Document:

exv10w28

 

Exhibit 10.28

FORM OF AGREEMENT

 

 

AIRCRAFT TIME SHARING AGREEMENT

          This Aircraft Time Sharing Agreement (“Agreement”) is effective as of the ___day of _________ ____, 200___(“Effective Date”), by and between UIM Aircraft, LLC, a Colorado limited liability
company, with an address of 12300 Liberty Boulevard, Englewood, Colorado 80112 (“Lessor”), and
_______________, with an address of ___________________________(“Lessee”);

RECITALS

          WHEREAS, Lessor and Lessee have entered into an Aircraft Time Sharing Agreement, relating to a
certain Challenger 601, United States Registration Number N99 UG, effective as of December 16, 2005
(“Challenger Aircraft Time Share Agreement”);

          WHEREAS, Lessor has disposed of the Challenger 601 aircraft and Lessor and Lessee intend to
terminate the Challenger Aircraft Time Sharing Agreement, and enter into a new one, relating to a
newly acquired aircraft by Lessor, effective as of the date of this Agreement, as more fully
described below;

          WHEREAS, Lessor has acquired and is the owner of that certain Dassault Falcon 900EX aircraft,
bearing manufacturer’s serial number 61, currently registered with the Federal Aviation
Administration (“FAA”) as N961EX, equipped with three (3) Honeywell TFE731 Series engines, bearing
manufacturer’s serial numbers P-112296, P-112297 and P-112298 (“Aircraft”);

          WHEREAS, Lessor desires to lease to Lessee said Aircraft and to provide a fully qualified
flight crew for all operations on a periodic, non-exclusive time sharing basis, as defined in
Section 91.501(c) of the Federal Aviation Regulations (“FAR”); and

          WHEREAS, the use of the Aircraft by Lessee shall at all times be pursuant to and in full
compliance with the requirements of FAR Sections 91.501 (b) (6), 91.501 (c) (1) and 91.501 (d);

          NOW, THEREFORE, in consideration of the mutual promises and considerations contained in this
Agreement, the parties agree as follows:

          1. Lessor and Lessee agree to terminate, and the Challenger Aircraft Time Sharing Agreement is
hereby terminated, as of the date of this Agreement.

          2. Lessor agrees to lease the Aircraft to Lessee on a periodic, non-exclusive basis, and to
provide a fully qualified flight crew for all operations, pursuant and subject to the provisions of
FAR Section 91.501 (c) (1) and the terms of this Agreement. This Agreement shall commence on the
Effective Date and continue until the first anniversary of the Effective Date. Thereafter, this
Agreement shall be automatically renewed on a month to month basis, unless sooner terminated by
either party as hereinafter provided. Either party may at any time terminate

 

 

this Agreement (including during the initial one-year term) upon thirty (30) days prior
written notice to the other party.

          3. Lessee shall pay Lessor for each flight conducted under this Agreement in an amount
determined by Lessor in accordance with the Personal Usage of Aircraft Policy adopted by the Board
of Directors of Liberty Global, Inc. as in effect from time to time, which in no event shall exceed
the following actual expenses of each specific flight as authorized by FAR Section 91.501 (d):

	 	(a)	 	Fuel, oil, lubricants, and other additives;

	 	(b)	 	Travel expenses of the crew, including food, lodging and ground transportation;

	 	(c)	 	Hangar and tie down costs away from the Aircraft’s base of operation;

	 	(d)	 	Insurance obtained for the specific flight;

	 	(e)	 	Landing, airport taxes and similar assessments, including any
federal excise tax that may be imposed under Internal Revenue Code Section 4261
or any similar excise taxes, if any;

	 	(f)	 	Customs, foreign permit, and similar fees directly related to
the flight;

	 	(g)	 	In-flight food and beverages;

	 	(h)	 	Passenger ground transportation;

	 	(i)	 	Flight planning and weather contract services; and

	 	(j)	 	An additional charge equal to 100% of the expenses listed in subparagraph (a) of this
paragraph.

          4. Lessor will pay all expenses related to the operation of the Aircraft when incurred, and
will bill Lessee on a monthly basis as soon as practicable after the last day of each calendar
month for the amount payable in accordance with Section 3 above for all flights for the account of
Lessee during the preceding month. Lessee shall pay Lessor for all flights for the account of
Lessee pursuant to this Agreement within thirty (30) days of receipt of the invoice therefor.

          5. Lessee shall provide Lessor with requests for flight time and proposed flight schedules as
far in advance of any given flight as possible, and in no event less than twenty-four (24) hours in
advance of Lessee’s planned departure, unless Lessor otherwise agrees. Requests for flight time
shall be in a form, whether written or oral, mutually convenient to, and agreed upon by the
parties. In addition to the proposed schedules and flight times, Lessee shall provide at least the
following information for each proposed flight at some time prior to scheduled departure as
required by the Lessor or Lessor’s flight crew:

	 	(a)	 	proposed departure point;

	 	(b)	 	destinations;

	 	(c)	 	date and time of flight;

	 	(d)	 	the number of anticipated passengers;

	 	(e)	 	the identity of each anticipated passenger;

	 	(f)	 	the nature and extent of luggage and/or cargo to be carried;

	 	(g)	 	the date and time of return flight, if any; and

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	 	(h)	 	any other information concerning the proposed flight that may be pertinent or required by
Lessor or Lessor’s flight crew.

          6. Lessor shall have sole and exclusive authority over the scheduling of the Aircraft,
including any limitations on the number of passengers on any flight, provided however, that, Lessor
will use commercially reasonable efforts to accommodate Lessee’s needs and to avoid conflicts in
scheduling.

          7. As between Lessor and Lessee, Lessor shall be solely responsible for securing maintenance,
preventive maintenance and required or otherwise necessary inspections on the Aircraft, and shall
take such requirements into account in scheduling the Aircraft. No period of maintenance,
preventative maintenance or inspection shall be delayed or postponed for the purpose of scheduling
the Aircraft, unless said maintenance or inspection can be safely conducted at a later time in
compliance with all applicable laws and regulations, and within the sound discretion of the pilot
in command. The pilot in command shall have final and complete authority to cancel any flight for
any reason or condition which in his judgment would compromise the safety of the flight.

          8. Lessor shall employ, pay for and provide to Lessee a qualified flight crew for each flight
undertaken under this Agreement.

