, the number of Shares disposed of,
the amount of proceeds received from such disposition and any other information
relating to such disposition as the Company may reasonably request. The Option
Holder shall, in the event of such a disposition, make appropriate arrangements
with the Company to provide for the amount of additional withholding, if any,
required by Sections 3102 and 3402 of the Code and applicable state income tax
laws.

     6B.3 RESTRICTIONS ON INCENTIVE OPTIONS.

          (a)  INITIAL EXERCISE. The aggregate Fair Market Value of the Shares
with respect to which Incentive Options are exercisable for the first time by an
Option Holder in any calendar year, under the Plan or otherwise, shall not
exceed $100,000. For this purpose, the Fair Market Value of the Shares shall be
determined as of the date of grant of the Incentive Option.

          (b)  TEN PERCENT STOCKHOLDERS. Incentive Options granted to an Option
Holder who is the holder of record of 10% or more of the outstanding Stock of
UIH Latin America shall have an Option Price equal to 110% of the Fair Market
Value of the Shares on the date of grant of the Incentive Option and the Option
Period for any such Incentive Option shall not exceed five years.

                                       13
<PAGE>

                                   ARTICLE VII

                   CORPORATE REORGANIZATION; CHANGE IN CONTROL

     7.1  REORGANIZATION. Upon the occurrence of any of the following events, if
the notice required by Section 7.2 shall have first been given, the Plan and all
Stock Options then outstanding hereunder shall automatically terminate and be of
no further force and effect whatsoever, without the necessity for any additional
notice or other action by the Board or UIH Latin America: (a) the merger or
consolidation of the Company with or into another corporation (other than a
consolidation or merger, or reorganization in which the Company is the
continuing corporation and which does not result in any reclassification or
change of outstanding shares of Stock); or (b) the sale or conveyance of the
property of the Company as an entirety or substantially as an entirety (other
than a sale or conveyance in which the Company continues as holding company of
an entity or entities that conduct the business or business formerly conducted
by the Company); or (c) the dissolution or liquidation of the Company.

     7.2  REQUIRED NOTICE. At least 30 days' prior written notice of any event
described in Section 7.1 shall be given by the Company to each Option Holder
unless in the case of the events described in clauses (a) or (b) of Section 7.1,
the Company, or the successor or purchaser, as the case may be, shall make
adequate provision for the assumption of the outstanding Stock Options or the
substitution of new options for the outstanding Stock Options on terms
comparable to the outstanding Stock Options except that, with respect to Stock
Options, the Option Holder shall have the right thereafter to purchase the kind
and amount of securities or property or cash receivable upon such merger,
consolidation, other reorganization, sale or conveyance by a holder of the
number of Shares that would have been receivable upon exercise of the Stock
Option immediately prior to such merger, consolidation, sale or conveyance
(assuming such holder of Stock failed to exercise any rights of election and
received per share the kind and amount received per share by a majority of the
non-electing shares). The provisions of this Article VII shall similarly apply
to successive mergers, consolidations, reorganizations, sales or conveyances.
Such notice shall be deemed to have been given when delivered personally to an
Option Holder or when mailed to an Option Holder by registered or certified
mail, postage prepaid, at such Option Holder's address last known to the
Company.

     7.3  ACCELERATION OF EXERCISABILITY. Option Holders notified in accordance
with Section 7.2 may exercise their Stock Options at any time before the
occurrence of the event requiring the giving of notice (but subject to
occurrence of such event), regardless of whether all conditions of exercise
relating to length of service have been satisfied.

     7.4  CHANGE IN CONTROL.

          (a)  FULL VESTING. If a Change in Control (as defined below) occurs,
all Phantom Options and Stock Options shall become exercisable in full,
regardless of whether all conditions of exercise relating to length of service
have been satisfied.

          (b)  PUBLICLY TRADED. If the Stock is Publicly Traded, a "Change in
Control" is deemed to have occurred if (i) a person (as such term is used in
Section 13(d) of the Exchange

                                       14
<PAGE>

Act) becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act) of shares of the Company having 30% or more of the total number of votes
that may be cast for the election of directors of the Company without the prior
approval of at least a majority of the members of the Board unaffiliated with
such person or (ii) individuals who constitute the directors of the Company at
the beginning of a 24-month period cease to constitute at least 2/3 of all
directors at any time during such period, unless the election of any new or
replacement directors was approved by a vote of at least a majority of the
members of the Board in office immediately prior to such period and of the new
and replacement directors so approved. Notwithstanding anything to the contrary
in this Section 7.4, no Phantom Option or Stock Option will become exercisable
by virtue of the occurrence of a Change in Control if the Option Holder of that
Phantom Option or Stock Option or any group of which that Option Holder is a
member is the person whose acquisition constituted the Change in Control.

          (c)  NOT PUBLICLY TRADED. If the Stock is not Publicly Traded, a
"Change in Control" is defined as (i) the sale of stock having 50% or more of
the voting control or economic value of the Company, or (ii) merger of the
Company with another entity pursuant to which Shares of Stock are surrendered in
exchange for other stock of another entity or (iii) 50 percent or more of the
capital stock of the Company is acquired without the consent of a majority of
the members of the Board who are unaffiliated with the acquiror. Upon a Change
in Control, the Phantom Options, Stock Options or Shares held pursuant to the
exercise of Stock Options will, if the Company so chooses, be acquired by the
Company immediately for the same value per Share as established in the Change in
Control. In the case of a merger where the Company is not the surviving entity,
the Company may require the outstanding Phantom Options, Stock Options, Options
or Shares acquired pursuant to the exercise of Stock Options to be exchanged for
new options or shares.

          (d)  CHANGE IN CONTROL OF UIH. A "Change in Control" shall occur for
purposes of this Plan if there is a change in control of UIH, as defined in the
United International Holdings, Inc. 1993 Stock Option Plan, and, following the
Change in Control of UIH, the Option Holder's employment is terminated for Good
Reason. For purposes of this Plan, "Good Reason" shall mean:

               (i)  the assignment to the Option Holder of any duties
     inconsistent in any respect with the Option Holder's position (including
     status, offices, and titles), authority, duties or responsibilities, or any
     other action by the Company that results in a diminution in such position,
     authority, duties or responsibilities, excluding for this purpose an
     isolated, insubstantial and inadvertent action not taken in bad faith and
     that is remedied by the Company promptly after receipt of notice thereof
     given by the Option Holder;

               (ii) any failure by the Company to comply with any of the
     provisions of any employment agreement between the Option Holder and the
     Company, other than an isolated, insubstantial and inadvertent failure not
     occurring in bad faith and that is remedied by the Company promptly after
     receipt of notice thereof given by the Option Holder;

               (iii) any purported termination by the Company of the Option
     Holder's

                                       15
<PAGE>

     employment otherwise than as expressly permitted by any employment
     agreement between the Option Holder and the Company; or

               (iv) any failure by UIH to require any successor (whether direct
     or indirect, by purchase, merger, consolidation or otherwise) to all or
     substantially all of the business and/or assets of UIH to assume expressly
     and agree to perform any employment agreement between the Option Holder and
     UIH in the same manner and to the same extent that UIH would be required to
     perform it if not such succession had taken place.

     7.5  PAYMENT FOR OUTSTANDING PHANTOM OPTIONS. Upon the occurrence of the
events described in Section 7.1 or 7.4, each outstanding Phantom Option shall be
deemed to be exercised on the date of the occurrence. UIH Latin America or its
successor shall deliver to each Option Holder amount equal to the excess of the
Fair Market Value of the Stock on the date of the occurrence over the Phantom
Option Price. Payment shall be made, as the Company determines in its sole
discretion, in (i) cash, (ii) freely tradable shares of Class A Common Stock of
UIH, which shall be valued at the closing price on the day before the date the
Company makes payment to the Option Holder, or (iii) if the Stock is Publicly
Traded, freely tradable shares of Stock. All payments shall be subject to the
withholding of applicable federal, state, and local taxes. Upon payment for the
outstanding Phantom Options, all outstanding Phantom Options shall automatically
terminate and be of no further force or effect whatever without the necessity
for any additional notice or other action by the Board of UIH Latin America. For
this purpose, the date of the occurrence shall be as follows:

          (a)  In the case of a merger or consolidation of the Company, or the
sale or conveyance of the property of the Company as an entirety or
substantially as an entirety, the date of the closing of the transaction.

