Document:

EXHIBIT 10.3

    
      EXHIBIT
        10.3

       

      
        LOAN
          NOTE INSTRUMENT

        DATED
          JUNE 16, 2006

         

         

         

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

    Dated
         16 June  2006

    
      	
               

               

               

              METAL
                SANDS LIMITED

               

            

    

    

    
      	
               

                

              

              LOAN
                NOTE INSTRUMENT

              relating
                to the issue of £2,000,000 Secured Convertible

              Loan
                Notes

              
                
 

            

    

    

    

    

    

    

    
       

      
        	 	
                Osborne
                  Clarke

                One
                  London Wall

                London

                EC2Y
                  5EB

                Telephone +44
                  (0) 20 7105 7000

                Fax +44
                  (0) 20 7105 7005

                 

                401997-v1\SYDDMS\FC2

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

      

    

     

    TABLE
      OF CONTENTS

     

    

      
        	
                1

              	
                DEFINITIONS
                  AND INTERPRETATION

              	
                 1

              
	
                2

              	
                AMOUNT
                  AND STATUS OF LOAN NOTES

              	
                 5

              
	
                3

              	
                INTEREST

              	
                 5

              
	
                4

              	
                REDEMPTION
                  OF LOAN NOTES

              	
                 5

              
	
                5

              	
                PREPAYMENT

              	
                 6

              
	
                6

              	
                DEFAULT
                  EVENTS

              	
                 6

              
	
                7

              	
                CONVERSION
                  INTO ORDINARY SHARES

              	
                 7

              
	
                8

              	
                ISSUE
                  OF WARRANTS ON CONVERSION

              	
                 8

              
	
                9

              	
                TRANSFER

              	
                 9

              
	
                10

              	
                TRANSMISSION

              	
                 9

              
	
                11

              	
                CERTIFICATES

              	
                 9

              
	
                12

              	
                REGISTER
                  OF THE LOAN NOTES

              	
                10

              
	
                13

              	
                WARRANTIES
                  AND UNDERTAKINGS

              	
                10

              
	
                14

              	
                MEETINGS

              	
                12

              
	
                15

              	
                SECURITY

              	
                13

              
	
                16

              	
                FURTHER
                  LOAN, SHARE CAPITAL OR DEBT ISSUES

              	
                13

              
	
                17

              	
                NO
                  SET-OFF

              	
                13

              
	
                18

              	
                AMENDMENT
                  OF INSTRUMENT

              	
                13

              
	
                19

              	
                COSTS
                  AND EXPENSES

              	
                13

              
	
                20

              	
                THIRD
                  PARTY RIGHTS

              	
                14

              
	
                21

              	
                GOVERNING
                  LAW AND JURISDICTION

              	
                14

              
	SCHEDULES 	 
	Schedule
                1 	Loan Note
                Certificate 	
                 15

              
	Schedule
                2 	Provisions
                as to
                Registration, Transfer and Other Matters	
                 17

              
	Schedule
                3 	Provisions
                for Meetings
                of the Noteholder  	
                 19

              

      

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

    THIS
      INSTRUMENT
      is made
      by way of Deed Poll on 16 June 2006

    

    

    
      	BY:	
              METAL
                SANDS LIMITED a
                company registered in England and Wales under company number 5589527
                whose
                registered office is at Minerva House, 5 Montague Close, London SE1
                9BB
                (the “Company”).

            

    

    

    RECITALS:

    

    The
      Company has pursuant to its Articles of Association and by resolution of the
      board of Directors passed at a duly constituted meeting on the date of execution
      of this Instrument resolved to create up to £2,000,000 convertible loan notes
      (the “Loan
      Notes”)
      of the
      Company and has determined to constitute and issue the same on the terms set
      out
      below.

    

    TERMS:

     

    
      	
              1

            	
              DEFINITIONS
                AND INTERPRETATION

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    The
      following words have these meanings in this Instrument unless a contrary
      intention appears:

     

    “Admission”
means
      the admission to trading of all Ordinary Shares on the AIM Market of the London
      Stock Exchange plc (“AIM”)
      or any
      other Recognised Investment Exchange approved by the Noteholders accompanied
      by
      a Placing becoming effective no later than the Exit Date and “Admitted”
shall
      be construed accordingly;

     

    “Aggregate
      Nominal Amount”
means,
      in respect of the Loan Notes in issue at any time, the aggregate principal
      amount of the Loan Notes outstanding at that time;

     

    “Business
      Day”
means
      a
      day other than a Saturday or a Sunday on which banks are open for business
      in
      London;

     

    “Business
      Plan”
means
      the agreed form business plan;

     

    “Certificate”
means
      a
      certificate evidencing title of the Loan Notes, in the form, or substantially
      the form, set out in Schedule 1;

     

    “Change
      of Control Event”
means
      a
      person or group of persons acting in concert (the “Bidder”)
      making
      an offer for 50% or more of the issued ordinary shares of the Company and such
      offer being declared unconditional or the Bidder otherwise acquiring more than
      or controlling the voting rights attached to 50% or above of the issued Ordinary
      Shares of the Company;

     

    “Commencement
      Date”
means
      the date of this Instrument;

     

    “Conversion
      Notice”
means
      a
      notice in the form, or substantially the form, set out in Schedule
      1;

     

    “Conversion
      Period”
means
      the period beginning on the Commencement Date and ending on the date upon which
      an Exit Event occurs;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    “Conversion
      Price”
has
      the
      meaning given to that term in clause 7.2;

     

    “Debenture”
means
      the debenture granted by the Company to the Noteholder on the date of this
      Instrument in relation to securing the principal amounts of the Loan
      Notes;

     

    “Default
      Event”
has
      the
      meaning given to that term in clause 6.1;

     

    “Default
      Interest Rate”
means
      the aggregate of one per cent and the Interest Rate applying from time to time;
      

     

    “Directors”
means
      the board of directors of the Company from time to time, including any duly
      appointed committee thereof;

     

    “Exit
      Date”
means
      31 December 2006 unless extended by the mutual agreement of the Company and
      the
      Noteholders;

     

    “Exit
      Event”
means
      prior to the Exit Date either:

     

    
      	 	
              (a)

            	
              an
                Admission; or

            

    

     

    
      	 	
              (b)

            	
              a
                Sale;

            

    

     

    “Extraordinary
      Resolution”
has
      the
      meaning given to that term in paragraph 16 of Schedule 3;

     

    “Group
      Company”
means
      the Company, any parent company of the Company, and any subsidiary or subsidiary
      undertakings of the Company or any such parent company, each of its parent
      undertakings and each of its and their respective subsidiary
      undertakings;

     

    “Instrument”
      means
      this loan note instrument;

     

    “Interest
      Rate”
means
      ten per cent (10%) per annum up to the Exit Date, and two per cent (2%) per
      month thereafter;

     

    “Investment
      Agreement” means
      the
      investment agreement in the agreed form between the Company, the Noteholders
      and
      the Founders (as defined therein) dated on or about the date of this
      Instrument;

     

    “Investment
      Documents”
means
      this Instrument, the Investment Agreement, the Warrant Instrument and the
      Security Documents;

     

    “Loan
      Notes”
means,
      as the context requires:

     

    
      	 	
              (a)

            	
              the
                secured convertible loan notes of the Company constituted by this
                Instrument; or

            

    

     

    
      	 	
              (b)

            	
              the
                amount of the secured convertible loan notes of the Company constituted
                by
                this Instrument then issued and outstanding and fully paid up;
                or

            

    

     

    
      	 	
              (c)

            	
              a
                specific portion of the secured convertible loan notes of the Company
                constituted by this Instrument or the principal monies represented
                by the
                secured convertible loan notes of the Company constituted by this
                Instrument;

            

    

     

    “Noteholders”
means
      RAB Special Situations (Master) Fund Limited or its successors or transferees
      entered in the Register as the holders of the Loan Notes;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    “Ordinary
      Shares”
means
      Ordinary Shares of £0.001 each in the capital of the Company;

     

    “Permitted
      Security”
      means:

     

    
      	 	
              (a)

            	
              any
                security created by the Security Documents or otherwise created in
                favour
                of (or for the benefit of) the Noteholder in its capacity as a
                Noteholder;

            

    

    

    
      	 	
              (b)

            	
              liens
                arising by operation of law and in the ordinary course of
                trading;

            

    

    

    
      	 	
              (c)

            	
              security
                arising out of title retention or set-off provisions in a supplier’s
                standard conditions of supply of goods where the goods in question
                are
                supplied on credit and are acquired by the Company in the ordinary
                course
                of trading; and

            

    

    

    
      	 	
              (d)

            	
              any
                other security to which the Noteholder have given their prior consent
                by
                Extraordinary Resolution;

            

    

    

    “Placing”
means
      a
      placing of new Ordinary Shares with institutional investors or public offering
      of not less than £5,000,000 in aggregate through a prospectus or admission
      document and accompanying Placing documents co-terminus with
      Admission;

     

    “Recognised
      Investment Exchange”
has
      the
      meaning ascribed to that term in section 285 of the Financial Services and
      Markets Act 2000 (and, for the avoidance of doubt, shall not include OFEX);
      