          9. In accordance with applicable FARs, the qualified flight crew provided by Lessor will
exercise all of its duties and responsibilities in regard to the safety of each flight conducted
hereunder. Lessee specifically agrees that the flight crew, in its sole discretion, may terminate
any flight, refuse to commence any flight, or take other action which in the considered judgment of
the pilot in command is necessitated by considerations of safety. No such action of the pilot in
command shall create or support any liability for loss, injury, damage or delay to Lessee or any
other person. The parties further agree that Lessor shall not be liable for delay or failure to
furnish the Aircraft and crew pursuant to this Agreement when such failure is caused by government
regulation or authority, mechanical difficulty, war, civil commotion, strikes or labor disputes,
weather conditions, or acts of God or any other event or circumstance beyond the reasonable control
of Lessor.

          10. (a) At all times during the term of this Agreement, Lessor shall cause to be carried and
maintained, at Lessor’s cost and expense, physical damage insurance with respect to the Aircraft,
third party aircraft liability insurance, passenger legal liability insurance, property damage
liability insurance, and medical expense insurance in such amounts and on such terms and conditions
as Lessor shall determine in its sole discretion, Lessor shall also bear the cost of paying any
deductible amount on any policy of insurance in the event of a claim or loss.

                 (b) Any policies of insurance carried in accordance with this Agreement: (i) shall name
Lessee as an additional insured; (ii) shall contain a waiver by the underwriter thereof of any
right of subrogation against Lessee; and (iii) shall require the insurers to provide at least 30
days’ prior written notice (or at least seven days’ in the case of any war-risk insurance) to
Lessee if the insurers cancel insurance for any reason whatsoever, provided that the insurers shall
provide at least 10 days prior written notice if the same is allowed to lapse for non-

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payment of premium. Each liability policy shall be primary without right of contribution from
any other insurance which is carried by Lessee or Lessor and shall expressly provide that all of
the provisions thereof, except the limits of liability, shall operate in the same manner as if
there were a separate policy covering each insured.

                 (c) Lessor shall obtain the approval of this Agreement by the insurance carrier for each
policy of insurance on the Aircraft. If requested by Lessee, Lessor shall arrange for a
Certificate of Insurance evidencing the insurance coverage with respect to the Aircraft carried and
maintained by Lessor to be given by its insurance carriers to Lessee or will provide Lessee with a
copy of such insurance policies. Lessor will give Lessee reasonable advance notice of any material
modifications to insurance coverage relating to the Aircraft.

          11. (a) LESSEE AGREES THAT THE PROCEEDS OF INSURANCE WILL BE LESSEE’S SOLE RECOURSE AGAINST
LESSOR WITH RESPECT TO ANY CLAIMS THAT LESSEE MAY HAVE UNDER THIS AGREEMENT, EXCEPT IN THE EVENT OF
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT BY LESSOR.

                 (b) IN NO EVENT SHALL LESSOR BE LIABLE TO LESSEE OR ITS EMPLOYEES, AGENTS, GUESTS, OR
INVITEES (AND THE LAWFUL SUCCESSORS AND ASSIGNS THEROF) FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL OR
INCIDENTAL DAMAGES AND/OR PUNITIVE DAMAGES OF ANY KIND OR NATURE, UNDER ANY CIRCUMSTANCES OR FOR
ANY REASON, INCLUDING AND NOT LIMITED TO ANY DELAY OR FAILURE TO FURNISH THE AIRCRAFT, OR CAUSED BY
THE PERFORMANCE OR NON-PERFORMANCE BY LESSOR OF THIS AGREEMENT.

                 (c) THE PROVISIONS OF THIS SECTION 10 SHALL SURVIVE INDEFINITELY THE TERMINATION OR
EXPIRATION OF THE AGREEMENT.

          12. Lessee warrants that:

                 (a) It will not use the Aircraft for the purpose of providing transportation of passengers or
cargo in air commerce for compensation or hire, for any illegal purpose, or in violation of any
insurance policies with respect to the Aircraft;

                 (b) It will refrain from incurring any mechanics, international interest, prospective
international interest or other lien and shall not attempt to convey, mortgage, assign, lease or
grant or obtain an international interest or prospective international interest or in any way
alienate the Aircraft or create any kind of lien or security interest involving the Aircraft or do
anything or take any action that might mature into such a lien; and

                 (c) It will comply with all applicable laws, governmental and airport orders, rules and
regulations, as shall from time to time be in effect relating in any way to the operation and use
of the Aircraft under this Agreement.

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          13. For purposes of this Agreement, the permanent base of operation of the Aircraft shall be
Centennial Airport, Englewood, Colorado.

          14. A copy of this Agreement shall be carried in the Aircraft and available for review upon
the request of the Federal Aviation Administration on all flights conducted pursuant to this
Agreement.

          15. Lessee shall not assign this Agreement or its interest herein to any other person or
entity without the prior written consent of Lessor, which may be granted or denied in Lessor’s sole
discretion. Subject to the preceding sentence, this Agreement shall inure to the benefit of and be
binding upon the parties hereto, and their respective heirs, representatives, successors and
assigns, and does not confer any rights on any other person. This Agreement constitutes the entire
understanding between the parties with respect to the subject matter hereof and supersedes any
prior understandings and agreements between the parties respecting such subject matter. This
Agreement may be amended or supplemented and any provision hereof waived only by a written
instrument signed by all parties. The failure or delay on the part of any party to insist on
strict performance of any of the terms and conditions of this Agreement or to exercise any rights
or remedies hereunder shall not constitute a waiver of any such provisions, rights or remedies.
This Agreement may be executed in counterparts, which shall, singly or in the aggregate, constitute
a fully executed and binding Agreement.

          16. Except as otherwise set forth in Section 5, all communications and notices provided for
herein shall be in writing and shall become effective when delivered by facsimile transmission (to
Lessor at 303 799-1716 or to Lessee at 303 220-6675) or by personal delivery, Federal Express or
other overnight courier or four (4) days following deposit in the United States mail, with correct
postage for first-class mail prepaid, addressed to Lessor or Lessee at their respective addresses
set forth above, or else as otherwise directed by the other party from time to time in writing.

          17. If any one or more provisions of this Agreement shall be held invalid, illegal, or
unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement
shall be unimpaired, and the invalid, illegal, or unenforceable provisions shall be replaced by a
mutually acceptable provision, which, being valid, legal, and enforceable, comes closest to the
intention of the parties underlying the invalid, illegal, or unenforceable provision. To the
extent permitted by applicable law, the parties hereby waive any provision of law, which renders
any provision of this Agreement prohibited or unenforceable in any respect.

          18. This Agreement is entered into under, and is to be construed in accordance with, the laws
of the State of Colorado, without reference to conflicts of laws.

