Document:

Form of Termination Agreement among Liberty Media International, Inc., Liberty

 Exhibit 10.40 
  
 March 2004 
  
 LIBERTY MEDIA INTERNATIONAL, INC. 
  
 LIBERTY UK HOLDINGS, INC. 
  
 LIBERTY UK, INC. 
  
 TELEWEST COMMUNICATIONS PLC 
  

  
 TERMINATION AGREEMENT 
  

  
 [GRAPHIC] 
  

 FORM OF TERMINATION AGREEMENT 
  
 THIS AGREEMENT is made on March 2004 
  
 BETWEEN: 
  
 LIBERTY MEDIA INTERNATIONAL, INC., a company incorporated in Delaware, USA whose principal place of business is 12300 Liberty Media Boulevard, Englewood, Colorado 80112 USA (Liberty International)
(formerly known as Tele-Communications International, Inc.); 
  
 LIBERTY
UK HOLDINGS, INC., a company incorporated in Delaware, USA whose principal place of business is 12300 Liberty Media Boulevard, Englewood, Colorado 80112 USA (Liberty UK Holdings); 
  
 LIBERTY UK, INC., a company incorporated in Colorado, USA whose principal place of
business is 12300 Liberty Media Boulevard, Englewood, Colorado, 80112 USA (formerly known as United Artists Programming – Europe, Inc.) (Liberty UK); and 
  
 TELEWEST COMMUNICATIONS PLC, registered number 2983307, whose registered office is at Export House, Cawsey Way, Woking, Surrey GU21
6QX (Telewest). 
  
 WHEREAS: 
  
 (A) Certain parties to this Agreement, together with (i) MediaOne International Holdings,
Inc.,; (ii) MediaOne UK Cable, Inc. and (iii) MediaOne Cable Partnership Holdings, Inc. (together, the MediaOne Shareholders), are parties to a relationship agreement dated 21 May 1999 (the 1999 First Relationship
Agreement). 
  
 (B) The parties to this Agreement, together with the
MediaOne Shareholders, are parties to a Revised Existing Relationship Agreement dated as of 3 March 2000, which replaced, to the extent provided in that agreement, the 1999 First Relationship Agreement (the 2000 First Relationship
Agreement). 
  
 (C) Microsoft Corporation subsequently agreed, pursuant to
the Microsoft MediaOne Purchase Agreement, to acquire or merge certain of its Affiliates with the MediaOne Shareholders. 
  
 (D) The parties to this Agreement are also parties to a Revised New Relationship Agreement, as amended by an amendment agreement dated as of 18 May 2001, which is
expressed to have effect as of 3 March 2000 and which replaced, to the extent provided in that agreement, the 2000 First Relationship Agreement (the Revised New Relationship Agreement). 
  
 (E) The parties to this Agreement have agreed, conditional upon the scheme of arrangement of
Telewest becoming effective, to terminate the provisions of the 1999 

  

 Page 1 

 
First Relationship Agreement, the 2000 First Relationship Agreement and the Revised New Relationship Agreement on the terms set out in this Agreement.

  
 IT IS
AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  
 1.1 In this Agreement, the following terms and expressions shall have the following meanings, unless the context otherwise requires:

  
 Affiliate means, with respect to any Person, any other Person
directly or indirectly Controlling, directly or indirectly Controlled by or under direct or indirect common Control with such Person; 
  
 Commitment Letter means the letter agreement between, among others, Telewest, Telewest Communications Networks Limited, Telewest Global, Inc. and CIBC World
Markets plc (as agent on behalf of the Telewest group’s senior lenders) in relation to the provision of certain credit facilities and the agreement of an amended and restated facility agreement; 
  
 Control means, with respect to any Person, the possession, directly or
indirectly, by another Person of the power to direct or cause the direction of the management or policies of such Person, whether through equity ownership, by contract or otherwise, but a Person shall not be deemed to Control another Person solely
by virtue of any veto rights granted to it as a minority equity owner or by virtue of super majority voting rights and the words Controlled and Controlling shall be construed accordingly; 
  
 Jersey Scheme means the proposed scheme of arrangement of Telewest Finance
(Jersey) Limited as contemplated by the Financial Restructuring (as defined in the voting agreement between Liberty International, Telewest and others); 
  
 Limited Voting Shares means the limited voting convertible ordinary shares of Telewest having the rights set out in the
articles of association of Telewest; 
  
 Microsoft MediaOne Purchase
Agreement means the merger agreement between Microsoft, MediaOne UK Cable, Inc., MediaOne Cable Partnership Holdings, Inc., MediaOne Group, Inc. and MediaOne International Inc. dated 4 October 1999; 
  
 Ordinary Shares means the ordinary shares, 10p par value, of Telewest;

  
 Person means an individual, corporation, general or limited
partnership, limited or unlimited liability company, trust, association, unincorporated organisation, government or any authority, agency or body thereof, or other entity; 
  
 Scheme means the proposed scheme of arrangement of Telewest as contemplated by the Financial Restructuring (as defined in the
voting agreement between Liberty International, Telewest and others); 
  
 Shares means the Ordinary Shares and the Limited Voting Shares. 
  

