Document:

Exhibit 4.1 UPC Add'l Facility AM Accession Agreement

Exhibit 4.1
CONFORMED COPY

EUR €990,050,000 ADDITIONAL FACILITY AM ACCESSION AGREEMENT
		
	To: 
	The Bank of Nova Scotia as Facility Agent and Security Agent

		
	From:
	The persons listed in Schedule 1 to this Additional Facility AM Accession Agreement (the Additional Facility AM Lenders) such defined term to include any lender which becomes a New Lender in respect of Facility AM, by the execution by the Facility Agent of a Novation Certificate. 

		
	Date:
	3 August 2015

UPC Broadband Holding B.V. (formerly known as UPC Distribution Holding B.V) - €1,072,000,000 Term Credit Agreement dated 16 January 2004 as amended from time to time (the Credit Agreement)
		
	1.
	In this Additional Facility AM Accession Agreement:

Facility AI has the meaning given to it in the Additional Facility AI Accession Agreement dated 14 May 2013 between, among others, UPC Financing and The Bank of Nova Scotia as Facility Agent and Security Agent.
Facility AM means the €990,050,000 redrawable term loan facility made available under this Additional Facility AM Accession Agreement. 
Facility AM Advance means a Euro denominated advance made to UPC Financing by the Additional Facility AM Lenders under Facility AM.
Facility AM Commitment means, in relation to an Additional Facility AM Lender, the amount in Euros set opposite its name under the heading "Facility AM Commitment" in Schedule 1 to the counterpart of this Additional Facility AM Accession Agreement executed by that Additional Facility AM Lender, to the extent not cancelled, transferred, or reduced under the Credit Agreement.
Liberty Global Reference Agreement means any or all of (i) the credit agreement dated 7 June 2013 between (among others) Virgin Media Investment Holdings Limited as borrower and The Bank of Nova Scotia as facility agent; (ii) the credit agreement dated 27 January 2014 between (among others) Ziggo B.V. as borrower and The Bank of Nova Scotia as facility agent; (iii) the credit agreement dated 28 September 2006 between (among others) All3Media Finance Limited as borrower and The Royal Bank of Scotland plc as facility agent; and (iv) the credit agreement dated 5 March 2015 between (among others) Ziggo Secured Finance B.V. as SPV borrower and The Bank of Nova Scotia as facility agent (in each case as amended from time to time up to the date of this Additional Facility AM Accession Agreement).
Novation Certificate means a novation certificate substantially in the form set out in Schedule 3 to this Additional Facility AM Accession Agreement.
Total Additional Facility AM Commitment means, at any time, the aggregate of the Facility AM Commitments.

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	2.
	Unless otherwise defined in this Additional Facility AM Accession Agreement, terms defined in the Credit Agreement shall have the same meaning in this Additional Facility AM Accession Agreement and a reference to a Clause is a reference to a Clause of the Credit Agreement. The principles of construction set out in Clause 1.2 (Construction) of the Credit Agreement apply to this Additional Facility AM Accession Agreement as though they were set out in full in this Additional Facility AM Accession Agreement. 

		
	3.
	We refer to Clause 2.2 (Additional Facilities) of the Credit Agreement.

		
	4.
	This Additional Facility AM Accession Agreement will take effect on the date on which the Facility Agent notifies UPC Broadband and the Additional Facility AM Lenders that it has received the documents and evidence set out in Schedule 2 to this Additional Facility AM Accession Agreement, in each case in form and substance satisfactory to it or, as the case may be, the requirement to provide any of such documents or evidence has been waived by the Facility Agent on behalf of the Additional Facility AM Lenders (the Effective Date).

		
	5.
	We, the Additional Facility AM Lenders, agree:

		
	(a)
	to become party to and to be bound by the terms of the Credit Agreement as Lenders in accordance with Clause 2.2 (Additional Facilities) of the Credit Agreement; and

		
	(b)
	to become party to the Security Deed as Lenders and to observe, perform and be bound by the terms  and provisions  of the Security  Deed  in the capacity  of Lenders  in accordance with Clause 9.3 (Transfers by Lenders) of the Security Deed.