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          19. TRUTH IN LEASING STATEMENTUNDER FAR SECTION 91.23

          THE AIRCRAFT, A DASSAULT FALCON 900EX, MANUFACTURER’S SERIAL NO. 61, CURRENTLY REGISTERED WITH
THE FEDERAL AVIATION ADMINISTRATION AS N961EX, HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91
DURING THE 12 MONTH PERIOD PRECEDING THE DATE OF THIS LEASE.

THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER FAR PART 91 FOR OPERATIONS TO BE CONDUCTED
UNDER THIS LEASE. DURING THE DURATION OF THIS LEASE, UIM AIRCRAFT LLC, 12300 LIBERTY BOULEVARD,
ENGLEWOOD, COLORADO 80112 IS CONSIDERED RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT UNDER
THIS LEASE.

          AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION
REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

          THE “INSTRUCTIONS FOR COMPLIANCE WITH TRUTH IN LEASING REQUIREMENTS” ATTACHED HERETO ARE
INCORPORATED HEREIN BY REFERENCE.

          UIM AIRCRAFT, LLC, LOCATED AT 12300 LIBERTY BOULEVARD, ENGLEWOOD, COLORADO 80112, THROUGH ITS
UNDESIGNED AUTHORIZED SIGNATORY BELOW, CERTIFIES THAT LESSOR IS RESPONSIBLE FOR OPERATIONAL CONTROL
OF THE AIRCRAFT AND THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL
AVIATION REGULATIONS.

          IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the date
first above written.

	 	 	 	 	 	 
	LESSOR

UIM Aircraft, LLC

  By: LGI International, Inc., its sole Manager

 	 	 
	 	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 	Date:  	 	 	 

	 	 	 	 	 
	LESSEE

 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Date:  	 	 	 

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INSTRUCTIONS FOR COMPLIANCE WITH “TRUTH IN LEASING”

REQUIREMENTS

	1.	 	Mail a copy of the lease to the following address via certified mail, return receipt
requested, immediately upon execution of the lease (14 C.F.R. 91.23 requires that the copy be
sent within twenty four hours after it is signed):

Federal Aviation Administration

Aircraft Registration Branch

ATTN: Technical Section

P.O. Box 25724

Oklahoma City, Oklahoma 73125

	2.	 	Telephone the nearest Flight Standards District Office at least forty eight hours prior to
the first flight under this lease.

	3.	 	Carry a copy of the lease in the aircraft at all times.

7exv10w39

 

Exhibit 10.39

VTR GLOBALCOM S.A.

2006 PHANTOM SAR PLAN

     VTR GlobalCom S.A. (the “Company”), a company incorporated under the laws of Chile,
hereby establishes the VTR GlobalCom S.A. 2006 Phantom SAR Plan (this “Plan”). The purpose
of the Plan is to provide Eligible Persons (as defined herein) with the opportunity to participate
in the growth in the value of the common stock of the Company, thereby encouraging the participants
to contribute materially to the growth of the Company and providing incentives to attract and
retain qualified persons who make such contributions.

     1. Definitions. The terms set forth below have the definitions indicated whenever
used in this Plan.

“Affiliate”: With respect to any Person, any other Person Controlling, Controlled
by, or under common Control with, such Person.

“Base Value”: The baseline price of a share of Common Stock to be used in
calculating the SAR Value of a vested SAR. The Base Value will be determined by the
Valuation Committee in its discretion in connection with each award of SARs, subject to
adjustment in accordance with this Plan.

“Beneficiary”: The Person or Persons designated by the Grantee in the Grant
Agreement, in accordance with Chilean inheritance laws applicable at such time, to receive
the amount, if any, that becomes payable under this Plan upon the death of the Grantee. If
the Grantee changes or revokes a Beneficiary designation at any time a new designation or
notice of revocation with the Committee shall be filed. No notice to, or consent by, any
Beneficiary will be required to effect any change or revocation of designation. If a
Grantee does not designate a Beneficiary, the Grantee’s Beneficiary will be deemed to be the
one determined by Chilean inheritance laws.

“Board”: The Board of Directors of the Company.

“Business Day”: Each day that is not a Saturday, Sunday or other day on which
banking institutions in Santiago, Chile are authorized or required by law to close.

“Cause”: The meaning ascribed thereto in the Grantee’s Grant Agreement or in the
absence thereof, in the Grantee’s employment agreement with the Company or a Participating
Subsidiary. In the absence of such a definition, “Cause” shall include, without limitation,
(i) Grantee’s insubordination, dishonesty, incompetence or other misconduct of any kind in
the course of Grantee’s employment, (ii) conduct involving moral turpitude, (iii) Grantee’s
refusal to perform his or her duties and responsibilities for any reason other than illness
or incapacity, (iv) violation by Grantee of any provision of Grantee’s employment agreement
with the Company or a Participating Subsidiary or (v) violation by Grantee of any provision
applicable to Grantee of any code of conduct, code of ethics, employment policies, employee
handbook or other published policy (whether disseminated in writing or via a website or
other publication) of the Company or

 

 

any Affiliate of the Company, as in effect from time to time. Determination of the
existence of Cause shall be subject to the Committee’s discretion and any such determination
shall be final, binding and conclusive. Notwithstanding the above, if evidence of Cause is
acquired after any termination of employment that originally was not for Cause, the
termination may, in the discretion of the Committee, be treated as a termination for Cause
for purposes of this Plan.

“Change in Control”: With respect to the Company, the acquisition directly or
indirectly by any person (within the meaning of Section 13(d) of the Exchange Act) (other
than LGI, any Affiliate of LGI, any employee stock ownership plan or other employee benefit
plan of the Company, LGI or any Affiliate of LGI, any Control Person or any combination of
one or more of the foregoing) during any period of 12 consecutive months of beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of the Company
representing in the aggregate more than 50% of the total voting power of all Voting Equity
of the Company. The calculation of whether an acquisition is of more than 50% of the total
voting power of all Voting Equity of the Company will be determined on a fully diluted basis
as of the date immediately prior to the date of the acquisition in question (or, if there is
more than one acquisition during such twelve-month period, the determination date will be
the date immediately prior to the date of the last such acquisition in question). No change
in ownership or control of LGI shall constitute a Change in Control of the Company.

“Committee”: A committee consisting of two or more persons appointed from time to
time by the Valuation Committee to administer the Plan. The Committee will initially be
comprised of the President of LGI, the Senior Vice President, Global Human Resources, of
LGI, and the President of LGI’s Latin America division.

“Common Stock”: The common stock of the Company.

“Control”: The possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the ownership of
voting securities or voting interests, by contract or otherwise.

