As filed with the Securities and Exchange Commission on December 29, 2017

REGISTRATION NO. 333-221608

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

POST-EFFECTIVE AMENDMENT NO. 1

TO

FORM S-1

REGISTRATION STATEMENT

UNDER THE SECURITIES ACT OF 1933

 

 

LIBERTY LATIN AMERICA LTD.

(Exact name of Registrant as specified in its charter)

 

Bermuda    4841    98-1386359
(State or other jurisdiction
of incorporation or organization)
   (Primary Standard Industrial
Classification code number)
   (I.R.S. Employer
Identification No.)

Clarendon House,

2 Church Street,

Hamilton HM 11, Bermuda

(441) 295-5950

(Address, including zip code, and telephone number, including area code, of Registrant’s

principal executive offices)

 

 

Bryan H. Hall

President

Liberty Latin America Ltd.

c/o Liberty Global plc

Griffin House

161 Hammersmith Road

London W6 8BS

United Kingdom

+44.308.483.6449 or 303.220.6600

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

 

With copies to:


Robert W. Murray Jr.

Renee L. Wilm

Beverly B. Reyes

Baker Botts L.L.P.

30 Rockefeller Plaza

New York, New York 10112

(212) 408-2500

 

George Casey

Robert Katz

Harald Halbhuber

Shearman & Sterling LLP

599 Lexington Avenue

New York, New York 10022

(212) 848-4000

 

Jeremy Kutner

Shearman & Sterling (London) LLP

9 Appold Street

London, EC2A 2AP

United Kingdom

+44.20.7655.5000

Approximate date of commencement of proposed sale to the public:   As soon as practicable after all conditions to the transactions registered hereby have been satisfied or waived, as applicable.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier registration statement for the same offering. ☒ Registration Number: 333-221608

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

 (Do not check if a smaller reporting company)

  

Smaller reporting company

 

    

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. 

 

2


EXPLANATORY NOTE

This Post-Effective Amendment No. 1 to Form S-1 amends the Registration Statement on Form S-1 of Liberty Latin America Ltd. (the “Registrant”) (Registration No. 333-221608), as amended prior to the date hereto (the “Registration Statement”), which was declared effective by the Securities and Exchange Commission on December 12, 2017.

At 5:00 p.m. New York City time, today (the “Distribution Date”) (i) Liberty Global plc (“Liberty Global”), the current parent company of the Registrant, will distribute to the holders of its LiLAC ordinary shares all of the Registrant’s common shares and (ii) immediately following the distribution, the LiLAC ordinary shares will be redesignated as deferred shares (with virtually no economic rights) and those deferred shares will be transferred for no consideration to a third-party designee, in each case, in accordance with the Liberty Global articles of association and applicable law (such transactions collectively, the “Split-Off”). Pursuant to the Split-Off, Liberty Global will distribute to holders of its LiLAC ordinary shares, as a dividend, (i) one Class A common share of the Registrant for each Class A LiLAC ordinary share, (ii) one Class B common share of the Registrant for each Class B LiLAC ordinary share and (iii) one Class C common share of the Registrant for each Class C LiLAC ordinary share, in each case, held by such holder as of the Distribution Date. As a result of the Split-Off, the Registrant will be separated from Liberty Global and become a separate publicly traded company.

This Post-Effective Amendment No. 1 is being filed for the purposes of: (i) replacing Exhibit 2.1: Form of Reorganization Agreement by and between Liberty Global and the Registrant, previously filed with the Registration Statement, with a final, executed version of Exhibit 2.1; (ii) replacing Exhibit 8.1: Form of Opinion of Shearman & Sterling LLP regarding certain tax matters, previously filed with the Registration Statement, with a final, executed version of Exhibit 8.1; (iii) filing Exhibit 10.6: Form of Facilities Sharing Agreement between Liberty Global, Inc. and LiLAC Communications Inc.; (iv) filing Exhibit 10.7: Form of Sublease between Liberty Global, Inc. and LiLAC Communications Inc.; and (v) updating Item 16 of Part II of the Registration Statement. The Registration Statement is hereby amended, as appropriate, to reflect the replacement or filing, as applicable, of such exhibits.

 

Item 16. Exhibits and Financial Statement Schedules.

(a) Exhibits. The following is a complete list of Exhibits filed as part of this registration statement.

 

Exhibit

      Number      

  

Exhibit Description

    2.1    Reorganization Agreement, dated as of December 29, 2017, by and between Liberty Global plc and the Registrant.
    3.1   

Memorandum of Association of the Registrant.*

    3.2   

Form of Bye-laws of the Registrant to be in effect at the time of the Split-Off.*

    3.3   

Form of Memorandum of Increase of Share Capital of the Registrant to be in effect at the time of the Split-Off.*

    4.1   

Specimen Certificate for shares of Class A common shares, par value $.01 per share, of the Registrant.*

    4.2   

Specimen Certificate for shares of Class B common shares, par value $.01 per share, of the Registrant.*

    4.3   

Specimen Certificate for shares of Class C common shares, par value $.01 per share, of the Registrant.*

 

3


Exhibit
      Number      

  

Exhibit Description

      4.4    Indenture dated August  5, 2015, among Sable International Finance Limited as Issuer, each of the Guarantors a party thereto, Deutsche Bank Trust Company Americas as Trustee, Principal Paying Agent, Registrar and Transfer Agent and Deutsche Bank Luxembourg, S.A. as Luxembourg Paying Agent and (Regulation S) Transfer Agent (incorporated by reference to Exhibit 4.3 to Liberty Global’s Current Report on Form 8-K filed May 20, 2016 (File No. 001-35961) (the May 2016 8-K )).
      4.5    First Supplemental Indenture dated November  23, 2015 among Sable International Finance Limited as Issuer, each of the Guarantors a party thereto, and Deutsche Bank Trust Company Americas as Trustee, Principal Paying Agent, Registrar and Transfer Agent (incorporated by reference to Exhibit 4.4 to the May 2016 8-K).
      4.6    Indenture dated January  24, 2014, between VTR Finance B.V., The Bank of New York Mellon, London Branch, as Trustee and Security Agent, and The Bank of New York Mellon as Paying Agent, Registrar and Transfer Agent (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed January 24, 2014 (File No. 001-35961)).
      4.7    Indenture dated August  16, 2017, among C&W Senior Financing Designated Activity Company as Issuer, The Bank of New York Mellon, London Branch, as Trustee, Principal Paying Agent and Security Trustee and The Bank of New York Mellon as Paying Agent, Transfer Agent and Registrar in New York, relating to $700.0 million aggregate principal amount of 6.875% senior notes due 2027 (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed August 16, 2017 (File No. 001-35961)).
      5.1    Opinion of Conyers Dill & Pearman Limited as to the legality of the securities being registered.*
      8.1    Opinion of Shearman & Sterling LLP regarding certain tax matters.
    10.1    Form of Liberty Latin America 2018 Incentive Plan.*
    10.2    Form of Liberty Latin America 2018 Nonemployee Director Incentive Plan.*
    10.3    Form of Liberty Latin America Transitional Share Conversion Plan.*
    10.4    Form of Tax Sharing Agreement between the Registrant and Liberty Global plc.*
    10.5    Form of Services Agreement by and between the Registrant and Liberty Global B.V.*
    10.6    Form of Facilities Sharing Agreement between Liberty Global, Inc. and LiLAC Communications Inc.
    10.7    Form of Sublease between Liberty Global, Inc. and LiLAC Communications Inc.
    10.8    Employment Agreement, dated as of November 1, 2017 by and among the Registrant, LiLAC Communications Inc. and Balan Nair.*
    10.9    Form of Indemnification Agreement by and between the Registrant and its executive officers/directors.*
    10.10    Credit Agreement dated May 16, 2016, among LGE Coral Holdco Limited, Sable International Finance Limited, Coral-US Co-Borrower LLC, The Bank of Nova Scotia as Administrative Agent, L/C Issuer and Swing Line Lender and First Caribbean International Bank (Bahamas) Limited, BNP Paribas Fortis SA/NV and Royal Bank of Canada as Alternative L/C Issuers (incorporated by reference to Exhibit 4.1 to the May 2016 8-K).

 

4


Exhibit

      Number      

  

Exhibit Description

    10.11    Joinder Agreement dated October  7, 2016, among Sable International Finance Limited and Coral-US Co-Borrower LLC as Borrowers, the other Guarantors party thereto, The Bank of Nova Scotia as Administrative Agent and Security Trustee, and the financial institutions party thereto as Revolving Credit Lenders (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed October 13, 2016 (File No. 001-35961)).
    10.12    Joinder Agreement dated November 18, 2016, among Sable International Finance Limited and Coral US Co-Borrower LLC as Borrowers, the other Guarantors party thereto, The Bank of Nova Scotia, as Administrative Agent and Security Trustee, and the financial institutions party thereto as Additional Term B-1B Facility Lenders (as defined therein) under the Coral Credit Agreement (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed November 23, 2016 (File No. 001-35961)).
    10.13    Amended and Restated First Lien Credit Agreement dated as of July  7, 2014, among Liberty Puerto Rico, the Guarantors party thereto from time to time, The Bank of Nova Scotia, as Administrative Agent, each lender from time to time party thereto and Scotiabank de Puerto Rico as L/C Issuer and Swing Line Lender (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed July 2, 2015 (File No. 001-35961) (the July 2015 8-K )).
    10.14    Amended and Restated Second Lien Credit Agreement dated as of July  7, 2014, among Liberty Puerto Rico, the Guarantors party thereto from time to time, The Bank of Nova Scotia as Administrative Agent, and each lender from time to time party thereto (incorporated by reference to Exhibit 4.2 to the July 2015 8-K).
    10.15    Additional Term B-1 Facility Joinder Agreement dated as of June  1, 2015, among Liberty Puerto Rico, The Bank of Nova Scotia as Administrative Agent and Collateral Agent and the Additional Term B-1 Facility Lenders party thereto (incorporated by reference to Exhibit 4.3 to the July 2015 8-K).
    10.16    Additional Term B-2 Facility Joinder Agreement dated as of June  1, 2015, among Liberty Puerto Rico, The Bank of Nova Scotia as Administrative Agent and Collateral Agent and the Additional Term B-2 Facility Lenders party thereto (incorporated by reference to Exhibit 4.4 to the July 2015 8-K).
    10.17    Additional Facility Joinder Agreement dated May  23, 2017 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Novia Scotia as Administrative Agent and Security Trustee (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed June 2, 2017 (File No. 001-35961) (the June 2017 8-K )).
    10.18    Refinancing Amendment Agreement dated as of May  23, 2017 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Nova Scotia as Security Trustee, Administrative Agent, Swing Line Lender and L/C Issuer and the Revolving Consenting Lenders (as defined therein) (incorporated by reference to Exhibit 4.2 to the June 2017 8-K).
    10.19    Amendment and Restatement Agreement dated as of May  23, 2017 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Nova Scotia as Security Trustee, Administrative Agent, Swing Line Lender and L/C Issuer (incorporated by reference to Exhibit 4.3 to the June 2017 8-K).

 

5


Exhibit

      Number      

  

Exhibit Description

    10.20    Additional Facility Joinder Agreement dated July  24, 2017 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Nova Scotia (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed July 28, 2017 (File No. 001-35961)).
    21.1    List of Subsidiaries.*
    23.1    Consent of KPMG LLP (U.S.).*
    23.2    Consent of KPMG Auditores Consultores Ltda.*
    23.3    Consent of KPMG LLP (U.K.).*
    23.4    Consent of Conyers Dill & Pearman Limited (included in Exhibit 5.1).*
    23.5    Consent of Shearman & Sterling LLP (included in Exhibit 8.1).
    24.1    Power of Attorney.*
    99.1    Form of Exchange Form.*

 

 

* Previously filed.

(b) Financial Statement Schedules.

 

  (b)(1) Financial Statements

Previously included in pre-effective Amendment No. 1 to the Registration Statement:

 

       Page No.    

LatAm Group September 30, 2017 Combined Financial Statements:

  

Condensed Combined Balance Sheets as of September 30, 2017 and December 31, 2016 (unaudited)

     F-2  

Condensed Combined Statements of Operations for the three and nine months ended September 30, 2017 and 2016 (unaudited)

     F-3  

Condensed Combined Statements of Comprehensive Loss for the three and nine months ended September 30, 2017 and 2016 (unaudited)

     F-4  

Condensed Combined Statement of Equity for the nine months ended September 30, 2017 (unaudited)

     F-5  

Condensed Combined Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (unaudited)

     F-6  

Notes to Condensed Combined Financial Statements (unaudited)

     F-7  

LatAm Group December 31, 2016 Combined Financial Statements

  

Report of Independent Registered Public Accounting Firm

     F-42  

Combined Balance Sheets as of December 31, 2016 and 2015

     F-44  

Combined Statements of Operations for the Years ended December 31, 2016, 2015 and 2014

     F-45  

Combined Statements of Comprehensive Earnings (Loss) for the Years ended December 31, 2016, 2015 and 2014

     F-46  

Combined Statements of Equity for the Years ended December 31, 2016, 2015 and 2014

     F-47  

Combined Statements of Cash Flows for the Years ended December 31, 2016, 2015 and 2014

     F-50  

Notes to Combined Financial Statements

     F-51  

LatAm Group Unaudited Condensed Pro Forma Combined Statement of Operations for the Year ended December 31, 2016

     F-110  

(b)(2) Financial Statement Schedules

  

(i) Schedule II—Valuation and Qualifying Accounts

     II-10  

 

6


(ii) Separate financial statements for Cable & Wireless Communications Limited ( C&W ):

  
       Page No.    

C&W March 31, 2016 Consolidated Financial Statements:

  

Independent Auditors Report

     F-115  

Consolidated Statements of Financial Position as of March 31, 2016 and 2015

     F-116  

Consolidated Statements of Operations for the Years ended March 31, 2016 and 2015

     F-117  

Consolidated Statements of Comprehensive Income for the Years ended March 31, 2016 and 2015

     F-118  

Consolidated Statements of Changes in Owners’ Equity for the Years ended March 31, 2016 and 2015

     F-119  

Consolidated Statements of Cash Flows for the Years ended March 31, 2016 and 2015

     F-120  

Notes to Consolidated Financial Statements

     F-122  

Management’s Discussion and Analysis of Results of Operations of C&W

     F-184  

 

7


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Denver, state of Colorado, on December 29, 2017.

 

LIBERTY LATIN AMERICA LTD.

By:  

/s/ Bryan H. Hall

Name:   Bryan H. Hall
Title:   President


Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

 

Signature

  

Title

  

Date

        /s/ Bryan H. Hall         

   President (Principal Executive Officer) and Director    December 29, 2017
Bryan H. Hall      

*

   Chief Financial Officer (Principal Financial Officer and
Principal Accounting Officer) and Director
   *
Jason R. Waldron      

/s/ John M. Winter

   Director    December 29, 2017
John M. Winter      

 

*By:

  

/s/ John M. Winter

       December 29, 2017
   John M. Winter       
   Attorney-in-Fact       

Exhibit 2.1

EXECUTION VERSION

REORGANIZATION AGREEMENT

between

LIBERTY GLOBAL PLC

and

LIBERTY LATIN AMERICA LTD.