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 1.2 In this Agreement, unless the context otherwise requires: 
  

	(a)	the headings are inserted for convenience only and shall not affect the construction of this Agreement; 

  

	(b)	unless the context otherwise requires, the singular shall include the plural and vice versa, and references to persons shall include body corporates, unincorporated associations and
partnerships; and 

  

	(c)	references to any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any other legal concept
shall, in respect of any jurisdiction other than England, be deemed to include the legal concept which most nearly approximates in that jurisdiction to the English legal term; and 

  
 Transfer Agreement means the conditional agreement relating to the transfer of
Telewest’s assets and liabilities to Telewest UK Limited as part of the Financial Restructuring (as defined in the voting agreement between Liberty International, Telewest and others) made between, inter alia, Telewest, Telewest Global,
Inc., and Telewest UK Limited. 
  

	2.	CONDITIONALITY 

  
 2. This Agreement is in all respects conditional upon the Scheme becoming effective on or before the later of 90 days after the date of the Commitment Letter or 60 days
after the date of any vote by creditors to approve the Scheme and the Jersey Scheme, subject to such vote occurring on or before 75 days after the date of the Commitment Letter. 
  

	3.	TERMINATION 

  
 3. Each party agrees (on its own behalf and as agent for each of its Affiliates that are party to the 1999 First Relationship Agreement and the 2000 First Relationship
Agreement) that, and with effect from the effective date of the Scheme, in consideration for the mutual promises set out in this Agreement, each of the following agreements: 
  

	(a)	the 1999 First Relationship Agreement; 

  

	(b)	the 2000 First Relationship Agreement; and 

  

	(c)	the Revised New Relationship Agreement, 

  
 shall be terminated and all rights, interests, undertakings, liabilities and obligations of that party (or any of its relevant Affiliates as the case may be), whether
past, present or future shall be irrevocably released, discharged and satisfied. 
  

 Page 3 

	4.	WARRANTIES 

  
 4.1 Telewest warrants that: 
  

	(a)	since the withdrawal by the Liberty Group (as defined in the Revised New Relationship Agreement) of its three non-executive directors from the Company’s board of directors on
17 July 2002, neither Telewest nor any other company in its group of companies has taken any action that would have required the written consent of the Liberty Group (as defined in the Revised New Relationship Agreement) pursuant to clause 13.1
(“Gain Recognition Consent Requirements and Conversion”) of the Revised New Relationship Agreement without such written consent having been obtained; and 

  

	(b)	to the knowledge of the current directors of Telewest, Telewest having made due and proper enquiry of them, neither Telewest nor any other company in its group of companies took any
such action prior to 17 July 2002 without such written consent having been obtained. 

  
 4.2 The warranties given by Telewest in clause 4.1 above are: 
  

	(a)	in addition and without prejudice to the undertakings given by Telewest Global, Inc. contained in clause 2(c) of the voting agreement between Liberty International, Telewest and
others; and 

  

	(b)	given as at the date of this Agreement and shall be deemed to be repeated and given as at, and on the date of, the effective date of the Scheme and the Jersey Scheme by reference to
the facts and circumstances then existing. 

  

	5.	FURTHER ACTS 

  
 5. Each party agrees to execute, give or perform, or use all reasonable endeavours to procure that its relevant Affiliates shall execute, give or perform, all such
assurances, deeds, acts and things as may be necessary in connection with the termination of the rights, interests, undertakings, liabilities and obligations of that party (or any of its relevant Affiliates as the case may be) as set out in clause
3. 
  

	6.	COUNTERPARTS 

  
 6. This Agreement may be entered into in any number of counterparts and by the parties to it on separate counterparts, each of which, when executed and delivered, shall
be an original, but all the counterparts shall together constitute one and the same instrument. 
  

	7.	SEVERABILITY 

  
 7. If any provision of this Agreement is, or is held to be, invalid or unenforceable, then such provision shall (so far as it is invalid or unenforceable) be given no
effect and shall be deemed not to be included in this Agreement, but without invalidating any of the remaining provisions of this Agreement. 
  