“Control Person”: Each of (i) the Chairman of the LGI Board; (ii) the President of
LGI; (iii) each of the directors of LGI; and (iv) the respective family members, estates and
heirs of each of the Persons referred to in clauses (i) through (iii) above and any trust or
other investment vehicle for the primary benefit of any of such persons or their respective
family members or heirs. “Family members” for this purpose means the parents,
descendants, stepchildren, step grandchildren, nieces and nephews, and spouses of the
specified Person. Beneficial ownership for purposes of the foregoing shall be determined
pursuant to Rule 13d-3 and Rule 13d-5 of the Exchange Act and any successor regulation,
except that a Person shall be deemed to have beneficial ownership of all securities that
such Person has or acquires the right to acquire, whether such right is exercisable
immediately or after the passage of time.

“Corporate Transaction”: Any of the following transactions to which the Company is
a party: (i) a merger or consolidation of the Company, or binding share exchange, pursuant

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to which the issued and outstanding Common Stock would be changed or converted into or
exchanged for cash, securities or other property of another Person (the
“Purchaser”); (ii) a sale or other conveyance of all or substantially all of the
assets of the Company in one transaction or a series of related transactions (other than to
a Person or Persons that, after giving effect thereto, are consolidated with the Company for
financial reporting purposes); or (iii) the liquidation or dissolution of the Company.

“Eligible Persons”: An employee of the Company or any Participating Subsidiary that
occupies the positions of CEO, Vice President, or Manager (gerente), whose judgment,
initiative and efforts have been determined to be important to the Company or such
Participating Subsidiary for the management and growth of its business. Notwithstanding the
foregoing, no such employee who participates in any other bonus or incentive plan of LGI or
any other Subsidiary of LGI shall be an Eligible Person.

“Enterprise Value” means Net Company Value plus Net Financial Debt.

“Exchange Act”: The Securities Exchange Act of 1934, as amended.

“Grant Agreement”: The Agreement to be entered into by each Eligible Person who is
granted SARs under this Plan. The basic form of such Grant Agreement is attached as Exhibit
A, but nothing shall prohibit the Committee from using any form of Grant Agreement
determined acceptable to the Committee for grants to any Eligible Person without regard to
the terms of this basic form of Grant Agreement.

“Grant Date”: The date, as determined by the Committee, as of which SARs are
granted to an Eligible Person, which date shall be set forth in the applicable Grant
Agreement.

“Grantee”: An Eligible Person who is granted a SAR under this Plan.

“LGI”: Liberty Global, Inc. and any successor (by merger, consolidation, transfer
or otherwise) to all or substantially all of its assets; provided that if a Transferee
Parent becomes the beneficial owner of all or substantially all of the equity securities of
the Company then beneficially owned by LGI as to which LGI has dispositive power, the term
“LGI” shall mean such Transferee Parent and any successor (by merger, consolidation,
transfer or otherwise) to all or substantially all of its assets.

“LGI Board”: The board of directors of LGI.

“Net Company Value”: As defined in Section 6(a).

“Net Financial Debt” means, as of any date of determination and with respect to the
Company, on a consolidated basis, the sum of (a) the outstanding principal amount of all
obligations, whether current or long-term, for borrowed money and all obligations evidenced
by bonds, debentures, notes, loan agreements or other similar instruments, (b) all purchase
money indebtedness, (c) all direct obligations arising under letters of credit (including
standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments, (d) all obligations in respect of the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of

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business), (e) all obligations with respect to capital leases, (f) without duplication, all
guarantees with respect to outstanding indebtedness of the types specified in clauses (a)
through (e) above of persons other than the Company and its Subsidiaries, and (g) all
indebtedness of the types referred to in clauses (a) through (f) above of any partnership or
joint venture (other than a joint venture that is itself a corporation or limited liability
company) in which the Company or any of its Subsidiaries is a general partner or joint
venturer, unless such indebtedness is expressly made non-recourse to the Company and its
Subsidiaries, less the sum of all cash and cash equivalents on hand as of any date of
determination.

“Operating Cash Flow” means, as of any date of determination and with respect to the
Company, on a consolidated basis, revenue calculated in accordance with US GAAP less
operating, selling, general and administrative expenses calculated in accordance with US
GAAP, excluding the following: (i) depreciation; (ii) amortization; (iii) compensation
charges or credits related to SARs; (iv) impairment charges; (v) restructuring charges; and
(vi) other non-cash charges or credits.

“Participating Subsidiary”: VTR Ingeniería S.A. and any other Subsidiary of the
Company that the Committee designates as a Participating Subsidiary.

“Per Share Value”: The applicable of the following: (i) if the Company is Publicly
Traded, the last reported sale price (or, if no last sale price is reported, the average of
the high bid and low asked prices) of a share of Common Stock on the Santiago Stock Exchange
(Bolsa de Comercio de Santiago) (or on the principal securities exchange on which the Common
Stock is listed) on the date the determination is to be made or, if such day is not a
trading day, the last trading day prior to the date of determination on which prices for the
Common Stock are quoted or reported, or (ii) if the Company is not Publicly Traded, as
defined in Section 6(a). For purposes of clause (i), the date the determination is to be
made with respect to any exercise of SARs shall be the applicable of the date written notice
of exercise and all other required documentation are received by the Company or the date the
Grantee is deemed to have elected to exercise such SARs pursuant to Section 8(a).

“Person”: Any human being or any corporation, partnership, trust, unincorporated
organization, association, limited liability company or other entity.

“Publicly Traded”: The listing or trading of the Common Stock on the Santiago Stock
Exchange (Bolsa de Comercio de Santiago) or a stock exchange authorized to operate in Chile.

“Purchaser”: As defined in the definition of “Corporate Transaction”.

“SAR”: A phantom stock appreciation right awarded pursuant to this Plan with
respect to a share of Common Stock.

“SAR Expiration Date”: The date on which a SAR shall expire, which shall be the
earlier of (i) the 180th day following the final vesting date for such SAR and
(ii) July 1, 2010.

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“SAR Value”: With respect to any SAR as of any relevant date of determination, the
positive difference, if any, obtained by deducting the Base Value of such SAR from the Per
Share Value.

“Subsidiary” means, with respect to any Person, any present or future corporation,
sociedad anónima, sociedad de responsabilidad limitada, or other business entity that is
Controlled by such Person and in which such Person owns, directly or indirectly, more than
50% of the voting, capital or profits interest. An entity shall be deemed a Subsidiary of a
Person for purposes of this definition only for such periods as the requisite ownership and
Control relationship is maintained.