Dated as of December 29, 2017


TABLE OF CONTENTS

 

            Page  

ARTICLE I THE RESTRUCTURING

     2

1.1

     Restructuring      2

1.2

     Transfer of Splitco Assets and Splitco Businesses; Assumption of Splitco Liabilities      2

1.3

     Third Party Consents and Government Approvals      3

1.4

     Further Actions      3

1.5

     Restructuring Documents      3

1.6

     Qualification as Reorganization      3

ARTICLE II THE DISTRIBUTION

     4

2.1

     The Distribution      4

2.2

     Conditions to the Distribution      4

2.3

     Treatment of Outstanding Equity Awards      5

ARTICLE III REPRESENTATIONS AND WARRANTIES

     7

3.1

     Representations and Warranties of the Parties      7

3.2

     No Approvals or Notices Required; No Conflict with Instruments      8

3.3

     No Other Reliance      8

ARTICLE IV COVENANTS

     8

4.1

     Cross-Indemnities      8

4.2

     Further Assurances      12

4.3

     Specific Performance      12

4.4

     Access to Information      12

4.5

     Confidentiality      13

4.6

     Notices Regarding Transferred Assets      14

4.7

     Split-off Expenses      14

4.8

     Treatment of Payments      14

ARTICLE V CLOSING

     14

5.1

     Closing      14

5.2

     Conditions to Closing      14

5.3

     Deliveries at Closing      15

ARTICLE VI TERMINATION

     16

6.1

     Termination      16

6.2

     Effect of Termination      16

ARTICLE VII MISCELLANEOUS

     16

7.1

     Definitions      16

7.2

     No Third-Party Rights      21

7.3

     Notices      21

7.4

     Entire Agreement      22

7.5

     Binding Effect; Assignment      22

 

i


7.6

     Governing Law; Jurisdiction      22

7.7

     Waiver of Jury Trial      23

7.8

     Severability      23

7.9

     Amendments; Waivers      23

7.10

     No Strict Construction; Interpretation      23

7.11

     Conflicts with Tax Sharing Agreement      24

7.12

     Counterparts      24

EXHIBIT A – Form of Facilities Sharing Agreement

EXHIBIT B – Form of Sublease

EXHIBIT C – Form of Services Agreement

EXHIBIT D – Form of Tax Sharing Agreement

SCHEDULE 1.1 – Restructuring Plan

 

ii


REORGANIZATION AGREEMENT

This REORGANIZATION AGREEMENT (together with all Schedules and Exhibits hereto, this “ Agreement ”), dated as of December 29, 2017, is entered into by and between LIBERTY GLOBAL PLC , a public limited company organized under the laws of England and Wales (“ LGP ”), and Liberty Latin America Ltd. , an exempted Bermuda company limited by shares (“ Splitco ”). Certain capitalized terms used herein have the meanings ascribed thereto in Section 7.1.

RECITALS:

WHEREAS , Splitco is and prior to the Split-off (as defined below) will be a wholly-owned Subsidiary of LGP;

WHEREAS , in accordance with and pursuant to the LGP Articles, the businesses, assets and liabilities of LGP are currently divided into two tracking stock groups: the Liberty Global Group and the LiLAC Group (as defined below);

WHEREAS , the LGP Board has determined that it is appropriate and in the best interests of LGP and its shareholders to reorganize its business, assets and liabilities by means of the Split-off of Splitco, which would consist of all of the business, assets and liabilities attributed to LGP’s LiLAC Group, including: (i) LGE Coral Holdco Limited (“ LGE Coral ”) and its subsidiaries, which includes Cable & Wireless Communications Limited (“ CWC ”), (ii) VTR Finance B.V. (“ VTR Finance ”) and its subsidiaries, which includes VTR.com SpA, (“ VTR ”) (iii) Lila Chile Holding B.V. (“ Lila Chile ”), which is the parent entity of VTR Finance, and (iv) LiLAC Communications Inc. (“ LiLAC Communications ”) and its subsidiaries, which includes Liberty Cablevision of Puerto Rico LLC (a 60% owned subsidiary) (“ Liberty Puerto Rico ”) (collectively, the “ LiLAC Group ”), as well as the LiLAC Group’s corporate level cash and cash equivalents and indebtedness, in each case, at the Effective Time (as defined below);

WHEREAS , the Restructuring (as defined below) includes in part a series of internal distributions of the membership interests of LGI International Holdings LLC, a Delaware limited liability company that is classified as a disregarded entity for U.S. federal income tax purposes and directly owns all of the outstanding stock of LiLAC Communications, and each distribution is intended to qualify as a tax-free distribution of the stock of LiLAC Communications under Section 355 of the Internal Revenue Code of 1986, as amended (the “ Code ”) (such internal distributions, collectively, the “ PR Spin-off ”);

WHEREAS , the parties desire to effect the transactions contemplated by this Agreement, including the Restructuring and the distribution, by means of an interim dividend in specie (the “ Distribution ”), of all of the issued and outstanding common shares of Splitco to the holders of record on the Record Date (as defined below) of LGP’s LiLAC Class A Ordinary Shares, nominal value $0.01 per share (“ LILA ”), LGP’s LiLAC Class B Ordinary Shares, nominal value $0.01 per share (“ LILAB ”), and LGP’s LiLAC Class C Ordinary Shares, nominal value $0.01 per share (“ LILAK ” and together with LILA and LILAB, the “ LiLAC Ordinary Shares ”);

 

1


WHEREAS, the transactions contemplated by this Agreement, including the Restructuring and the Distribution, have been approved by the LGP Board and, to the extent applicable, the Splitco Board, and are motivated in whole or substantial part by certain substantial corporate business purposes of LGP and Splitco;

WHEREAS , the (i) transfer of the Splitco Assets by LGP to Splitco, together with the assumption by Splitco of the Splitco Liabilities (the “ Contribution ”), (ii) the Distribution and (iii) the redesignation of LiLAC Ordinary Shares as deferred shares, the transfer of such deferred shares for no consideration to a third party designee and the subsequent cancellation of the deferred shares, taken together, are intended to qualify as a tax-free reorganization and split-off transaction under Sections 368(a)(1)(D), 355 and related provisions of the Code (the “ Split-off ”) and (iv) the Split-off is motivated in whole or substantial part by certain substantial corporate business purposes of LGP and Splitco;

WHEREAS , this Agreement constitutes a “plan of reorganization” within the meaning of Section 368 of the Code and the Treasury Regulations promulgated thereunder; and

WHEREAS , the parties wish to set forth in this Agreement the terms on which, and the conditions subject to which, they intend to implement the measures referred to above and elsewhere herein.

NOW, THEREFORE , in consideration of the foregoing and the mutual representations, warranties, covenants and agreements contained herein, the parties to this Agreement hereby agree as follows:

ARTICLE I

THE RESTRUCTURING

1.1 Restructuring .

(a) The parties have taken or will take, and have caused or will cause their respective Subsidiaries to take, all actions that are necessary or appropriate to implement and accomplish the transactions contemplated by each of the steps set forth in the Restructuring Plan (collectively, the “ Restructuring ”); provided, that all of such steps that are stated to occur prior to the Distribution shall be completed by no later than the Effective Time.

(b) The Restructuring and the Distribution are intended to be part of the same plan of reorganization, even though there may be delays between the completion of certain of the transactions.

1.2 Transfer of Splitco Assets and Splitco Businesses; Assumption of Splitco Liabilities .

On the terms and subject to the conditions of this Agreement, and in furtherance of the Restructuring and the Split-off:

(a) LGP, by no later than immediately before the Effective Time, shall cause all of its (or its Subsidiaries’) rights, title and interest in and to all of the Splitco Assets and Splitco

 

2


Businesses to be contributed, distributed, assigned, transferred, conveyed and delivered, directly or indirectly, to Splitco, and Splitco agrees to accept or cause to be accepted all such rights, title and interest in and to all the Splitco Assets and Splitco Businesses. All Splitco Assets are being transferred on an “as is, where is” basis, without any warranty whatsoever on the part of LGP.

(b) LGP, by no later than immediately before the Effective Time, shall cause all of the Splitco Liabilities to be assigned, directly or indirectly, to Splitco, and Splitco agrees to accept, assume, perform, discharge and fulfill all of the Splitco Liabilities in accordance with their respective terms.

(c) Upon completion of the transactions contemplated by Sections 1.2(a) and (b) above: (i) Splitco will own, directly or indirectly, the Splitco Businesses and the Splitco Assets and be subject to the Splitco Liabilities; and (ii) LGP will continue to own, directly or indirectly, the LGP Retained Businesses and the LGP Retained Assets and continue to be subject to the LGP Retained Liabilities.

(d) If, following the Effective Time: (i) any property, right or asset forming part of the Splitco Businesses has not been transferred to Splitco or another Splitco Entity, LGP undertakes to transfer, or procure the transfer of, such property, right or asset to Splitco or another Splitco entity nominated by Splitco and reasonably acceptable to LGP as soon as practicable; or (ii) any property, right or asset forming part of the LGP Retained Businesses has been transferred to Splitco or another Splitco Entity, Splitco undertakes to transfer, or procure the transfer of, such property, right or asset to LGP or another LGP Entity nominated by LGP and reasonably acceptable to Splitco as soon as practicable.

1.3 Third Party Consents and Government Approvals . To the extent that either the Distribution or any step in the Restructuring Plan requires a consent of any third party or a Governmental Authorization, the parties will use commercially reasonable efforts to obtain each such consent and Governmental Authorization at or prior to the time such consent or Governmental Authorization is required in order to lawfully effect the Distribution and each step in the Restructuring Plan.

1.4 Further Actions . From and after the Effective Time, upon the reasonable request of a party hereto, each other party hereto will promptly take, or cause its Subsidiaries to promptly take, all commercially reasonable actions necessary or appropriate to fully accomplish the Restructuring and to give effect to the transactions provided for in this Agreement, including each step in the Restructuring Plan, in accordance with the purposes hereof.

1.5 Restructuring Documents . All documents and instruments used to effect the Restructuring and otherwise to comply with this Agreement shall be in form satisfactory to LGP, Splitco and any additional signatories hereto.

1.6 Qualification as Reorganization .

(a) For U.S. federal income tax purposes, LGP and Splitco intend that (1) the PR Spin-off qualifies as tax-free under Section 355 of the Code, and (2) the Split-off qualifies as a tax-free reorganization and split-off transaction under Sections 368(a)(1)(D) and 355 and related provisions of the Code.

 

3


(b) For non-U.S. federal income tax purposes, LGP and Splitco intend that the various steps in the Restructuring Plan will be accorded the tax treatment originally reported by LGP, Splitco or any of their Subsidiaries on the relevant tax return for the taxable year that includes the Distribution.

ARTICLE II

THE DISTRIBUTION

2.1 The Distribution .

(a) The LGP Board shall have the authority and right: (i) to declare or refrain from declaring the Distribution; (ii) to establish and change the date and time of the record date for the Distribution (the “ Record Date ”); (iii) to establish and change the date and time at which the Distribution shall be effective (the “ Effective Time ”); and (iv) prior to the Effective Time, to establish and change the procedures for effecting the Distribution; subject, in all cases, to the applicable provisions of English law and the LGP Articles.

(b) At the Effective Time, subject to the conditions to the Distribution set forth in Section 2.2, LGP shall cause to be distributed to the holders of record of LiLAC Ordinary Shares on the Record Date (such holders, the “ LiLAC Ordinary Shares Record Holders ”), all of the issued and outstanding shares of Splitco Common Shares on the basis of (i) one Class A Common Share, par value $0.01 per share, of Splitco (“ Splitco Class  A Common Shares ”) for each share of LILA held of record on the Record Date, (ii) one Class B Common Share, par value $0.01 per share, of Splitco (“ Splitco Class  B Common Shares ”) for each share of LILAB held of record on the Record Date, and (iii) one Class C Common Share, par value $0.01 per share, of Splitco (“ Splitco Class  C Common Shares ” and together with the Splitco Class A Common Shares and the Splitco Class B Common Shares, “ Splitco Common Shares ”) for each share of LILAK held of record on the Record Date.

(c) Immediately prior to the Effective Time, LGP and Splitco shall take such actions as are necessary and appropriate to cause the issued and then outstanding shares of Splitco Common Shares (all of which shall be owned by LGP), to be reclassified into: (i) a number of shares of Splitco Class A Common Shares equal to the number of shares of LILA outstanding as of the Record Date; (ii) a number of shares of Splitco Class B Common Shares equal to the number of shares of LILAB outstanding as of the Record Date; and (iii) a number of shares of Splitco Class C Common Shares equal to the number of shares of LILAK outstanding as of the Record Date.

(d) LGP will take such action, if any, as may be necessary or appropriate under applicable state and foreign securities and “blue sky” laws to permit the Distribution to be effected in compliance, in all material respects, with such laws.

2.2 Conditions to the Distribution . The Distribution is subject to the satisfaction of the following conditions:

(a) the LGP Board, or a committee thereof, shall have taken all necessary corporate action to establish the Record Date in order to effect the Distribution in accordance with the LGP Articles and bylaws and applicable law;

 

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(b) LGP shall have received the opinion of Shearman & Sterling LLP providing to the effect that, subject to the qualifications and limitations set forth in such opinion, the Split-off qualifies for shareholder non-recognition treatment under Section 355 of the Code and related provisions with the result that, for U.S. federal income tax purposes, no gain or loss should be recognized by, and no amount should be included in the income of, holders of LiLAC Ordinary Shares upon the receipt of shares of Splitco Common Shares in the Split-off, and such opinion shall not have been withdrawn, invalidated or modified in an adverse manner;

(c) (i) the effectiveness of the registration statement on Form S-1 with respect to the registration under the Securities Act of the Distribution of the Splitco Common Shares and (ii) the effectiveness of the registration of the Splitco Common Shares under Section 12(b) of the Securities Exchange Act of 1934, as amended;

(d) the Splitco Class A Common Shares and Splitco Class C Common Shares shall have been approved for listing on the NASDAQ Stock Market; and

(e) any other material regulatory or contractual approvals that a committee of the Board determines to obtain shall have been so obtained and be in full force and effect.

The foregoing conditions are for the sole benefit of LGP and shall not in any way limit LGP’s right to amend, modify or terminate this Agreement in accordance with Section 6.1. All of the foregoing conditions are non-waivable, except that the condition set forth in Section 2.2(e) may be waived by the LGP Board and any determination made by the LGP Board prior to the Distribution concerning the satisfaction or waiver of any condition set forth in this Section 2.2 shall be final and conclusive.

2.3 Treatment of Outstanding Equity Awards .

(a) Certain current and former employees, non-employee directors and consultants of LGP, the Qualifying Subsidiaries and their respective Subsidiaries have been granted options, share appreciation rights and restricted share units in respect of LiLAC Ordinary Shares pursuant to various share incentive plans of LGP administered by the LGP Board (collectively, “ Awards ”). LGP and Splitco shall use commercially reasonable efforts to take all actions necessary or appropriate so that Awards that are outstanding immediately prior to the Effective Time are adjusted as set forth in this Section 2.3 and in accordance with the terms of the Splitco Transitional Plan.