          (b)  In the case of the liquidation or dissolution of the Company, the
date on which the Board adopts resolutions to dissolve or liquidate the Company.

          (c)  In the case of a change in ownership of the Company's stock under
Section 7.4, the date on which the last shares that cause the Change in Control
are purchased.

          (d)  In the case of a change in the membership of the Board, the date
of the shareholders meeting at which the new directors were elected.

                                  ARTICLE VIII

                        RESTRICTION ON TRANSFER OF STOCK

     8.1  NO TRANSFER. If the Stock is not Publicly Traded, an Option Holder may
not sell, transfer by gift or otherwise, or otherwise dispose of any Stock
acquired pursuant to the exercise of a Stock Option other than as provided in
this Article VIII. If the Stock is Publicly Traded, the provisions of this
Article VIII shall not apply, and an Option Holder may dispose of Stock acquired
pursuant to the exercise of a Stock Option at any time in any manner that is in

                                       16
<PAGE>

compliance with applicable federal and state securities laws.

     8.2  SALE TO UIH LATIN AMERICA DURING EMPLOYMENT. If the Stock is not
Publicly Traded, the Option Holder shall have the right to require UIH Latin
America to purchase all or a portion of the Stock acquired by the Option Holder
pursuant to the exercise of a Stock Option. The purchase price shall be Fair
Market Value. The Option Holder may exercise the right once each calendar
quarter upon 30 days prior written notice to UIH Latin America specifying the
number of Shares that the Option Holder wishes to sell. If the Option Holder has
not exercised the Stock Option prior to the date on which the Option Holder
elects to sell the Stock, the Company shall pay the Option Holder an amount
equal to the excess of the Fair Market Value of the Stock over the Option Price
for the Stock. The purchase price shall be paid, as the Company determines in
its sole discretion, in cash or in freely tradable shares of Class A Common
Stock of United International Holdings, Inc., which shall be valued at the
closing price on the day before the date the Company makes payment to the Option
Holder. Notwithstanding the foregoing, if, in the good faith judgment of the
Committee, payment to the Option Holder (either in cash or in stock) would
result in a default under then existing public or private debt of the Company,
then the Committee may elect to defer payment until such time as such payment
would not result in a default. Any amount so deferred shall earn interest at a
rate of 1% per month.

     8.3  SALE TO UIH LATIN AMERICA FOLLOWING TERMINATION OF EMPLOYMENT. If the
Option Holder terminates employment for any reason and if the Stock is not
Publicly Traded, the Option Holder or the Option Holder's personal
representative, guardian, conservator, or other authorized agent or
representative may sell all or a portion of the Stock acquired through the
exercise of Options to UIH Latin America once each calendar quarter upon 30 days
prior written notice specifying the number of Shares to be sold. If the Stock is
not Publicly Traded, UIH Latin America shall have the right to acquire the
Shares at any time, at Fair Market Value, upon a good faith determination by the
Board that it is in the best interests of the Company to acquire such Shares in
order to facilitate a corporate transaction. The purchase price shall be paid,
as the Company determines in its sole discretion, in cash or in freely tradable
shares of Class A Common Stock of United International Holdings, Inc., which
shall be valued at the closing price on the day before the date the Company
makes payment to the Option Holder.

     8.4  DETERMINATION OF FAIR MARKET VALUE. If the Stock is not Publicly
Traded, Fair Market Value shall be determined by the Board in good faith. For
this purpose, Fair Market Value is the price at which a willing seller, under no
obligation to sell, would sell and the price at which a willing buyer, under no
obligation to buy, would buy.

          (a)  The value of UIH Latin America shall be established by a
significant transaction (i.e., sale of stock, merger, or other transaction that
would establish a fair market value for UIH Latin America) if such a transaction
has occurred within three months prior to the date as of which Fair Market Value
is established.

          (b)  If section 8.4(a) is not applicable, it is contemplated that Fair
Market Value will be determined according to the formula (x) minus (y), with
such modifications as the

                                       17
<PAGE>

Board in good faith deems appropriate to reflect accurately current market
conditions, provided however, the methodology used to determine fair market
value shall be consistent with the methodology used to establish the initial
exercise price of Options granted under the Plan, where:

          (x) is equal to ten times the trailing twelve months EBITDA (earnings
          before interest, taxes, depreciation, and amortization) of each
          operating company less the net liabilities of each operating company,
          multiplied by UIH Latin America's ownership percentage in the
          operating company; provided that the Board shall have the discretion
          to vary the multiplier; however, it is expected that the multiplier
          shall not be less than eight or more than twelve; and

          (y) is equal to the net liabilities of UIH Latin America (excluding
          any liabilities of the operating companies that were included in the
          calculation of (x)).

          (c)  The following provisions will apply as appropriate to the fair
market value calculation set forth in section 8.4(b) above.

               (i)  "Net liabilities" equal total long-term liabilities, less
          net-working capital surplus, or plus net working capital deficit of
          the entity.

               (ii) With respect to any fair market valuation determined in
          accordance with section 8.4(b) above, the value of any operating
          company will be the value established by a transaction involving such
          operating company as described in section 8.4(a) above.

               (iii) For any operating company which has been in operation for
          less than 36 months at the time of the valuation, or in the event that
          the Board believes that the methodology used in section 8.4(b) does
          not fairly reflect the value of any operating company, then a
          professional advisor or qualified appraiser may be engaged to
          determine the value of such operating company by employing standard
          and customary methodologies, which may include a discounted cash flow
          analysis.

               (iv) Fair Market Value will be determined no more frequently than
          once every six months, and the most recent prior valuation shall be
          deemed to be the Fair Market Value. If there has been an event which
          in the opinion of the Board is likely to have a material effect on the
          Fair Market Value, then a new valuation may be carried out.

     8.5  PURCHASE; INFORMATION TO OPTION HOLDER. Within ten days after
receiving the notice from the Option Holder or the Option Holder's
representative specifying the number of Shares to be sold, UIH Latin America
shall furnish the Option Holder with information about the business and
financial condition of UIH Latin America and the Affiliated Corporations. UIH
Latin America shall make payment for the Stock no earlier than the thirtieth day
after receiving the notice from the Option Holder, or on such later date as UIH
Latin America and the Option Holder mutually agree. The purchase price shall be
paid, as the Company determines in its sole discretion, in cash or in freely
tradable shares of the Class A Common Stock of United International Holdings,
Inc., which shall be valued at the closing price on the day before the date

                                       18
<PAGE>

the Company makes payment to the Option Holder.

                                   ARTICLE IX

                           EMPLOYMENT; TRANSFERABILITY

     9.1  EMPLOYMENT. Nothing contained in the Plan or in any Phantom Option or
Stock Option granted under the Plan shall confer upon any Option Holder any
right with respect to the continuation of his employment by, or consulting
relationship with, the Company, or interfere in any way with the right of the
Company, subject to the terms of any separate employment agreement or other
contract to the contrary, at any time to terminate such services or to increase
or decrease the compensation of the Option Holder from the rate in existence at
the time of the grant of a Phantom Option or Stock Option. Whether an authorized
leave of absence, or absence in military or government service, shall constitute
a termination of service shall be determined by the Committee at the time.

     9.2  OTHER EMPLOYEE BENEFITS. The amount of any compensation received or
deemed to be received by an Option Holder as a result of the exercise of a
Phantom Option or Stock Option or the sale of Shares received upon such exercise
shall not constitute "earnings" or "compensation" with respect to which any
other employee benefits of such employee are determined, including without
limitation benefits under any pension, profit sharing, 401(k), life insurance or
salary continuation plan.

     9.3  NONTRANSFERABILITY. No right or interest of any Option Holder in a
Phantom Option or Stock Option granted pursuant to the Plan, shall be assignable
or transferable during the lifetime of the Option Holder, either voluntarily or
involuntarily, or subjected to any lien, directly or indirectly, by operation of
law, or otherwise, including execution, levy, garnishment, attachment, pledge or
bankruptcy. In the event of an Option Holder's death, an Option Holder's rights
and interests in Phantom Option or Stock Options shall, to the extent provided
in Article VI be transferable by will or the laws of descent and distribution.

                                    ARTICLE X

                           SECURITIES LAW RESTRICTIONS

     Each Stock Option shall be subject to the requirement that, if at any time
counsel to UIH Latin America shall determine that the listing, registration or
qualification of the Shares subject to such Stock Option grant upon any
securities exchange or under any state or federal law, or the consent or
approval of any governmental or regulatory body, is necessary as a condition of,
or in connection with, the issuance or purchase of Shares thereunder, such Stock
Option may not be exercised in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or
obtained on conditions acceptable to the Committee. Nothing herein shall be
deemed to require UIH Latin America to apply for or to obtain such listing,
registration or qualification.