     

    “Redemption
      Date”
means
      the date which is 18 months from the date of this Instrument;

     

    “Register”
means
      the register of Noteholders maintained by the Company as provided for in Clause
      12;

     

    “Registered
      Office”
means
      the registered office of the Company from time to time;

     

    “Sale”
means
      the sale of the entire issued share capital of the Company on terms approved
      by
      the Noteholder, except that the approval of the Noteholder shall not be required
      where the consideration for such sale is equal to or greater than £40,000,000 to
      be paid in cash upon completion and where arrangements are established for
      the
      distribution of such consideration to the Company’s shareholders and, if not
      converted prior to such Sale, the repayment of the Aggregate Nominal Amount
      and
      all accrued interest;

     

    “Security
      Documents”
means
      the Debenture and any other document evidencing or creating security over the
      Company in respect of the obligations of the Company under this
      Instrument;

     

    “Shares” means
      new
      Ordinary Shares;

     

    “VWAP”
means
      the volume weighted average price of Shares following Admission for a particular
      day determined by dividing the total aggregate value of Shares traded in that
      particular day by the total aggregate number of Shares traded in that
      day;

     

    “Warrant
      Instrument”
means
      the instrument in the agreed form executed by the Company dated on or about
      the
      date of this Instrument in respect of the Warrants; and

     

    “Warrants”
means
      the warrants to be issued by the Company to the Noteholder in accordance with
      Clause 8 each of which shall entitle the Noteholder to acquire one Share in
      the
      Company on the conditions set out in the Warrant Instrument.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    
      	
              1.2

            	
              Interpretation

            

    

     

    In
      this
      Instrument, unless the contrary intention appears:

     

    
      	 	
              (a)

            	
              the
                singular includes the plural and vice versa and any gender includes
                the
                other gender;

            

    

     

    
      	 	
              (b)

            	
              ‘person’
                includes a firm, a partnership, a body corporate, an unincorporated
                association or body, a state or agency of state, trust or foundation
                (whether or not having separate legal
                personality);

            

    

     

    
      	 	
              (c)

            	
              an
                obligation:

            

    

     

    
      	 	
              (i)

            	
              in
                favour of two or more persons is for their benefit jointly and severally;
                and

            

    

     

    
      	 	
              (ii)

            	
              on
                the part of two or more persons binds them jointly and
                severally;

            

    

     

    
      	 	
              (d)

            	
              a
                reference to:

            

    

     

    
      	 	
              (i)

            	
              a
                person includes that person’s heirs, executors, administrators,
                successors, and assigns;

            

    

     

    
      	 	
              (ii)

            	
              a
                document means that document as amended, replaced or
                novated;

            

    

     

    
      	 	
              (iii)

            	
              a
                statute or other law means that statute or other law as amended or
                replaced, whether before or after the date of this deed and includes
                regulations and other instruments made under
                it;

            

    

     

    
      	 	
              (iv)

            	
              a
                clause or schedule is a reference to a clause or a schedule in this
                Instrument;

            

    

     

    
      	 	
              (v)

            	
              a
                thing or an amount includes the whole and each part of
                it;

            

    

     

    
      	 	
              (vi)

            	
              a
                month means a calendar month; and

            

    

     

    
      	 	
              (vii)

            	
              a
                group of persons includes all of the collectively, any two or more
                collectively and each of them
                individually;

            

    

     

    
      	 	
              (e)

            	
              where
                the word ‘including’ or ‘includes’ is used, it is to be taken to be
                followed by the words: ‘but not limited to’ or ‘but is not limited to’, as
                the case requires;

            

    

     

    
      	 	
              (f)

            	
              where
                a period of time is expressed to be calculated from or after a specified
                day, that day is included in the period;

            

    

     

    
      	 	
              (g)

            	
              “£”
                denotes the lawful currency of the United Kingdom;
                

            

    

     

    
      	 	
              (h)

            	
              a
                reference to “date of redemption” means the date on which all the
                outstanding principal on all the outstanding Loan Notes is finally
                paid;
                and

            

    

     

    
      	 	
              (i)

            	
              any
                reference to a document being “in the agreed form” means in a form agreed
                by the Company and by or on behalf of the Noteholders and initialled
                for
                the purposes of identification.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              1.3

            	
              Business
                Days

            

    

     

    If
      a
      payment is due, or an event should occur, on a day which is not a Business
      Day,
      the date for payment or the occurrence of the event is the next succeeding
      Business Day.

     

    
      	
              1.4

            	
              Headings

            

    

     

    Headings
      are inserted for convenience and do not affect the interpretation of this
      Instrument.

     

    
      	
              2

            	
              AMOUNT
                AND STATUS OF LOAN NOTES

            

    

     

    
      	
              2.1

            	
              The
                Noteholder will not be under any obligation to subscribe for Loan
                Notes
                until the Company and the Noteholder have entered into the Investment
                Agreement on or about the date of this
                Instrument.

            

    

     

    
      	
              2.2

            	
              The
                aggregate principal amount of the Loan Notes is limited to
                £2,000,000.

            

    

     

    
      	
              2.3

            	
              The
                Company will issue the Loan Notes for cash at par (being £1.00 per Loan
                Note) in integral multiples of
£1.00.

            

    

     

    
      	
              2.4

            	
              Subject
                to this Instrument and the Schedules the whole of the Loan Notes
                as and
                when issued shall rank pari
                passu
                equally and rateably without discrimination or preference and as
                an
                obligation of the Company.

            

    

     

    
      	
              2.5

            	
              No
                application has been or will be made to any Recognised Investment
                Exchange
                for the listing of, or for permission to deal in, the Loan
                Notes.

            

    

     

    
      	
              2.6

            	
              The
                Company shall pay or reimburse any stamp duty, stamp duty reserve
                tax or
                other duties or taxes payable in the United Kingdom in connection
                with the
                execution of this Instrument or the constitution, issue, redemption
                or
                conversion of the Loan Notes.

            

    

     

    
      	
              3

            	
              INTEREST 

            

    

     

    Accrual
      of Interest

     

    
      	
              3.1

            	
              Interest
                on the principal amount of the Loan Notes at the Interest Rate will
                accrue
                from day to day (on the basis of a 365 day year), shall be calculated
                monthly and shall be capitalised quarterly, unless the Noteholder
                directs
                that it wishes to be paid accrued interest, in which case interest
                shall
                be payable in arrears in accordance with Clause 3.2
                below.

            

    

     

    
      	
              3.2

            	
              Method
                of payment of
                interest

            

    

     

    Any
      accrued interest shall be payable in cash on the redemption of the Loan Notes
      or, upon the conversion of the Loan Notes, either in cash or by the issue of
      securities (as selected by the Noteholder) at the Conversion Price into which
      the Loan Notes convert.

     

    
      	
              4

            	
              REDEMPTION
                OF LOAN NOTES

            

    

     

    
      	
              4.1

            	
              On
                or after the Exit Date, all Loan Notes not converted are redeemable
                and
                any accrued interest shall be paid by the Company if the Noteholder
                serves
                a written notice on the Company providing 10 days written notice
                of the
                request.

            

    

     

    
      	
              4.2

            	
              Subject
                to Clause 4.3, all Loan Notes not converted or redeemed (in whole
                or in
                part) by the Redemption Date and all Loan Notes not converted immediately
                prior to an Exit Event may be redeemed by the Company and any accrued
                interest shall be paid by the Company on or after that date, at par
                by 30
                days prior written notice to the
                Noteholder.

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              4.3

            	
              In
                order to exercise its rights pursuant to Clause 4.2, the Company
                must
                serve upon the Noteholder a notice of the redemption pursuant to
                clause
                4.2. This notice will be irrevocable and be an enforceable undertaking
                in
                favour of the Noteholder. The Noteholder may require written evidence
                that
                the funds are available to effect payment. The Noteholder may within
                28
                days of service of such notice serve notice that instead of redemption,
                it
                wishes to convert the Loan Notes and any accrued
                interest.

            

    

     

    
      	
              4.4

            	
              All
                Loan Notes redeemed or converted by the Company pursuant to the terms
                of
                this Instrument will be cancelled and will not be available for
                reissue.

            

    

     

    
      	
              4.5

            	
              In
                the event that any income or other tax is deducted from a payment,
                the
                Company will issue to the Noteholder as soon as reasonably practicable
                a
                certificate of deduction of tax in respect of the tax deducted or
                withheld.

            

    

     

    
      	
              4.6

            	
              The
                Aggregate Nominal Amount and any accrued interest shall, for so long
                as it
                remains unpaid and unconverted, remain capable of being converted
                pursuant
                to Clause 7. 

            

    

     

    
      	
              5

            	
              PREPAYMENT

            

    

     

    
      	
              5.1

            	
              The
                Company shall not be entitled to pre-pay any or all of the principal
                without the prior approval of the relevant
                Noteholders.

            

    

     

    
      	
              5.2

            	
              The
                Company shall immediately notify the Noteholders in writing of a
                Change of
                Control Event (the “Notification”)
                and shall promptly disclose to the Noteholders all reasonably requested
                information in relation thereto. Within 60 days of receipt of the
                Notification, the Noteholders shall be entitled by giving notice
                in
                writing to the Company to demand immediate repayment of the Aggregate
                Nominal Amount and any accrued interest held by the Noteholders or
                the
                immediate conversion of all outstanding Loan Notes and repayment
                of any
                accrued interest.