		
	6.
	The Additional Facility Commitment in relation to an Additional Facility AM Lender (for the purpose of the definition of Additional Facility Commitment in Clause 1.1 (Definitions) of the Credit Agreement) is its Facility AM Commitment.

		
	7.
	Any interest due in relation to Facility AM will be payable on the last day of each Interest Period in accordance with Clause 8 (Interest) of the Credit Agreement. 

		
	8.
	The  Additional  Facility  Availability  Period  for  Facility  AM  shall  be  the  period  from  and including the Effective Date up to and including the date falling one month before the Final Maturity Date in respect of Facility AM.

		
	9.
	Facility AM shall comprise a committed redrawable term loan facility which shall (subject to paragraph 10 below) be capable of being reborrowed in relation to any sums that are prepaid in accordance with Clause 7.10(d) (Miscellaneous provisions) of the Credit Agreement.

		
	10.
	UPC  Financing  shall  not  deliver  a Request  in relation  to  Facility  AM  if  as a result  of  the proposed Request the aggregate of the number of outstanding Advances under Facility AM would be more than 10 Advances.

		
	11.
	The Facility AM Advances will be used for general corporate purposes and working capital purposes, including the repayment or prepayment of existing indebtedness.

		
	12.
	The Final Maturity Date in respect of Facility AM will be 31 December 2021.

		
	13.
	The outstanding Facility AM Advances will be repaid in full on the Final Maturity Date.

		
	14.
	The Margin in relation to Facility AM is 2.75 per cent. per annum.

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	15.
	The Borrower in relation to Facility AM is UPC Financing.

		
	16.
	The Borrower shall pay to the Facility Agent for distribution to each Additional Facility AM Lender in accordance with Clause 20.1(b) (Commitment fee) of the Credit Agreement a commitment fee in an amount equal to 1.1 per cent. per annum of the undrawn uncancelled portion  of the  Total  Additional  Facility  AM Commitment. Such commitment fee shall be calculated and shall accrue on a daily basis and shall be payable on the Effective Date and thereafter quarterly in arrears.

		
	17.
	The interest rate for Facility AM will be calculated in accordance with Clause 8.1 (Interest rate) of the Credit Agreement, being the sum of EURIBOR, the applicable Margin and the Mandatory Costs (if any). For the avoidance of doubt, each party to this Agreement accepts and acknowledges that, subject to paragraph 7 above, EURIBOR has the meaning given to it under Clause 1.1 (Definitions) of the Credit Agreement.

18.    
		
	(a)
	Provided that any upsizing of Facility AM permitted under this paragraph will not breach any term of the Credit Agreement, Facility AM may be upsized by any amount, by the signing of one or more further Additional Facility AM Accession Agreements, that specify (along with the other terms specified therein) UPC Financing as the sole Borrower and which specify Additional Facility AM Commitments denominated in Euros, to be drawn in Euros, with the same Final Maturity Date, commitment fee and Margin as specified in this Additional Facility AM Accession Agreement. 

		
	(b)
	For the purposes of this paragraph 18 (unless otherwise specified), references to Additional Facility AM Lenders and Facility AM Advances shall include Lenders and Advances made under any such further and previous Additional Facility AM Accession Agreement. 

		
	(c)
	Where any Facility AM Advance has not already been consolidated with any other Facility AM Advance, on the last day of any Interest Period for that unconsolidated Facility AM Advance, that unconsolidated Facility AM Advance will be consolidated with any other consolidated Facility AM Advances which has an Interest Period ending on the same day as that unconsolidated Facility AM Advance, and all such Facility AM Advances will then be treated as one Advance.