“Tax Law” means Decree Law 824 of 1974, which contains the Income Tax Law of Chile,
as amended.

“Termination of Employment”: The termination of a Grantee’s employment with the
Company and its Participating Subsidiaries for any legal reason.

“Transferee Parent”: In the event of any transaction or series of related
transactions involving the direct or indirect transfer (or relinquishment of control) by LGI
of a Person or Persons (a “Transferred Person”) that hold equity securities of the
Company beneficially owned by LGI, such Transferred Person or its successor in such
transaction or any ultimate parent entity (within the meaning of the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended) of such Transferred Person or its successor
if immediately after giving effect to such transaction or the last transaction in such
series, voting securities representing at least a majority of the voting power of the
outstanding voting securities of such Transferred Person, successor or ultimate parent
entity are beneficially owned by any combination of LGI, Persons who prior to such
transaction were beneficial owners of a majority of, or a majority of the voting power of,
the outstanding voting securities of LGI (or of any publicly traded class or series of
voting securities of LGI designed to track the economic performance of a specified group of
assets or businesses) or Persons who are Control Persons.

“US GAAP” means accounting principles generally accepted in the United States of
America as set forth in the opinions and pronouncements of the Financial Accounting
Standards Board, the American Institute of Certified Public Accountants, the Securities and
Exchange Commission and other accounting principles as may be promulgated and generally
accepted by a significant segment of the accounting profession in the United States of
America, that are applicable to the circumstances as of the date of determination,
consistently applied.

“Valuation Committee”: The Compensation Committee of the LGI Board for so long as
the Company is not Publicly Traded and LGI directly or indirectly controls the Company, and,
thereafter, a committee of two or more Persons appointed by the Board.

“Valuation Date”: As defined in Section 6(a).

“Valuation Report”: As defined in Section 6(a).

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“Vesting Commencement Date”: The Grant Date for a SAR unless otherwise provided in
the Grant Agreement for such SAR.

“Voting Equity”: With respect to any Person, the capital stock or other ownership
interests in such Person having general voting power under ordinary circumstances to elect
directors (or similar officials) of such Person, but will not include any capital stock or
other ownership interest that has or would have such voting power solely by reason of the
happening of any contingency.

“Window Period”: The 60-day period beginning on the date the Valuation Report is
delivered or made available to Grantees.

     2. Administration.

          (a) Committee. This Plan shall be administered and interpreted by the Committee;
however, the Valuation Committee shall have the sole authority and power to determine the Base
Value, the Net Company Value and the Per Share Value. The Committee may delegate authority to one
or more subcommittees, as it deems appropriate. To the extent that a subcommittee administers this
Plan, references in this Plan to the “Committee” shall be deemed to refer to such subcommittee to
the extent of the authority delegated and exercised by such subcommittee.

          (b) Committee and Valuation Committee Authority. The Committee shall have the
authority to (i) determine the Eligible Persons to whom SARs shall be granted; (ii) determine the
size and the terms, conditions and limitations of the SARs granted; (iii) determine the time when
the SARs will be granted and the duration of any applicable exercise or restriction period,
including the criteria for exercisability and the acceleration of exercisability; (iv) amend the
terms of any previously granted SAR; and (v) deal with any other matters arising under this Plan,
in each case subject to the express provisions of this Plan and any express directive of the
Valuation Committee. The Valuation Committee shall have the sole authority to determine the Base
Value, the Net Company Value and the Per Share Value, in each case subject to the express
provisions of the Plan.

          (c) Committee and Valuation Committee Determinations. Subject to Section 2(b) above,
the Committee shall have full power and authority to administer and interpret this Plan, to make
factual determinations and to adopt, amend or rescind such rules, regulations, agreements, and
instruments for implementing this Plan and for the conduct of its business as it deems necessary or
advisable, in its sole discretion. The interpretations of this Plan and all determinations made by
the Committee or the Valuation Committee, including determinations of value made by the Valuation
Committee, shall be final, conclusive, and binding on all Persons having any interest in this Plan
or in any SARs granted hereunder. All powers of the Committee and the Valuation Committee shall be
executed in their sole discretion, in the best interest of the Company, not as a fiduciary, and in
keeping with the objectives of this Plan. No member of the Committee or the Valuation Committee
shall be liable for damages caused for any determination made in good faith.

6

 

     3. Selection for Participation. The Committee shall select the Eligible Persons to be
granted SARs in such manner and in accordance with such criteria as the Committee determines. No
member of the Committee while serving as such shall be eligible to receive a grant of SARs. No
Eligible Person will have any right to receive any SARs in any year, irrespective of the grant of
any SARs to such Person in any past or succeeding year or the grant of any SARs to any other Person
in such year or any other year.

     4. Grants. All SARs shall be subject to the terms and conditions set forth herein and
to such other terms and conditions consistent with this Plan as the Committee deems appropriate and
as are specified in the Grant Agreement. Each grant of SARs to an Eligible Person will be made
pursuant to a Grant Agreement executed by the Grantee and the Company, which Grant Agreement will
specify the number of SARs granted to such Grantee, the Grant Date, the Base Value, the SAR
Expiration Date, and such other information as the Committee may prescribe. All grants of SARs
shall be conditional upon the Grantee’s acknowledgment, by execution or acceptance of the Grant
Agreement, that all decisions and determinations of the Committee shall be final, binding and
conclusive on the Grantee, his or her Beneficiaries and any other Person having or claiming an
interest under such SAR. Only SARs granted pursuant to a duly executed and approved Grant
Agreement the form of which has been approved by the Committee will be considered validly granted
under this Plan. SARs granted under this Plan need not be uniform as among the Grantees. The
Committee may grant SARs under this Plan only while the Company is not Publicly Traded.

     5. Authorization; Adjustment.

          (a) Number of SARs Authorized. Subject to adjustment as described below, the maximum
aggregate number of shares of Common Stock with respect to which SARs may be granted pursuant to
this Plan shall be 1,000,000. The shares of Common Stock subject to any SAR under this Plan that
terminates, expires, or is canceled, forfeited, exchanged, or surrendered, in each case without
having been exercised or deemed exercised, shall again be available for purposes of this Plan.