 Page 4 

	8.	NOTICES 

  
 8.1 Any notice under this Agreement shall be in writing and signed by or on behalf of the party giving it and may be served by leaving it or sending it by fax, prepaid
recorded delivery or registered post (and air mail if overseas) to the address and for the attention of the party receiving it set out in clause 8.2 or as otherwise notified under this Agreement. In the absence of evidence of earlier receipt, any
notice so served shall be deemed to have been received: 
  

	(a)	if delivered personally, when left at the relevant address; 

  

	(b)	if sent by first class mail to an address in the United Kingdom, 48 hours after posting it; 

  

	(c)	if sent by air mail to an address outside the United Kingdom, 72 hours after posting it; or 

  

	(d)	if sent by fax, on receipt of confirmation of its transmission. 

  
 8.2 The current addresses of the parties for the purpose of clause 8.1 are set out below. These may be altered by the parties by notice to the other parties at any time:

  

			
	 Liberty International,
 Liberty UK Holdings and
 Liberty UK:
	 	 12300 Liberty Boulevard
 Englewood
 Colorado 80112 USA

		
	 	 	 For the attention of: Charles Tanabe
 Fax: 00 1 720 875 5382
 and
 For the attention of: Robert Bennett
 Fax: 00 1 720 875 5434

		
	 Telewest:
	 	 160 Great Portland Street
 London W1N 5TB

		
	 	 	 For the attention of: Company Secretary
 Fax: 020 7299 5494

  

	9.	ASSIGNMENT 

  
 9. No party may assign or transfer all or any of its rights or obligations under this Agreement or dispose of any right or interest in this Agreement without the prior
written consent of the other parties except in connection with the Transfer Agreement. 
  

	10.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 

  
 10. A person who is not a party to this Agreement shall have no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any of its terms. 
  

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	11.	GOVERNING LAW 

  
 11.1 This Agreement is governed by and shall be construed in accordance with English law. 
  
 11.2 The courts of England have exclusive jurisdiction to hear and decide any suit, action or proceeding, and to settle any disputes, which
may arise out of or in connection with this Agreement (respectively, Proceedings and Disputes) and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of England. 
  
 11.3 Each party irrevocably waives any objection which it might at any time have to the
courts of England being nominated as the forum to hear and decide any Proceedings and to settle any Disputes and agrees not to claim that the courts of England are not a convenient or appropriate forum. 
  
 11.4 Process by which any Proceedings are begun in England may be served on any party by
being delivered in accordance with clause 8 or may be served on the parties without addresses in England (as set out in clause 8.2 above) by being delivered to the agents at the addresses indicated below (or such other agent or address as the party
in question may notify to the other parties): 
  

			
	 Liberty International, Liberty UK
 and Liberty UK Holdings:
	 	 [Grays Inn Secretaries Limited
 5 Chancery Lane
 London EC4 1BU

		
	 	 	 For the attention of [________]
 Fax: 0207 404 0087]

  
 Nothing contained in this clause 11.4
affects the right to serve process in another manner permitted by law. 
  
 IN WITNESS WHEREOF the parties have caused this Agreement to be executed as a deed on the day and year first before written. 
  

 Page 6 

					
	EXECUTED as a DEED by	  	 )
	  	 
	LIBERTY MEDIA	  	 )
	  	 
	INTERNATIONAL, INC.	  	 )
	  	 
	a company incorporated in Delaware	  	 )
	  	 
	acting by	  	 )
	  	 
	and	  	 )
	  	 
	being persons who, in accordance with the	  	 )
	  	 
	laws of that territory, are acting under the	  	 )
	  	 
	authority of that company	  	 )
	  	 
			
	EXECUTED as a DEED by	  	 )
	  	 
	LIBERTY UK HOLDINGS, INC.	  	 )
	  	 
	a company incorporated in Delaware	  	 )
	  	 
	acting by	  	 )
	  	 
	and	  	 )
	  	 
	being persons who, in accordance with the	  	 )
	  	 
	laws of that territory, are acting under the	  	 )
	  	 
	authority of that company	  	 )
	  	 
			
	EXECUTED as a DEED by	  	 )
	  	 
	LIBERTY UK, INC.	  	 )
	  	 
	a company incorporated in Colorado	  	 )
	  	 
	acting by	  	 )
	  	 
	and	  	 )
	  	 
	being persons who, in accordance with the	  	 )
	  	 
	laws of that territory, are acting under the	  	 )
	  	 
	authority of that company	  	 )
	  	 
			
	EXECUTED as a DEED by	  	 )
	  	 
	TELEWEST COMMUNICATIONS PLC	  	 )
	  	 
	acting by two directors/	  	 )
	  	 
	a director and the secretary	  	 )
	  	 