                                       19
<PAGE>

                                   ARTICLE XI

                                   WITHHOLDING

     11.1 WITHHOLDING REQUIREMENT. UIH Latin America's obligations to deliver
Shares of Stock upon the exercise of any Stock Option shall be subject to the
Option Holder's satisfaction of all applicable federal, state and local income
and other tax withholding requirements. UIH Latin America shall withhold all
amounts required to be withheld for federal, state, and local tax purposes from
all payments made upon the exercise of a Phantom Option.

     11.2 WITHHOLDING WITH STOCK. At the time the Committee grants a Stock
Option, it may, in its sole discretion, grant the Option Holder an election to
pay all such amounts of tax withholding, or any part thereof, by electing to
transfer to UIH Latin America, or to have UIH Latin America withhold from Shares
otherwise issuable to the Option Holder, Shares of Stock having a value equal to
the amount required to be withheld or such lesser amount as may be elected by
the Option Holder. All elections shall be subject to the approval or disapproval
of the Committee. The value of Shares of Stock to be withheld shall be based on
the Fair Market Value of the Stock on the date that the amount of tax to be
withheld is to be determined (the "Tax Date"). Any such elections by Option
Holders to have Shares of Stock withheld for this purpose will be subject to the
following restrictions and any additional restrictions imposed by the Committee:

          (a)  All elections must be made prior to the Tax Date.

          (b)  All elections shall be irrevocable.

          (c)  If the Option Holder is an officer or director of UIH Latin
America within the meaning of Section 16 of the 1934 Act ("Section 16"), the
Option Holder must satisfy the requirements of such Section 16 and any
applicable Rules thereunder with respect to the use of Stock to satisfy such tax
withholding obligation.

                                   ARTICLE XII

                                  MISCELLANEOUS

     12.1 EXPIRATION. The Plan shall terminate whenever the Board adopts a
resolution to that effect. If not sooner terminated by the Board, the Plan shall
terminate and expire on June 1, 2003. After termination, no additional Phantom
Options or Stock Options shall be granted under the Plan, but the Company shall
continue to recognize Phantom Options and Stock Options previously granted.

     12.2 AMENDMENTS, ETC. The Board may from time to time amend, modify,
suspend or terminate the Plan. Nevertheless, no such amendment, modification,
suspension or termination

                                       20
<PAGE>

shall, without the consent of the Option Holder, alter a material term of any
Phantom Option or Stock Option previously granted under the Plan or deprive any
Option Holder of any Shares that he may have acquired through or as a result of
the Plan.

     12.3 TREATMENT OF PROCEEDS. Proceeds from the sale of Stock pursuant to
Stock Options granted under the Plan shall constitute general funds of the
Company.

     12.4 SECTION HEADINGS. The section headings are included herein only for
convenience, and they shall have no effect on the interpretation of the Plan.

     12.5 SEVERABILITY. If any article, section, subsection or specific
provision is found to be illegal or invalid for any reason, such illegality or
invalidity shall not affect the remaining provisions of the Plan, and the Plan
shall be construed and enforced as if such illegal and invalid provision had
never been set forth in the Plan.

     12.6 GENDER AND NUMBER. Except when otherwise indicated by the context, the
masculine gender shall include the feminine gender, and the definition of any
term herein in the singular shall also include the plural.

Dated: To be effective June 6, 1997.

                                       UIH LATIN AMERICA, INC.

                                       21<PAGE>

                                 EXHIBIT 10.35

                            ----------------------
                            RELATIONSHIP AGREEMENT
                            ----------------------

                                   BETWEEN

                             CHELLO BROADBAND N.V.

                                     AND

                             UNITEDGLOBALCOM, INC.

                            DATE AS OF MAY 17, 2000

<PAGE>

     THIS RELATIONSHIP AGREEMENT made as of May 17, 2000, between chello
broadband N.V. ("chello"), a company organized under the laws of The
Netherlands, and UnitedGlobalCom, Inc. ("UGC"), a company incorporated under
the laws of the State of Delaware.

                              W I T N E S S E T H

     WHEREAS, chello is an international provider of broadband services;

     WHEREAS, UGC has substantial cable television operations in different
parts of the world;

     WHEREAS, UGC owns a majority of the outstanding shares of United
PanEurope Communications N.V. ("UPC");

     WHEREAS chello is a subsidiary of UPC;

     WHEREAS, chello is subject to certain geographic restrictions in
conducting its business under the terms of the agreement of February 1999
between UGC and UPC and chello wishes to be released from such restrictions;
and

     WHEREAS, chello and UGC wish to regulate certain aspects of their
ongoing relationship, specifically their desire to enter into an agreement to
provide chello with the right to provide specified services through certain
UGC affiliates and other businesses in which UGC has an interest other than
UPC and entities (other than UGC) in which UGC has an interest indirectly
through UPC;

     NOW, THEREFORE, in consideration of the premises and the mutual
agreements and covenants set forth herein, chello and UGC hereby agree as
follows;

                                   ARTICLE 1

                                  DEFINITIONS

     Whenever used in this Agreement, the following terms shall have the
following meanings:

     "AFFILIATE" means, with respect to any specified Person, any entity that
directly, or indirectly through one or more intermediaries, is Controlled by
such Person.

     "AGREEMENT" means this agreement, as executed by the parties hereto and
as amended from time to time, together with all annexes and exhibits hereto.

<PAGE>

     "CATEGORY A SERVICES" means:

     (i) Internet Access Services and default chello portals, or similar
     services, delivered by TCP/IP to homes (excluding two-way voice services,
     two-way video and dial-up internet access) to personal computers;

     (ii) Internet Access Services and default chello portals, or similar
     services, delivered by TCP/IP to businesses (excluding two-way voice
     services, two-way video and dial-up internet access); and

     (iii) Internet Access Services and default chello portals, or similar
     services, delivered by TCP/IP (excluding two-way voice services, two-way
     video and dial-up internet access) to televisions or other end user
     devices;

     provided that UGC and chello will negotiate in good faith regarding
     undefined application and content services other than those described
     in (i), (ii) and (iii) above that may arise through third parties or
     other sources to optimize each other's business strategies.

     "CATEGORY B SERVICES" means interactive services designed to
supplement or complement Core Television and Video Service Offerings
consisting of Walled Garden and Electronic Programming Guides/Interactive
Entertainment Guides.

     "CATEGORY C SERVICES" means two-way voice, two-way video and dial-up
internet services delivered by TCP/IP.

     "chello FRANCHISE AGREEMENT" means the full franchise agreement between
chello and the relevant UGC Local Operator for the delivery of certain chello
services incorporating the terms of the Summarized UGC Local Operator Term
Sheet.

     "CONTROL", "CONTROLLED" or "CONTROLLING" means, with respect to a
relevant entity, (i) the right or ability (by agreement or otherwise) to vote
all of the voting interest in the entity in question to procure that such
entity enters into a relevant agreement with chello required pursuant to this
Agreement, or (ii) the unilateral right through ownership or contract to
procure that such entity enters into a relevant agreement with chello
required pursuant to this Agreement; in each case without approval of any
lender, partner, governmental entity or shareholder.

     "CORE TELEVISION AND VIDEO SERVICE OFFERINGS" means the delivery of a
broadcast stream, whether by request of the user or as delivered in
accordance with a set program broadcast schedule, for display on television.

     "ELECTRONIC PROGRAMMING GUIDES/INTERACTIVE ENTERTAINMENT GUIDES" means
the pivotal navigational service or index point for all digital set-top
computer television services, including any default screens providing
directory or information services.

     "FRANCHISE AREAS" means with, respect to any UGC Local Operator, the
geographical territory or number of homes and/or businesses in respect of
which a franchise or other license, authorization or consent enabling the
recipient to operate a cable television

<PAGE>

system or other telecommunications network or technology, or to transmit via
wireless or satellite technologies, has been awarded or granted by any
Governmental Authority or under any Law to the UGC Local Operator.

     "GOVERNMENTAL AUTHORITY" means any international, supranational,
national, provincial, state, municipal or local government, governmental,
regulatory or administrative authority, agency or commission or any court,
tribunal, or judicial or arbitral body.

     "HFC" means hybrid fibre-optic coaxial cable.