          (b) Adjustments. If the Company subdivides its outstanding shares of Common Stock
into a greater number of shares of Common Stock (by stock dividend, stock split, reclassification,
or otherwise) or combines its outstanding shares of Common Stock into a smaller number of shares of
Common Stock (by reverse stock split, reclassification, or otherwise) or if the Committee
determines in its sole discretion that any stock dividend, extraordinary cash dividend,
reclassification, recapitalization, reorganization, split-up, spin-off, combination, exchange of
shares, warrants or rights offering to purchase Common Stock, or other corporate event (including
mergers, consolidations, binding share exchanges, initial public offerings or Corporate
Transactions) affects the Common Stock so that an adjustment is required to preserve the benefits
or potential benefits intended to be made available under this Plan without enlargement or
dilution, then the Committee, in its sole discretion and in such manner as the Committee may deem
equitable and appropriate, may make such adjustments to any or all of (i) the number and kind of
shares of stock with respect to which SARS may thereafter be granted pursuant to this Plan, (ii)
the number of outstanding SARs and/or kind of shares of stock subject to outstanding SARs, (iii)
the Base Value of any outstanding SARs and (iv) the terms of this Plan relating to the valuation of
a SAR; provided, however, that any fractional shares or SARs

7

 

resulting from such adjustment shall be eliminated. The Committee may make any such
adjustment for all Grantees and all SARs or the Committee, in its discretion, may make such
adjustments only for such Grantees or such SARs as it deems appropriate. Adjustments determined by
the Committee, if any, shall be final, binding, and conclusive.

     6. Valuation. Solely for purposes of this Plan, if the Company is not Publicly Traded
the Per Share Value shall be determined as follows:

          (a) Value Determined on Each Valuation Date. The Net Company Value and the Per Share
Value shall be determined as of the last day of each fiscal year of the Company, commencing with
the fiscal year ending December 31, 2006, and on such other dates as the Valuation Committee may
from time to time deem appropriate (each, a “Valuation Date”).

               (i) “Net Company Value” means, subject to the last sentence of this clause (i), the
amount that a good faith purchaser would pay a good faith seller in an arm’s length transaction to
purchase all of the common equity of the Company, taking into account all of the liabilities and
obligations of the Company (including contingent liabilities and obligations with respect to
preferred stocks and SAR liability under this Plan). The Company’s liabilities with respect to
indebtedness and preferred stock will be valued for this purpose at their respective face, accreted
or liquidation values, as applicable, without discount. The Net Company Value will be determined
by the Valuation Committee in its sole discretion, taking into account the most recent annual
financial results of the Company, relevant applicable valuation parameters for comparable companies
in recent transactions and/or other generally accepted valuation methodologies selected by the
Valuation Committee in its sole discretion from time to time. For purposes of this Plan, Net
Company Value shall not exceed, in any circumstance, the lesser of (A) an amount that would imply a
ratio of Enterprise Value to trailing twelve-month Operating Cash Flow in excess of 9:1, and (B) an
amount that would imply a ratio of Enterprise Value to trailing twelve-month earnings before
interest, taxes, depreciation and amortization (EBITDA) of the Company in excess of the ratio of
Enterprise Value (for purpose of this calculation, with all references to “the Company” in such
definition and its subordinate definitions being replaced with references to “LGI”) to trailing
twelve-month earnings before interest, taxes, depreciation and amortization (EBITDA) of LGI.

               (ii) The Per Share Value as of any Valuation Date means the quotient of the Net Company Value
as of the applicable Valuation Date, divided by the aggregate number of issued and outstanding
shares (on a fully diluted basis assuming the exercise, exchange or conversion of all outstanding
equity securities that would be “in the money” based on the Net Company Value) of the Company’s
Common Stock as of the applicable Valuation Date.

               (iii) For purposes of determining the number of fully diluted shares, outstanding SARs that
are “in the money” will be treated as options exercisable at the applicable Base Value for the
number of shares of Common Stock subject to such “in the money” SARs. In determining the SAR Value
of a SAR that is exercised or deemed exercised after the applicable Valuation Date, the Committee
shall in all events have the discretion to make such adjustments to the Per Share Value as the
Committee deems appropriate to take into account changes or events occurring after such Valuation
Date that the Committee believes would affect the

8

 

determination of Net Company Value as of such date of exercise or deemed exercise and/or to reflect
any adjustment to the SARs made pursuant to Section 5(b).

               (iv) The Net Company Value and Per Share Value approved by the Valuation Committee shall be
set forth in a written report (the “Valuation Report”), a copy of which shall be delivered
to the holders of outstanding SARs within 120 days after the relevant Valuation Date.

          (b) Determination Conclusive. The determination of Net Company Value and Per Share
Value, as determined by the Valuation Committee, shall be final, binding and conclusive and shall
remain in effect until such time as the Valuation Committee adopts a subsequent determination of
Net Company Value or Per Share Value in accordance with this Section.

     7. Vesting/Cancellation.

          (a) General. Except as otherwise provided in this Section 7, a Grantee’s interest in
SARs granted under this Plan is nonvested and forfeitable at all times.

          (b) Vesting Prior to Termination of Employment. Unless otherwise provided in the
applicable Grant Agreement and subject to the following provisions of this Section 7, SARs granted
to a Grantee shall vest in semi-annual installments of 12.50% of the original number of shares
subject to such SAR on the same date of the month as the Vesting Commencement Date in each sixth
calendar month following the Vesting Commencement Date until vested in full on the fourth
anniversary of the Vesting Commencement Date. If with respect to any month there is no date
corresponding to the Vesting Commencement Date, then the applicable installment will vest on the
last day of such calendar month. By way of example, if the Vesting Commencement Date for a SAR is
December 31, 2005, then 12.50% of the original number of shares subject to such SAR shall vest on
each June 30 and December 31, commencing June 30, 2006. If the vesting formula results in a
fractional share, the vested increment shall be rounded down to the next whole share. The Grantee
must be employed by the Company or a Participating Subsidiary on the applicable semi-annual vesting
date in order to receive vesting credit for the preceding six-month period.

          (c) Termination of Employment. If a Grantee experiences a Termination of Employment
for any reason other than the Grantee’s death, then unless otherwise determined by the Committee or
provided in the Grant Agreement, vesting of any SARs held by such Grantee on the date of
Termination of Employment will cease. Unless the Committee otherwise determines or the Grant
Agreement otherwise provides, a change of a Grantee’s employment from the Company to a
Participating Subsidiary or from a Participating Subsidiary to the Company or another Participating
Subsidiary will not be considered a Termination of Employment as defined above if such change of
employment is made at the request or with the express consent of the Company. Unless the Committee
otherwise determines, however, any such change of employment that is not made at the request or
with the express consent of the Company will be considered as a Termination of Employment as
defined above. The Committee, in its discretion, may determine whether any given leave of absence
constitutes a Termination of Employment.

9

 

          (d) Acceleration of Vesting. The Committee may at any time in its discretion
accelerate the time or times at which SARs may vest. The Committee may exercise such discretion on
a Grantee by Grantee basis and the results need not be identical.