            

    

     

    
      	
              6

            	
              DEFAULT
                EVENTS

            

    

     

    
      	
              6.1

            	
              Without
                prejudice to Clauses 4 and 5 and subject to Clause 6.2, all outstanding
                Loan Notes are immediately repayable at par along with any accrued
                interest on the happening of any of the following events (each a
                “Default
                Event”):

            

    

     

    
      	 	
              (a)

            	
              the
                Company fails to repay any principal on the Loan Notes within 10
                days of
                the due date for redemption or payment thereof (including pursuant
                to a
                redemption notice issued by the Company pursuant to Clause 4.2);
                or

            

    

     

    
      	 	
              (b)

            	
              if
                an order is made or an effective resolution passed for winding-up
                of any
                Group Company (otherwise than for the purposes of or in the course
                of a
                solvent re-organisation, reconstruction or amalgamation previously
                approved by the Noteholder); or

            

    

     

    
      	 	
              (c)

            	
              if
                an encumbrancer has taken possession of or if a receiver, administrative
                receiver, liquidator, judicial factor or other similar officer is
                appointed to take possession of the whole or any material part of
                the
                property or undertaking of any Group Company and in any such case
                is not
                discharged, withdrawn or removed within 30 days of possession being
                taken
                or an appointment being made (excluding any period during which the
                possession or appointment is being contested in good faith);
                or

            

    

     

    
      	 	
              (d)

            	
              any
                administration order or any administration application has been made
                in
                respect of any Group Company; or

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (e)

            	
              if
                any Group Company (otherwise than in the course of a reorganisation,
                reconstruction or amalgamation with another company in terms previously
                approved by the Noteholder) ceases or threatens to cease to carry
                on its
                business or a substantial part of its business;
                or

            

    

     

    
      	 	
              (f)

            	
              any
                Group Company is deemed to be unable to pay its debts as they fall
                due or
                is unable to pay its debts pursuant to or for the purposes of any
                applicable law; or

            

    

     

    
      	 	
              (g)

            	
              if
                a material default or breach is made by any Group Company in the
                performance or observance of any covenant or provisions (other than
                any
                covenant for the payment of the principal amount of the Loan Notes)
                binding on it under the Investment Documents which has a material
                adverse
                effect on the Company (to be determined by the Noteholders acting
                reasonably) and, in the case of any default or breach which is capable
                of
                remedy, any Group Company fails to remedy the breach within the period
                of
                20 days after receipt of a written request by the Noteholders;
                or

            

    

     

    
      	 	
              (h)

            	
              if
                the security constituted by any mortgage, charge or other security
                document of any Group Company becomes enforceable as a result of
                an event
                of default (other than an event of default arising out of a liability
                being contested in good faith) and the security holder takes steps
                to
                enforce the security; or

            

    

     

    
      	 	
              (i)

            	
              if
                any warranty given by the Company pursuant to the Investment Documents,
                proves to have been incorrect in any material respect;
                or

            

    

     

    
      	 	
              (j)

            	
              if
                in the reasonable assessment of the Noteholders the Group Company
                has
                failed to achieve the agreed financial projections, milestones and/or
                goals as set out in the Business Plan; or

            

    

     

    
      	 	
              (k)

            	
              if
                the Debenture becomes enforceable in accordance with its
                terms.

            

    

     

    
      	
              6.2

            	
              The
                Company will immediately give notice to the Noteholders of the happening
                of any Default Event upon becoming aware of the same. If any Noteholder
                shall waive in writing its right to repayment of the Aggregate Nominal
                Amount and any accrued interest due to it whereupon the Loan Notes
                held by
                such Noteholder and any accrued interest due to them shall remain
                outstanding.

            

    

     

    
      	
              7

            	
              CONVERSION
                INTO ORDINARY SHARES

            

    

     

    
      	
              7.1

            	
              Subject
                to the following provisions of this Clause 7, the Loan Notes (in
                whole or
                in multiples of 1,000) and any accrued interest may be converted
                into
                Shares at any time during the Conversion Period by a Noteholder serving
                on
                the Company a duly completed Conversion Notice. The Conversion Notice
                shall state the date on which the conversion is to take place which
                shall
                not, without the prior agreement with the Company, be sooner than
                7 days
                from the date of the Conversion Notice.

            

    

     

    
      	
              7.2

            	
              The
                Loan Notes shall carry the right to be converted into Shares at a
                conversion price per share which is the lesser
                of:

            

    

     

    
      	 	
              (a)

            	 

    

     

    
      	 	
              (i)

            	
              fifty
                per cent (50%) of the price per Share at which the Placing takes
                place; or
                

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              if
                no Placing occurs the average VWAP for a Share for the first ten
                days
                after Admission; and

            

    

     

    
      	 	
              (b)

            	
              the
                price per Share which would result in all Noteholders if they converted
                all Loan Notes holding 29.9% of the fully diluted share capital of
                the
                Company (excluding any Warrants that would be or have been issued
                to or
                held by any Noteholders or their nominees) after
                conversion.

            

    

     

    
      	
              7.3

            	
              Shares
                issued by way of conversion shall be credited as fully paid and shall
                rank
                pro rata for dividends or other distributions declared paid or made
                on or
                at any time after conversion and shall rank pari passu with any Shares
                then in issue.

            

    

     

    
      	
              7.4

            	
              As
                soon as reasonably practicable after conversion pursuant to this
                Clause 7,
                and in any event not later than 10 days after allotment (but subject
                to
                the Company receiving the Certificate representing the Loan Notes
                so
                converted) the
                Company will at the Noteholder’s option either (i) issue a share
                certificate for the number of Shares to which the Noteholder is
                entitled
                free of charge to the Noteholder who has surrendered its Certificate
                to
                the Company or (ii) credit the Noteholder’s CREST account at
                Admission.

            

    

     

    
      	
              7.5

            	
              If
                the Company becomes aware that an Exit Event will occur, it will
                notify
                each Noteholder in writing (setting out details of the Exit Event)
                as soon
                as practicable and in any event no later than 15 Business Days before
                the
                Exit Event and:

            

    

     

    
      	 	
              (a)

            	
              each
                Noteholder must notify the Company in writing whether it intends
                to
                convert any or all of its Loan
                Notes:

            

    

     

    
      	 	
              (i)

            	
              in
                the case of Admission, at least 5 Business Days before the date the
                Company notifies that it will issue an Admission Document;
                and

            

    

     

    
      	 	
              (ii)

            	
              in
                the case of a Sale, at least 5 Business Days before the date of completion
                of the Sale.

            

    

    

    
      	 	
              (b)

            	
              If
                the Company does not receive a notification in writing from a Noteholder
                within the period specified above, that Noteholder will be deemed
                to have
                irrevocably elected not to convert their Loan
                Notes.

            

    

     

    
      	 	
              (c)

            	
              In
                respect of those Loan Notes that Noteholders have confirmed they
                intend to
                convert, they shall be deemed to have irrevocably given a Conversion
                Notice in respect of such Loan Notes, conditional upon the Exit Event
                occurring, and such Loan Notes shall automatically be converted into
                Shares immediately before such Exit Event;
                and

            

    

     

    
      	 	
              (d)

            	
              In
                respect of those Loan Notes that Noteholders have confirmed they
                do not
                intend to convert, the conversion right attaching to such Loan Notes
                shall
                cease, conditional upon an Exit Event occurring within 15 Business
                Days of
                the date the Noteholder is deemed to have irrevocably elected not
                to
                convert their Loan Notes pursuant to clause 7.5(b)
                above..

            

    

     

    
      	
              8

            	
              ISSUE
                OF WARRANTS ON CONVERSION

            

    

     

    Upon
      the
      redemption or conversion of the Loan Notes (“Conversion”)
      pursuant to Clauses 4 and 7 respectively, the Company shall issue to the
      Noteholder one Warrant for each Share issued to the Noteholder upon Conversion
      (or if Conversion does not place, one Warrant for each Share that would have
      been issued if Conversion had occurred). 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              9

            	
              TRANSFER

            

    

     

    The
      Loan
      Notes are transferable by the Noteholder in accordance with the terms set out
      in
      Schedule 2.

     

    
      	
              10

            	
              TRANSMISSION

            

    

     

    Any
      person entitled to a Loan Note by reason of the death, bankruptcy or insolvency
      of a Noteholder or otherwise by operation of law may be registered as the holder
      of the Loan Notes of that Noteholder in accordance with the terms set out in
      Schedule 2.

     

    
      	
              11

            	
              CERTIFICATES

            

    

     

    
      	
              11.1

            	
              The
                Certificates will be in the form or substantially in the form set
                out in
                Schedule 1.

            

    

     

    
      	
              11.2

            	
              Every
                sole Noteholder is entitled without charge to receive one Certificate
                for
                the Loan Notes held by that
                Noteholder.