     "INTELLECTUAL PROPERTY" means (i) patents, patent applications and
statutory invention registrations, (ii) trademarks, service marks, domain
names, trade dress, logos and other source identifiers, including
registrations and applications thereof, (iii) copyrights including copyrights
in computer software, programs, databases, Internet Web sites, web content
and links, and registrations and applications for registrations thereof, (iv)
confidential and proprietary information, including trade secrets and
know-how, and (v) rights of privacy, publicity and endorsement.

     "INTERNET ACCESS SERVICES" means any TCP/IP-based access to or from the
public backbone network or private peering points of presence.

     "LAW" means any international, supranational, national, state,
provincial, municipal or local statute, law, ordinance, regulation, rule, code
or order.

     "NON-CONTROLLED UGC BUSINESS" means any Person (i) which UGC does not
Control but in which UGC owns an interest other than UPC and Persons (other
than UGC) in which UGC has an interest indirectly through UPC and (ii) which
owns or operates broadband networks that pass or reach homes or places of
business.

     "OFFICERS' CERTIFICATE" means a certificate signed by the Chief
Financial Officer of the Person whose certificate is so required.

     "PERSON" means any individual, partnership, limited liability company,
firm, corporation, company, association, trust, unincorporated organization
or other entity.

     "PRIMARY BUSINESS" means a business which has contributed at least 50%
to a Person's consolidated revenues or operating income in any of the most
recent three fiscal years completed prior to the acquisition of such Person.

     "PUBLIC COMPANY" means any Person which has a class or series of its
equity securities registered under Section 12(b) or 12(g), or which is
required to file reports pursuant to Section 15(d), of the Securities
Exchange Act of 1934, as amended (or any successor or comparable provisions
of the federal securities laws), which class or series of equity securities
are actively traded or any Person with a class or series of its equity
securities listed on a stock exchange outside the United States.

     "SERVICES" means Category A Services, Category B Services and Category C
Services.

<PAGE>

     "SUMMARIZED UGC LOCAL OPERATOR TERM SHEET" means the form of the UGC
summarized term sheet between chello and a UGC Local Operator attached hereto
as Annex C.

     "TCP/IP" means the Transmission Control Protocol/Internet Protocol as
the same may be modified or amended over time, or any widely used and
accepted successor or alternative to this protocol as may evolve over time.

     "TERRITORY A" shall have the same respective meanings as the term
"Territory" in the Memorandums of Understanding and the term sheets agreed
upon between chello and each of Austar United Broadband Pty Ltd ACN 089 048
439 ("AUSTAR") (including the terms for Telstra Saturn Ltd. ("TELSTRA")), and
VTR Global Com S.A. "VTR" attached hereto as Annex A and B respectively (the
"AUSTAR AND TELSTRA TERM SHEET", and the "VTR TERM SHEET", respectively).

     "TERRITORY B" means the first 3.2 million homes which are, or within a
reasonable time (as agreed by chello and UGC) will be, passed by two-way
upgraded HFC networks capable of providing the Services, of UGC Affiliates
and Non-Controlled UGC Businesses which are acquired after December 31, 1999
and, in the case of any Non-Controlled UGC Business, the relevant
Non-Controlled UGC Business has entered into a chello Franchise Agreement;
PROVIDED THAT if any consent or approval is required and not obtained within
six months of the date hereof with respect to the franchise agreement with
Austar, the 3.2 million homes number in Territory B shall be increased by the
number of homes which are, or within a 36 month of the date hereof will be,
passed by two-way upgraded networks capable of providing the Services, of
Austar and Telstra.

     "TERRITORY C" means all homes and places of business which are reachable
by UGC, any UGC Affiliates and/or Non-Controlled UGC Businesses, excluding
those in Territory A and B.

     "UGC AGREEMENT" means  the agreement of February 1999 between UGC and
UPC.

     "UGC AFFILIATE" means any Affiliate of UGC, except UPC and a Person
(other than UGC) in which UGC has an interest indirectly through UPC and
which owns or operates broadband networks that pass or reach homes or places
of business.

     "UGC LOCAL OPERATORS" means UGC Affiliates and Non-Controlled UGC
Businesses.

     "WALLED GARDEN" means access to a permissive list of world-wide-web
sites interactive content and applications such as those provided through
personal computers (e.g. e-mail, community tools and instant messaging), and
an interactive platform for management and delivery of electronic commerce to
digital set-top computers.

                                  ARTICLE II

                        PROVISION OF SERVICES BY CHELLO

<PAGE>

     SECTION 2.01.  TERRITORY A AND TERRITORY B.

     (a) TERRITORY A.  Subject to the terms and conditions of the Austar and
Telstra Term Sheet and the VTR Term Sheet, as the case may be, UGC will, with
respect to Territory A, within 60 days after the date of this Agreement,
cause each of Austar, Telstra and VTR to enter into a franchise agreement
with chello that incorporates the terms set forth in the Austar and Telstra
Term Sheet and the VTR Term Sheet, respectively, and such other terms as may
be agreed by the parties to the extent not inconsistent with such term sheets
and chello will enter into such agreements with Austar, Telstra and VTR.

     (b) TERRITORY B.  With respect to Territory B:

     (i)   At the request in writing of chello at any time during the Term of
this Agreement, UGC will cause each relevant UGC Affiliate (other than
Austar, Telstra and VTR and their respective subsidiaries), to enter into a
chello Franchise Agreement within 60 days of such request or such longer
period during the continuance of good faith negotiations between chello and
the relevant UGC Affiliate regarding the content of such agreement.

     (ii)  UGC may at any time during the term of this Agreement at its own
initiative offer to chello to cause each or any relevant UGC Local Operator a
majority of whose homes are, or will within a reasonable time be, connected
to two-way upgraded HFC networks capable of providing the Services (or such
lesser number of such homes as chello may agree is the minimum number of such
homes necessary to justify, on an economic and resource allocation basis,
roll-out of any Services to such UGC Local Operator), to enter into the
agreement referred to in Section 2.01(b)(i) and chello shall enter into such
agreement within 60 days of such request or such longer period during the
continuance of good faith negotiations between chello and the relevant UGC
Affiliate regarding the content of such agreement.

     (iii) If any of UGC or chello has offered or requested, as the case may
be, to the other party to cause the relevant UGC Local Operator to enter into
a chello Franchise Agreement with a relevant UGC Local Operator pursuant to
Section 2.01(b)(i) or (ii) and such an agreement is not entered into within 60
days of such offer solely as a result of the other party's failure to enter
into the chello Franchise Agreement for a reason other than the continuation
of good faith negotiations between chello and the relevant UGC Local Operator
regarding the content of the chello Franchise Agreement, chello or the
relevant UGC Local Operator, as the case may be, may enter into an agreement
with a Competing Business (as defined in Section 3.02(a)).

     (c)   COMPUTATION OF THE NUMBER OF TERRITORY B HOMES.  For the avoidance
of doubt, with respect to any UGC Local Operator, only those homes meeting
the criteria set forth in the definition of Territory B shall count against
the five million homes referred to in such definition.

     (d)   LAUNCH OF chello SERVICES.  With respect to Territories A and B,
chello will launch the relevant Services within the period specified in the
chello Franchise Agreement applicable to such UGC Affiliate, but, in any
event, no later than a reasonable

<PAGE>

time after entering into chello Franchise Agreements with UGC Affiliates with
respect to the Services.

     SECTION 2.02.  UGC'S OBLIGATIONS REGARDING TERRITORY C.

     (a)   Where the board of directors of UGC resolves to offer any of the
Services itself or through a UGC Local Operator or a third party in Territory
C or where UGC or a UGC Affiliate received an offer in writing from a third
party to provide any of such Services in Territory C that the board of
directors of UGC resolves to offer itself, through a UGC Local Operator or
such third party, UGC will either present the opportunity, cause the UGC
Affiliate concerned to present the opportunity, or in the case of a
Non-Controlled UGC Business or a third party, use commercially reasonable
efforts to cause it to present the opportunity, first to chello, which shall
have rights of first negotiation to provide such Services.