(b) Options . As of the Effective Time, and as determined by the LGP Board pursuant to its authority granted under the applicable share incentive plan of LGP, each LiLAC Option (whether unvested, partially vested or fully vested) outstanding at the Effective Time (each such LiLAC Option, an “ Outstanding LiLAC Option ”) will automatically be cancelled and replaced with an option to purchase the same number and class of Splitco Common Shares (a “ Splitco Option ”) as the number and class of shares subject to the Outstanding LiLAC Option.

 

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Except as described herein, all other terms of the Splitco Options (including the per-share exercise price and the vesting terms thereof) will, in all material respects, be the same as those of the corresponding Outstanding LiLAC Options; provided , that the terms and conditions of exercise of the Splitco Options shall in any event be determined in a manner consistent with Section 409A of the Code.

(c) Share Appreciation Rights . As of the Effective Time, and as determined by the LGP Board pursuant to its authority granted under the applicable share incentive plan of LGP, each LiLAC SAR (whether unvested, partially vested or fully vested) outstanding at the Effective Time (each such LiLAC SAR, an “ Outstanding LiLAC SAR ”) will automatically be cancelled and replaced with a share appreciation right with respect to the same number and class of Splitco Common Shares (a “ Splitco SAR ”) as the number and class of shares subject to the Outstanding LiLAC SAR.

Except as described herein, all other terms of the Splitco SARs (including the per-share base price and the vesting terms thereof) will, in all material respects, be the same as those of the corresponding Outstanding LiLAC SARs; provided , that the terms and conditions of exercise of the Splitco SARs shall in any event be determined in a manner consistent with Section 409A of the Code.

(d) Restricted Share Units and Performance Share Units . As of the Effective Time, and as determined by the LGP Board pursuant to its authority granted under the applicable share incentive plan of LGP, each restricted share unit with respect to shares of LiLAC Ordinary Shares (whether vested, partially vested or fully vested) (an “ Outstanding LiLAC RSU ”) will automatically be cancelled and replaced with a restricted share unit with respect to the same number and class of Splitco Common Shares (a “ Splitco RSU ”) as the number and class of shares subject to the Outstanding LiLAC RSU. Except as described herein, Splitco RSUs will otherwise be subject, in all material respects, to the same terms and conditions (including the vesting terms thereof) as those applicable to LiLAC RSUs immediately prior to the Effective Time. From the Effective Time, Splitco agrees to perform the obligations of LGP with respect to each restricted share unit with respect to LiLAC Ordinary Shares that is subject to performance conditions and that is outstanding at the Effective Time (an “ Outstanding LiLAC PSU ”), and as provided in the Splitco Transitional Plan, at the time that the level of performance achievement is determined for the Outstanding LiLAC PSUs, such Outstanding LiLAC PSUs will automatically be cancelled and replaced with Splitco RSUs with the same number and class of shares subject to the earned portion of the Outstanding LiLAC PSUs.

(e) From and after the Effective Time, Splitco Options, Splitco SARs and Splitco RSUs, regardless of by whom held, shall be settled by Splitco pursuant to the terms of the Splitco Transitional Plan. The obligation to deliver (i) shares of Splitco Common Shares upon the exercise of Splitco Options, (ii) cash or shares of Splitco Common Shares in settlement of Splitco SARs and (iii) shares of Splitco Common Shares upon vesting of Splitco RSUs shall be the sole obligation of Splitco, and LGP shall have no Liability in respect thereof.

(f) It is intended that the Splitco Transitional Plan shall effect the adjustments to be made to the Outstanding LiLAC Options, Outstanding LiLAC SARs, Outstanding LiLAC RSUs and Outstanding LiLAC PSUs granted pursuant to the share incentive plans of LGP and that the

 

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Splitco Transitional Plan shall govern the terms of any Splitco Option, Splitco SAR or Splitco RSU that is issued as part of the adjustment provisions of this Section 2.3.

(g) With respect to any equity awards issued as a result of such adjustments (collectively, “ Post Spin Awards ”) and any existing similar incentives in respect of LGP Ordinary Shares, in each case, pursuant to this Section 2.3, service after the Effective Time as an employee or non-employee director of, or consultant to, LGP, Splitco, any Qualifying Subsidiary or any of their respective Subsidiaries shall be treated as service to LGP and Splitco and their respective Subsidiaries for all purposes under such Post Spin Awards and any existing similar incentives in respect of LGP Ordinary Shares following the Effective Time.

(h) Neither the Effective Time nor any other transaction contemplated by the Restructuring Plan or this Agreement shall be considered a termination of employment for any employee of LGP, Splitco or any of their respective Subsidiaries for purposes of any Post Spin Award or any existing similar incentives in respect of LGP Ordinary Shares.

(i) Splitco agrees that, on and after the Effective Time, it shall use its reasonable efforts to cause to be effective under the Securities Act, on a continuous basis, a registration statement on Form S-8 with respect to shares of Splitco Common Shares issuable upon exercise of Splitco Options, settlement of Splitco SARs and vesting of Splitco RSUs.

(j) For the avoidance of doubt, nothing in this Section 2.3 shall limit or otherwise restrict the provisions set forth in Section 2.02(i) of the Tax Sharing Agreement, and in the event of a conflict, Section 2.02(i) of the Tax Sharing Agreement shall prevail.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

3.1 Representations and Warranties of the Parties . Each party hereto represents and warrants to the other as follows:

(a) Organization and Qualification . Such party is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or organization, has all requisite corporate power and authority to own, use, lease or operate its properties and assets, and to conduct the business heretofore conducted by it, and is duly qualified to do business and is in good standing in each jurisdiction in which the properties owned, used, leased or operated by it or the nature of the business conducted by it requires such qualification, except in such jurisdictions where the failure to be so qualified and in good standing would not have a material adverse effect on its business, financial condition or results of operations or its ability to perform its obligations under this Agreement.

(b) Authorization and Validity of Agreement . Such party has all requisite power and authority to execute, deliver and perform its obligations under this Agreement, the agreements and instruments to which it is to be a party required to effect the Restructuring (the “ Restructuring Agreements ”) and the agreements to be delivered by it at the Closing pursuant to Section 5.3 (the “ Other Agreements ”). The execution, delivery and performance by such party of this Agreement, the Restructuring Agreements and the Other Agreements and the consummation by it of the transactions contemplated hereby and thereby have been duly and

 

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validly authorized by the board of directors, managing members or analogous governing body of such party and, to the extent required by law, its shareholders or members, and no other corporate or other action on its part is necessary to authorize the execution and delivery by such party of this Agreement, the Restructuring Agreements and the Other Agreements, the performance by it of its obligations hereunder and thereunder and the consummation by it of the transactions contemplated hereby and thereby. This Agreement has been, and each of the Restructuring Agreements and each of the Other Agreements, when executed and delivered, will be, duly executed and delivered by such party and each is, or will be, a valid and binding obligation of such party, enforceable in accordance with its terms.

3.2 No Approvals or Notices Required; No Conflict with Instruments . The execution, delivery and performance by such party of this Agreement, the Restructuring Agreements and the Other Agreements, and the consummation of the transactions contemplated hereby and thereby, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, constitute a default under, or result in the creation of any lien, charge or encumbrance upon any of its assets pursuant to the terms of, the charter or bylaws (or similar formation or governance instruments) of such party, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it or any of its assets are bound, or any law, rule, regulation, judgment, order or decree of any court or governmental authority having jurisdiction over it or its properties.

3.3 No Other Reliance . In determining to enter into this Agreement, the Restructuring Agreements and the Other Agreements, and to consummate the transactions contemplated hereby and thereby, such party has not relied on any representation, warranty, promise or agreement other than those expressly contained herein or therein, and no other representation, warranty, promise or agreement has been made or will be implied. Except as otherwise expressly set forth herein or in the Restructuring Agreements or the Other Agreements, all Splitco Assets and Splitco Businesses are being transferred on an “as is, where is” basis, at the risk of the transferee, without any warranty whatsoever on the part of the transferor and from and after the Effective Time.

ARTICLE IV

COVENANTS

4.1 Cross-Indemnities .

(a) Splitco hereby covenants and agrees, on the terms and subject to the limitations set forth in this Article IV, from and after the Closing, to indemnify and hold harmless LGP, its Subsidiaries and their respective current and former directors, officers and employees, and each of the heirs, executors, trustees, administrators, successors and assigns of any of the foregoing (the “ LGP Indemnified Parties ”) from and against any Losses incurred by the LGP Indemnified Parties (in their capacities as such) to the extent arising out of or resulting from any of the following:

(i) the conduct of the Splitco Businesses (whether before or after the Closing);

 

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(ii) the Splitco Assets;

(iii) the Splitco Liabilities; or

(iv) any breach of, or failure to perform or comply with, any covenant, undertaking or obligation of Splitco or any of its Subsidiaries under this Agreement, any Restructuring Agreement or any Other Agreement.

(b) LGP hereby covenants and agrees, on the terms and subject to the limitations set forth in this Article IV, from and after the Closing, to indemnify and hold harmless Splitco, its Subsidiaries and their respective current and former directors, officers and employees, and each of the heirs, executors, trustees, administrators, successors and assigns of any of the foregoing (the “ Splitco Indemnified Parties ”) from and against any Losses incurred by the Splitco Indemnified Parties (in their capacities as such) to the extent arising out of or resulting from:

(i) the conduct of the LGP Retained Businesses (whether before or after the Closing);

(ii) the LGP Retained Assets;

(iii) the LGP Retained Liabilities; or

(iv) any breach of, or failure to perform or comply with, any covenant, undertaking or obligation of LGP or any of its Subsidiaries (other than the Splitco Entities) under this Agreement, any Restructuring Agreement or any Other Agreement.

(c) The indemnification provisions set forth in Sections 4.1(a) and (b) shall not apply to: (i) any Losses the responsibility for which is expressly covered by the Tax Sharing Agreement; (ii) any Losses incurred by any Splitco Entity pursuant to any contractual obligation (other than this Agreement, the Restructuring Agreements or the Other Agreements) existing on or after the Closing Date between (x) LGP or any of its Subsidiaries or Affiliates, on the one hand, and (y) Splitco or any of its Subsidiaries or Affiliates, on the other hand; and (iii) any Losses incurred by any LGP Entity pursuant to any contractual obligation (other than this Agreement, the Restructuring Agreements or the Other Agreements) existing on or after the Closing Date between (x) LGP or any of its Subsidiaries or Affiliates, on the one hand, and (y) Splitco or any of its Subsidiaries or Affiliates, on the other hand.

(d) (i) In connection with any indemnification provided for in this Section 4.1, the party seeking indemnification (the “ Indemnitee ”) will give the party from which indemnification is sought (the “ Indemnitor ”) prompt notice whenever it comes to the attention of the Indemnitee that the Indemnitee has suffered or incurred, or may suffer or incur, any Losses for which it is entitled to indemnification under this Section 4.1, and, if and when known, the facts constituting the basis for such claim and the projected amount of such Losses (which shall not be conclusive as to the amount of such Losses), in each case in reasonable detail. Without limiting the generality of the foregoing, in the case of any Action commenced by a third party for which indemnification is being sought (a “ Third-Party Claim ”), such notice will be given no later than ten business days following receipt by the Indemnitee of written notice of such Third-Party Claim. Failure by any Indemnitee to so notify the Indemnitor will not affect the rights of such

 

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Indemnitee hereunder except to the extent that such failure has a material prejudicial effect on the defenses or other rights available to the Indemnitor with respect to such Third Party Claim. The Indemnitee will deliver to the Indemnitor as promptly as practicable, and in any event within five business days after Indemnitee’s receipt, copies of all notices, court papers and other documents received by the Indemnitee relating to any Third-Party Claim.

(ii) After receipt of a notice pursuant to Section 4.1(d)(i) with respect to any Third-Party Claim, the Indemnitor will be entitled, if it so elects within thirty days of receipt of such notice (or such lesser period as may be required by court proceedings in the event of a litigated matter), to take control of the defense and investigation with respect to such Third-Party Claim and to employ and engage attorneys reasonably satisfactory to the Indemnitee to handle and defend such claim, at the Indemnitor’s cost, risk and expense, upon written notice to the Indemnitee of such election, which notice acknowledges the Indemnitor’s obligation to provide indemnification under this Agreement with respect to any Losses arising out of or relating to such Third-Party Claim. The Indemnitor will not settle any Third-Party Claim that is the subject of indemnification without the written consent of the Indemnitee, which consent will not be unreasonably withheld, conditioned or delayed; provided, however , that, after reasonable notice, the Indemnitor may settle a claim without the Indemnitee’s consent if such settlement (A) makes no admission or acknowledgment of Liability or culpability with respect to the Indemnitee, (B) includes a complete release of the Indemnitee and (C) does not seek any relief against the Indemnitee other than the payment of money damages to be borne by the Indemnitor. The Indemnitee will cooperate in all reasonable respects with the Indemnitor and its attorneys in the investigation, trial and defense of any lawsuit or action with respect to such Claim and any appeal arising therefrom (including the filing in the Indemnitee’s name of appropriate cross-claims and counterclaims). The Indemnitee may, at its own cost, participate in any investigation, trial and defense of any Third-Party Claim controlled by the Indemnitor and any appeal arising therefrom, including participating in the process with respect to the potential settlement or compromise thereof. If the Indemnitee has been advised by its counsel that there may be one or more legal defenses available to the Indemnitee that conflict with those available to, or that are not available to, the Indemnitor (“ Separate Legal Defenses ”), or that there may be actual or potential differing or conflicting interests between the Indemnitor and the Indemnitee in the conduct of the defense of such Third-Party Claim, the Indemnitee will have the right, at the expense of the Indemnitor, to engage separate counsel reasonably acceptable to the Indemnitor to handle and defend such Third-Party Claim, provided , that, if such Third-Party Claim can be reasonably separated between those portion(s) for which Separate Legal Defenses are available (“ Separable Claims ”) and those for which no Separate Legal Defenses are available, the Indemnitee will instead have the right, at the expense of the Indemnitor, to engage separate counsel reasonably acceptable to the Indemnitor to handle and defend the Separable Claims, and the Indemnitor will not have the right to control the defense or investigation of such Separable Claims (and, in which case, the Indemnitor will have the right to control the defense or investigation of the remaining portion(s) of such Third-Party Claim).