            

    

     

    
      	
              11.3

            	
              Joint
                Noteholders are entitled to only one Certificate in respect of the
                Loan
                Notes held jointly by them. Such Certificate will be delivered to
                the
                joint holder whose name stands first in the Register in respect of
                the
                joint holding or to another person as the joint holders direct in
                writing.

            

    

     

    
      	
              11.4

            	
              The
                Company is not bound to register more than 4 persons as joint holders
                of
                any Loan Notes.

            

    

     

    
      	
              11.5

            	
              Where
                part of a holding of Loan Notes has been transferred, converted or
                redeemed the Company will issue, free of charge to the relevant
                Noteholder, a fresh Certificate for the balance of the Loan Notes
                retained
                by that Noteholder.

            

    

     

    
      	
              11.6

            	
              The
                Company will recognise the registered holder of any Loan Notes as
                the
                absolute owner of the Loan Notes. The Company is not bound to take
                notice
                or see to the execution of any trust whether express, implied or
                constructive to which any Loan Notes may be subject.
                

            

    

     

    
      	
              11.7

            	
              The
                receipt of the registered holder for the time being of any Loan Notes
                or
                in the case of joint registered holders the receipt of any of them
                for any
                other monies payable in respect of the Loan Note is a good discharge
                to
                the Company, despite any notice it may have, whether express or otherwise,
                of the right, title, interest or claim of any other person to or
                in such
                Loan Notes or monies.

            

    

     

    
      	
              11.8

            	
              Every
                Noteholder, any of whose Loan Notes are due to be redeemed or converted
                under any of the provisions of this Instrument, shall, not later
                than the
                due date for such redemption or conversion, deliver up to the Company
                (at
                its Registered Office) the Certificate(s) for the Loan Notes which
                are due
                to be redeemed or converted (or an indemnity in lieu thereof in a
                form
                acceptable to the Company where such Certificate(s) is lost, defaced
                or
                destroyed), in order that the same may be cancelled and, upon such
                delivery, the Company shall pay the relevant redemption amount to
                the
                Noteholder or allot Ordinary Shares to the Noteholder (as the case
                may
                be). If any Certificate so delivered includes any Loan Notes which
                are not
                to be redeemed or converted at the time at which it is so delivered,
                the
                Company shall issue to the Noteholder, without charge, a new Certificate
                for the balance of such Loan Notes.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	
              11.9

            	
              If
                any Noteholder, any of whose Loan Notes are liable to be redeemed
                or
                converted under any of the provisions of this Instrument, shall fail
                or
                refuse to deliver up the Certificate(s) for such Loan Notes (or an
                indemnity in lieu thereof acceptable to the Company where such
                Certificate(s) is lost, defaced or destroyed) at the time and place
                fixed
                for the redemption or conversion of such Loan Notes,
                then:

            

    

     

    
      	
            	(a)	
              if
                the Loan Notes are being redeemed for cash, the Company shall set
                aside
                the relevant amount due to that Noteholder, pay it into a separate
                interest-bearing bank account which shall be held by the Company
                in trust
                for such Noteholder (but without interest (save as may accrue in
                such
                account)) and such setting aside shall be deemed, for all purposes
                of
                these conditions, to be a payment to such Noteholder and the Company
                shall
                thereby be discharged from all obligations in connection with such
                Loan
                Notes. If the Company shall place such amount on deposit at a bank,
                the
                Company shall not be responsible for the safe custody of such amount
                or
                for any interest accruing on such amount in such account;
                and

            

    

     

    
      	
            	(b)	
              if
                the Loan Notes are being converted into Ordinary Shares, the Company
                shall
                not be obliged to allot and issue any Ordinary Shares to that Noteholder
                unless and until the Certificate (or indemnity) is so delivered (but
                that
                otherwise for the purposes of this Instrument such Loan Notes shall
                be
                deemed to have been converted and
                cancelled).

            

    

     

    
      	
              12

            	
              REGISTER
                OF THE LOAN NOTES

            

    

     

    
      	
              12.1

            	
              The
                Company will at all times keep at its Registered Office, or at such
                other
                place within the UK as the Company may have appointed for the purpose,
                a
                register showing:

            

    

     

    
      	 	
              (a)

            	
              the
                nominal amount of the Loan Notes held by every
                Noteholder;

            

    

     

    
      	 	
              (b)

            	
              the
                serial number of each Loan Note
                issued;

            

    

     

    
      	 	
              (c)

            	
              the
                date of issue and all subsequent transfers and changes of ownership;
                and

            

    

     

    
      	 	
              (d)

            	
              the
                names and addresses of the Noteholder.

            

    

     

    
      	
              12.2

            	
              Any
                Noteholder may at all reasonable times during office hours inspect
                the
                Register and take copies of or extracts from the Register.
                

            

    

     

    
      	
              12.3

            	
              The
                Register may be closed by the Company for such periods and at such
                times
                as it thinks fit but not for more than 30 days in any calendar year.
                

            

    

     

    
      	
              12.4

            	
              Any
                change of name or address on the part of any Noteholder will be notified
                to the Company and the Register will be altered
                accordingly.

            

    

     

    
      	
              13

            	
              WARRANTIES
                AND UNDERTAKINGS

            

    

     

    
      	
              13.1

            	
              The
                Company undertakes to each Noteholder
                that:

            

    

     

    
      	 	
              (a)

            	
              it
                will perform and observe the obligations imposed on it by this
                Instrument;

            

    

     

    
      	 	
              (b)

            	
              it
                will comply with the provisions of the Certificates and the provisions
                set
                out in Schedules 2 and 3;

            

    

     

    
      	 	
              (c)

            	
              it
                shall at all times prior to the conversion or redemption of the Loan
                Notes
                in full, keep available for issue sufficient authorised but unissued
                share
                capital to satisfy in full the Company’s obligations on conversion of the
                Loan Notes;

            

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              the
                Loan Notes are held subject to and with the benefit of the terms
                and
                conditions set out in this Instrument and are binding on the Company
                and
                the Noteholder and all persons claiming through or under
                them.

            

    

     

    
      	
              13.2

            	
              The
                Company warrants to each of the Noteholders on the date of this
                Instrument, and on the date a Noteholder subscribes for Loan Notes,
                as
                follows (each a Warranty):

            

    

     

    
      	 	
              (a)

            	
              it
                is duly incorporated and validly existing under the laws of England
                and
                Wales;

            

    

     

    
      	 	
              (b)

            	
              it
                has the power and authority to enter into this Instrument and to
                issue the
                Loan Notes and to exercise its rights and perform its obligations
                under
                this Instrument and the Loan Notes;

            

    

     

    
      	 	
              (c)

            	
              it
                has taken all necessary corporate, shareholder and other action to
                authorise the execution, delivery and performance of this Instrument
                and
                the Loan Notes;

            

    

     

    
      	 	
              (d)

            	
              the
                obligations expressed to be assumed by it in this Instrument and
                the Loan
                Notes are, in each case, legal and valid obligations, binding on
                it in
                accordance with the terms of this Instrument and the Loan
                Notes;

            

    

     

    
      	 	
              (e)

            	
              all
                consents, licences, approvals, authorisations, waivers, filings and
                registrations required in connection with the entry into, and performance
                of, this Instrument and the Loan Notes by it have been obtained and
                are in
                full force and effect;

            

    

     

    
      	 	
              (f)

            	
              the
                Company is not involved in any litigation, arbitration, prosecution
                or
                other legal proceedings nor are any such proceedings threatened or
                pending
                against the Company or any of its
                Directors;

            

    

     

    
      	 	
              (g)

            	
              the
                Company is not insolvent and no order has been made, petitioned,
                presented
                or resolution proposed for the appointment of a liquidator, administrator,
                receiver or similar officer over or in respect of the Company or
                any of
                its assets;

            

    

     

    
      	 	
              (h)

            	
              the
                execution and delivery of this Instrument, and the performance by
                it of
                its obligations under this Instrument and the Loan Notes do not,
                and will
                not, contravene any law, regulation, official or judicial order or
                any
                mortgage, bond or other instrument or document to which it is a party
                or
                which is binding on it or any of its
                assets;

            

    

     

    
      	 	
              (i)

            	
              each
                of the Group Companies has been duly incorporated, continued or
                amalgamated and is validly subsisting under the laws of the jurisdictions
                in which it is incorporated, continued or
                amalgamated;

            

    

     

    
      	 	
              (j)

            	
              there
                shall not be any consents, approvals, authorisations, orders or agreements
                of any stock exchanges, securities commissions or similar authorities,
                governmental agencies or regulators, courts or any other persons
                which may
                be required for the issuance of the Ordinary Shares upon conversion
                and
                the delivery of the certificates representing the Ordinary Shares,
                not
                obtained and not in effect on the date of delivery of such certificates;
                and 

            

    

     

    
      	 	
              (k)

            	
              upon
                Conversion of the Loan Notes, the Noteholder will acquire good and
                marketable title to the relevant Ordinary Shares free of any mortgage,
                lien, charge encumbrance or adverse interest
                whatsoever.