     (b)   For purposes hereof, "rights of first negotiation" means, in
respect of any individual opportunity relating to such Services in Territory
C, chello's right to be offered the opportunity to enter into mutually
exclusive good-faith negotiations with UGC and such other parties as may be
involved with a view to reaching agreement on the financial and other
relevant terms for provision of such Services. If chello declines the offer
to negotiate, or if chello, UGC and such other parties are unable to agree on
the relevant terms within 30 days after chello's receipt of the offer to
negotiate, or such extension of such 30-day period as the parties may agree
on, UGC and/or any UGC Affiliate may thereafter pursue the opportunity itself
or during a period of 90 days commencing on the day immediately following
expiry of such 30-day period or any extension thereof, offer the opportunity
to third parties and enter into an agreement with a third party on financial
and other relevant terms no more favorable to such third party than the terms
offered to chello and rejected or not agreed to by chello. If (i) during such
90-day period UGC or any UGC Affiliate offers the opportunity to a third
party on more favorable terms, or (ii) UGC or any UGC Affiliate has not
reached a binding agreement with a third party with respect to such
opportunity prior to the end of such 90-day period, such opportunity and
terms must be offered to chello, and chello will again have rights of first
negotiation in respect of such opportunity on such terms. Prior to executing
any binding documentation with a third party with respect to the Services in
Territory C, UGC will present a term sheet to the Board of Directors of
chello specifying (unless disclosure thereof to chello is precluded by
agreement) the terms finalized with such third party, prior to such terms
becoming legally binding, and an Officer's Certificate confirming that the
financial and other relevant terms are no more favorable to such third party
than the terms that had been offered to and not accepted by chello and that
such transaction has otherwise been negotiated and consummated in compliance
with this Agreement.

     SECTION 2.03.  LIMITATIONS OF UGC'S OBLIGATIONS.

     (a) PRE-EXISTING CONTRACTS.  UGC's obligations under Section 2.01(b)
will not apply to any UGC Affiliate if it or UGC is bound by conflicting
pre-existing contractual arrangements in relation to the Services and, after
using commercially reasonable efforts, UGC is unable to cause such UGC
Affiliate to enter into the standard chello Franchise Agreement. In this
event, it is agreed that section 2.05 below will not apply to any other terms
agreed by chello with any such UGC Affiliate which are more favorable than
the terms set out in the chello Franchise Agreement.

<PAGE>

     (b) CONFLICT.  In the event of any conflict between the terms of this
Agreement and any term of the Summarized UGC Local Operator Term Sheet or the
franchise agreement in each case entered into under Section 2.01(a) or (b),
the terms of this Agreement will prevail.

     SECTION 2.04.  GOOD FAITH COOPERATION OF UGC LOCAL OPERATORS.  UGC will
use reasonable commercial efforts to cause the good faith cooperation of the
UGC Local Operators in their ongoing relationships with chello and will
assist and support chello in resolving any network performance, installation,
billing, customer care, marketing or other service level issues it may have
with UGC Local Operators.

     SECTION 2.05.  MOST FAVORED NATION STATUS FOR UGC.  Subject to Section
2.03(a) above, chello agrees that, if at any time during the term of the
Agreement, it or any of its subsidiaries or controlled affiliates grants to
any third party terms which, for comparable territories, services and local
distribution technologies, are more favorable than terms agreed to by UGC and
UGC Local Operators that have entered into a franchise agreement with chello,
chello will offer such more favorable terms to UGC and such UGC Local
Operator. If UGC or any UGC Local Operators accept new terms offered by
chello under this Section 2.05, then, to the extent possible, those new terms
take effect from the date on which the agreement with the third party has
come or will come into operation. This Section 2.05, however, shall not be
construed to (i) obligate chello or any of its subsidiaries or controlled
affiliates to offer such more favorable terms to UGC or any UGC Local
Operator to the extent such more favorable terms only appear in agreements
in existence at the date of this Agreement or (ii) apply to provisions
relating to the duration or the term of any agreement with a third party.

<PAGE>

                                 ARTICLE III

                               NON-COMPETITION

     SECTION 3.01.  UGC'S NON-COMPETE UNDERTAKING.  Except as otherwise
provided in this Agreement, during the term of any franchise agreement
between chello and a UGC Local Operator, UGC will not compete with chello,
whether directly or through any of UGC's subsidiaries, subject to fiduciary
obligations, for the provision of (i) Category A Services to residential
homes in such UGC Local Operator's Franchise Areas, (ii) Category A Services
to businesses where UGC has granted exclusive rights to such UGC Local
Operator to provide such Category A Services and (iii) Category B Services
where such UGC Local Operator has agreed that such Category B Services will
be provided by chello on an exclusive basis. Together, these non-compete
activities are hereinafter referred to as "RESTRICTED ACTIVITIES".

     SECTION 3.02.  LIMITATIONS ON UGC'S NON-COMPETE UNDERTAKING.

     (a) With respect to Sections 2.02 and 3.01, UGC and its subsidiaries
will nevertheless be entitled to (i) own voting interests of no more than 10%
in Public Companies that directly compete with chello for the provision of
Category A and B Services; (ii) own, lease and operate internet backbone
connections; or (iii) acquire an interest in any business that competes with
chello's Category A and B Services, if the competing business is not the
acquired entity's Primary Business, provided that UGC will use reasonable
commercial efforts to give chello the opportunity to purchase the competing
part of the business ("COMPETING BUSINESS") in an arms' length transaction
promptly subsequent to the acquisition. In the event that chello purchases
the Competing Business or part thereof, homes to which chello provides any
Category A or B Services as a result of such purchase shall not be counted
towards the 3.2 million homes referred to in the definition of Territory B.

     (b) With respect to Section 3.01, each UGC Local Operator which has
entered into a franchise agreement with chello shall nevertheless be entitled
to engage or participate in limited testing, trials and similar activities
with respect to any Restricted Activity so long as (i) such engagement or
participation is solely for testing or trail purposes, (ii) such UGC Local
Operator makes any such service available to a limited number of homes passed
or businesses passed (which shall not exceed 50,000 in the aggregate), (iii)
the duration of such testing or trial does not exceed six months and (iv) the
public disclosures made by such UGC Local Operator shall not characterize or
represent such services as other than a test or trial, provided, however,
that such testing, trials and similar activities will (aa) not be permissible
in any territory where chello has already launched any of the Services, (bb)
not prevent chello from launching any of the Services anywhere (cc) will not
be conducted in conjunction with a Competing Business and (dd) will not begin
within 90 days prior to the commencement of chello's trials, testing or
launching of any Services by chello in the relevant territory of which UGC is
aware. Once chello furthermore launches any of the Services in a territory
where testing, trials or similar activities as specified above are being
conducted by UGC or a UGC Local Operator, UGC or the UGC Local Operator will
promptly migrate to chello the customers to whom services are provided
pursuant to this subsection. Each UGC Local Operator will agree that it
will advise chello of its intention to conduct such testing, trial or other
activity, and chello and each UGC Local Operator will

<PAGE>

agree to discuss in good faith arrangements to conduct such testing or trial
jointly, provided that neither party shall be under any obligation to agree
to any joint testing arrangements.

     SECTION 3.03.  chello's NON-COMPETE UNDERTAKING.  (a) During the
respective terms of franchise agreements which remain in force between chello
and the UGC Local Operators pursuant to which UGC Local Operators have agreed
to provide such services exclusively through chello, chello will not,
directly or indirectly, in the respective territories covered by each such
franchise agreement, provide Category A or Category B Services to residential
homes or businesses other than through UGC Local Operators.

     (b) Subject to Section 4.06, in any geographical area outside the
territories covered by Section 3.03(a) and for so long as UGC holds 50% or
more of the outstanding ordinary shares of UPC on a fully diluted basis and
chello is a majority-owned affiliate of UPC; (i) chello shall not, and shall
not permit its majority-owned affiliates to, pursue any video services or
telephone opportunities (except for the provision of any Category A, B or C
Services) in Saudi Arabia or in other markets outside of Europe or the Middle
East as defined below unless (x) chello has first presented such opportunity
through UPC in writing to the board of directors of UGC and (y) the members
of the board of directors of UGC who are not officers or directors of UPC or
chello have declined to pursue such opportunity in writing to UPC and chello;
and (ii) chello may pursue any business in the United States and its
territories and possessions without regard to the activities of UGC. UGC will
respond with reasonable promptness after the presentation of the opportunity
by chello pursuant to clause (i). For purposes of this Section 3.03(b),
"Europe" means Albania, Austria, Belarus, Bosnia, Bulgaria, Croatia, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Moldova, The
Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovak Republic,
Spain, Sweden, Switzerland, Ukraine and the United Kingdom and "Middle East"
means Armenia, Azerbaijan, Bahrain, Cyprus, Egypt, Georgia, Iran, Iraq,
Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Syria, Turkey,
United Arab Emirates and Yemen; in each case as such territories are
currently constituted or as they may be constituted in the future.