(iii) If, after receipt of a notice pursuant to Section 4.1(d)(i) with respect to any Third-Party Claim as to which indemnification is available hereunder, the Indemnitor does not undertake to defend the Indemnitee against such Third-Party Claim, whether by not giving the Indemnitee timely notice of its election to so defend or otherwise, the Indemnitee may, but will have no obligation to, assume its own defense, at the expense of the Indemnitor (including

 

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attorneys fees and costs), it being understood that the Indemnitee’s right to indemnification for such Third Party Claim shall not be adversely affected by its assuming the defense of such Third Party Claim. The Indemnitor will be bound by the result obtained with respect thereto by the Indemnitee; provided , that the Indemnitee may not settle any lawsuit or action with respect to which the Indemnitee is entitled to indemnification hereunder without the consent of the Indemnitor, which consent will not be unreasonably withheld, conditioned or delayed; provided further , that such consent shall not be required if (i) the Indemnitor had the right under this Section 4.1 to undertake control of the defense of such Third-Party Claim and, after notice, failed to do so within the period set forth in Section 4.1(d)(ii), or (ii) (x) the Indemnitor does not have the right to control the defense of the entirety of such Third-Party Claim pursuant to Section 4.1(d)(ii) or (y) the Indemnitor does not have the right to control the defense of any Separable Claim pursuant to Section 4.1(d)(ii) (in which case such settlement may only apply to such Separable Claims), the Indemnitee provides reasonable notice to Indemnitor of the settlement, and such settlement (A) makes no admission or acknowledgment of Liability or culpability with respect to the Indemnitor, (B) does not seek any relief against the Indemnitor and (C) does not seek any relief against the Indemnitee for which the Indemnitor is responsible other than the payment of money damages, provided further , that the Indemnitee shall take all reasonable steps to mitigate any Losses as to which indemnification is available hereunder.

(e) In no event will the Indemnitor be liable to any Indemnitee for any special, consequential, indirect, collateral, incidental or punitive damages, however caused and on any theory of liability arising in any way out of this Agreement, whether or not such Indemnitor was advised of the possibility of any such damages; provided , that the foregoing limitations shall not limit a party’s indemnification obligations for any Losses incurred by an Indemnitee as a result of the assertion of a Third Party Claim.

(f) The Indemnitor and the Indemnitee shall use commercially reasonable efforts to avoid production of confidential information, and to cause all communications among employees, counsel and others representing any party with respect to a Third Party Claim to be made so as to preserve any applicable attorney-client or work-product privilege.

(g) The Indemnitor shall pay all amounts payable pursuant to this Section 4.1 by wire transfer of immediately available funds, promptly following receipt from an Indemnitee of a bill, together with all accompanying reasonably detailed backup documentation, for any Losses that are the subject of indemnification hereunder, unless the Indemnitor in good faith disputes the amount of such Losses or whether such Losses are covered by the Indemnitor’s indemnification obligation in which event the Indemnitor shall promptly so notify the Indemnitee. In any event, the Indemnitor shall pay to the Indemnitee, by wire transfer of immediately available funds, the amount of any Losses for which it is liable hereunder no later than three (3) days following any final determination of the amount of such Losses and the Indemnitor’s liability therefor. A “final determination” shall exist when (a) the parties to the dispute have reached an agreement in writing or (b) a court of competent jurisdiction shall have entered a final and non-appealable order or judgment.

(h) If the indemnification provided for in this Section 4.1 shall, for any reason, be unavailable or insufficient to hold harmless an Indemnitee in respect of any Losses for which it is entitled to indemnification hereunder, then the Indemnitor shall contribute to the amount paid or

 

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payable by such Indemnitee as a result of such Losses, in such proportion as shall be appropriate to reflect the relative benefits received by and the relative fault of the Indemnitor on the one hand and the Indemnitee on the other hand with respect to the matter giving rise to such Losses.

(i) The remedies provided in this Section 4.1 shall be cumulative and shall not preclude assertion by any Indemnitee of any other rights or the seeking of any and all other remedies against an Indemnitor, subject to Section 4.1(e).

(j) The rights and obligations of the LGP Indemnified Persons and the Splitco Indemnified Persons under this Section 4.1 shall survive the Split-off.

(k) For the avoidance of doubt, the provisions of this Section 4.1 are not intended to, and shall not, apply to any Loss, claim or Liability to which the provisions of the Tax Sharing Agreement are applicable.

(l) To the fullest extent permitted by applicable law, the Indemnitor will indemnify the Indemnitee against any and all reasonable fees, costs and expenses (including attorneys’ fees), incurred in connection with the enforcement of his, her or its rights under this Section 4.1.

4.2 Further Assurances . At any time before or after the Closing, each party hereto covenants and agrees to make, execute, acknowledge and deliver such instruments, agreements, consents, assurances and other documents, and to take all such other commercially reasonable actions, as any other party may reasonably request and as may reasonably be required in order to carry out the purposes and intent of this Agreement and to implement the terms hereof.

4.3 Specific Performance . Each party hereby acknowledges that the benefits to the other party of the performance by such party of its obligations under this Agreement are unique and that the other party is willing to enter into this Agreement only in reliance that such party will perform such obligations, and agrees that monetary damages may not afford an adequate remedy for any failure by such party to perform any of such obligations. Accordingly, each party hereby agrees that the other party will have the right to enforce the specific performance of such party’s obligations hereunder and irrevocably waives any requirement for securing or posting of any bond or other undertaking in connection with the obtaining by the other party of any injunctive or other equitable relief to enforce their rights hereunder.

4.4 Access to Information .

(a) Each party will provide to the other party, at any time before or after the Effective Time, upon written request and promptly after the request therefor (subject in all cases, to any bona fide concerns of attorney-client or work-product privilege that any party may reasonably have and any restrictions contained in any agreements or contracts to which any party or its Subsidiaries is a party (it being understood that each of LGP and Splitco will use its reasonable best efforts to provide any such information in a manner that does not result in a violation of a privilege)), any information in its possession or under its control that the requesting party reasonably needs (i) to comply with reporting, filing or other requirements imposed on the requesting party by a foreign or U.S. federal, state or local judicial, regulatory or administrative authority having jurisdiction over the requesting party or its Subsidiaries, (ii) to enable the requesting party to institute or defend against any action, suit or proceeding in any foreign or

 

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U.S. federal, state or local court or (iii) to enable the requesting party to implement the transactions contemplated hereby, including but not limited to performing its obligations under this Agreement, the Restructuring Agreements and the Other Agreements.

(b) Any information belonging to a party that is provided to another party pursuant to Section 4.4(a) will remain the property of the providing party. The parties agree to cooperate in good faith to take all reasonable efforts to maintain any legal privilege that may attach to any information delivered pursuant to this Section 4.4 or which otherwise comes into the receiving party’s possession and control pursuant to this Agreement. Nothing contained in this Agreement will be construed as granting or conferring license or other rights in any such information.

(c) The party requesting any information under this Section 4.4 will reimburse the providing party for the reasonable out of pocket costs, if any, of creating, gathering and copying such information, to the extent that such costs are incurred for the benefit of the requesting party. No party will have any Liability to any other party if any information exchanged or provided pursuant to this Agreement that is an estimate or forecast, or is based on an estimate or forecast, is found to be inaccurate, absent willful misconduct or fraud by the party providing such information.

(d) For the avoidance of doubt, the provisions of this Section 4.4 are not intended to, and shall not, apply to any information relating to matters governed by the Tax Sharing Agreement, which shall be subject to the provisions thereof in lieu of this Section 4.4.

4.5 Confidentiality . Each party will keep confidential for five years following the Closing Date (or for three years following disclosure to such party, whichever is longer), and will use reasonable efforts to cause its officers, directors, members, employees, Affiliates and agents to keep confidential during such period, all Proprietary Information of the other party, in each case to the extent permitted by applicable law.

(a) “ Proprietary Information ” means any proprietary ideas, plans and information, including information of a technological or business nature, of a party (in this context, the “ Disclosing Party ”) (including all trade secrets, intellectual property, data, summaries, reports or mailing lists, in whatever form or medium whatsoever, including oral communications, and however produced or reproduced), that is marked proprietary or confidential, or that bears a marking of like import, or that the Disclosing Party states is to be considered proprietary or confidential, or that a reasonable and prudent person would consider proprietary or confidential under the circumstances of its disclosure. Without limiting the foregoing, all information of the types referred to in the immediately preceding sentence to the extent used by Splitco or the Splitco Businesses or which constitute Splitco Assets on or prior to the Closing Date will constitute Proprietary Information of Splitco for purposes of this Section 4.5.

(b) Anything contained herein to the contrary notwithstanding, information of a Disclosing Party will not constitute Proprietary Information (and the other party (in this context, the “ Receiving Party ”) will have no obligation of confidentiality with respect thereto), to the extent such information: (i) is in the public domain other than as a result of disclosure made in breach of this Agreement or breach of any other agreement relating to confidentiality between

 

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the Disclosing Party and the Receiving Party; (ii) was lawfully acquired by the Disclosing Party from a third party not bound by a confidentiality obligation; (iii) is approved for release by prior written authorization of the Disclosing Party; or (iv) is disclosed in order to comply with a judicial order issued by a court of competent jurisdiction, or to comply with the laws or regulations of any governmental authority having jurisdiction over the Receiving Party, in which event the Receiving Party will give prior written notice to the Disclosing Party of such disclosure as soon as or to the extent practicable and will cooperate with the Disclosing Party in using reasonable efforts to disclose the least amount of such information required and to obtain an appropriate protective order or equivalent, and provided that the information will continue to be Proprietary Information to the extent it is covered by a protective order or equivalent or is not so disclosed.

4.6 Notices Regarding Transferred Assets . Any transferor of an Asset or Liability in the Restructuring that receives a notice or other communication from any third party, or that otherwise becomes aware of any fact or circumstance, after the Restructuring, relating to such Asset or Liability, will use commercially reasonable efforts to promptly forward the notice or other communication to the transferee thereof or give notice to such transferee of such fact or circumstance of which it has become aware. The parties will cause their respective Subsidiaries to comply with this Section 4.6.

4.7 Split-off Expenses . The parties agree to be equally liable for payment of the expenses incurred in connection with the Split-off, including, but without limitation, printing and mailing expenses, legal fees and expenses, accounting fees and expenses, SEC filing fees, listing and other application fees payable to the Nasdaq and OTC Markets, and other miscellaneous expenses (the “ Split-Off Expenses ”). The parties further agree that if and to the extent that any such Split-Off Expenses have been or are incurred by one party only, the other party shall reimburse such party on demand in an amount equal to 50% of such Split-Off Expenses.

4.8 Treatment of Payments . The parties agree to treat all payments made pursuant to this Agreement (other than interest) as a capital contribution by LGP to Splitco or a distribution by Splitco to LGP, as the case may be, occurring immediately prior to the Distribution in accordance with Section 4.06(a) of the Tax Sharing Agreement and to increase or reduce any amount paid hereunder or make any other adjustments in the same manner that a payment made under the Tax Sharing Agreement would be increased, reduced or otherwise adjusted under Section 4.06(a) of the Tax Sharing Agreement.

ARTICLE V

CLOSING

5.1 Closing . Unless this Agreement is terminated and the transactions contemplated by this Agreement abandoned pursuant to the provisions of Article VI, and subject to the satisfaction or waiver of all conditions set forth in each of Sections 2.2 and 5.2, the closing of the Distribution (the “ Closing ”) will take place at the offices of LGP, at 1550 Wewatta Street, Suite 1000, Denver, Colorado, at a mutually acceptable time and date to be determined by LGP (the “ Closing Date ”).

5.2 Conditions to Closing .

 

 

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(a) The obligations of the parties to complete the transactions provided for herein are conditioned upon the satisfaction or, if applicable, waiver of the conditions set forth in Section 2.2.

(b) The performance by each party of its obligations hereunder is further conditioned upon:

(i) the performance in all material respects by the other party of its covenants and agreements contained herein to the extent such are required to be performed at or prior to the Closing; and

(ii) the representations and warranties of the other party being true and complete in all material respects as of the Closing Date with the same force and effect as if made at and as of the Closing Date.

5.3 Deliveries at Closing .

(a) LGP . At the Closing, LGP will deliver or cause to be delivered to Splitco:

(i) the Tax Sharing Agreement duly executed by an authorized officer of LGP;

(ii) the Services Agreement duly executed by an authorized officer of LGP;

(iii) the Facilities Sharing Agreement duly executed by an authorized officer of Liberty Global, Inc., a wholly-owned subsidiary of LGP (“ LGI ”);

(iv) the Sublease duly executed by an authorized officer of LGI;

(v) a secretary’s certificate certifying that the LGP Board has authorized the execution, delivery and performance by LGP of this Agreement, the Restructuring Agreements and the Other Agreements, which authorization will be in full force and effect at and as of the Closing; and

(vi) such other documents and instruments as Splitco may reasonably request.

(b) Splitco . At the Closing, Splitco will deliver or cause to be delivered to LGP:

(i) the Tax Sharing Agreement duly executed by an authorized officer of Splitco;

(ii) the Services Agreement duly executed by an authorized officer of Splitco;

(iii) the Facilities Sharing Agreement duly executed by an authorized officer of LiLAC Communications;

(iv) the Sublease duly executed by an authorized officer of LiLAC Communications;

 

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(v) a secretary’s certificate certifying that the Splitco Board has authorized the execution, delivery and performance by Splitco of this Agreement, the Restructuring Agreements and the Other Agreements, which authorizations will be in full force and effect at and as of the Closing; and

(vi) such other documents and instruments as LGP may reasonably request.

ARTICLE VI

TERMINATION

6.1 Termination . This Agreement may be terminated and the transactions contemplated hereby may be amended, modified, supplemented or abandoned at any time prior to the Effective Time by and in the sole and absolute discretion of LGP without the approval of Splitco and without any compensation to Splitco. For the avoidance of doubt, from and after the Effective Time, this Agreement may not be terminated (or any provision hereof modified, amended or waived) without the written agreement of all the parties.

6.2 Effect of Termination . In the event of any termination of this Agreement in accordance with the first sentence of Section 6.1, this Agreement will immediately become void and the parties will have no Liability whatsoever to each other with respect to the transactions contemplated hereby.

ARTICLE VII

MISCELLANEOUS

7.1 Definitions .

(a) For purposes of this Agreement, the following terms have the corresponding meanings:

Action ” means any demand, action, claim, suit, countersuit, litigation, arbitration, prosecution, proceeding (including any civil, criminal, administrative, investigative or appellate proceeding), hearing, inquiry, audit, examination or investigation whether or not commenced, brought, conducted or heard by or before, or otherwise involving, any court, grand jury or other governmental authority or any arbitrator or arbitration panel.

Affiliates ” means with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person; provided , that, for any purpose hereunder, in each case both before and after the Effective Time, none of the Persons listed in clause (i)-(ix) shall be deemed to be Affiliates of any Person listed in any other such clause: (i) LGP taken together with its Subsidiaries; (ii) Splitco taken together with its Subsidiaries; (iii) Liberty Media Corporation taken together with its Subsidiaries and any of their respective Investees; (iv) Liberty TripAdvisor Holdings, Inc. taken together with its Subsidiaries and any of their respective Investees; (v) Starz Acquisition LLC taken together with its Subsidiaries and any of their respective Investees; (vi) Liberty Broadband Corporation taken together with its Subsidiaries and any of their respective

 

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Investees; (vii) Discovery Communications Inc. taken together with its Subsidiaries and any of their respective Investees; (viii) CommerceHub, Inc. taken together with its Subsidiaries and any of their respective Investees; and (ix) Liberty Interactive Corporation taken together with its Subsidiaries and any of their respective Investees.