            

    

     

    
      	
              13.3

            	
              The
                Company acknowledges that the Noteholders are subscribing for the
                Loan
                Notes in reliance on each of the
                Warranties.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              13.4

            	
              The
                Company agrees to notify the Noteholders as soon as reasonably practicable
                after it becomes aware of any breach of any of the Warranties after
                the
                date of this Instrument.

            

    

     

    
      	
              13.5

            	
              While
                any of the Loan Notes remain outstanding, the Company undertakes
                that it
                will and will procure that all Group Companies
                will:

            

    

     

    
      	 	
              (a)

            	
              not
                make a declaration or distribution of any dividend or distribute
                any
                capital or profits to shareholders without offering to the Noteholder
                the
                right to early repayment of the Aggregate Nominal
                Amount;

            

    

     

    
      	 	
              (b)

            	
              amend,
                repeal, supplement or otherwise change its Memorandum and Articles
                in any
                manner;

            

    

     

    
      	 	
              (c)

            	
              not
                sell, transfer, lease, assign, or otherwise dispose of a material
                part of
                the undertaking, property, assets of the Company or of any Group
                Company,
                or contract so to do otherwise than in the ordinary and proper course
                of
                its business or as part of a Sale;

            

    

     

    
      	 	
              (d)

            	
              not
                grant any options or warrants or grant to any person the right to
                be
                issued with Ordinary Shares excluding bona fide issues of options
                or
                warrants to directors or employees under an approved incentive plan
                without first issuing to the Noteholders a pro rata number of such
                options
                or warrants on the same terms;

            

    

     

    
      	 	
              (e)

            	
              not
                issue any debt convertible into Ordinary Shares without first offering
                to
                the Noteholder the option to vary the terms of this Instrument to
                be
                consistent with some or all of the terms of the proposed convertible
                debt
                (as nominated in its absolute discretion by the
                Noteholder).

            

    

     

    
      	
              13.6

            	
              Limitations
                on Warranties

            

    

     

    
      	 	
              13.6.1

            	
              The
                Company shall not be liable in respect of any and all claims for
                any
                breach of Warranties (a “Relevant
                Claim”)
                unless written notice, setting forth in reasonable detail the Relevant
                Claim and delivered pursuant to the Company, shall have been given
                on or
                before an Exit Event (provided that each Noteholder is given 14 Business
                Days notice of the Exit Event and at the same time received the Admission
                Document, Information Memorandum or other relevant information in
                relation
                the Exit Event).

            

    

     

    
      	 	
              13.6.2

            	
              The
                limitations on the Company’s liability in this clause 13.6 shall not apply
                to the extent that a Relevant Claim arises out of a Company fraud,
                wilful
                non-disclosure or knowing omission.

            

    

     

    
      	
            	13.6.3	
              No
                liability of the Company in respect of any claim for breach of any
                Warranty shall arise to the extent
                that:

            

    

     

    
      	 	
              (a)

            	
              it
                arises or is increased as a result of the passing of any legislation
                (or
                the making of any subordinate legislation) with retrospective effect,
                or
                by reason of any change to taxation authority practice, occurring
                after
                the date the Warranty is given; or

            

    

     

    
      	 	
              (b)

            	
              the
                claim arises wholly or partly out of or is increased by a contingent
                liability unless and until such contingent liability becomes an actual
                liability; or

            

    

     

    
      	 	
              (c)

            	
              the
                claim arises out of or is increased by any change in the law or its
                interpretation or administration or any change in the practice of
                any
                authority arising after the date the Warranty is given;
                or

            

    

    
       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

      

    

    
      	 	
              (d)

            	
              the
                matter giving rise to the claim is remediable unless within 60 days
                of
                Noteholders having become aware of such matter, Noteholders have
                given
                written notice to the Company and such matter has not been fully
                remedied
                by the Company without cost to Noteholders within 30 days of the
                service
                of such notice; or

            

    

     

    
      	 	
              (e)

            	
              any
                matter giving rise to the claim is fairly disclosed in the Disclosure
                Letter, this Instrument or the Agreed Form documents set out in Schedule
                6
                of the Investment Agreement.

            

    

     

    
      	
            	13.6.4	
              Save
                in the case of fraud, wilful non-disclosure or any knowing omission
                the
                aggregate amount that the Noteholder shall be entitled to recover
                from the
                Company under the Warranties shall be limited to the amount subscribed
                by
                the subscribers for the Loan Notes and the Noteholders shall not
                be
                entitled to recover any indirect or consequential
                loss.

            

    

     

    
      	
              14

            	
              MEETINGS

            

    

     

    Meetings
      of Noteholder will be conducted in accordance with the provisions of Schedule
      3.

     

    
      	
              15

            	
              SECURITY

            

    

     

    The
      obligations of the Company under this Instrument shall be secured by the
      Debenture.

     

    
      	
              16

            	
              FURTHER
                LOAN, SHARE CAPITAL
                OR DEBT ISSUES

            

    

     

    
      	
              16.1

            	
              The
                Company undertakes that it will not and will procure that no Group
                Company
                shall create any security over the Company’s assets or undertakings other
                than Permitted Security, in any case without the prior approval of
                the
                Noteholder given by Extraordinary Resolution of the Noteholder.
                

            

    

     

    
      	
              16.2

            	
              In
                the event that the Company issues any other debt, convertible into
                Shares
                prior to or at Admission then RAB shall be entitled, at its option,
                to
                vary some or all of the terms of the Loan Notes to accord with some
                or all
                of the terms of the new convertible
                debt.

            

    

     

    
      	
              17

            	
              NO
                SET-OFF

            

    

     

    Payments
      of principal under this Instrument will be paid by the Company to the Noteholder
      without regard to any set-off, cross-claim or equities between the Company
      and
      any Noteholder.

     

    
      	
              18

            	
              AMENDMENT
                OF INSTRUMENT

            

    

     

    This
      Instrument may only be amended with the written consent of the Company and
      the
      prior approval of the Noteholder given by an Extraordinary Resolution of the
      Noteholder. 

     

    
      	
              19

            	
              COSTS
                AND EXPENSES

            

    

     

    
      	
              19.1

            	
              The
                Company shall reimburse the Noteholder and in respect of all expenses,
                including, without limitation, legal fees (and any value added or
                similar
                tax thereon) incurred by the Noteholder in connection with
                the negotiation and execution of this Instrument any actual or proposed
                amendment or extension of, or any waiver or consent under, or the
                enforcement or preservation of any of their respective rights under
                this
                Instrument, or any of the documents referred to
                herein.

            

    

    
       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

      

    

    
      	
              19.2

            	
              The
                amounts payable under Clause 19.1
                shall carry interest at the Default Interest Rate (as well after
                as before
                any judgment) from the dates on which they were paid, incurred or
                charged
                by a Noteholder. All such interest shall be compounded at the end
                of such
                period or periods as the Noteholder may
                select.

            

    

     

    
      	
              20

            	
              THIRD
                PARTY RIGHTS 

            

    

     

    A
      person
      (other than a Noteholder) shall have no right under this Contract (Rights of
      Third Parties) Act 1999 to enforce any term of this Instrument.

     

    
      	
              21

            	
              GOVERNING
                LAW AND JURISDICTION

            

    

     

    
      	
              21.1

            	
              Governing
                law

            

    

     

    This
      Instrument is governed by the law of England and Wales.

     

    
      	
              21.2

            	
              Jurisdiction

            

    

    Each
      party irrevocably submits to the exclusive jurisdiction of the courts of England
      and Wales as regards any claim, dispute or matter arising out of or in
      connection with this Instrument.

     

    
      	
              22

            	
              DURATION
                OF OBLIGATIONS

            

    

     

    The
      provisions of this Agreement shall remain in full force and effect until such
      time as all the Loan Notes are converted or redeemed in accordance with this
      Instrument whereupon the obligations and rights of the parties shall forthwith
      cease and determine.

    

    EXECUTED
      and DELIVERED as a deed on the day and year set out above.

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    

    SCHEDULES

     

    Schedule
      1

     

    Loan
      Note Certificate

     

    No. of
      Certificate ....................... Amount of Loan Notes
£.....................

    

    METAL
      SANDS LIMITED

    (“the
      Company”)

    (Registered
      in England and Wales under number 5589527)

    

    [Insert
      number] Secured 

    Convertible
      Loan Notes

    

    

    This
      Loan
      Note is issued under the authority of the Memorandum and Articles of Association
      of the Company and pursuant to a Resolution of the Board of Directors of the
      Company passed on
                   
2006 and a Loan Note Instrument dated
                     
2006 (the “Instrument”).

    

    Name
      and
      Address(es) of Noteholder:  l

    

    Amount
      of
      Loan Notes:   £l

    

    Registration
      Date:    l
      2006

    

    THIS
      IS
      TO CERTIFY THAT the above Noteholder is the registered holder of the amount
      shown above of Secured Convertible Loan Notes constituted by the Instrument.
      The
      Loan Notes are issued subject to and with the benefit of the provisions
      contained in the Instrument.