                                  ARTICLE IV

                                 MISCELLANEOUS

     SECTION 4.01  UGC FINANCIAL COVENANTS.  chello will not take any actions
or omit to take any action, which action or omission would result in any of
UGC or its subsidiaries and certain restricted affiliates breaching any of
its covenants under (i) its financing agreements are listed in Annex D
hereto, a copy of each of which has been provided to chello provided,
however, that UGC will keep chello informed of any material changes in the
terms of these agreements and (ii) any other financing agreements to which
UGC is a party governing indebtedness of UGC that replaces or refinances any
indebtedness governed by the financing agreements referred to in (i) above, a
copy of each of which will be provided to chello promptly upon its being
executed provided, however, that UGC shall use reasonable efforts to ensure
that changes to agreements referred to in (i) above and covenants in
financing arrangements referred to in (ii) above are not materially more
restrictive on actions of chello than the current covenants in agreements
referred to in (i) above. In addition to the foregoing, without UGC's prior
consent, chello will not take any action or omit to take any action the
result of which would reduce the capacity of any of UGC and its subsidiaries
and

<PAGE>

certain restricted affiliates to incur indebtedness or make investments or
other restricted payments under such financing agreements provided, however,
that this Section 4.01 shall not preclude chello from (x) operating its
business in the ordinary course, or from incurring losses or operating with
negative cash flow even though UGC's capacity to incur debt or make restricted
payments may be reduced thereby or (y) entering into any transaction or
agreement outside the ordinary course of business that has been approved by
chello's supervisory board.

     SECTION 4.02. REPORTING REQUIREMENTS. Chello (i) will timely provide UGC
with audited financial statements of chello in such form and with respect to
such periods as UGC may reasonably request, until UGC is no longer required
to include financial statements of chello in its filings with the Securities
and Exchange Commission; (ii) will not alter or amend its accounting
principles without the prior written consent of UGC, until such time as UGC no
longer consolidates chello's financial results; (iii) will provide, prior to
the beginning of the conversion period of chello's ordinary C shares held by
UGC, information in connection with the arrangements concerning such shares;
and (iv) will provide other information about chello and its subsidiaries
which UPC may reasonably request. UGC will similarly timely provide chello
with such financial information as chello may require to comply with its
financial reporting obligations. chello and UGC will consent to the
disclosure of all matters deemed necessary or appropriate by UGC or chello,
as the case may be, in order to comply with its obligations under the U.S.
securities laws.

     SECTION 4.03. COSTS OF chello INITIAL PUBLIC OFFERING. chello covenants
and agrees with UGC that chello will pay or cause to be paid all fees,
disbursements, costs and other expenses of whatsoever nature incurred by UGC,
any UGC Affiliate or any Non-Controlled UGC Business in connection with
chello's initial public offering up to a maximum of the difference of (a)
US$1,000,000, including, but not limited to, the fees and disbursements of
Holme Roberts & Owen minus (b) any such fees, disbursements, costs and other
expenses paid by chello to or on behalf of UPC.

     SECTION 4.04. USE OF PROCEEDS BY chello.  UGC hereby agrees that chello
shall be permitted to use the proceeds chello receives from its initial
public offering the sale by chello of shares to Microsoft Corporation
("MICROSOFT") pursuant to Microsoft's option with UPC and the sale to Liberty
Media Corporation ("Liberty") to fund chello's own cash requirements,
including without limitation to make investments in chello's fixed assets,
property and other permitted investments under UGC's indentures; PROVIDED,
HOWEVER, that if chello has not fully invested that portion of these proceeds
that is required to be invested in fixed assets, property or other permitted
investments under the indentures prior to the 21st Business Day before all
such amounts are required to be so invested under the indentures and UGC
makes an irrevocable offer to purchase notes pursuant to the terms of the
indentures, chello shall hold in reserve such funds so that they are
available at UGC's request as necessary to UGC or one of its subsidiaries to
purchase any notes tendered; PROVIDED, FURTHER, that except as otherwise
permitted under UGC's and UPC's indentures as the case may be, nothing herein
shall restrict chello and its subsidiaries from paying dividends or making
other distributions to or on behalf of, or paying any obligation to or on
behalf of, or otherwise transferring assets or property to or on behalf of, or
making or paying loans or advances to or on behalf of, UGC, UPC or any
subsidiary (as defined in the indentures) of either of them. Any such loan to
UGC or UPC shall be made pursuant to the terms of an intercompany note, the
form of which is attached hereto as Annex E.

<PAGE>

     SECTION 4.05. SHARES AS CONSIDERATION.  In consideration of UGC entering
into this Agreement and the rights obtained by chello under Section 4.06,
chello will:

     (a) issue fully paid 28,372,930 ordinary shares B having a nominal value
of 0.50 each of chello to UGC or one or more subsidiaries of UGC which UGC
nominates for this purpose at such time or times as UGC shall direct.

     (b) issue fully paid 643,333 convertible shares C having a nominal value
of 0.05 each of chello to UGC or one or more subsidiaries of UGC which UGC
nominates for this purpose at such time as UGC shall direct. chello agrees
that a portion of these shares may be reallocated between UPC and UGC to
reflect their respective contributions to chello's aggregate revenues in the
quarter ended December 31, 2003.

     SECTION 4.06. ASSIGNMENT OF RIGHTS. UGC shall execute a deed of
assignment (the "DEED OF ASSIGNMENT") pursuant to which UGC shall assign to
chello all of UGC's rights and benefits under Section 1(b) (Covenant Not to
Compete) of the UGC Agreement BUT ONLY INSOFAR as such rights and benefits
would restrict the ability of chello and its majority-owned affiliates (but
not UGC and its other affiliates) to pursue the Services. The foregoing,
however, is subject to any and all rights and benefits held by Austar United
Communications Limited ("AUC") under the General Agreement, dated as of June
16, 1999, between UGC (formerly known as United International Holdings, Inc.)
and AUC to the extent provided in the Deed of Assignment.

     SECTION 4.07. INDEMNIFICATION FOR LIABILITIES IN CONNECTION WITH THE
UNDERWRITING AGREEMENT. As additional consideration for UGC agreeing to
execute the underwriting agreement in connection with chello's initial public
offering of securities (the "Underwriting Agreement"), chello shall
indemnify, defend and hold harmless UGC from and against any and all claims,
damages, liabilities or expenses (including court costs, reasonable expenses
and reasonable attorney's fees) incurred in connection with any suit or claim
that may be brought against UGC (collectively "LIABILITIES") based upon
arising out of by reason of or otherwise in respect of or in connection with
the Underwriting Agreement; PROVIDED, HOWEVER, that chello will not be liable
to UGC (i) to the extent that it is finally judicially determined that such
Liabilities resulted from the wilful misconduct or gross negligence of UGC,
(ii) to the extent that it is finally judicially determined that such
Liabilities resulted solely from the material breach by UGC of any
representation, warranty, covenant or other agreement of UGC contained in the
Underwriting Agreement or (iii) to the extent that such claims, damages,
liabilities or expenses result from any material omission or misstatement in
information provided by UGC for purposes of inclusion in the registration
statement relating to chello's initial public offering at the time of
effectiveness, PROVIDED FURTHER, that if and to the extent that such
indemnification is unenforceable for any reason, chello shall make the
maximum contribution to the payment and satisfaction of such indemnified
liability which shall be permissible under applicable laws. The
indemnification and contribution provided for in this Section 4.07 will
remain in full force and effect regardless of any investigation made by or on
behalf of UGC.

     SECTION 4.08. REGISTRATION RIGHTS AGREEMENT. chello and UGC agree to
enter into a Registration Rights Agreement in the form attached as Annex F
hereto.

<PAGE>

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

     SECTION 5.01. REPRESENTATIONS AND WARRANTIES OF UGC

     (a) ORGANIZATION AND AUTHORITY. UGC is a company duly incorporated,
validly existing and in good standing under the laws of the state of Delaware
and has all necessary power and authority to enter into this Agreement, to
carry out its obligations hereunder and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by UGC, the
performance by it of its obligations hereunder and the consummation by it of
the transactions contemplated hereby have been duly authorized by all
requisite action on its part. This Agreement has been duly executed by UGC
and (assuming due authorization, execution and delivery by the other person
signatory hereto) this Agreement constitutes a legal, valid and binding
obligation of UGC enforceable against it in accordance with its terms.