  
  

 Page 7Form of Voting Agreement of IDT Corporation relating to the voting of its

 Exhibit 10.41 
  
 TELEWEST COMMUNICATIONS PLC 
  

TELEWEST FINANCE (JERSEY) LIMITED 
  
 IDT CORPORATION 
  
 FORM OF VOTING AGREEMENT 
  
 This Agreement (as the same may be amended, modified or supplemented from time to time in accordance with the terms hereof, this “Agreement”) is entered into by (i) Telewest Communications plc
(“Telewest” or the “Company”), (ii) Telewest Finance (Jersey) Limited (“Telewest Jersey”) and (iii) IDT Corporation on behalf of itself and each of its subsidiaries (as defined in section 736 of the Companies Act 1985,
as amended (the “1985 Act”)) (“IDT”). IDT shall procure that the registered owners of certain shares in the Company vote in connection with a proposed financial restructuring of the Company and Telewest Jersey, the principal
terms of which are described in Appendix 1 attached hereto (the “Financial Restructuring”). 
  
 This Agreement is also entered into pursuant to the term sheet dated 14 August 2003 (the “Term Sheet”) entered into by the Company, Telewest
Jersey, various holders of certain high yield notes issued by the Company and Telewest Jersey (the “Notes”), Liberty Media Corporation (“Liberty”) and IDT relating to the Financial Restructuring. 
  
 The Financial Restructuring is to be implemented through (i) the completion
of the proceedings and actions referred to in this Agreement and any proceeding or arrangement that the Company, Telewest Jersey, each of the noteholders who are signatories to the Term Sheet (the “Specified Noteholder Group”) and Liberty
may agree in writing to be necessary under English, Jersey and U.S. law (collectively, the “Proceedings”), which includes the following: a scheme of arrangement of the Company (the “Plc Scheme”) under section 425 of the 1985 Act;
a scheme of arrangement of Telewest Jersey (the “Jersey Scheme”) under section 425 of the 1985 Act and section 125 of the Companies (Jersey) Law 1991, as amended; a concurrent proceeding pursuant to chapter 11 of the U.S. Bankruptcy Code
(if necessary); and ancillary proceedings in respect of the Plc Scheme and/or the Jersey Scheme pursuant to Section 304 of the U.S. Bankruptcy Code (the “Section 304 Proceedings”); and (ii) the following related steps: 
  

	 	(a)	the passing of the shareholder resolution of Telewest specified in Appendix 1 in order to implement the Financial Restructuring (the “Shareholder Resolution”);

  

	 	(b)	the execution of a revised loan agreement (the “Revised Senior Secured Facility Agreement”) between Telewest Communications Networks Limited (“TCN”) and its
lenders on substantially the terms specified in Appendix 1; 

  

	 	(c)	 the transfer to a direct or indirect wholly-owned subsidiary of Telewest Global, Inc., a company incorporated under the laws of Delaware, (“New
Telewest”), of substantially all the assets of Telewest (other than the shares of Telewest Jersey, the shares of New Telewest and a cash amount) and the 

  

	 	 
assumption by such subsidiary of (and/or giving of an indemnity with respect to) substantially all the liabilities of Telewest; 

 

	 	(d)	the termination of the relationship agreement dated as of 3 March 2000, as amended by an amendment agreement dated as of 18 May 2001 between, inter alia, Telewest, Microsoft
Corporation and Liberty Media International, Inc. (“Liberty”); and 

  

	 	(e)	the satisfaction (or waiver by the Company, Telewest Jersey, the Specified Noteholder Group or the Telewest Group’s senior lenders (as the case may be)) of the conditions to
the Plc Scheme and the Jersey Scheme, 

  
 (together
with the Proceedings, the “Restructuring Steps”). 
  
 Following the Financial Restructuring there shall be a shareholders’ voluntary liquidation of Telewest which shall commence on the passing of the shareholder resolutions specified in Appendix 1 (the “Liquidation
Resolutions”). 
  