          (e) Death. If Termination of Employment occurs as a result of a Grantee’s death, then
unless otherwise provided in the Grant Agreement, any SARs held by such Grantee on the date of
Termination of Employment will vest in full as of the date of such Termination of Employment.

          (f) Effect of Change in Control or Corporate Transaction Upon Vesting. In the event
of a Change in Control or Corporate Transaction, the LGI Board (or, if immediately prior to the
occurrence of such Corporate Transaction LGI does not Control the Company, the Board) will
determine, in its sole discretion, whether the Change in Control or Corporate Transaction will
result in accelerated vesting in whole or in part of any then outstanding SARs.

          (g) Cancellation.

               (i) In the event of a Termination of Employment for any reason other than death, unless
otherwise determined by the Committee or provided in the applicable Grant Agreement, any unvested
SARs held by the Grantee on the date of Termination of Employment will thereupon be canceled, such
Grantee will have no further right or interest under this Plan with respect to such canceled SARs,
and the Company and its Subsidiaries will have no further obligation with respect thereto.

               (ii) In the event of a Termination of Employment for Cause, all SARs held by such Grantee,
whether vested or unvested, will be immediately canceled, such Grantee will have no further right
or interest under this Plan with respect to such canceled SARs, and the Company and its
Subsidiaries will have no further obligation with respect thereto.

               (iii) In the event of a Termination of Employment for any reason other than death within six
months after the Grant Date for any SARs, all SARs held by such Grantee that were granted on such
Grant Date, whether vested or unvested, will be immediately canceled, such Grantee will have no
further right or interest under this Plan with respect to such canceled SARs, and the Company and
its Subsidiaries will have no further obligation with respect thereto.

     8. Exercise and Payment of SARs.

          (a) Exercise. Except as otherwise provided in this Section 8, and subject to any
contrary provision of the applicable Grant Agreement, a Grantee’s vested SARs may be exercised or
will be deemed exercised for their SAR Value as follows:

               (i) Prior to Termination of Employment, a Grantee may elect to exercise all or a portion of
his vested SARs by delivering a written notice to the Company in such form as shall be reasonably
acceptable to the Committee, containing such representations and warranties as the Committee may
require and designating the number of SARs to be exercised, together with any other documentation
that the Committee reasonably may require. For so long as the Company is not Publicly Traded, such
exercise may be made only during the

10

 

Window Period. The date the applicable SARs are exercised will be the date the Company
receives such written notice of exercise and other required documentation.

      
         (ii) Upon Termination of Employment for any reason while the Company is not Publicly Traded,
such Grantee will be deemed to have elected to exercise all of his vested SARs held on the date of
such Termination of Employment, other than SARs to be canceled pursuant to Section 7. If such
Termination of Employment occurs in the first six months of the calendar year, the SAR Value will
be determined utilizing the Per Share Value as of the Valuation Date coincident with or immediately
preceding the date of such Termination of Employment. If such Termination of Employment occurs in
the last six months of the calendar year, the SAR Value will be determined utilizing the Per Share
Value as of the Valuation Date coincident with or immediately following the date of such
Termination of Employment.

       
        (iii) Upon Termination of Employment for any reason at a time when the Company is Publicly
Traded, the vested SARs held by such Grantee on the date of such Termination of Employment, other
than SARs to be canceled pursuant to Section 7, shall be exercisable for the applicable of the
following periods:

       
             (x) If Termination of Employment is a result of death, one year following such death;

       
             (y) If Termination of Employment is for any other reason, 90 days following such Termination
of Employment.

        
       (iv) In the event of a Corporate Transaction within the meaning of clause (i) of the
definition of such term or within the meaning of clause (ii) of such term if the sale or conveyance
is to LGI or an Affiliate of LGI, the then outstanding SARs may be assumed by, or replaced with
substantially equivalent stock appreciation rights or other equivalent rights by, the Purchaser,
LGI or such Affiliate of LGI, as applicable (a “SAR Exchange”), with such adjustments as
the Committee, in its sole discretion, deems appropriate, taking into account, to the extent
applicable, the kind and amount of cash, securities or other property into or for which the Common
Stock may be changed, converted or exchanged in connection with such Corporate Transaction. In the
event that the applicable Person does not undertake, or enter into a binding agreement to
undertake, a SAR Exchange or in the event of any other Corporate Transaction, immediately prior to
the effective date of the Corporate Transaction, each Grantee will be deemed to have elected to
exercise all vested SARs then held by him in full. For purposes of determining the SAR Value of
the SARs so deemed exercised, the Valuation Committee shall make such adjustments to the Per Share
Value reflected in the most recent Valuation Report preceding such Corporate Transaction as it
deems appropriate to take into account the value implied by the consideration to be paid to the
holders of Common Stock in connection with such Corporate Transaction (or, in the case of a
Corporate Transaction within the meaning of clause (ii) of the definition of such term, that would
be paid if the Company were dissolved following such Corporate Transaction).

       
        (v) In the event of a Change in Control other than in connection with a Corporate Transaction,
the LGI Board (or, if immediately prior to the occurrence of such Change in Control LGI does not
Control the Company, the Board) will determine, in its sole discretion,

11

 

whether the then outstanding and vested SARs will be deemed exercised in full in connection
with such Change in Control.

               (vi) Notwithstanding the foregoing provisions of this Section 8(a), the Committee, in its sole
discretion, (x) may suspend all exercises of SARs at any time and for any period by providing at
least five days’ notice to Grantees holding outstanding SARs or (y) may allow vested SARs to be
exercised in whole or in part by any or all Grantees at any time without regard to a Window Period.

               (vii) On the SAR Expiration Date for any vested SARs, the Grantee will be deemed to have
elected to exercise all of such vested SARs for the SAR Value determined as of the Valuation Date
immediately preceding such SAR Expiration Date.

          (b) Time of Payment. Subject to Section 9 and to the withholding referred to in
Section 10, the Company shall make payment of the SAR Value of an exercised SAR on or before the
twentieth Business Day following the later of:

               (i) the date the applicable SAR is exercised or the date the Grantee is deemed to have
exercised such SAR; or

               (ii) if applicable, the last day of the calendar month in which the Valuation Report setting
forth the Per Share Value to be used in determining the SAR Value with respect to such exercised
SAR is delivered or made available to Grantees.

          (c) Form of Payment. At the discretion of the Committee, payment of the SAR Value of
exercised SARs may be made in one or any combination of the following forms:

               (i) cash; or

               (ii) if the Company is then Publicly Traded, whole shares of Common Stock of the Company.