     (b) NO CONFLICT. The execution and performance of this Agreement by UGC
do not and will not (i) violate, conflict with or result in the breach of any
provision of its Articles of Association, (ii) conflict with or violate any
law, governmental regulation or governmental order applicable to UGC or any
of its subsidiaries, except chello, or any of its or their assets, properties
or businesses or (iii) conflict with, result in any breach of, constitute a
default (or event with which the giving of notice or lapse of time or both,
would become a default) under, require any consent under, or give to others
any rights pursuant to, any contract, agreement or arrangement by which UGC
or any of its subsidiaries, except chello, is bound; except to the extent
that any conflict under (ii) or (iii) above would not prevent or materially
delay the consummation of the transactions contemplated by this Agreement.

     (c) OPERATING PERMITS, LICENSES, CONSENTS, ETC. Each of UGC and its
relevant Affiliates has obtained all permits, governmental licenses,
authorizations, qualifications, consents and approvals, technology licenses
and contractual consents, waivers and amendments as are necessary for the
conduct of its business and the business of each of the UGC Affiliates in all
jurisdictions as carried out on the date hereof, including, without
limitation, all cable franchises and telecommunication permits, licenses and
consents, except in each case to the extent that the failure to obtain or
maintain such permits, governmental licenses, authorizations, qualifications,
consents and approvals, technology licenses and contractual consents, waivers
and amendments would not adversely affect UGC or its Affiliates' ability to
perform its or their obligations under this Agreement and the transactions
contemplated hereby or would not have a material adverse effect on the
business, operations, properties, prospects or condition (financial or
otherwise) of UGC or any of its Affiliates.

<PAGE>

     SECTION 5.02. REPRESENTATIONS AND WARRANTIES OF chello.

     (a) DUE ORGANIZATION AND AUTHORIZATION. chello is a limited liability
company duly organized, validly existing and in good standing under the laws
of the Netherlands and has all necessary power and authority to enter into
this Agreement, to carry out its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery of this
Agreement by chello, the performance by it of its obligations hereunder and
the consummation by it of the transactions contemplated hereby have been duly
authorized by all requisite action on its part. This Agreement has been duly
executed and delivered by chello and (assuming due authorization, execution
and delivery by the other person signatory hereto) this Agreement constitutes
a legal, valid and binding obligation of chello enforceable against it in
accordance with its terms.

     (b) NO CONFLICT. The execution delivery and performance of this
Agreement by chello do not and will not (i) violate, conflict with or result
in the breach of any provision of its Articles of Association, (ii) conflict
with or violate any Law or governmental order applicable to chello or any of
its assets, properties or businesses or (iii) conflict with, result in any
breach of, constitute a default (or event with which the giving of notice or
lapse of time or both, would become a default) under, require any consent
under, or give to others any rights pursuant to, any contract, agreement or
arrangement by which chello is bound; except to the extent that any conflict
under (ii) or (iii) above would not prevent or materially delay the
consummation of the transactions contemplated by this Agreement.

     (c) OPERATING PERMITS, LICENSES, CONSENTS, ETC. Each of chello and its
relevant Affiliates has obtained all permits, governmental licenses,
authorizations, qualifications, consents and approvals, technology licenses
and contractual consents, waivers and amendments as are necessary for the
conduct of its business and the business of each of the relevant chello
Affiliates in all jurisdictions as carried out on the date hereof, including,
without limitation, any telecommunications permits, licenses and consents,
except in each case to the extent that the failure to obtain or maintain such
permits, governmental licenses, authorizations, qualifications, consents and
approvals, technology licenses and contractual consents, waivers and
amendments would not adversely affect chello or its Affiliates' ability to
perform its or their obligations under this Agreement and the transactions
contemplated hereby or would not have a material adverse effect on the
business, operations, properties, prospects or condition (financial or
otherwise) of chello or any of its relevant Affiliates.

<PAGE>

                                  ARTICLE VI

            INDEMNIFICATION, LIMITATION OF WARRANTY AND LIABILITY

         SECTION 6.01.     UGC INDEMNIFICATION. UGC shall indemnify, defend
and hold harmless chello, its affiliates and their respective shareholders,
members, officers, agents, directors and employees (the "CHELLO PARTIES")
from and against any and all claims, damages, liability or expenses
(including court costs, reasonable expenses and reasonable attorney's fees)
incurred in connection with any suit or claim that may be brought against the
chello Parties by third parties (other than the UGC Affiliates or the
Non-Controlled UGC Businesses) to the extent that such claims, damages,
liabilities and expenses arise out of or accrue from (i) the negligence, bad
faith or wilful misconduct of UGC in performance of its obligations under
this Agreement; (ii) any misrepresentation or breach of any representations
or warranties of UGC set forth in this Agreement; (iii) any non-compliance by
UGC with any covenants, agreements or undertakings of such party contained in
the Agreement; or (iv) UGC's failure to comply with any Laws.

         SECTION 6.02.     INDEMNIFICATION BY CHELLO. Chello shall indemnify,
defend and hold harmless UGC, its Affiliates and their respective
shareholders, members, officers, agents, directors and employees (the "UGC
PARTIES") from and against any and all claims, damages, liability or expenses
(including court costs, reasonable expenses and reasonable attorney's fees)
incurred in connection with any suit or claim that may be brought against the
UGC Parties by third parties, to the extent that such claims, damages,
liabilities and expenses arise out of or accrue from (i) the negligence, bad
faith or wilful misconduct of chello in performance of its obligations
under this Agreement; (ii) any misrepresentation or breach of any
representations or warranties of chello set forth in this Agreement; (iii)
any non-compliance by chello with any covenants, agreements or undertakings
of such party contained in the Agreement; and (iv) the failure of chello to
comply with any Laws.

         SECTION 6.03.    INDEMNIFICATION PROCEDURES. Whenever the chello
Parties or the UGC Parties, as the case may be (the "INDEMNIFIED PARTY")
shall become aware that a claim by a third party has been asserted or
threatened which, if valid, would subject UGC or chello, as the case may be
(the "INDEMNIFYING PARTY"), to an indemnity obligation under this Agreement,
the Indemnified Party promptly will notify the Indemnifying Party in writing
of such claim in sufficient detail to enable the Indemnifying Party to
evaluate the claim. The Indemnifying Party will have the right, but not the
obligation, to assume the defense of such claim. If the Indemnifying Party
fails to assume the defense of such claim within fifteen (15) days after the
receipt of notice of the claim, the Indemnified Party (upon delivering
written notice to such effect to the Indemnifying Party) shall have the right
to undertake, at the Indemnifying Party's cost and expense, the defense,
compromise or settlement of such claim, subject to the right of the
Indemnifying Party to assume the defense of such claim at any time prior to
settlement, compromise or final determination thereof, and provided however
that the Indemnified Party shall not enter into any such compromise or
settlement without the written consent (such consent not being unreasonably
withheld) of the Indemnifying Party. In the event the Indemnified Party
assumes the defense of the claim, the Indemnified Party will keep the
Indemnifying Party reasonably informed of the progress of any such defense,
compromise or settlement.

<PAGE>

                                 ARTICLE VII

                             DISPUTE RESOLUTION

         SECTION 7.01.     COOPERATION AND SUPPORT; PROCEDURES FOR DISPUTE
RESOLUTION. The parties acknowledge and agree that cooperation and mutual
support will be necessary to achieve the purposes contemplated by several
provisions of this Agreement. Chello and UGC shall therefore attempt to
resolve any dispute relating to the Agreement promptly and effectively in
the context of such purposes. In the event the parties are unable to do so,
all disputes arising in connection with this Agreement shall be settled
according to the following provisions:

         (a)      If either party believes that the other party has
materially breached this Agreement, or if any other dispute regarding the
interpretation or implementation of the Agreement arises, the dispute or
alleged breach shall be referred, by means of a written notice which sets out
facts and circumstances in reasonably sufficient detail for a determination
to be made on the basis thereof, to the chief executive officers of each of
chello and UGC (the "CEOs"). The CEOs will then in good faith attempt, in
communications which shall include at least one face-to-face meeting, to
resolve the allegation or dispute and to reach agreement on remedial steps,
if any, to be taken by the offending party or any other measures to resolve
the allegation or dispute.