     

    
      
        
          
            	EXECUTED
                    as a
                    DEED 	 	 	 	
                    Director 

                  
	for
                    and on behalf
                    of 	
                     

                  	)	
                    
                      

                    

                  	
                     

                  
	METAL SANDS
                    LIMITED	 	)	
                  	Director /Secretary 
	by: 	 	) 	
                    

                  	 

          

        

      

    

    

    NOTES

    

    
      	
              1

            	
              No
                transfer or conversion of the whole or any part of the Loan Notes
                represented by this Certificate can be registered or a new Certificate
                issued unless accompanied by this Certificate (or a certificate of
                indemnity in a form approved by the
                Directors).

            

    

     

    
      	
              2

            	
              Transfers of
                Loan Notes should be lodged for registration with the Company at
                its
                Registered Office.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    CONVERSION
      NOTICE

    

    To:
      METAL
      SANDS LIMITED

    

    I/We
      being the registered holder(s) of the Loan Notes represented by this Certificate
      give notice requiring the conversion on
      [              
]* of the whole/£l
      [              
]** of the principal amount of the Loan Notes in accordance with the provisions
      contained in the Instrument and as identified below.

    

    Conversion
      Date:  ___________________________

    

    I/We
      authorise the despatch of a share certificate for the Ordinary Shares (and
      a new
      Loan Note Certificate) in respect of the balance of any of the principal amount
      which is now payable in respect of the Loan Notes upon which this Notice is
      endorsed) by ordinary post at my/our risk to 

    

    [                                                     
      ] at
      [                                                                               
 ] +

    

    Name
      ................................................................. Signed
      ....................................................... ++

    Address
      .................................................................................................................................

    ............................................................................
      Dated .........................................................

    

    Name
      ................................................................. Signed
      ...................................................... ++

    Address
      ................................................................................................................................
      

    ............................................................................
      Dated ........................................................

    

    Name
      ................................................................. Signed
      ...................................................... ++

    Address
      ................................................................................................................................
      

    ............................................................................
      Dated ........................................................

    

    Name
      ................................................................. Signed
      ...................................................... 

    ................................................................................................................................................
      

    ............................................................................
      Dated ........................................................

    

    
      	
              *

            	
              Insert
                date on which conversion will
                occur.

            

    

    

    
      	
              **

            	
              If
                no amount is inserted, the whole of the principal amount of the Loan
                Notes
                held by the Noteholder will be converted. If no redemption of all
                Loan
                Notes, must be a minimum amount and integral multiples of
                £1,000.

            

    

    

    
      	
              +

            	
              If
                no name or address is inserted, the share certificate will be despatched
                to the registered address of the first named
                Noteholder.

            

    

    

    
      	
              ++

            	
              In
                the case of joint Noteholder, all Noteholder must sign. In the case
                of
                corporate Noteholder this Notice must be signed by a Director or
                Secretary
                or duly authorised representative of the
                Noteholder.

            

    

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    Schedule
      2

     

    Provisions
      as to Registration, Transfer and Other Matters

     

     

    
      	
              1

            	
              The
                Company will recognise the registered holder of any Loan Notes as
                the
                absolute owner of the Loan Notes. The Company is not bound to take
                notice
                or see to the execution of any trust whether express, implied or
                constructive to which any Loan Notes may be subject.
                

            

    

     

    
      	
              2

            	
              The
                receipt of the registered holder for the time being of any Loan Notes
                or
                in the case of joint registered holders the receipt of any of them
                for any
                other monies payable in respect of the Loan Note is a good discharge
                to
                the Company, despite any notice it may have whether express or otherwise
                of the right, title, interest or claim of any other person to or
                in such
                Loan Notes or monies.

            

    

     

    
      	
              3

            	
              The
                Loan Notes are transferable by written instrument in any usual or
                common
                form (or in such other form as the Directors may approve) in minimum
                amount and multiple integrals of £1,000 or the whole of a Noteholder’s
                holding of Loan Notes. Subject to compliance with the terms of the
                Loan
                Notes, the Directors are bound to approve and arrange registration
                of a
                transfer of Loan Notes pursuant to this paragraph
                3.

            

    

     

    
      	
              4

            	
              Every
                instrument of transfer accompanied by the Certificate for the Loan
                Notes
                to be transferred must be left for registration with the Company
                at its
                Registered Office and every transfer will be processed in a manner
                approved by the Directors.

            

    

     

    
      	
              5

            	
              Every
                instrument of transfer must be signed by the transferor. The transferor
                is
                deemed to remain the owner of the Loan Notes to be transferred until
                the
                name of the transferee is entered in the
                Register.

            

    

     

    
      	
              6

            	
              No
                fee may be charged for the registration of any transfer or for the
                registration of any other document relating to or affecting the title
                to
                any Loan Notes.

            

    

     

    
      	
              7

            	
              No
                transfer of Loan Notes may be registered in respect of which a Conversion
                Notice has been given.

            

    

     

    
      	
              8

            	
              In
                the case of death of a registered holder of Loan Notes, the only
                persons
                recognised by the Company as having any title to such Loan Notes
                are:

            

    

     

    
      	 	
              (a)

            	
              the
                executors or administrators of a deceased sole registered holder
                of Loan
                Notes; or

            

    

     

    
      	 	
              (b)

            	
              the
                survivor(s) of a joint registered holder of Loan
                Notes.

            

    

     

    
      	
              9

            	
              Any
                person becoming entitled to Loan Notes as a result of the death or
                bankruptcy of a holder of Loan Notes or of any other event giving
                rise to
                the transmission of such Loan Notes by operation of law may, upon
                producing such evidence as reasonably required by the Directors of
                the
                Company, be registered as the holder of such Loan
                Notes.

            

    

     

    
      	
              10

            	
              Any
                principal or other monies payable in respect of the Loan Notes may
                be paid
                by cheque or warrant sent through the post at the risk of the holder
                to:
                

            

    

     

    
      	 	
              (a)

            	
              the
                registered address of the holder; or

            

    

     

    
      	 	
              (b)

            	
              in
                the case of joint registered holders, to the registered address of
                the
                first joint registered holder named on the Register; or
                

            

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              to
                such person and to such address as the registered holder or the joint
                registered holders may direct in writing.

            

    

     

    Every
      such cheque or warrant must be made payable to the person to whom it is sent
      and
      payment of the cheque or warrant by the bank upon which it is drawn is a
      satisfaction of the monies being paid.

     

    
      	
              11

            	
              If
                any Certificate is defaced, lost or destroyed it may be replaced
                on such
                terms (if any) as to evidence and indemnity as the Directors reasonably
                require. In the case of defacement the defaced Loan Note must be
                surrendered before the new Certificate is
                issued.

            

    

     

    
      	
              12

            	
              Any
                notice or other communication to be given under this Instrument must
                be in
                writing and will be served by delivering it personally or sending
                it by
                pre-paid recorded delivery or registered post or by facsimile to
                the
                address and for the attention of the relevant party set out below
                (or as
                otherwise notified by that party). Any notice will be deemed to have
                been
                received:

            

    

     

    
      	 	
              (a)

            	
              if
                delivered personally, at the time of
                delivery;

            

    

     

    
      	 	
              (b)

            	
              in
                the case of pre-paid recorded delivery or registered post, 48 hours
                from
                the date of posting; 

            

    

     

    
      	 	
              (c)

            	
              in
                the case of registered airmail within 3 Business Days of the date
                of
                posting; and

            

    

     

    
      	 	
              (d)

            	
              in
                the case of fax, at the time of
                transmission.

            

    

     

    If
      deemed
      receipt occurs before 9am on a Business Day the notice is deemed to have been
      received at 9am on that day and if deemed receipt occurs after 5pm, the notice
      is deemed to have been received at 9am on the next Business Day.

     

    The
      addresses and facsimile numbers of the parties for the purposes of
      the Instrument are as set out in the Register from time to time or such other
      address or facsimile number as may be notified in writing from time to time
      by
      the relevant party to the other party.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    Schedule
      3

     

    Provisions
      for Meetings of the Noteholder

     

     

    
      	
              1

            	
              The
                Company may at any time, and will upon a written request signed by
                the
                registered holders of not less than 10% in nominal value of the Loan
                Notes
                for the time being outstanding, convene a meeting of the Noteholder
                by
                giving at least 14, and not more than 21, days notice and specifying
                the
                place, day and hour of the meeting. Any such notice will specify
                the
                general nature of the business to be transacted at the meeting convened
                but, except in the case of a resolution to be proposed as an Extraordinary
                Resolution, it is not necessary to specify the terms of any resolutions
                to
                be proposed. The non-receipt of notice or the accidental omission
                to give
                notice to any Noteholder does not invalidate any resolution passed
                at any
                such meeting.

            

    

     

    
      	
              2

            	
              In
                the case of a meeting convened by the Company, a Noteholder nominated
                by
                the Company is entitled to take the chair at every such meeting and,
                in
                the case of a meeting convened by the Noteholder, the Noteholder
                present
                will choose one of their number to be Chairman. The Directors and
                officers
                of the Company and any other person authorised in that behalf by
                the
                Directors may attend any such meeting and speak but not
                vote.

            

    

     

    
      	
              3

            	
              At
                any such meeting convened, at least 2 persons (at least one of which
                shall
                be or be a proxy for the Majority Shareholder) holding or representing
                by
                proxy greater than 50% in nominal amount of the Loan Notes for the
                time
                being outstanding and the form a quorum. No business (other than
                the
                choosing of a Chairman) may be transacted at any meeting unless the
                requisite quorum is present at the commencement of business.
                