 In consideration of the promises and the
mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, Telewest Jersey and IDT (collectively, the “Parties”), intending to
be legally bound, agree as follows: 
  

	1.	IDT Agreements. IDT represents that it has the power and authority to cause the registered holders of certain shares specified on the signature page hereto (the
“Relevant Shares”) to exercise the votes attaining to those shares in accordance with the directions of IDT. IDT agrees and represents that, subject to the following Sections hereof and, in respect of sub-sections (a) to (c) below, subject
to receipt of legally sufficient documents in respect of the Plc Scheme and the Jersey Scheme and the terms of this Agreement (including Appendix 1 and the surviving provisions of the Term Sheet) for the implementation of the Financial
Restructuring: 

  

	 	(a)	it shall vote, or procure that the relevant registered holders shall vote, in favour of the Shareholder Resolution and Liquidation Resolutions in relation to the holdings of shares
set out on the signature pages hereto and in relation to any other shares of the Company it, or any of its affiliates, may acquire; 

  

	 	(b)	it will not vote (or cause to be voted) in favour of, or otherwise support, encourage or seek, directly or indirectly, (i) any commencement of or relief in an involuntary case under
any applicable insolvency or other similar law with respect to the Company, Telewest Jersey or TCN, or all or substantially all of the assets of any of them, (ii) the appointment of a receiver, administrative receiver, administrator, liquidator,
assignee, custodian, trustee, sequestrator or similar official of the Company, Telewest Jersey or TCN, or all or substantially all of the assets of any of them, (iii) any scheme of arrangement or plan of voluntary arrangement or any other plan of
reorganization with respect to the Company, Telewest Jersey or TCN, or all or substantially all of the assets of any of them; or (iv) any other compromise with the creditors of, or financial restructuring relating to, the Company, Telewest Jersey or
TCN, or all or substantially all of the assets of any of them; other than, in each case, the Financial Restructuring and the Proceedings; 

  

 Page 2 

	 	(c)	it will not sell, transfer or assign, and will not permit any member of the IDT Group to sell, transfer or assign any of the Relevant Shares or any voting interest therein during
the term of this Agreement except to a person who, prior to the settlement of such sale, transfer or assignment, enters into a written undertaking in favour of the Parties hereto to be bound by the provisions hereof as if such person were IDT; and

  

	 	(d)	it will act in good faith to consummate the transactions set forth herein. 

  

	2.	Telewest and Telewest Jersey Agreements 

  

	 	(a)	Financial Restructuring: The Company and Telewest Jersey each undertake and shall cause the other companies in the Telewest Group to undertake, to take all acts reasonably necessary
to effect the Financial Restructuring as promptly as possible. Telewest hereby confirms that a majority of its directors will, subject to their fiduciary and any other duties imposed on them by law and their responsibilities under the City Code on
Takeovers and Mergers and the Listing Rules of the UK Listing Authority, recommend the Financial Restructuring to Telewest’s shareholders and its creditors. 

  

	 	(b)	Claims: The Company confirms that neither it nor any other member of the Telewest Group currently has any claims, based on the facts known to it after diligent investigation,
against any holder of the Notes seeking a payment in respect of compensation or damages or the payment of any other amount. 

  

	3.	Termination of Agreement. IDT’s obligations hereunder (save for those arising under Section 4 hereof) shall terminate upon the occurrence of any Agreement Termination
Event, unless the occurrence of such Agreement Termination Event is waived in writing by IDT. 

  
 For the purposes hereof an “Agreement Termination Event” shall mean any of the following: 
  

	 	(a)	the later of the date on which the order of the High Court which sanctions the Plc Scheme is delivered to the Registrar of Companies for registration and the dates on which the
orders of the High Court and the Jersey Court which sanction the Jersey Scheme are delivered to the Registrar of Companies and the Jersey Registrar of Companies, as appropriate, for registration (the “Effective Date”) shall not have
occurred on or before the later of 90 days after the date of the letter agreement of the date hereof between, among others, Telewest, TCN, New Telewest and CIBC World Markets plc (as agent on behalf of the Telewest Group’s senior lenders) in
relation to the Revised Senior Secured Facility Agreement (the “Commitment Letter”) or 60 days after the date of any vote by creditors to approve the Plc Scheme and the Jersey Scheme, subject to such vote occurring on or before 75 days
after the date of the Commitment Letter; or 

  

	 	(b)	 the Company, or any administrator appointed in respect of the Company, or Telewest Jersey withdraws the Plc Scheme or the Jersey Scheme or such person failing to
confirm to IDT within 48 hours of a request from IDT that it 

  

 Page 3 

	 	 
is that person’s intention to continue with and recommend the Financial Restructuring in all material respects as set out in Appendix 1; or

  

	 	(c)	a failure to obtain any order of a court in England and Wales or Jersey, when applied for, or a requisite majority of shareholders to pass the Shareholder Resolution or creditors to
approve the Plc Scheme or the Jersey Scheme, when sought, or each of the order of the High Court which sanctions the Plc Scheme and the orders of the High Court and the Jersey Court which sanction the Jersey Scheme not having been obtained, such
Shareholder Resolution not having been passed and such approval not having been given, on or before the later of 90 days after the date of the Commitment Letter or 60 days after the date of any vote by creditors to approve the Plc Scheme and the
Jersey Scheme, subject to such vote occurring on or before 75 days after the date of the Commitment Letter; or 

  

	 	(d)	the making of a permanent order of any court or governmental body of competent jurisdiction restraining, enjoining or otherwise preventing the consummation of the Financial
Restructuring; or 

  

	 	(e)	a material adverse change to the Company’s business plan or a material adverse change to the assets, liabilities, business or prospects of the Company or its subsidiaries; or

  

	 	(f)	a material change to the Plc Scheme, the Jersey Scheme or the Revised Senior Secured Facility Agreement after the date of this Agreement. 