Assets ” means assets, properties, interests and rights (including goodwill), wherever located, whether real, personal or mixed, tangible or intangible, movable or immovable, in each case whether or not required by GAAP to be reflected in financial statements or disclosed in the notes thereto.

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

Effective Time ” means the time at which the Distribution will be effective.

Facilities Sharing Agreement ” means the Facilities Sharing Agreement by and among LGI and LiLAC Communications, substantially in the form attached hereto as Exhibit A.

GAAP ” means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

Governmental Authorization ” means any authorization, approval, consent, license, certificate or permit issued, granted, or otherwise made available under the authority of any court, governmental or regulatory authority, agency, stock exchange, commission or body.

Investee ” of any Person means any Person in which such first Person owns or controls an equity or voting interest.

Liabilities ” means any and all debts, liabilities, commitments and obligations, whether or not fixed, contingent or absolute, matured or unmatured, direct or indirect, liquidated or unliquidated, accrued or unaccrued, known or unknown, and whether or not required by GAAP to be reflected in financial statements or disclosed in the notes thereto (other than taxes).

LBTYA ” means LGP’s Class A Liberty Global Ordinary Shares, nominal value $0.01 per share.

LBTYB ” means LGP’s Class B Liberty Global Ordinary Shares, nominal value $0.01 per share.

LBTYK ” means LGP’s Class C Liberty Global Ordinary Shares, nominal value $0.01 per share.

 

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LGP Articles” means the Articles of Association of LGP, as in effect immediately prior to the Effective Time.

LGP Board ” means the Board of Directors of LGP or a duly authorized committee thereof.

LGP Entity ” or “ LGP Entities ” means and includes each of LGP and its Subsidiaries (other than the Splitco Entities), after giving effect to the Restructuring.

LGP Ordinary Shares ” means LBTYA, LBTYB, LBTYK, LILA, LILAB and LILAK.

LGP Retained Assets ” means all Assets which are held by LGP immediately prior to the Effective Time, other than the Splitco Assets.

LGP Retained Businesses ” means all businesses which are held by LGP immediately prior to the Effective Time, other than the Splitco Businesses.

LGP Retained Liabilities ” means all Liabilities which are held by LGP immediately prior to the Effective Time, other than the Splitco Liabilities.

Liberty Global Ordinary Shares ” means LBTYA, LBTYB and LBTYK.

LiLAC Option ” means an option to purchase shares of LiLAC Ordinary Shares pursuant to a share incentive plan of LGP.

LiLAC SAR ” means a share appreciation right with respect to shares of LiLAC Ordinary Shares granted under a share incentive plan of LGP.

Losses ” means any and all damages, losses, deficiencies, Liabilities, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including the fees and expenses of any and all actions and demands, assessments, judgments, settlements and compromises relating thereto and the costs and expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or in asserting, preserving or enforcing an Indemnitee’s rights hereunder), whether in connection with a Third-Party Claim or otherwise.

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

Qualifying Subsidiary ” means any Person that was a direct or indirect Subsidiary of LGP prior to the date hereof or is a successor of any such Subsidiary or a parent company (directly or indirectly) of any such Subsidiary or successor, excluding Splitco.

Restructuring Plan ” means the Restructuring Plan attached hereto as Schedule 1.1.

 

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Securities Act ” means the Securities Act of 1933, as amended, together with all rules and regulations promulgated thereunder.

Services Agreement ” means the Services Agreement to be entered into between Liberty Global BV and Splitco, substantially in the form attached hereto as Exhibit C .

Splitco Assets ” means all Assets of LGP attributed to the LiLAC Group immediately prior to the Effective Time.

Splitco Board ” means the Board of Directors of Splitco or a duly authorized committee thereof.

Splitco Businesses ” means LGE Coral and its subsidiaries, including CWC, VTR Finance and its subsidiaries, including VTR, Lila Chile and LiLAC Communications and its subsidiaries, including Liberty Puerto Rico, and any other businesses attributed to the LiLAC Group immediately prior to the Effective Time.

Splitco Entity ” or “ Splitco Entities ” means and includes each of Splitco and its Subsidiaries, after giving effect to the Restructuring.

Splitco Liabilities ” means all Liabilities of LGP attributed to the LiLAC Group immediately prior to the Effective Time.

Splitco Transitional Plan ” means the Liberty Latin America Ltd. Transitional Share Adjustment Plan.

Sublease ” means the sublease by and among LGP, LGI and LiLAC Communications, substantially in the form attached hereto as Exhibit B.

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

 

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Person and/or one or more Subsidiaries of such Person. For purposes of this Agreement, both prior to and after the Effective Time, none of Splitco and its Subsidiaries shall be deemed to be Subsidiaries of LGP or any of its Subsidiaries.

Tax Sharing Agreement ” means the Tax Sharing Agreement to be entered into between LGP and Splitco, substantially in the form attached hereto as Exhibit E .

(b) As used herein, the following terms will have the meanings set forth in the applicable section of this Agreement set forth below:

 

Agreement

  

Preamble

Awards

  

Section 2.3(a)

Closing

  

Section 5.1

Closing Date

  

Section 5.1

Code

  

Recitals

Disclosing Party

  

Section 4.5(a)

Distribution

  

Recitals

Indemnitee

  

Section 4.1(d)(i)

Indemnitor

  

Section 4.1(d)(i)

LGE Coral

  

Recitals

LGI

  

Section 5.3(a)(iii)

LGP

  

Preamble

LGP Indemnified Parties

  

Section 4.1(a)

LILA

  

Recitals

LILAB

  

Recitals

LiLAC Communications

  

Recitals

LiLAC Group

  

Recitals

Lila Chile

  

Recitals

LiLAC Ordinary Shares

  

Recitals

LiLAC Ordinary Shares Record Holders

  

Section 2.1(b)

LILAK

  

Recitals

Other Agreements

  

Section 3.1(b)

Outstanding LiLAC Option

  

Section 2.3(b)

Outstanding LiLAC RSU

  

Section 2.3(e)

Outstanding LiLAC SAR

  

Section 2.3(c)

Post Spin Awards

  

Section 2.3(g)

Proprietary Information

  

Section 4.5(a)

Receiving Party

  

Section 4.5(b)

Record Date

  

Section 2.1(a)

Restructuring

  

Section 1.1(a)

Restructuring Agreements

  

Section 3.1(b)

Separable Claims

  

Section 4.1(d)(ii)

Separate Legal Defenses

  

Section 4.1(d)(ii)

Split-off

  

Recitals

Splitco

  

Preamble

Splitco Class A Common Shares

  

Section 2.1(b)

 

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Splitco Class B Common Shares

  

Section 2.1(b)

Splitco Class C Common Shares

  

Section 2.1(b)

Splitco Common Shares

  

Section 2.1(b)

Splitco Indemnified Parties

  

Section 4.1(b)

Splitco Option

  

Section 2.3(b)

Splitco RSU

  

Section 2.3(e)

Splitco SAR

  

Section 2.3(c)

Split-off Expenses

  

Section 4.7

Third-Party Claim

  

Section 4.1(d)(i)

VTR Finance

  

Recitals

7.2 No Third-Party Rights . Except for the indemnification rights of the LGP Indemnified Persons and the Splitco Indemnified Persons pursuant to Section 4.1, nothing expressed or referred to in this Agreement is intended or will be construed to give any Person other than the parties hereto and their respective successors and assigns any legal or equitable right, remedy or claim under or with respect to this Agreement, or any provision hereof, it being the intention of the parties hereto that this Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their respective successors and assigns.

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

 

if to any LGP Entity :        

  

Liberty Global plc

  

1550 Wewatta Street

Suite 1000

  

Denver, Colorado 80202

Telephone: (303) 220-6600

  

Electronic mail: Separately Provided

  

Attention: General Counsel

if to any Splitco Entity :

  

Liberty Latin America Ltd.

1550 Wewatta Street

Suite 710

Denver, Colorado 80202

  

Telephone: (303) 925-6000

Electronic mail: Separately Provided

  

Attention: General Counsel

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

 

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7.4 Entire Agreement . This Agreement (including the Exhibits and Schedules attached hereto) together with the Restructuring Agreements and the Other Agreements (including the Tax Sharing Agreement) embodies the entire understanding among the parties relating to the subject matter hereof and thereof and supersedes and terminates any prior agreements and understandings among the parties with respect to such subject matter, and no party to this Agreement shall have any right, responsibility or Liability under any such prior agreement or understanding. Any and all prior correspondence, conversations and memoranda are merged herein and shall be without effect hereon. No promises, covenants or representations of any kind, other than those expressly stated herein, have been made to induce either party to enter into this Agreement.

7.5 Binding Effect; Assignment . This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Except with respect to a merger of a party, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto without the prior written consent of the other parties; provided , however , that LGP and Splitco may assign their respective rights, interests, duties, liabilities and obligations under this Agreement to any of their respective wholly-owned Subsidiaries, but such assignment shall not relieve LGP or Splitco, as the assignor, of its obligations hereunder.

7.6 Governing Law; Jurisdiction . This Agreement and the legal relations among the parties hereto will be governed in all respects, including validity, interpretation and effect, by the laws of the State of Delaware applicable to contracts made and performed wholly therein, without giving effect to any choice or conflict of laws provisions or rules that would cause the application of the laws of any other jurisdiction. Each of the parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement, and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement, and the rights and obligations arising hereunder brought by the other party hereto or its successors or assigns, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware). Each of the parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement or the transactions contemplated hereby in any court other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve in accordance with Section 7.3 and this Section 7.6, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by applicable law, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement or the subject matter hereof may not be enforced in or by such courts. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any

 

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such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 7.3 shall be deemed effective service of process on such party.

7.7 Waiver of Jury Trial . EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH ACTION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.7.

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

7.9 Amendments; Waivers . Except as otherwise provided in Section 6.1, any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. Except as otherwise provided herein, the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law. Any consent provided under this Agreement must be in writing, signed by the party against whom enforcement of such consent is sought.

7.10 No Strict Construction; Interpretation .

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

 

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

7.11 Conflicts with Tax Sharing Agreement . In the event of a conflict between this Agreement and the Tax Sharing Agreement, the provisions of the Tax Sharing Agreement shall prevail.

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

[S IGNATURE PAGE TO FOLLOW .]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

LIBERTY GLOBAL PLC

 

By:

 

/s/ Jeremy Evans

 

Name: Jeremy Evans

 

Title:   Authorized Signatory

LIBERTY LATIN AMERICA LTD.

By:

 

/s/ John Winter

 

Name: John Winter

 

Title:   Vice President, Legal

[S IGNATURE PAGE TO R EORGANIZATION A GREEMENT .]


List of Omitted Exhibits and Schedules

The following exhibits and schedules to the Reorganization Agreement, dated as of December 29, 2017, by and between Liberty Global plc and Liberty Latin America Ltd. have not been provided herein:

Exhibit A – Form of Facilities Sharing Agreement

Exhibit B – Form of Sublease

Exhibit C – Form of Services Agreement

Exhibit D – Form of Tax Sharing Agreement

Schedule 1.1 – Restructuring Plan

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

LOGO

599 LEXINGTON AVENUE  |  NEW YORK  |  NY  |  10022-6069

WWW.SHEARMAN.COM  |  T +1.212.848.4000  |  F +1.212.848.7179

Exhibit 8.1

December 14, 2017

Liberty Global plc

Griffin House

161 Hammersmith Road

London W6 8BS

United Kingdom

Distribution of Shares of Liberty Latin America, Ltd.

U.S. Federal Income Tax Opinion

Ladies and Gentlemen:

We have acted as special tax counsel to Liberty Global plc, a public limited company incorporated under English law (“ Liberty Global ”), in connection with certain aspects of the separation of its Latin American and Caribbean operations (the “ LiLAC Business ”) in a series of transactions that will include: (i) the contribution by Liberty Global of the assets of the LiLAC Business (and the assumption by Splitco of certain liabilities with respect to the LiLAC Business), including the equity of certain of its subsidiaries, to Liberty Latin America, Ltd., a newly-formed exempted Bermuda company limited by shares that is a wholly-owned direct subsidiary of Liberty Global (“ Splitco ”), in exchange for the issuance by Splitco of common shares designated as Class A Common Shares (having one vote per share), Class B Common Shares (having 10 votes per share) and Class C Common Shares (which generally are non-voting) (collectively, the “ Splitco Common Shares ”) to Liberty Global (the “ Contribution ”), (ii) the distribution by Liberty Global of 100% of the Splitco Common Shares on the same day to holders of LiLAC Ordinary Shares on a one-for-one, class-by-class basis (the “ Distribution ”), and immediately following the Distribution, (iii) the redesignation of the LiLAC Ordinary Shares as deferred shares (with virtually no economic rights) in accordance with English law (the “ Deferred Shares ”) and the transfer of the Deferred Shares for no consideration to a third-party designee (the “ Redesignation ” and together with the Contribution and Distribution, the “ Split-Off ”). In connection with and following the Split-Off, Liberty Global intends to acquire or cancel the Deferred Shares.

Splitco has filed the Registration Statement on Form S-1 (Registration No. 333-221608), including the Prospectus forming a part thereof, with the Securities and Exchange Commission on November 16, 2017 (collectively, and as amended on or prior to the date hereof, the “ Registration Statement ”). Unless otherwise indicated, each capitalized term used herein has the meaning ascribed to it in the Registration Statement.

ABU DHABI    |    BEIJING    |    BRUSSELS    |    DUBAI    |    FRANKFURT     |    HONG KONG    |    LONDON    |    MENLO PARK    |    MILAN    |    NEW YORK

PARIS    |    ROME    |     SAN FRANCISCO    |    SÃO PAULO    |    SAUDI ARABIA*    |    SHANGHAI    |    SINGAPORE    |    TOKYO    |    TORONTO     |    WASHINGTON, DC

SHEARMAN & STERLING LLP IS A LIMITED LIABILITY PARTNERSHIP ORGANIZED IN THE UNITED STATES UNDER THE LAWS OF THE STATE OF DELAWARE, WHICH LAWS LIMIT THE PERSONAL LIABILITY OF PARTNERS.

*DR. SULTAN ALMASOUD & PARTNERS IN ASSOCIATION WITH SHEARMAN & STERLING LLP

 

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In preparing our opinion set forth below, we have examined and reviewed originals or copies, certified or otherwise identified to our satisfaction, of (i) the Registration Statement, (ii) the tax representation letters delivered to us by Liberty Global (dated December 13, 2017), Splitco (dated December 13, 2017) and a Liberty Global shareholder (dated December 6, 2017) (collectively, the “ Tax Representation Letters ”), (iii) the Reorganization Agreement by and between Liberty Global and Splitco, a form of which is attached to the Registration Statement as Exhibit 2.1, and related agreements, (iv) the report prepared by Liontree Advisors UK LLP, dated December 13, 2017, which addresses the corporate business purposes for the Distribution, and (v) such other documents, certificates and records as we have deemed necessary or appropriate as a basis for our opinion. In our examination, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed, photostatic or electronic copies and the authenticity of the originals of such latter documents.