         (b)      If the CEOs fail to reach a joint decision within 14 days
after the receipt of the written notice referred to in section 7.01(a) above,
each of chello and UGC will appoint a member of the Supervisory Board of
chello which was neither nominated nor appointed by chello or UGC (the
"INDEPENDENT MEMBERS") to a committee which will include the CEOs and the
Independent Members (the "DISPUTE RESOLUTION COMMITTEE"). The Dispute
Resolution Committee will then in good faith attempt, in the same manner as
described in subsection 7.01(a) above, to resolve the matter.

         (c)      If the Dispute Resolution Committee fails to reach a joint
decision within 21 days after the written notice referred to in subsection
7.01(a) above, then either party may submit the matter to arbitration. Such
dispute will thereupon be finally settled under the Rules of Arbitration of
the London Court of International Arbitration by a panel of three
arbitrators, one appointed by chello, one appointed by UGC and the third
appointed by the two arbitrators appointed by chello and UGC. In the event
that chello or UGC fails to appoint an arbitrator within 30 days of notice of
the submission of the dispute to arbitration or the two arbitrators fail to
appoint a third within 30 days of the appointment of the second of such
arbitrators, then any party may request the London Court of International
Arbitration to appoint an arbitrator. In making any selection of arbitrators,
the London Court of International Arbitration shall take into consideration
the expertise of potential candidates in the field of telecommunications. The
arbitration shall take place in London, United Kingdom. The arbitral
proceedings shall be conducted in the English language.

<PAGE>

                                 ARTICLE VIII

                                 TERMINATION

         SECTION 8.01.     TERM. Subject to Section 8.02 and 8.03, and except
for (i) the representations and warranties and the indemnification
obligations of each of the parties, which shall survive the termination of
this Agreement indefinitely, (ii) the non-compete obligations of each of UGC
and chello pursuant to Sections 3.01 and 3.03 respectively, which shall
survive for the periods stated in those sections, (iii) Section 4.01, which
shall survive for so long as chello's conduct may impact on the compliance of
covenants under UGC's financing agreements and (iv) Section 4.02, which shall
survive for so long as UGC or chello requires the information stated therein
for purposes of compliance with its reporting requirements, as stated
therein, this Agreement shall remain in force for seven (7) years from the
date hereof.

         SECTION 8.02.     TERM AS TO TERRITORY A. With respect to Territory
A, this Agreement shall remain in force for the respective periods set forth
in the Austar, Telstra and VTR franchise agreements, entered into pursuant to
the Austar and Telstra Term Sheet and the VTR Term Sheet, respectively.

         SECTION 8.03.     TERMINATION BY EITHER PARTY. This Agreement shall
be subject to termination upon the occurrence of any of the following events.
Either party may terminate immediately upon notice if:

                  (i)   the other party files a petition for bankruptcy or is
adjudicated as bankrupt (or the equivalent in any country in which either
party operates);

                  (ii)  a petition in bankruptcy (or the equivalent in any
country in which either party operates) is filed against the other party and
such petition is not removed or resolved within thirty (30) calendar days;

                  (iii) the other party becomes insolvent or makes an
assignment for the benefit of its creditors or an arrangement for its
creditors pursuant to any bankruptcy laws;

                  (iv)  the other party discontinues its business; or

                  (v)   a receiver is appointed for the other party or its
business.

         SECTION 8.04.     EFFECT OF TERMINATION.

         (a)      Termination of this Agreement by either party shall not act
as a waiver of any breach of this Agreement and shall not act as a release of
either party hereto from any liability for breach of such party's obligations
under this Agreement.

         (b)      Within 60 calendar days following the expiration or
termination of this Agreement, each party shall pay to the other party all
sums, if any, due and owing as of the date of expiration or termination, net
of any amounts due from the other party as of such date.

<PAGE>

                                  ARTICLE IX

                              GENERAL PROVISIONS

     SECTION 9.01.  EXPENSES.  Except as otherwise provided in this
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs and expenses.

     SECTION 9.02.  NOTICES.  All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given or made
(and shall be deemed to have been duly given or made upon receipt) by
delivery in person, by courier service, by cable, by telecopy, by telegram or
by telex to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in
accordance with this Section 5.02):

     (a)  if to UGC:

               UnitedGlobalCom, Inc.
               Attention: President and Legal Department
               4643 South Ulster Street
               Denver, Colorado 80237
               USA

               Telecopy: +1 303 770 4207

     (b)  if to chello:

               chello broadband N.V.
               Attention: General Counsel
               Boeing Avenue 101
               1119 PE Schipol-Rijk
               The Netherlands
               Telecopy: +31 20 778 8000

     SECTION 9.03.  HEADINGS.  The descriptive headings contained in this
Agreement are for convenience of reference only and shall not affect in any
way the meaning or interpretation of this Agreement.

     SECTION 9.04.  SEVERABILITY.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any Law or
public policy, all other terms and provisions of this agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as
to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions

<PAGE>

contemplated hereby are consummated as originally contemplated to the
greatest extent possible.

     SECTION 9.05.  ENTIRE AGREEMENT.  This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and undertakings, both written and oral,
between UGC and chello with respect to the subject matter hereof.

     SECTION 9.06.  ASSIGNMENT.  Except as provided herein, this Agreement
may not be assigned without the express written consent of chello and UGC
(which consent may not be unreasonably withheld). Notwithstanding the
foregoing, this Agreement may be assigned by either party to any entity
directly or indirectly controlling or controlled by or under common control
with the party concerned. For purposes of this Section 9.06, "control" means
the power to direct the management and policies of a Person, directly or
through one or more intermediaries, whether through the ownership or voting
power or contract. This Agreement will be binding on the parties and their
respective successors and permitted assigns.

     SECTION 9.07.  NO THIRD PARTY BENEFICIARIES.  Except for the provisions
of Article VI this Agreement shall be binding upon and inure solely to the
benefit of the parties hereto and their successors and permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any
other Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

     SECTION 9.08.  FURTHER ASSURANCES; NO CONFLICTS.  Each party, to the
fullest extent permitted by applicable Law, shall take all actions and
execute and deliver all documents as reasonably necessary to fulfill and
accomplish the purposes and transactions contemplated by this Agreement.
Notwithstanding anything to the contrary in this Agreement, but subject to
Section 2.03, UGC shall not be required to cause or procure that any third
party, including any UGC Local Operator, take or omit any action if any
contractual, fiduciary or other obligation of UGC or its affiliates would
preclude UGC from doing so or result in a breach or default of any such
obligation, provided, however, that in such an event UGC shall use
commercially reasonable efforts to achieve the intended objective of such
action or omission by means which would not result in such a breach or
default, or which is not precluded by such obligations, PROVIDED, FURTHER
that, except as otherwise specifically required by this Agreement, no loan
agreement or contract for borrowed money shall be repaid, in whole or in
part, and no contract shall be amended to increase the amount payable
thereunder or otherwise to be more burdensome to UGC or any of its affiliates
in order to achieve such objective and neither UGC nor any of its affiliates
shall be required to make any cash payment or relinquish any property or
contractual rights to achieve such objective except for filing fees and
reasonable expenses of attorneys and accountants.

     SECTION 9.09.  NO PARTNERSHIP.  No provision of this Agreement creates a
partnership or joint venture between or among any of the parties or makes a
party the agent of another party for any purpose. A party has no authority
or power to bind, to contract in the name of, or to create a liability for
the other party in any way or for any purpose.

     SECTION 9.10.  AMENDMENT.  This Agreement may not be amended or
modified except by an instrument in writing signed by chello and UGC.

<PAGE>

     SECTION 9.11.  GOVERNING LAW.  This agreement shall be governed by, and
construed in accordance with, the Laws of The Netherlands.

     SECTION 9.12.  COUNTERPARTS.  This agreement may be executed in one or
more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement.

<PAGE>

     IN WITNESS WHEREOF, chello and UGC have executed or have caused their
respective officers thereunto duly authorized to execute this agreement as of
the date first written above.

                                       CHELLO BROADBAND N.V.

                                       By:  /s/  Roger Lynch
                                          --------------------------------
                                          Name:   Roger Lynch
                                          Title:  CEO

                                       By:  /s/  David Maisel
                                          --------------------------------
                                          Name:   David Maisel
                                          Title:  Managing Director Corporate
                                                  Development

                                       UNITEDGLOBALCOM, INC.

                                       By: /s/ Michael T. Fries
                                          --------------------------------
                                          Name:   Michael T. Fries
                                          Title:  President and COO

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