  
 In addition to the foregoing: 
  

	 	(x)	the termination by a noteholder, IDT or Liberty of its obligations under its voting agreement pursuant to Section 3 thereof shall give each noteholder, IDT and Liberty (except any
of them that has already terminated its obligations under its voting agreement pursuant to Section 3 thereof) the right to elect to terminate its obligations under its voting agreement, except where the termination of a noteholder’s obligations
under its voting agreement is pursuant to section 3(f) of that noteholder’s voting agreement; and 

  

	 	(y)	the material change by a noteholder, IDT or Liberty of its voting agreement shall give each noteholder, IDT and Liberty (except any of them that has materially changed its voting
agreement) the right to elect to terminate its obligations under its voting agreement. 

  
 Telewest undertakes to notify IDT immediately of any such termination or change as is mentioned in paragraphs (x) and (y) above. 
  

	4.	Term Sheet. It is agreed that the Term Sheet shall no longer be effective after the execution and delivery of Voting Agreements by each party to the Term Sheet except that
the following sections shall continue in full force and effect: 

  

	 	(a)	“Management and Management Compensation”; 

  

 Page 4 

	 	(b)	“Due Diligence”; 

  

	 	(c)	“Governing Law”; 

  

	 	(d)	the second, third and fourth sentences of paragraph (5) of “Conditions to Closing of the Transaction”; 

  

	 	(e)	“Fees and Expenses” in so far as it affects parties other than Liberty; 

  

	 	(f)	“Publicity”; and 

  
 each party to the Term Sheet shall have the full benefit of, and be entitled to rely in any way upon, these sections of the Term Sheet. 
  

	5.	Amendments. This Agreement may not be modified, amended or supplemented except in writing signed by each of the Parties. 

  

	6.	Governing Law and Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of New York. 

  

	7.	Third Party Beneficiaries. With the exception of Section 4, this Agreement is only for the benefit of the undersigned parties and nothing herein, expressed or implied, is
intended or shall be construed to confer upon any person or entity other than such undersigned parties, any rights or remedies under or by reason of, and no person or entity other than such undersigned parties, is entitled to rely in any way upon,
this Agreement (excluding Section 4). 

  

	8.	Specific Performance. It is understood and agreed by the Parties that money damages would not be a sufficient remedy for any breach of this Agreement by any Party and each
non-breaching Party shall be entitled to specific performance, an injunction or other equitable relief as a remedy of any such breach. 

  

	9.	Fees and Expenses. If any Party brings an action against any other Party based upon a breach by the other Party of its obligations under this Agreement, the prevailing Party
shall be entitled to all reasonable expenses incurred, including reasonable legal and financial advisers’ fees. 

  

	10.	Headings. The headings of the Sections, paragraphs and subsections of this Agreement are inserted for convenience only and shall not affect the interpretation hereof.

  

	11.	Successors. This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors, heirs, executors, administrators and representatives.

  

	12.	Prior Negotiations. This Agreement and Appendix 1 supersede, except to the extent specified in Section 4 above, all prior negotiations and agreements with respect to the
subject matter hereof. 

  

	13.	Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same
agreement. 

  

 Page 5 

	13.	Notices. Any notice or other communication to be given under this Agreement shall be in writing and shall be delivered by hand, sent by prepaid first class recorded delivery
(or registered airmail in the case of an address outside the United Kingdom) or an internationally recognized courier service and shall in each case be addressed to the party to be served at its registered or principal office (marked for the
attention of the General Counsel/Head of Legal) or by fax. Notices sent prepaid by first class recorded delivery or an internationally recognized courier service shall be deemed to be received on the second day following posting and those sent by
registered airmail (in the case of an address outside the United Kingdom) shall be deemed to be received on the fifth day following posting and those served by fax shall be deemed to be received 12 hours after transmission. 

 

 Page 6 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the date set forth below.