            

    

     

    
      	
              4

            	
              If
                within 15 minutes from the time appointed for any meeting of the
                Noteholder a quorum is not present the meeting, if convened upon
                the
                requisition of the Noteholder will be dissolved. In any other case
                it will
                stand adjourned to such day and time (being not less than 14 days
                or more
                than 21 days later) and to such place as may be appointed by the
                Chairman.
                At such adjourned meeting the Noteholder present in person or by
                proxy and
                entitled to vote whatever the principal amount of the Loan Notes
                held by
                them form a quorum provided that at least 7 days notice was given
                of such
                adjourned meeting. The notice must state that the Noteholder or Noteholder
                present in person or by proxy at the adjourned meeting will form
                a
                quorum.

            

    

     

    
      	
              5

            	
              Every
                question submitted to a meeting of Noteholder is decided in the first
                instance on a show of hands.

            

    

     

    
      	
              6

            	
              At
                any meeting of Noteholder (unless a poll is demanded by the Chairman
                or by
                one or more Noteholder present in person or by proxy and holding
                or
                representing in the aggregate not less than 5% in principal amount
                of the
                Loan Notes then outstanding) a declaration by the Chairman that a
                resolution has been carried, or carried by a particular majority,
                is
                conclusive evidence of the fact.

            

    

     

    
      	
              7

            	
              If
                at any is meeting a poll is demanded it will be taken in such manner
                and
                either at once or after such adjournment as the Chairman directs
                and the
                result of such poll is deemed to be the resolution of the meeting
                at which
                the poll was demanded.

            

    

     

    
      	
              8

            	
              Any
                poll demanded at any meeting on the election of a Chairman or on
                any
                question of adjournment must be taken at the meeting without adjournment.
                

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              9

            	
              The
                registered holders of any of the Loan Notes or in the case of joint
                holders any of them are entitled to vote in respect of such Loan
                Notes
                either in person or by proxy and in the latter case as if such joint
                holder were solely entitled to such Loan Notes. If more than one
                joint
                holder is present at any meeting either personally or by proxy the
                vote of
                the senior who tenders a vote (seniority being determined by the
                order in
                which the joint holders are named in the register) will be accepted
                to the
                exclusion of the votes of the other joint
                holders.

            

    

     

    
      	
              10

            	
              Every
                instrument appointing a proxy must
                be:

            

    

     

    
      	 	
              (a)

            	
              in
                writing signed by the appointer or their attorney or in the case
                of a
                corporation by a director, secretary or authorised representative
                of the
                corporation; and 

            

    

     

    
      	 	
              (b)

            	
              in
                any usual or common form or in such other form as the Directors approve.
                

            

    

     

    
      	
              11

            	
              Such
                instrument of proxy, unless the contrary is stated, is valid as well
                for
                an adjournment of the meeting as for the meeting to which it relates
                and
                need not be witnessed. A proxy need not be a
                Noteholder.

            

    

     

    
      	
              12

            	
              The
                instrument appointing a proxy and the power of attorney or other
                authority
                (if any) under which it is signed (or a certified copy of such power
                of
                attorney or authority) must be deposited at the Registered Office
                of the
                Company at least 48 hours before the time appointed for holding the
                meeting or adjourned meeting at which the person named in the instrument
                proposes to vote, in default of which the instrument of proxy is
                invalid.
                A vote given in accordance with the terms of an instrument appointing
                a
                proxy is valid despite the death or insanity of the principal or
                revocation of the instrument of proxy or of the authority under which
                the
                instrument of proxy is given or transfer of the Loan Notes in respect
                of
                which it is given unless previous written notice of such death, insanity,
                revocation or transfer has been received at the Registered
                Office.

            

    

     

    
      	
              13

            	
              On
                a show of hands every Noteholder who (being an individual) is present
                in
                person or (being a corporation) is present by a representative has
                one
                vote and on a poll every Noteholder present in person or by proxy
                has one
                vote for every £1.00 nominal amount of the Loan Notes (rounded down to the
                nearest pound) of which they are the
                holder.

            

    

     

    
      	
              14

            	
              Subject
                to clauses 11.1 (Certificates)
                and 18 (Amendment
                of Instrument)
                of the Instrument a meeting of the Noteholder may by Extraordinary
                Resolution and with the consent of the
                Company:

            

    

     

    
      	 	
              (a)

            	
              sanction
                any modification or compromise in any respect of:
                

            

    

     

    
      	 	
              (i)

            	
              the
                provisions of the Instrument; or 

            

    

     

    
      	 	
              (ii)

            	
              the
                rights of the Noteholder as Noteholder against the Company, whether
                such
                rights arise under the Instrument or otherwise; or
                

            

    

     

    
      	 	
              (iii)

            	
              postponing
                or advancing the time for the payment of the principal moneys in
                respect
                of the Loan Notes; or 

            

    

     

    
      	 	
              (iv)

            	
              the
                exchange of Loan Notes for other securities of the Company or any
                other
                company formed or to be formed; and

            

    

     

    
      	 	
              (b)

            	
              may
                assent to any modification proposed by the Company to the provisions
                contained in the Instrument.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
              15

            	
              Subject
                to clauses 11.1 (Certificates)
                and 18 (Amendment
                of Instrument)
                of the Instrument an Extraordinary Resolution is binding upon all
                the
                Noteholder whether present or not present at such meeting and each
                of the
                Noteholder is bound to give effect to any such Extraordinary Resolution.
                The passing of any such resolution is conclusive evidence that the
                circumstances justify the passing of such
                resolution.

            

    

     

    
      	
              16

            	
              The
                expression “Extraordinary Resolution” means a resolution passed:
                

            

    

     

    
      	 	
              (a)

            	
              at
                a meeting of the Noteholder convened and held in accordance with
                these
                provisions; and

            

    

     

    
      	 	
              (b)

            	
              by
                a majority consisting of not less than 75% of the persons present
                and
                entitled to vote, voting upon a show of hands or if a poll is demanded
                then by a majority consisting of not less than 75% of the votes given
                on
                such poll.

            

    

     

    
      	
              17

            	
              Subject
                to clauses 11.1 (Certificates)
                and 18 (Amendment
                of Instrument)
                of the Instrument a written resolution signed by the holders of 90%
                in
                principal nominal amount of the Loan Notes for the time being outstanding
                who are entitled to receive notice of meetings in accordance with
                these
                provisions is valid and effective as an Extraordinary Resolution.
                Such
                written resolution may be contained in one document or in
                counterparts.

            

    

     

    
      	
              18

            	
              Any
                Noteholder or their proxy may validly participate in a meeting of
                the
                Noteholder by conference telephone or other form of communication
                equipment if all persons participating in the meeting are able to
                hear and
                speak to each other throughout the meeting. A person so participating
                is
                deemed to be present in person at the meeting and is counted in a
                quorum
                and is entitled to vote. Such a meeting is deemed to take place where
                the
                largest group of those participating is assembled or, if there is
                no group
                which is larger than any other group, where the chairman of the meeting
                is.

            

    

     

    
      	
              19

            	
              Minutes
                of all resolutions and proceedings at every meeting will be made
                and
                entered in books provided by the Company. Any such Minutes purporting
                to
                be signed by the Chairman of the meeting at which such resolutions
                were
                passed or proceedings held or by the Chairman of the next succeeding
                meeting of the Noteholder is conclusive evidence of the matters contained
                in such minutes and until the contrary is proved. Every such meeting
                in
                respect of the proceedings of which Minutes have been signed is deemed
                to
                have been duly convened and held and all resolutions passed to have
                been
                duly passed.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    

    EXECUTED
      and
      DELIVERED
      as a
      deed 

    for
      and
      on behalf of

    METAL
      SANDS LIMITED

    by:

     

    
      
        
          
            
              
                	/s/ Trevor
                        Jones	
                        
                          Director

                        

                      	 	
                         

                      	
                         

                      
	
                        

                      	 	 	
                      	 
	/s/ Alan Jowell	
                        Director

                      	 	 	 
	
                        

                      	 	 	 	 

              

            

          

          
 

        

      

    

    
      
        
        

      

      
        22Exhibit 10.1

    Exhibit
      10.1

     

    
      

      

    

    

     

    CCH
      II, LLC

    CCH
      II CAPITAL CORP.

     

    10.25%
      Senior Notes due 2010

     

    SECOND
      SUPPLEMENTAL INDENTURE

     

    Dated
      as of September 14, 2006

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    Trustee

     

    

     

    
      

      

    

    

    
 

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

        SECOND
      SUPPLEMENTAL INDENTURE dated as of September 14, 2006 (this "Supplemental
      Indenture"),
      among
      CCH II, LLC, a Delaware limited liability company, CCH II  CAPITAL CORP., a
      Delaware corporation (collectively, the "Issuers"),
      and
      WELLS FARGO BANK, NATIONAL ASSOCIATION (the "Trustee").