In rendering our opinion, we have assumed with your permission that (i) the Split-Off will be consummated as described in the Registration Statement (and none of the terms or conditions contained therein, or in any exhibit thereto, have been or will be waived or modified), (ii) there will be due execution and delivery of all documents required for the Split-Off to be effective, (iii) no action has been, or will be, taken that is inconsistent with any statement, representation or undertaking set forth in the Registration Statement or the Tax Representation Letters, and (iv) the deferred shares will be cancelled by Liberty Global no later than 12 months following the Distribution. Our opinion assumes and is expressly conditioned on, among other things, the initial and continuing truth, accuracy and completeness (without regard to any qualification as to knowledge or belief) of the facts, statements and representations and compliance with the undertakings (without waiver) set forth in the documents referred to above, including the statements and representations, which we have neither investigated nor verified, made in the Tax Representation Letters. Any inaccuracy in these assumptions, facts, statements or representations, or failure to comply with undertakings (including on account of events occurring subsequent to the Split-Off) could affect the conclusions expressed herein.

Our opinion is based on the Internal Revenue Code of 1986, as amended (the “ Code ”), Treasury regulations promulgated thereunder, judicial decisions, published positions of the Internal Revenue Service (“ IRS ”), and such other authorities as we have considered relevant, all as of the date of this opinion and all of which are subject to change or different interpretations (possibly with retroactive effect). Any change in the authorities upon which our opinion is based could affect the conclusions expressed herein. Further, opinions of counsel are not binding on the IRS or courts and thus there can be no assurance that our opinion will be accepted by the IRS or, if challenged, by a court.

Based upon the foregoing and subject to the assumptions, limitations and qualifications set forth herein and in the Registration Statement under the heading “ The Split-Off—Material U.S. Federal Income Tax Consequences of the Split-Off ,” we are of the opinion that, under currently applicable U.S. federal income tax law:

 

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  1. The Split-Off, taken together, should qualify as a “reorganization” within the meaning of section 368(a)(1)(D) of the Code, and Liberty Global and Splitco should each qualify as a “party to a reorganization” within the meaning of section 368(b) of the Code.  

 

  2. No gain or loss should be recognized by (and no amount should be includible in the gross income of) holders of LiLAC Ordinary Shares solely by reason of their receipt of Splitco Common Shares in the Distribution.

 

  3. The aggregate tax basis of the Splitco Common Shares received in the Distribution by a holder of LiLAC Ordinary Shares should equal such holder’s aggregate tax basis in its LiLAC Ordinary Shares of the same class immediately before the Distribution; and

 

  4. The holding period of the Splitco Common Shares received by a holder of LiLAC Ordinary Shares in the Distribution should include the holding period of its LiLAC Ordinary Shares of the same class.

We render no opinion except as expressly set forth above and this opinion does not address holders who acquire Splitco Common Shares other than in the Distribution or are subject to special treatment under U.S. federal income tax laws; for additional information with respect to U.S. federal income tax matters related to the Split-Off, see the discussion set forth under the heading “ The Split-Off—Material U.S. Federal Income Tax Consequences of the Split-Off ” in the Registration Statement. This opinion has been prepared for Liberty Global solely in connection with the Split-Off.

Further, no assurance can be given that future legislative, judicial or administrative changes, on either a prospective or retroactive basis, or future factual developments, will not adversely affect the accuracy of the conclusions stated herein. This opinion is expressed as of the date hereof, and we are under no obligation to supplement or revise our opinion to reflect any legal developments or factual matters or changes arising subsequent to the date hereof or the impact of any information, document, certificate, record, statement, representation, undertaking, or assumption relied upon herein that becomes incorrect or untrue.

We hereby consent to the filing of this opinion with the Securities and Exchange Commission as an exhibit to the Registration Statement and to the references to us in the Registration Statement under “ The Split-Off—Material U.S. Federal Income Tax Consequences of the Split-Off ”. In giving such consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended and the rules and regulations of the Securities and Exchange Commission promulgated thereunder.

 

Very truly yours,

 

/s/ Shearman & Sterling LLP

 

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Exhibit 10.6

[LETTERHEAD OF LIBERTY GLOBAL, INC.]

December 29, 2017

LiLAC Communications Inc.

1550 Wewatta Street, Suite 710

Denver, CO 80202

Attention: Legal Department

Re:       Facilities Sharing Agreement.

Ladies and Gentlemen:

Liberty Global plc, a public limited company organized under the laws of England and Wales (“ Parent ”), has, or will shortly, effect the split-off (the “ Split-off ”) of Liberty Latin America Ltd., a Bermuda company (“ SplitCo ”), by means of a stock dividend to the holders of Parent’s LiLAC ordinary shares. To that end, Parent and SplitCo have entered into a Reorganization Agreement, dated as of December 29, 2017 (the “ Reorganization Agreement ”), pursuant to which all of the assets, liabilities and businesses of Parent attributed to the “LiLAC Group,” including LiLAC Communications Inc., a Delaware corporation (“ SplitCo Sub ”) have been, or will be, transferred to SplitCo and its subsidiaries.

As you are aware, Liberty Global, Inc., a Delaware corporation (“ LGI ”), a wholly-owned subsidiary of Parent, is the lessee under that certain Office Lease, effective January 9, 2015, by and between Union Investment Real Estate GmBH, successor in interest to Triangle at Union Station Development, LLC (“ Lessor ”) and LGI, as amended by that certain First Amendment to Office Lease as of December 7, 2015 and that certain Second Amendment to Office Lease as of November 15, 2016 (as amended, the “ Master Lease ”) whereby Lessor leases to LGI certain space (the “ Premises ”) in the building located at 1550 Wewatta Street, known as the Triangle Building in the City and County of Denver, Colorado, more particularly described in the Master Lease (the “ Building ”).

In connection with the Split-off, LGI and SplitCo Sub have entered into a Sublease, dated December 29, 2017 (the “ Sublease ”), pursuant to which, subject to the termination provisions provided for in the Sublease, SplitCo Sub will sublease from January 1, 2018 until May 31, 2031 from LGI 18,464 square feet in the Premises consisting of office space, parking, cafe and gym facilities located within the Premises (the “ Sublease Premises ”). In addition, SplitCo and SplitCo Sub desire to use certain technology, equipment and support within the Premises following the Split-off. Parent and LGI are amenable to such a sharing arrangement, on the terms and subject to the conditions set forth in this Agreement.


Based on the mutual agreements of the parties, and for other good and valuable consideration the receipt of which is hereby acknowledged, SplitCo Sub and LGI hereby agree as follows:

1.   Shared Facilities and Services .

LGI shall provide access to and support related to the following (collectively, the “ Shared Facilities ”):

 

    Information technology (“ IT ”) staff, network infrastructure, communications, equipment (computers, laptops, fixed and mobile phones and tablets, as applicable), security, software maintenance and supplies (hereinafter in the aggregate referred to as the “ LGI Technology Support ”),

 

    certain leasehold improvements,

 

    furniture, fixtures, appliances, equipment and other movable personal property not owned by SplitCo or SplitCo Sub (“ LGI Personal Property ”),

 

    cafeteria and gym facilities staff and related services, security personnel and related services (hereinafter in the aggregate referred to as the (“ LGI Cafeteria and Gym Facilities ”),

 

    janitorial services, maintenance and repairs, office equipment rent, office supplies,

 

    food and drink supplies for copy and breakout rooms, copier supplies, postage (not including overnight or bulk mailings),

 

    receptionist and receptionist related services on the 10 th floor of the Building, and

 

    building and support services, mailroom services and medical supplies located within the Premises.

2.   Sharing Fee.

(a)        In exchange for the Shared Facilities, SplitCo Sub shall pay to LGI an estimated fee of $[●] per year (the “Sharing Fee”), subject to the true-up mechanism described in Section 2(b) below (the “ True-up ”). SplitCo Sub shall pay the Sharing Fee to LGI in equal monthly installments, by wire or intrabank transfer of funds or in such other manner as may be agreed upon by the parties, on the first day of each and every calendar month during the Term, except the month of January in the year 2018, in which month such installment of the Sharing Fee shall be due and payable on January 16, 2018.

(b)        Unless delayed by causes beyond LGI’s reasonable control, LGI shall deliver to SplitCo Sub within 60 days after the end of each calendar year a written statement (the

 

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Statement ”) setting out in reasonable detail the actual amount of the Sharing Fee due for such calendar year certified to be correct by a responsible representative of LGI. If the aggregate of the monthly installments of the Sharing Fee actually paid by SplitCo Sub to LGI for such calendar year differs from the actual amount of the Sharing Fee payable for such calendar year as indicated in the Statement, SplitCo Sub shall pay or LGI shall refund the difference (as the case may be) without interest within thirty (30) days after the date of delivery of the Statement. Before the conclusion of such 30-day period (the “ Audit Election Period ”), SplitCo Sub may elect to have the Statement of the calculation of the Sharing Fee for such calendar year only audited by a nationally-recognized accounting firm that has not performed any services for LGI or SplitCo Sub or any of their respective affiliates at any time during the three calendar years before such audit is elected to determine whether such Statement complies with the method described in this Agreement for calculating the Sharing Fee. Such accounting firm’s determination shall be binding upon the parties, absent manifest error. LGI shall credit any overpayment determined by the final audit report against any fees (including rent) due and owing by SplitCo Sub or, if no further payments are due, refund such overpayment directly to SplitCo Sub within 30 days of determination. Likewise, SplitCo Sub shall pay LGI any underpayment determined by the final audit report within 30 days of determination. The foregoing obligations shall survive the expiration or termination of this Agreement. If SplitCo Sub does not give written notice of its election to audit the Sharing Fee during the Audit Election Period, LGI’s calculation of the Sharing Fee for the applicable calendar year as set forth in the Statement shall be deemed approved and binding upon the parties for all purposes and SplitCo Sub shall have no further right to review or contest the same.

(c)  LGI shall make all necessary repairs to the Telenet conference room on the 8 th floor, the Telepresence conference room on the 9 th floor, the gym on the 8 th floor, and the café and café terrace on the 10 th floor of the Building (the “ Sublease Common Areas ”), in each case, which LGI is and may be obligated to furnish or make pursuant to the terms of the Master Lease; provided, however, that SplitCo Sub shall upon demand pay for the actual third-party cost of repairs made necessary by any negligence or willful misconduct of SplitCo Sub, SplitCo or any of their respective employees, agents, representatives, contractors or other person permitted in or invited to the Premises by SplitCo Sub and/or SplitCo. Damage to the Sublease Common Areas or Additional Facilities shall not in any way affect SplitCo Sub’s obligation to pay rent to LGI in accordance with the Sublease. The provisions of this section shall apply mutatis mutandi with respect to any additional areas of the Premises that SplitCo Sub shall use including the Boardroom on the 10 th floor of the Building and the Schneider Commons on the 8 th floor of the Building.

(d)  LGI will maintain accurate records of the receipts, invoices, reports and other documents relating to the Shared Facilities (the “ Records ”) in order to provide SplitCo Sub the opportunity to verify the accuracy, completeness and appropriateness of the Sharing Fee. Upon reasonable prior written notice from SplitCo Sub, LGI will make available to SplitCo Sub (at SplitCo Sub’s sole cost and expense) reasonable access to, or at SplitCo Sub’s sole cost and expense, copies of, the Records with respect to such Sharing Fee during regular business hours.

(e)  The terms and conditions of this Section 2 will survive the expiration or earlier termination of this Agreement.

 

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3.   Term.

(a)        The term of this Agreement will commence on the date of the completion of the Split-Off and will continue for as long as the Sublease is in effect (the “ Term ”). This Agreement is subject to termination prior to the end of the Term in accordance with Section 3(b).

(b)        This Agreement may be terminated by Splitco Sub and/or LGI prior to the expiration of the Term in the following events:

 

    concurrently with the termination of the Sublease;

 

    if any of LGI, Parent or any of Parent’s subsidiaries and Affiliates is not the sublessor under the Sublease;

 

    immediately upon written notice (or any time specified in such notice) by LGI to SplitCo Sub if SplitCo Sub shall default in the performance of any of its material obligations hereunder and such default shall remain unremedied for a period of 30 days after written notice thereof is given by LGI to SplitCo Sub;

 

    immediately upon written notice (or at any time specified in such notice) by LGI to SplitCo Sub if a Change in Control or Bankruptcy Event occurs with respect to SplitCo Sub; or

 

    immediately upon written notice (or at any time specified in such notice) by SplitCo Sub to LGI if a Change in Control or Bankruptcy Event occurs with respect to LGI.

For purposes of this Section 3(b), a “ Change in Control ” will be deemed to have occurred with respect to any individual, corporation, company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind (a “ Person ”) if any of the following occur: (a) the direct or indirect sale, transfer, conveyance or disposition, in one or a series of related transactions, of all or substantially all of the consolidated properties or assets of such specified Person to any other Person, other than an Affiliate of such specified Person, or (b) any transaction or series of related transactions pursuant to which the holders of all voting interests of such specified Person immediately prior to such transaction(s) would hold, directly or indirectly, in the aggregate, less than fifty percent (50%) of the total voting interests of such specified Person (or the entity surviving or resulting from such transaction(s), or the ultimate parent entity thereof) following such transaction(s).

For purposes of this Section 3(b), an “ Affiliate ” means, with respect to any specified Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person; provided , that SplitCo or any Person controlled by SplitCo shall not be regarded as an Affiliate of Parent or of any of Parent’s Affiliates. For purposes of this definition, “ control ” (including the terms “ controlled by ” and “ under common control with ”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise.

 

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For purposes of this Section 3(b), a “ Bankruptcy Event ” will be deemed to have occurred with respect to a Person upon such Person’s insolvency, general assignment for the benefit of creditors, such Person’s voluntary commencement of any case, proceeding, or other action seeking reorganization, arrangement, adjustment, liquidation, dissolution, or consolidation of such Person’s debts under any law relating to bankruptcy, insolvency, or reorganization, or relief of debtors, or seeking appointment of a receiver, trustee, custodian, or other similar official for such Person or for all or any substantial part of such Person’s assets (each, a “ Bankruptcy Proceeding ”), or the involuntary filing against such Person of any Bankruptcy Proceeding that is not stayed within 60 days after such filing.

(c) SplitCo Sub shall not remove any LG Personal Property from the Sublease Premises on or after the date of expiration or early termination of this Agreement.

4. Use of LGI Technical Support . As a condition for and in consideration of LGI providing to SplitCo Sub LGI Technical Support, SplitCo Sub covenants and agrees to comply with the policies adopted by Parent or LGI, from time-to-time, as amended, relating to internet e-mail usage, remote working, passwords, software, privacy, social media, copyright compliance, intellectual property, and other polices reasonable requested in connection with SplitCo Sub’s use of LGI Technical Support.

5.   SplitCo Sub’s Use of LGI Cafeteria and Gym Facilities .  In connection with SplitCo Sub, its officers, directors, employees and agents’ use of LGI Cafeteria and Gym Facilities, such use is subject to, and SplitCo Sub agrees to comply with, all reasonable policies and rules relating to such use, which policies and rules are made available to SplitCo Sub. SplitCo Sub shall make any of its officers, directors, employees, guests, invitees or agents aware of such policies and rules, and shall be responsible for such party’s compliance therewith.