  
 Dated:
                     2004 
  

											
	 	 	 	 	TELEWEST COMMUNICATIONS PLC
					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	 Title:
	 	 

  

											
	 	 	 	 	TELEWEST FINANCE (JERSEY) LIMITED
					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	 Title:
	 	 

  

											
	 	 	 	 	IDT CORPORATION
					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name:
	 	Ira A. Greenstein
	 	 	 	 	 	 	 	 	 Title:
	 	President

  
 Shares over which IDT shall cause the
legal entities listed below to exercise the votes attaining to such shares in accordance with IDT’s directions: 
  

										
	 Registered Holder

	  	 Ordinary
 Shares

	  	 Limited Voting
 Shares

	  	Total

	  	 % of issued
 share capital

	 
	 IDT Venture Capital, Inc.
	  	 	  	60,322,654	  	60,322,654	  	 	 
	 NY Nominees
	  	636,056,024	  	—  	  	636,056,024	  	 	 
	 	  	
	  	
	  	
	  	
	

	 Total IDT Holdings
	  	636,056,024	  	60,322,654	  	696,378,678	  	24	%

  

 Page 7 

 Appendix 1 
  

Principal terms of Financial Restructuring 
  

			
	Telewest Liabilities:	  	 All liabilities of the Company at the Effective Date arising directly, or indirectly, in relation to, or arising out of or in connection
with:
  
 (a)    the
Notes;
  
 (b)    the
Indentures;
  
 (c)    the Accreting Convertible Notes due 2003 originally issued to Deutsche Telekom (the “Accreting Notes”);
  
 (d)    the Company’s guarantee of the 6% Senior Convertible Notes due 2005 issued by Telewest Jersey
(the “Jersey Notes”) (the “Jersey Guarantee Liability”); and
  
 (e)    inter-company debt balances owed by the Company to Telewest Jersey in relation to the on-loan of the
proceeds of issue of the Jersey Notes (the “Intercompany Debt”),
  
 including any liability of the Company in respect of loss or damage suffered or incurred as a result of, or in connection with, such liability (the “Telewest Liabilities”), will be cancelled and exchanged for an entitlement to
receive new shares (“New Shares”) in the capital of New Telewest or, in certain circumstances, the proceeds of sale of such New Shares.
  
 No other liabilities of the Company will be compromised as part of the Plc Scheme.
  

	Jersey Liabilities:	  	All liabilities of Telewest Jersey arising directly, or indirectly, in relation to, or arising out of or in connection with:
	 	  	  
 (a)    the Jersey Notes;
  
 (b)    the Jersey Guarantee Liability; and
  
 (c)    the Intercompany Debt,
  
 including any liability of Telewest Jersey in respect of loss or damage suffered or incurred as a result of, or in connection with, such
liability (the “Jersey Liabilities”) will be cancelled and exchanged for an entitlement to receive the New Shares to which Telewest Jersey will become entitled to receive under the Plc Scheme.
  
 No other liabilities of Telewest Jersey will be compromised as part of the Jersey
Scheme.
  

	Principal amounts:	  	 The principal amounts (the “Principal Amounts”) as at the record date for the Plc Scheme and the Jersey Scheme (the “Record
Date”) will be:
  
 (a)    in respect of the Notes and the Accreting Notes, the aggregate of the face value or accreted amount; and
  
 (b)    in respect of each of the Jersey Guarantee Liability and the Intercompany Debt, the aggregate face
value of the Jersey Notes.

  

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	Interest amounts:	  	 The interest amounts (the “Interest Amounts”) as at the Record Date will be:
  
 (a)    in respect of the Notes,
the aggregate of interest and default interest that has accrued and remains unpaid (if any); and
  
 (b)    in respect of each of the Jersey Guarantee Liability and the Intercompany Debt, the aggregate of
interest and default interest that has accrued and remains unpaid on the Jersey Notes.
  

	Currency conversion:	  	 A conversion rate equal to the average of the closing mid-point spot rates, as reported by Bloomberg, L.P., for each trading day in the period
commencing 1 October, 2002, (being the date of the first interest default by Telewest or Telewest Jersey under the Notes) up to and including • • 2003 (being the latest practicable date for inclusion of information in the Explanatory
Statement before printing).
  

	Total claims:	  	 In relation to the Plc Scheme and the Jersey Scheme, the aggregate of the relevant Principal Amounts, the Interest Amounts and all other claims,
liquidated in amount and either agreed with Telewest, or Telewest Jersey (as appropriate), or otherwise determined under the Plc Scheme, or Jersey Scheme (as appropriate), arising directly or indirectly in relation to, or arising out of or in
connection with, the Telewest Liabilities or the Jersey Liabilities (as appropriate) at the Record Date.
  