     

        WHEREAS,
      the
      Issuers and the Trustee have entered into an Indenture dated as of September
      23,
      2003 and a First Supplemental Indenture dated as of January 30, 2006, each
      by
      and among the Issuers and the Trustee (as supplemented, the "Indenture"),
      relating to the Issuers' 10.25% Senior Notes due 2010 (the "Outstanding
      10.25% Notes");

     

        WHEREAS,
      the
      Issuers desire and have requested that the Trustee join them in the execution
      and delivery of this Supplemental Indenture in order to establish and provide
      for the issuance by the Issuers of an additional $146,204,000 aggregate
      principal amount of 10.25% Notes due 2010 (the "Additional
      10.25% Notes");

     

        WHEREAS,
      Section 2.02 of the Indenture provides for the issuance of Additional Notes
      and
      Section 9.01(3) of the Indenture permits supplementing the Indenture to
      establish a series of Additional Notes without the consent of any
      Holders;

     

        WHEREAS,
      the
      Additional 10.25% Notes shall constitute Additional Notes pursuant to the
      Indenture;

     

        WHEREAS,
      the
      Issuers desire to correct a defect in the definition of “Charter Holdings
      Indentures”;

     

        WHEREAS,
      Section 9.01(1) of the Indenture permits the Issuers and the Trustee to amend
      the Indenture to cure any ambiguity, defect or inconsistency without the consent
      of any Holders;

     

        WHEREAS,
      the
      conditions set forth in the Indenture for the execution and delivery of this
      Supplemental Indenture have been complied with; and

     

        WHEREAS,
      all
      things necessary to make this Supplemental Indenture a valid supplement to
      the
      Indenture pursuant to its terms and the terms of the Indenture have been
      done.

     

        NOW,
      THEREFORE, the parties hereto agree as follows:

     

     

    ARTICLE
      I

    GENERAL
      TERMS AND CONDITIONS OF THE ADDITIONAL 10.25% NOTES.

     

     

    
      SECTION
        1.01. DESIGNATION
        OF THE NOTES.

       

    

    The
      changes, modifications and supplements to the Indenture effected by this
      Supplemental Indenture (other than those effected by Article III) shall be
      applicable only with respect to, and govern the terms of, the Additional 10.25%
      Notes and shall not apply to any other Notes that have been or may be issued
      under the Indenture unless a supplemental indenture with respect to such other
      Notes specifically incorporates such changes, modifications and supplements.
      The
      changes, modifications and supplements to the Indenture effected by this
      Supplemental Indenture pursuant to Article
      III shall
      be
      applicable with respect to, and govern the terms of, the Outstanding 10.25%
      Notes and the Additional 10.25% Notes and any other Notes that may be issued
      under the Indenture. Pursuant
      to this Supplemental Indenture, there is hereby designated an additional
      $146,204,000 aggregate principal amount of the series of Notes under the
      Indenture entitled "10.25% Senior Notes due 2010." 

     

    SECTION
      1.02. OTHER
      TERMS OF THE NOTES.

     

    (a) General.
      Without
      limiting the foregoing provisions of this Article I, the terms of the Additional
      10.25% Notes shall be as set forth in the form of Note set forth in Exhibit
      A
      and Exhibit B hereto and as provided in the Indenture, as supplemented by this
      Supplemental Indenture. The Additional 10.25% Notes shall initially be evidenced
      by a temporary Global Note (the “Temporary Global Note”) in the form of Exhibit
      A hereto. The Additional 10.25% Notes shall have the same terms, including
      without limitation, the same maturity date, 

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

       

      interest
        rate, redemption and other provisions and interest payment dates as the
        Outstanding 10.25% Notes, and will be part of the same series as the Outstanding
        10.25% Notes, except that interest will accrue from the date of issuance
        thereof
        and the Temporary Global Note will not be fungible with the Outstanding 10.25%
        Notes until the Temporary Global Note is replaced with a permanent Global
        Note
        in accordance with clause (c) below. For all purposes under the Indenture,
        the
        term "Notes" shall include the Outstanding 10.25% Notes and the Additional
        10.25% Notes.

    

     

    (b) Issue
      Date.
      The
      Additional 10.25% Notes shall be issued on September 14, 2006.

     

    (c) CUSIP.
      The
      CUSIP number for the Additional 10.25% Notes shall initially be 12502CAP6.
      On
      the first interest payment date, the Trustee shall cancel the Temporary Global
      Note, the Issuers shall issue a replacement Global Note in the form of Exhibit
      B
      hereto (the “Permanent
      Global Note”)
      and
      the Trustee shall authenticate the Permanent Global Note. The CUSIP number
      for
      the Permanent Global Note shall be 12502CAD3.

     

    SECTION
      1.03 DEFINITIONS.  Capitalized
      terms used herein
      but not otherwise defined shall have the respective meanings assigned thereto
      in
      the Indenture.

     

     

    ARTICLE
      II

    ADDITIONAL
      ISSUANCE OF ADDITIONAL 10.25% NOTES.

     

     Additional
      10.25% Notes in the
      aggregate principal amount equal to $146,204,000 may, upon execution of this
      Supplemental Indenture, be executed by the Issuers and delivered to the Trustee
      for authentication, and the Trustee shall thereupon authenticate and make
      available for delivery such Additional 10.25% Notes pursuant to Section 2.02
      of
      the Indenture and Section 1.02 of this Supplemental Indenture.

     

     

    ARTICLE
      III

    AMENDMENT
      TO DEFINITION OF “CHARTER HOLDINGS INDENTURES”.

     

     This
      Supplemental Indenture
      hereby amends Section 1.01 of the Indenture by deleting the reference to
“11.750% Senior Discount Notes Due 2011 dated January 2002” at the end of clause
      (a) of the definition of “Charter Holdings Indentures” and substituting “12.125%
      Senior Discount Notes Due 2012 dated January 2002” in place
      thereof.

     

     

    ARTICLE
      IV

    MISCELLANEOUS.

     

    SECTION
      4.01.  AMENDMENT
      AND SUPPLEMENT.

     

     This
      Supplemental Indenture or
      the Additional 10.25% Notes may be amended or supplemented as provided for
      in
      the Indenture.

     

    SECTION
      4.02.  CONFLICTS.

     

     In
      the event of any conflict between this Supplemental Indenture and the Indenture,
      the provisions of this Supplemental Indenture shall prevail.

     

    SECTION
      4.03.  GOVERNING
      LAW.

     

        THIS
      SUPPLEMENTAL INDENTURE AND THE ADDITIONAL 10.25% NOTES SHALL BE GOVERNED BY,
      AND
      CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK BUT
      WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
      THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
      THEREBY. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF
      THE
      COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF
      OR
      RELATING TO THIS SUPPLEMENTAL INDENTURE OR THE ADDITIONAL 10.25%
      NOTES.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.04.  COUNTERPARTS.

     

    The
      parties may sign any number of copies of this Supplemental Indenture. Each
      signed copy shall be an original, but all of them together represent the same
      agreement. One signed copy is enough to prove this Supplemental
      Indenture.

     

    SECTION
      4.05.  RATIFICATION.

     

    The
      Indenture, as supplemented by this Supplemental Indenture, shall remain in
      full
      force and effect and is in all respects ratified and confirmed.

     

    SECTION
      4.06. 
SEVERABILITY.

     

    In
      case
      any one or more of the provisions contained in this Supplemental Indenture
      or in
      the Additional 10.25% Notes, as the case may be, shall for any reason be held
      to
      be invalid, illegal or unenforceable in any respect, such invalidity, illegality
      or unenforceability shall not affect or impair any other provisions of this
      Supplemental Indenture or of such Notes.

     

    SECTION
      4.07.  TRUSTEE
      DISCLAIMER.

     

    The
      recitals contained herein shall be taken as the statements of the Issuers,
      and
      the Trustee assumes no responsibility for their correctness. The Trustee makes
      no representations as to the validity or sufficiency of this Supplemental
      Indenture.

     

    

     

    [Signature
      pages follow.]

     

    

     

    

    
      
        
           

        

        
        

      

      
        3

        
          

        

      

      
        
        

        
        

      

    

     

    SIGNATURES

     

    IN
      WITNESS WHEREOF, the parties have caused this Supplemental Indenture to be
      duly
      executed, all as of the date first above written.

    

    CCH
      II, LLC

     

    By:
      /s/ Eloise Schmitz              

    Name:
      Eloise E. Schmitz

    Title:
      Senior Vice President, Strategic Planning

    

    CCH
      II CAPITAL CORP.

     

    By:/s/
      Eloise Schmitz              

    Name:
      Eloise E. Schmitz

    Title:
      Senior Vice President, Strategic Planning

    

    

    

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION, as Trustee

     

    By:
      /s/ Timothy P. Mowdy           

    Name:
      Timothy P. Mowdy      

    Title:
      Vice President      

     

     

     

    

    

      SIGNATURE
        PAGE TO CCH II SECOND SUPPLEMENTAL INDENTURE

      SEPTEMBER
        2006

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FORM
      OF TEMPORARY GLOBAL NOTE

     

    [SEE
      ATTACHED]

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    FORM
      OF PERMANENT GLOBAL NOTE

     

    [SEE
      ATTACHED]

    

    

      
        
          
          

        

        
          B-1

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