6.   Administration . This Agreement shall be administered by a joint steering committee (the “ Joint Steering Committee ”) comprised of four (4) members, and each of LGI and SplitCo Sub shall be entitled to appoint an equal number of representatives to the Joint Steering Committee. The Joint Steering Committee shall be authorized to take such actions in connection with or in relation to this Agreement, as it deems necessary or advisable. Each action and determination made or taken pursuant to this Agreement by the Joint Steering Committee, including any interpretation or construction of this Agreement, shall be final and conclusive for all purposes. No member of the Joint Steering Committee shall be liable for any action or determination made or taken by him or her or the Joint Steering Committee in good faith with respect to this Agreement.

7.   Miscellaneous .

(a) Entire Agreement; Severability . This Agreement and the Sublease constitute the entire agreement among the parties hereto or thereto, as applicable with respect to the subject matter hereof and thereof, and supersedes all prior agreements and understandings, oral and written, among the parties hereto with respect to such subject matter. It is the intention of the parties hereto that the provisions of this Agreement will be enforced to the fullest extent permissible under all applicable laws and public policies, but that the unenforceability of any provision hereof (or the modification of any provision hereof to conform with such laws or

 

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public policies, as provided in the next sentence) will not render unenforceable or impair the remainder of this Agreement. Accordingly, if any provision is determined to be invalid or unenforceable either in whole or in part, this Agreement will be deemed amended to delete or modify, as necessary, the invalid or unenforceable provisions and to alter the balance of this Agreement in order to render the same valid and enforceable, consistent (to the fullest extent possible) with the intent and purposes hereof. If the cost of any service to be provided to SplitCo under that certain Services Agreement, dated as of December 29, 2017, by and between a subsidiary of Parent and SplitCo (the “ Services Agreement ”) is included in the Sharing Fee payable hereunder, then the cost of such service shall not also be payable by SplitCo under the Services Agreement.

(b) Notices . All notices and communications hereunder will be in writing and will be deemed to have been duly given if delivered personally or mailed, certified or registered mail with postage prepaid, or sent by electronic mail (with confirming copy sent by one of the other delivery methods specified herein), addressed as follows:

If to LGI:

Liberty Global, Inc.

c/o Liberty Global plc

1550 Wewatta Street, Suite 1000

Denver, Colorado 80202

Attention: General Counsel

Email: Separately Provided

If to SplitCo Sub:

LiLAC Communications Inc.

1550 Wewatta Street, Suite 710

Denver, Colorado 80202

Attention: General Counsel

Email: Separately Provided

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

(c) Governing Law . This Agreement and the legal relations among the parties hereto will be governed in all respects, including validity, interpretation and effect, by the laws of the State of Colorado applicable to contracts made and performed wholly therein, without giving effect to any choice or conflict of laws provisions or rules that would cause the application of the laws of any other jurisdiction.

(d) Arbitration . Any controversy, claim or dispute arising out of or in any way relating to this Agreement (including whether such controversy, claim or dispute is subject to arbitration), excepting only (i) claims that may not, by statute, be arbitrated and (ii) claims for

 

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which specific performance of the other party’s obligations hereunder is the only adequate remedy, will be submitted to binding arbitration. Each of LGI and SplitCo Sub acknowledges that they are relinquishing their right to a jury trial. Each of LGI and SplitCo Sub agrees that arbitration will be the exclusive method for resolving disputes arising out of or related to this Agreement.

Arbitration will be commenced and heard in the Denver, Colorado metropolitan area. Only one arbitrator will preside over the proceedings, who will be selected by agreement of the parties from a list of five or more qualified arbitrators provided by the arbitration tribunal, or if the parties are unable to agree on an arbitrator within 10 business days following receipt of such list, the arbitration tribunal will select the arbitrator. The arbitrator will apply the substantive law (and the law of remedies, if applicable) of Colorado or federal law, or both, as applicable to the claim(s) asserted. In any arbitration, the burden of proof will be allocated as provided by applicable law. The arbitrator will have the authority to award any and all legal remedies authorized by the law applicable to the claim(s) being asserted in the arbitration, as if the claim(s) were brought in a federal court of law. Either party may bring an action in court to compel arbitration under this Agreement and to enforce an arbitration award. Discovery, such as depositions or document requests, will be available to LGI and SplitCo Sub as though the dispute were pending in U.S. federal court. The arbitrator will have the ability to rule on pre-hearing motions as though the matter were in a U.S. federal court, including the ability to rule on a motion for summary judgment.

If permitted by applicable law, the fees of the arbitrator and any other fees for the administration of the arbitration will be shared equally by the parties. Each party will pay its own attorneys’ fees and other costs incurred in connection with the arbitration, unless the relief authorized by law allows otherwise and the arbitrator determines that such fees and costs will be paid in a different manner. The arbitrator must provide a written decision that is subject to limited judicial review consistent with applicable law. If any part of this arbitration provision is deemed to be unenforceable by an arbitrator or a court of law, that part may be severed or reformed so as to make the balance of this arbitration provision enforceable.

(e) No Third-Party Rights . Nothing expressed or referred to in this Agreement is intended or will be construed to give any person other than the parties hereto and their respective successors and permitted assigns any legal or equitable right, remedy or claim under or with respect to this Agreement, or any provision hereof, it being the intention of the parties hereto that this Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their respective successors and assigns.

(f) Assignment . This Agreement will inure to the benefit of and be binding on the parties to this Agreement and their respective legal representatives, successors and permitted assigns. Except as expressly contemplated hereby, this Agreement, and the obligations arising hereunder, may not be assigned by either party to this Agreement, provided, however , that LGI and SplitCo Sub may assign their respective rights, interests, duties, liabilities and obligations under this Agreement to any of their respective wholly-owned Subsidiaries, but such assignment shall not relieve the assignor of its obligations hereunder.

 

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(g)   Amendment . Any amendment, modification or supplement of or to any term or condition of this Agreement will be effective only if in writing and signed by both parties hereto.

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

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

(j)   Counterparts; Electronic Signature . This Agreement may be executed in separate counterparts, each of which shall be considered an original, and all of which together shall constitute one instrument. Counterparts to this Agreement may be delivered via .PDF or other electronic means.

[ Signature page follows ]

 

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If the foregoing meets with your approval, kindly execute below and return a copy to the undersigned.

 

Very truly yours,

LIBERTY GLOBAL INC.

By:      
  Name:  
  Title:  

Accepted and agreed this __th day of December, 2017:

LiLAC COMMUNICATIONS INC.

By:    
  Name:
  Title:

 

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Exhibit 10.7

SUBLEASE

THIS SUBLEASE is made and entered into this 29 th day of December, 2017 by and between Liberty Global, Inc., a Delaware corporation (“Sublessor”) and LiLAC Communications Inc., a Delaware corporation (“Sublessee”).

W I T N E S S E T H :

WHEREAS, Sublessor is the lessee under that certain Office Lease dated February 9, 2015, by and between Union Investment Real Estate GmBH, successor in interest to Triangle at Union Station Development, LLC (“Lessor”), as lessor and Sublessor, as lessee, as amended by that certain First Amendment to Office Lease as of December 7, 2015 and that certain Second Amendment to Office Lease as of November 15, 2016 (as amended, the “Master Lease”), whereby Lessor leased to Sublessor certain space (“Premises”) in the building located at 1550 Wewatta Street, known as the Triangle Building in the City and County of Denver, Colorado, more particularly described in the Master Lease (the “Building”);

WHEREAS, Sublessee desires to sublease from Sublessor a portion of the Premises, as described below.

NOW, THEREFORE, the parties hereto, for themselves, their successors and assigns hereby covenant and agree as follows:

1.         Sublease .

(a)      Sublessor hereby subleases to Sublessee and Sublessee hereby subleases from Sublessor 18,464 square feet in the Building including 14,473 square feet on the 7 th floor and 3,991 square feet on the 8 th floor, as shown on the floor plan annexed to this Sublease (the “Sublease Premises”), for the term hereinafter stated, for the rent hereinafter reserved and upon and subject to the covenants, agreements, terms and conditions, limitations, exceptions and reservations hereinafter set forth.

(b)      Sublessee shall also have the nonexclusive right to use, in cooperation with Sublessor, the Telenet conference room on the 8 th floor, the Telepresence conference room on the 9 th floor, the gym on the 8 th floor, and the café and café terrace on the 10 th floor of the Building (the “Sublease Common Areas”); provided, however, that Sublessee’s right to use the Telenet conference room and the Telepresence conference room is subject to availability as determined through the use of Sublessor’s designated scheduling software. Sublessee shall have the further right to share the receptionist and reception related services on the 10 th floor of the Building with Sublessor.

(c)      Furthermore, Sublessee may, from time to time, submit a written request to Sublessor to use the Boardroom on the 10 th floor of the Building or the Schneider Commons on the 8 th floor of the Building (together, the “Additional Facilities”). Sublessee’s use of such Additional Facilities shall be subject to availability and mutual agreement on a usage fee to be paid to Sublessor.


2.       Term . The initial term of this Sublease (“Initial Term”) shall commence on January 1, 2018 (the “Commencement Date”), and shall continue until the termination or expiration of the Master Lease (the parties acknowledge that the current expiration date is May 31, 2031), unless earlier terminated in accordance with the terms and conditions of this Sublease. If Sublessor permits Sublessee to take possession of the Sublease Premises prior to the commencement of the Initial Term, such early possession shall not advance the expiration date of this Sublease and shall be subject to the provisions of this Sublease, except for those provisions relating to the payment of Rent.

3.       Modification of Sublease Premises . Sublessee may, from time to time, submit a written request to Sublessor to sublease additional space within the Premises, and Sublessor shall reasonably accommodate such requests, subject to availability and the terms of this Paragraph 3. Sublessor shall notify Sublessee within ten (10) business days following receipt of any such request as to whether Sublessor will be able to accommodate such request. At least sixty (60) days prior to the end of any calendar year in which the number of square feet within the Sublease Premises has increased, Sublessor shall deliver to Sublessee a written statement (“Rent Adjustment Statement”) setting out in reasonable detail the adjusted Rent for such calendar year, taking into account the changes in the Sublease Premises, and Sublessee shall pay the difference between the adjusted Rent and the Rent actually paid for such calendar year to Sublessor without interest within thirty (30) days after the date of delivery of the Rent Adjustment Statement. Additionally, promptly after the delivery of the Rent Adjustment Statement, Sublessor and Sublessee shall execute an amendment to this Sublease documenting the adjustments to the Sublease Premises and the Rent payable hereunder.

4.         Termination of Sublease .

(a)      Sublessor may terminate this Sublease upon thirty (30) days’ prior written notice to Sublessee in the event of a Change in Control (defined below) of Sublessee or the occurrence of a Bankruptcy Event (defined below) with respect to Sublessee. For purposes of this Sublease, a “Change in Control” will be deemed to have occurred with respect to any individual, corporation, company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind (a “Person”) if any of the following occur: (a) the direct or indirect sale, transfer, conveyance or disposition, in one or a series of related transactions, of all or substantially all of the consolidated properties or assets of such specified Person to any other Person, other than an Affiliate of such specified Person, or (b) any transaction or series of related transactions pursuant to which the holders of all voting interests of such specified Person immediately prior to such transaction(s) would hold, directly or indirectly, in the aggregate, less than fifty percent (50%) of the total voting interests of such specified Person (or the entity surviving or resulting from such transaction(s), or the ultimate parent entity thereof) following such transaction(s).

For purposes of this Sublease, an “Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person. For purposes of this Paragraph 4(a), Liberty Global plc, a public limited company organized under the laws of England and Wales (“Parent”) and Sublessor shall not be regarded as Affiliates of Sublessee. For purposes of this definition, “control” (including the terms “controlled by” and “under

 

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common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise.

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

(b)      Sublessee may terminate this Sublease upon thirty (30) days’ prior written notice to Sublessor in the event of a Change in Control of Sublessor or the occurrence of a Bankruptcy Event with respect to Sublessor.

(c)      Sublessee may terminate this Sublease if any of Sublessor, Parent or any of Parent’s subsidiaries and Affiliates is not the tenant under the Master Lease, or Sublessor otherwise assigns its right or obligations as tenant under the Master Lease. In any such event, Sublessor shall provide written notice (the “Assignment Notice”) to Sublessee. Sublessee may terminate this Sublease within thirty (30) days of receipt of the Assignment Notice, such termination notice from Sublessee to Sublessor shall designate the termination date, provided that the termination date set forth in Sublessee’s termination notice must not be later than one (1) year after the date of Sublessee’s receipt of the Assignment Notice.

5.         Vacation of Sublease Premises by Sublessor . Sublessor shall vacate the Sublease Premises no later than the Commencement Date.

6.         Rent .  Sublessee covenants and agrees to pay a fixed annual rent (“Rent”) in the initial amount of Thirty Two Dollars and Thirty Five Cents ($32.35) per square foot of Rentable Area (as defined in the Master Lease) within the Sublease Premises, which shall be due and payable in monthly installments on the first day of each and every calendar month during the Term, except the month in which the Commencement Date occurs, in which month Rent shall be due and payable within 15 days of the Commencement Date. The Rent shall increase periodically as provided in the Master Lease such that the Rent for the Sublease Premises is the same per square foot amount as the rent payable under the Master Lease for the Premises at all times during the Term. If this Sublease shall commence on a day other than the first day of a month, or shall expire on a day other than the last day of a month, Rent for such month shall be prorated based on a ratio the numerator of which shall be the number of days during such month that this Sublease was in effect and the denominator of which shall be the total number of days in such month. Rent and other charges herein reserved or payable shall be paid to Sublessor at the address set forth in the notice section below, or at such place as Sublessor may designate, in lawful money of the United States of America by wire transfer of funds in accordance with the

 

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wiring instructions set forth on Exhibit A attached hereto, as and when the same become due and payable, without demand therefor and without any deduction, set-off or abatement whatsoever. All sums payable under this Sublease shall, from and after ten (10) business days’ notice that such payment is due, bear interest at the lesser of twelve percent (12%) per annum or the maximum non-usurious interest rate from the date due until paid.

7.         Additional Rent . Sublessee shall pay as additional rent Sublessee’s proportionate share of the Additional Rent (as defined in Paragraph 3 of the Master Lease). Sublessee’s proportionate share of the Additional Rent shall be calculated as a fraction, the numerator of which shall be the number of square feet of Rentable Area in the Sublease Premises and the denominator of which shall be the number of square feet of Rentable Area in the Premises. The current Additional Rent as of the Commencement Date shall be Sixteen Dollars ($16.00) per square foot of Rentable Area within the Sublease Premises, which shall be due and payable in monthly installments on the first day of each and every calendar month during the Term, except the month in which the Commencement Date occurs, in which month Additional Rent shall be due and payable within 15 days of the Commencement Date. Sublessor shall, as soon as reasonably practical, notify Sublessee of any change to the Additional Rent.

8.         Use . Sublessee shall use and occupy the Sublease Premises for the general purpose of executive and general office use and for no other purpose. Sublessee will not use or suffer or permit the use of the Sublease Premises, or any part thereof, in any manner which would violate any applicable laws, rules, regulations, codes or ordinances or applicable provisions of the Master Lease.