	Plc Scheme conditions:	  	 The Plc Scheme is conditional upon the following having occurred, or being conditional only upon the occurrence of the Effective Date:

 
 (a)    the Shareholder
Resolution (as described below) having been passed;
  
 (b)    the Revised Senior Secured Facility Agreement (described below) having been entered into and the Recapitalisation Supplemental Deed Effective Date (as defined in the Explanatory Statement)
having occurred;
  
 (c)    approval for quotation of the New Shares on NASDAQ, subject to notice of issuance;
  
 (d)    Telewest having entered into the escrow agent agreement between Telewest, Telewest Jersey and the
escrow agent substantially in accordance with the terms of the Plc Scheme;
  
 (e)    obtaining a permanent order under the Section 304 Proceedings (waivable by a majority of holders of
Notes (by Principal Amount));
  
 (f)     the completion of all proceedings under Chapter 11 of the US Bankruptcy Code in respect of Telewest (if any such proceedings have been commenced) (waivable by a majority of holders of Notes (by Principal
Amount));
  
 (g)    the Jersey Scheme having been sanctioned by the High Court and the Jersey Court and the directors of Telewest Jersey having confirmed that immediately following the Plc Scheme becoming effective, they will procure
that the Jersey Scheme becomes effective; and
  
 (h)    the termination of the Relationship Agreement by Liberty.
  

	Jersey Scheme conditions:	  	 The Jersey Scheme is conditional upon the following having occurred, or their occurrence or unconditionality is subject only to the occurrence of
the effective date of the Jersey Scheme:
  
 (a)    the Plc Scheme having become effective;
  
 (b)    Telewest Jersey having entered into the escrow agent agreement between Telewest, Telewest Jersey and
the escrow agent substantially in accordance with the terms of the Jersey Scheme; and

  

 Page 9 

			
	 	  	 (c)    obtaining a permanent order under the Section 304 Proceedings (waivable by a majority of the holders of the Notes
(by Principal Amount)).

		
	New Telewest:	  	New Telewest will become the new holding company of the Telewest Group (other than Telewest and Telewest Jersey). New Telewest will own all of the issued share capital of Telewest UK Limited
which will acquire all of the assets of Telewest (other than the shares in Telewest Jersey the shares in New Telewest and a cash amount).
		
	New Shares:	  	In return for the cancellation of the Telewest Liabilities, (a) New Shares representing 98.5 per cent. of the capital of New Telewest will be transferred to the relevant creditors; and (b) New
Shares representing 1.5 per cent. of the capital of New Telewest will be transferred to the Company’s shareholders as at the last day of trading before the Effective Date.
		
	Shareholder Resolution:	  	The Shareholder Resolution will be proposed at an extraordinary general meeting of the Company to approve the transfer by Telewest of all of the assets of Telewest (other than the shares in
Telewest Jersey, the shares in New Telewest and a cash amount) to Telewest UK Limited in return for the issue of New Shares by New Telewest.
		
	Governance:	  	All organizational documents and arrangements relating to corporate governance of New Telewest shall be consistent with U.S. best practices and U.K. best practices to the extent not inconsistent
with U.S. best practices and shall provide for a staggered board of directors and anti-takeover measures, including a poison pill.
		
	Revised Senior Secured Facility Agreement:	  	The Telewest Group will enter into an amended and restated loan agreement for committed facilities of £2,030 million comprising term loans of £1,840 million, a revolving credit
facility of £140 million and an overdraft facility of £50 million together with uncommitted facilities of up to £125 million. Of the committed amount of £2,030 million, £1,885 million will mature on 31 December 2005
with the balance of £145 million maturing on 30 June 2006. The amended and restated loan agreement will be conditional upon, among other things, the compromise of the Telewest Liabilities becoming effective.
		
	Liquidation of Telewest and Telewest Jersey	  	Following the completion of the Financial Restructuring, the Liquidation Resolutions will be proposed at an extraordinary general meeting of the Company to approve a shareholders’ voluntary
liquidation of Telewest and to appoint a liquidator. There will also be a shareholders’ voluntary liquidation of Telewest Jersey.
		
	Public documents	  	Substantially final forms of the Explanatory Statement and Registration Statement are attached to this Agreement and initialled for the purpose of identification by, or on behalf of, the Parties
hereto.
		
	 	  	The above terms are all as documented in the Plc Scheme and the Jersey Scheme. To the extent there is any discrepancy between the above terms and the terms of the Plc Scheme and the Jersey
Scheme (as provided to IDT by Telewest and Telewest Jersey immediately prior to the date of effectiveness of this Agreement in the final form of the Explanatory Statement), the terms of such schemes shall take precedence.

  

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