               For purposes of determining the number of shares of Common Stock to be delivered under this
Section, such shares will be deemed to have the same Per Share Value used in determining the SAR
Value of such SARs and cash will be paid in lieu of any fractional share.

          (d) Death, Incapacity. Payment of the SAR Value of a deceased Grantee’s exercised or
deemed exercised SARs will be made to the Grantee’s Beneficiary and such payment will be made only
after the receipt by the Company of documentation satisfactory to the Company (e.g., death
certificate) evidencing such death and the legal right of the Beneficiary (e.g. actual possession,
posesión efectiva). If the Committee determines that any Person to whom any payment is to be made
under this Plan is unable to care for his or her affairs because of illness or accident, or is a
minor, any payment due will be paid to the duly appointed guardian or other legal representative of
such Person after the receipt by the Company of documentation satisfactory to the Company
evidencing such legal status.

     9. Deferral of Payment. The SAR Value of each exercised or deemed exercised SAR shall
be payable as set forth in this Plan; provided, however, that in no event shall the

12

 

Company be obligated to make payment thereunder if and for so long as the making of such
payment (alone or together with other such payments) would cause the Company to be in breach,
violation or default under any loan agreement, purchase agreement, or the like or if such payment
would adversely impact the Company’s liquidity needs, as determined by the Committee. In such
case, the Committee may defer the Company’s payment obligation under such Grant Agreement
accordingly, with such deferred payment to be credited with such interest or earnings equivalent,
if any, as the Committee may determine. In the event that the Company defers payment of any
exercised SAR, the Committee shall notify the Grantee in writing of the Company’s intended payment
schedule as soon as reasonably practicable following the exercise date. The Company shall make
payment under this paragraph for each duly exercised SAR whether or not the Grantee remains an
Eligible Person following the exercise date.

     10. Withholding. All SARs under this Plan shall be subject to any applicable
withholding requirements according to the laws of the Republic of Chile, including taxes provided
for in the Tax Law, social securities and health contributions. The Company or its Participating
Subsidiary, if applicable, shall deduct and withhold such amounts from all payments to be made upon
the exercise or deemed exercise of SARs granted hereunder or from the Grantee’s wages or other
compensation and, to the extent that the Company or its Participating Subsidiary, as applicable, is
not able to do so, may require that the Grantee or other Person receiving payment or exercising
SARs pay any such amounts to the Company or its Participating Subsidiary that the Company or its
Participating Subsidiary is required to withhold.

     11. Nontransferability of SARs. Only the Grantee may exercise rights under a SAR
during the Grantee’s lifetime. A Grantee may not transfer, convey, assign, pledge, encumber or
otherwise alienate his SARs, or any right, title or interest therein, voluntarily or involuntarily,
except by designation of a Beneficiary under the applicable Grant Agreement or by will or by the
laws of descent and distribution. Any such successor must furnish proof satisfactory to the
Company of his or her right to receive the SAR under the Grantee’s will or under the applicable
laws of descent and distribution.

     12. Amendment and Termination of this Plan.

          (a) Amendment or Termination. The Board may amend or terminate this Plan at any time.
Notwithstanding the preceding sentence, this Plan shall terminate on July 1, 2010, and no SARs may
be granted after such date.

          (b) Termination and Amendment of Outstanding SARs. The Committee may amend the Grant
Agreement with respect to any outstanding SAR at any time; provided that such amendment is
consistent with the terms of this Plan. A termination or amendment of this Plan that occurs after
a SAR is granted shall not materially impair the rights of a Grantee unless the Grantee consents or
unless the Committee so determines. The termination of this Plan shall not impair the power and
authority of the Committee with respect to an outstanding SAR. Whether or not this Plan has
terminated, the Committee in its sole discretion may settle for cash or stock any or all
outstanding SARs at any time.

          (c) Governing Document. This Plan shall be the controlling document. No other
statements, representations, explanatory materials, or examples, oral or written, may amend

13

 

this Plan in any manner. This Plan shall be binding upon and inure to the benefit of the
Company, its successors, the Grantees and the Beneficiaries.

     13. Funding of this Plan. This Plan shall be unfunded. The Company shall not be
required to establish any special or separate fund or to make any other segregation of assets to
assure the payment of any amounts relating to any SARs under this Plan.

     14. Rights of Participants. Nothing in this Plan shall entitle any Eligible Person or
other Person to any claim or right to be granted a SAR under this Plan. Neither this Plan nor any
action taken hereunder shall be construed as giving any individual any rights to continued
employment or shall restrict or otherwise interfere in any way with the Company’s discretion with
respect to the termination of any individual’s employment with or services to the Company or its
Subsidiaries according to the applicable labor laws. Neither the existence of this Plan nor the
grant or holding of any SARs will result in any Eligible Person, Grantee or Beneficiary being
considered a stockholder of the Company or to have or possess any of the rights of a stockholder of
the Company or any right to acquire any Common Stock of the Company.

     15. Other Employee Benefits. The amount of compensation received or deemed to be
received by a Grantee as a result of exercise of a SAR shall not constitute earnings or
compensation with respect to which any other employee benefits are determined, including under any
pension, profit sharing, life insurance, salary continuation plan or severance plan.

     16. Miscellaneous.

          (a) Compliance with Law. This Plan, the exercise of SARs, and the obligations of the
Company under SARs shall be subject to all applicable laws and to approvals by any governmental or
regulatory agency as may be required. The Committee may revoke any SAR if it is contrary to law or
modify a SAR to bring it into compliance with any applicable government regulation. The Committee
also may adopt rules regarding the withholding of taxes and other amounts on payments to Grantees.

          (b) Governing Law. The validity, construction, interpretation, and effect of this
Plan and Grant Agreements entered into pursuant to this Plan shall be governed and construed by and
determined in accordance with the laws of Chile.

          (c) Headings. Section headings are for reference only. In the event of a conflict
between a title and the content of a Section, the content of the Section shall control.

14

 

          (d) Interpretation. Terms used with initial capital letters will have the meanings
specified, applicable to both singular and plural forms, for all purposes of this Plan. All
pronouns (and any variation) will be deemed to refer to the masculine, feminine or neuter, as the
identity of the Person may require. The singular or plural includes the other, as the context
requires or permits. The word include (or any variations) is used in an illustrative sense rather
than a limiting sense. The word day means a calendar day, unless otherwise indicated. References
to laws or regulations are to them as they may be amended from time to time. All calculations of
amounts payable and all amounts paid pursuant to the Plan and the applicable Grant Agreement shall
be in Chilean pesos.

***END OF PLAN***

15

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