9.         Condition of the Sublease Premises . Sublessee accepts the Sublease Premises and all leasehold improvements in their presently existing condition, “AS IS, WHERE IS”, and Sublessor makes no warranties or representations with respect thereto, including without limitation any warranties of habitability, suitability or fitness for any particular purpose.

10.         Assignment and Sublease . Sublessee will not, without Sublessor’s (and if the Master Lease so requires, Lessor’s) prior written consent (to be granted or withheld in Sublessor’s sole and absolute discretion) in each instance, by operation of law or otherwise, assign, mortgage or encumber this Sublease or sublease all or any part of the Sublease Premises, or permit the Sublease Premises or any part thereof to be used or occupied by others.

11.         Master Lease .

(a)        This Sublease is subject to and Sublessee accepts this Sublease subject to all of the terms, covenants, provisions, conditions and agreements contained in the Master Lease and the matters to which the Master Lease is subject and subordinate. This Sublease shall also be subject to and Sublessee accepts this Sublease also subject to any amendments and supplements to the Master Lease hereafter made between Lessor and Sublessor, provided that any such amendment or supplement to the Master Lease will not materially and adversely affect Sublessee’s use of the Sublease Premises in accordance with the terms of this Sublease. Sublessee covenants and agrees (i) to perform and to observe all of the terms, covenants, conditions and agreements of the Master Lease on Sublessor’s part to be performed other than the payment of the rent therein set forth, and (ii) that Sublessee will not do or cause to be done or

 

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suffer or permit any act or thing to be done which would or might cause the Master Lease or the rights of Sublessor as lessee thereunder to be canceled, terminated or forfeited or make Sublessor liable for any damages, claim or penalty.

(b)        Except as modified by specific provisions of this Sublease, all of the terms, covenants, conditions and agreements of the Master Lease, other than the payment of the rent therein set forth, are incorporated in and made a part of the Sublease as though fully set forth herein and the term “Landlord” in the Master Lease shall refer to Sublessor hereunder, the term “Tenant” in the Master Lease shall refer to Sublessee hereunder, and references to the “Premises” in the Master Lease shall refer to the Sublease Premises, except for the following: Section 18(d) (Generator Rights), Section 20 (Right of First Offer), Section 21 (Option to Renew), Section 22 (Right of First Refusal), Section 23 (Contraction Option), Section 24 (Roof Rights), Section 25 (Tenant’s Security System), and Section 26 (Purchase Rights).

(c)        In the event of and upon the termination or cancellation of the Master Lease pursuant to the terms and provisions thereof, this Sublease shall automatically cease and terminate.

(d)        As soon as reasonably practical following any amendment or modification of the Master Lease, Sublessor shall provide Sublessee written notice summarizing such amendment or modification.

(e)        In the event of any default on the part of Sublessee under any of the terms, provisions, covenants or agreements of the Master Lease or of this Sublease, Sublessor shall have the same rights and remedies against Sublessee under this Sublease as are available to Lessor against Sublessor under the provisions of the Master Lease, plus any additional remedies specifically provided herein or otherwise available at law or in equity.

12.         Indemnity .

(a)        From and after the date hereof, Sublessee hereby agrees to indemnify and hold harmless Sublessor and its officers, directors, agents and employees from and against all liability, claims, suits, demands, damages, judgments, costs, interest and expenses (including, without limitation, reasonable attorneys’ fees and court costs) that Sublessor or any officer, director, agent or employee of Sublessor may sustain or incur arising out of or otherwise related to (x) the lawful use or occupancy of the Sublease Premises by Sublessee or of any business conducted therein, (y) any breach or default under this Sublease by Sublessee or (z) any negligence or willful misconduct of Sublessor or any of its agents, contractors, employees, business invitees or licensees.

(b)        Except in the event of the negligence or willful misconduct of Sublessee or any of its agents, contractors, employees, business invitees or licensees, from and after the date hereof, Sublessor hereby agrees to indemnify and hold harmless Sublessee and its officers, directors, agents and employees from and against all liability, claims, suits, demands, damages, judgments, costs, interest and expenses (including, without limitation, reasonable attorneys’ fees and court costs) that Sublessee or any officer, director, agent or employee of Sublessee may sustain or incur arising out of or otherwise related to (x) the lawful use or occupancy of the

 

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Premises (other than the sublease premises) by Sublessor or of any business conducted therein, or (y) any breach or default under the Master Lease or this Sublease by Sublessee.

13.         Lessor Services and Repairs . Sublessee shall be entitled to the services and repairs which the Lessor is and may be obligated to furnish or make to or in the Sublease Premises pursuant to the terms of the Master Lease. Sublessor shall exercise reasonable diligence in attempting to cause Lessor to perform its obligations under the Master Lease, but Sublessor shall otherwise have no liability whatsoever for the obligations of Lessor under the Master Lease.

14.         Repairs to the Sublease Common Areas and Additional Facilities . Sublessor shall make all necessary repairs to the Sublease Common Areas and Additional Facilities which Sublessor is and may be obligated to furnish or make pursuant to the terms of the Master Lease; provided, however, that Sublessee shall upon demand pay for the actual third-party cost of repairs made necessary by any negligence or willful misconduct of Sublessee or any of its employees or their respective agents, representatives, contractors, or other person permitted in or invited to the Premises by Sublessee. Damage to the Sublease Common Areas or Additional Facilities shall not in any way affect Sublessee’s obligation to pay Rent.

15.         Parking . Sublessee shall be entitled to the use of a total of twenty one (21) of Sublessor’s on site, underground parking spaces located in the parking garage of the Project (as defined in the Master Lease), of which one (1) shall be reserved parking space #[●], four (4) shall be reserved tandem parking spaces #[●] and #[●] and sixteen (16) shall be unreserved parking spaces. Sublessee’s use of the parking spaces shall be subject to the rights and restrictions in Paragraph 18(a) of the Master Lease. The fee for such parking spaces shall be at the rate charged to Sublessor pursuant to Item 12 of the Basic Lease Provisions of the Master Lease, as adjusted by Lessor from time to time in accordance with the Master Lease, which shall be due and payable in monthly installments on the first day of each and every calendar month during the Term, except the month in which the Commencement Date occurs, in which month such fee shall be due and payable within 15 days of the Commencement Date. Sublessee may submit a written request to Sublessor for the use of additional parking spaces from time to time and Sublessor shall accommodate such requests, subject to availability.

16.         Holdover . If Sublessee shall remain in possession of the Sublease Premises after the expiration or termination of this Sublease, Sublessee shall be deemed a tenant-at-will and Sublessee shall pay to Sublessor, upon demand, any holdover rent which may become due by Sublessor to Lessor under the Master Lease, and shall indemnify and hold harmless Sublessor from all other damages and claims, by reason of Sublessee’s holding over. No such holding over by Sublessee, or any consent thereto by Lessor, shall operate to extend the Term of this Sublease.

17.         No Waiver . The failure of Sublessor to seek redress for violation of, or to insist upon the strict performance of, any covenant or condition of this Sublease, shall not prevent a subsequent act or omission, which would have originally constituted a violation, from having all the force and effect of an original violation. The receipt by Sublessor of Rent with knowledge of the breach of any covenant of this Sublease shall not be deemed a waiver of such breach.

 

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18.         Alterations and Additions .        Sublessee shall make no alterations, installations, additions or improvements in or to the Sublease Premises without Sublessor’s and Lessor’s prior written consent in accordance with Paragraph 4(c) of the Master Lease. Any such alterations, installation, additions or improvements shall be made at Sublessee’s sole cost and expense.

19.         Sublessee’s Personal Property .    Sublessee agrees to remove all of its furniture, equipment, trade fixtures and other movable personal property on or before the date of expiration or earlier termination of this Sublease, and repair all damage done to the Sublease Premises or the Building by such removal and repairs. All such personal property remaining in the Sublease Premises after expiration or earlier termination of this Sublease shall be deemed abandoned and may, at the election of Sublessor, either be retained as Sublessor’s property or be removed from the Sublease Premises by Sublessor at Sublessee’s expense. Sublessee shall not remove any furniture, equipment, trade fixtures or other movable personal property of Sublessor from the Sublease Premises at any time.

20.         Surrender . Upon the expiration or earlier termination of this Sublease, Sublessee shall vacate and surrender the Sublease Premises in good order and condition, ordinary wear and tear from normal use thereof and permitted alterations, installations, additions or improvements excepted.

21.         Insurance . Sublessee shall maintain, without expense to Sublessor, (i) a policy or policies of commercial general liability insurance providing coverage that meets or exceeds the requirements of Paragraph 8(e)(i) of the Master Lease; (ii) worker’s compensation insurance to the statutory limit, if any, and employer’s liability insurance to the limit of $500,000 per occurrence; and (iii) All Risk or special purpose personal property insurance meeting or exceeding the requirements of Paragraph 8(e)(i) of the Master Lease. In addition, Sublessee shall cause all contractors performing any work in or around the Sublease Premises to obtain insurance in such forms and with such limits as reasonably required by Lessor. For the risks and liabilities assumed by Sublessee under this Sublease, Sublessor shall be named an additional insured on Sublessee’s commercial general liability insurance. The required policies shall be issued by and binding upon an insurance company or companies authorized to do business in Colorado and which have policyholder ratings not lower than “A-” and financial ratings not lower than “VII” in Best’s Insurance Guide (latest edition in effect as of the date of this Sublease and subsequently in effect as of the date of renewal of the required policies). Sublessee shall pay such premiums in full on or before the due dates. Each of such policies, to the extent practical, shall provide a waiver of subrogation provision or endorsement in favor of Lessor and Sublessor. Sublessee shall provide to Sublessor thirty (30) days prior written notice of any cancellation, nonrenewal, or reduction of said policies. In addition, Sublessee shall cause all of its contractors performing any work in or around the Sublease Premises to obtain insurance in such forms and with such limits as reasonably required by Lessor, including and not limited to any insurance required under Exhibit B to the Master Lease.

22.         Administration . This Sublease shall be administered by a joint steering committee (the “Joint Steering Committee”) comprised of four (4) members, and each of Sublessor and Sublessee shall be entitled to appoint an equal number of representatives to the Joint Steering Committee. The Joint Steering Committee shall be authorized to take such actions

 

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in connection with or in relation to this Sublease as it deems necessary or advisable. Each action and determination made or taken pursuant to this Sublease by the Joint Steering Committee, including any interpretation or construction of this Sublease, shall be final and conclusive for all purposes. No member of the Joint Steering Committee shall be liable for any action or determination made or taken by him or her or the Joint Steering Committee in good faith with respect to this Sublease.

23.         Notices . Any notice, request or demand permitted or required to be given by the terms and provisions of this Sublease or by any law or governmental regulation by either party to the other hereunder shall be in writing. Unless otherwise required by such law or regulation, such notice, request or demand shall be sent by certified or registered mail, return receipt requested or by reliable messenger or overnight delivery with a company that maintains regular records of delivery or receipt or by electronic mail:

To Sublessor:

Liberty Global, Inc.

1550 Wewatta Street, Suite 1000

Denver, Colorado 80202

Attn: General Counsel

E-mail: Separately Provided

To Sublessee:

LiLAC Communications Inc.

1550 Wewatta Street, Suite 710

Denver, Colorado 80202

Attn: General Counsel

E-mail: Separately Provided

Either party may, by notice as aforesaid, designate a different address or addresses for notices, requests or demands to it.

24.         Successors and Assigns . The covenants, agreements, terms, provisions and conditions of this Sublease shall bind and inure to the benefit of the respective successors and assigns of the parties hereto with the same effect as if mentioned in each instance where a party hereto is named or referred to, except that no violation of the provisions of Paragraph 10 shall operate to vest any rights in any successor, assignee or legal representative of Sublessee.

25.         Governing Law . Colorado law shall be used in interpreting this Sublease and in determining the rights of the parties under it.

26.         Arbitration . Any controversy, claim or dispute arising out of or in any way relating to this Sublease (including whether such controversy, claim or dispute is subject to arbitration), excepting only (i) claims that may not, by statute, be arbitrated and (ii) claims for which specific performance of the other party’s obligations hereunder is the only adequate

 

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remedy, will be submitted to binding arbitration. Each Sublessor and Sublessee acknowledges that they are relinquishing their right to a jury trial. Each of Sublessor and Sublessee agrees that arbitration will be the exclusive method for resolving disputes arising out of or related to this Sublease.

Arbitration will be commenced and heard in the Denver, Colorado metropolitan area. Only one arbitrator will preside over the proceedings, who will be selected by agreement of the parties from a list of five or more qualified arbitrators provided by the arbitration tribunal, or if the parties are unable to agree on an arbitrator within ten (10) business days following receipt of such list, the arbitration tribunal will select the arbitrator. The arbitrator will apply the substantive law (and the law of remedies, if applicable) of Colorado or federal law, or both, as applicable to the claim(s) asserted. In any arbitration, the burden of proof will be allocated as provided by applicable law. The arbitrator will have the authority to award any and all legal remedies authorized by the law applicable to the claim(s) being asserted in the arbitration, as if the claim(s) were brought in a federal court of law. Either party may bring an action in court to compel arbitration under this Sublease and to enforce an arbitration award. Discovery, such as depositions or document requests, will be available to Sublessor and Sublessee as though the dispute were pending in U.S. federal court. The arbitrator will have the ability to rule on pre-hearing motions as though the matter were in a U.S. federal court, including the ability to rule on a motion for summary judgment.

If permitted by applicable law, the fees of the arbitrator and any other fees for the administration of the arbitration will be shared equally by the parties. Each party will pay its own attorneys’ fees and other costs incurred in connection with the arbitration, unless the relief authorized by law allows otherwise and the arbitrator determines that such fees and costs will be paid in a different manner. The arbitrator must provide a written decision that is subject to limited judicial review consistent with applicable law. If any part of this arbitration provision is deemed to be unenforceable by an arbitrator or a court of law, that part may be severed or reformed so as to make the balance of this arbitration provision enforceable.

27.         Brokers and Costs . Sublessor and Sublessee each warrant and represent that they have had no dealings with any brokers or agents in connection with this transaction, which would give rise to a claim for commission with respect to this Sublease. Sublessee shall reimburse Sublessor for fifty percent (50%) of all costs and expenses payable pursuant to Paragraph 11 (f) of the Master Lease.

28.         Counterparts; Electronic Signature . This Sublease may be executed in separate counterparts, each of which shall be considered an original, and all of which together shall constitute one instrument. Counterparts to this Sublease may be delivered via PDF or other electronic means.

 

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SUBLESSOR:

   

SUBLESSEE:

Liberty Global, Inc.

   

LiLAC Communications Inc.

By:

 

 

   

By:

 

 

 

Name:

 

 

     

Name:

 

 

 

Title:

 

 

     

Title:

 

 

 

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Annex A

 

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List of Omitted Exhibits

The following exhibit to the Sublease, dated as of December 29, 2017, by and between Liberty Global, Inc. and LiLAC Communications Inc. has not been provided herein:

Exhibit A – Wiring Instructions

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