		
	19.
	For the purposes of any amendment or waiver, consent or other modification (including with respect to any existing Default or Event of Default) that may be sought by UPC Broadband and UPC Financing under the Credit Agreement on or after the date of this Additional Facility AM Accession Agreement, the Additional Facility AM Lenders hereby consent to any and all of the following:

		
	(a)
	any and all of the items set out in Schedule 4 (Amendments, waivers, consents and other modifications) and Schedule 5 (Further amendments, waivers, consents and other modifications) of this Agreement; and

		
	(b)
	any consequential amendment, waiver, consent or other modification, whether effected by one instrument or through a series of amendments, to the Credit Agreement or any other Finance Document to be made either to implement the changes envisaged in Schedule 4 (Amendments, waivers, consents and other modifications) and/or Schedule 4 (Further amendments, waivers, consents and other modifications) of this Additional Facility AM Accession Agreement or to conform any Finance Document to Schedule 4 

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(Amendments, waivers, consents and other modifications) and/or Schedule 5 (Further amendments, waivers, consents and other modifications) of this Additional Facility AM Accession Agreement; and/or
		
	(c)
	any other amendment, waiver, consent or modification, whether effected by one instrument or through a series of amendments, to the Credit Agreement or any other Finance Document to be made to conform any Finance Document to any Liberty Global Reference Agreement (provided that any amendment, waiver, consent or modification to conform the Credit Agreement or any other Finance Document to the Liberty Global Reference Agreement referred to at paragraph (iv) of that definition, shall be limited to those that are mechanical in nature unless specifically referenced in Schedule 4 (Amendments, waivers, consents and other modifications) and/or Schedule 5 (Further amendments, waivers, consents and other modifications) of this Additional Facility AM Accession Agreement),

and this Additional Facility AM Accession Agreement shall constitute each Additional Facility AM Lenders'  irrevocable  and unconditional written consent in respect of such amendments, waivers, consent or other modifications to the Finance Documents for the purposes of Clause 25 (Amendments and Waivers) of the Credit Agreement without any further action required on the part of any Party.
		
	20.
	Each Additional Facility AM Lender hereby acknowledges and agrees that the Facility Agent may, but shall not be required to, send to the Additional Facility AM Lender any further formal amendment request in connection with all, or any of the proposed amendments set out under paragraph 19 above and the Facility Agent shall be authorised to consent on behalf of each Additional Facility AM Lender, as a Lender under one or more Additional Facilities, to any such proposed amendments set out under paragraph 19 above, and such consent shall be taken into account in calculating whether the Majority Lenders, or the relevant requisite Lenders, have consented to the relevant amendments and/or waivers or other modifications to the Finance Documents in accordance with Clause 25 (Amendments and Waivers) of the Credit Agreement.

		
	21.
	The Additional Facility AM Lenders hereby waive receipt of any fee in connection with the foregoing consent, notwithstanding that other consenting Lenders under the Credit Facility may be paid a fee in consideration of such Lenders' consent to any or all of the foregoing amendments, waivers, consents or other modifications.

		
	22.
	In the event that the amendments to the Credit Agreement referred to at paragraph 78 (Benefit of Maintenance Covenant) of Schedule 4 (Amendments, waivers, consents and other modifications) become effective in accordance with paragraphs 19 and 20 above, on and from the effective date of such amendments, the maintenance covenant at Clause 17.2 (Financial ratios) of the Credit Agreement shall be for the benefit of the Additional Facility AM Lenders.

		
	23.
	Each of UPC Broadband and UPC Financing confirms, on behalf of themselves and each other Obligor, that the representations and warranties set out in Clause 15 (Representations and Warranties) of the Credit Agreement (with the exception of Clauses 15.6(a) (Consents), 15.10 (Financial condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings), 15.14 (Business Plan), 15.15 (Tax liabilities), 15.16 (Ownership of assets), 15.18 (Works Council), 15.19 (Borrower Group Structure), 15.20 (ERISA), 15.24 (UPC Financing) and 15.25 (Dutch Banking Act)) are true and correct as if made at the first Utilisation Date in respect of Facility AM with reference to the facts and circumstances then existing, and as if each reference to the Finance Documents includes a reference to this Additional Facility AM Accession Agreement.

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	24.
	Each Additional Facility AM Lender confirms to each Finance Party that:

		
	(a)
	it has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and has not relied on any information provided to it by a Finance Party in connection with any Finance Documents; and

		
	(b)
	it will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Additional Facility Commitment is in force.

		
	25.
	Each of the Additional Facility AM Lenders agrees that without prejudice to Clause 26.3 (Procedure for novations) of the Credit Agreement, each New Lender (as defined in the Novation Certificate referred to below) shall become, by the execution by the Facility Agent of a Novation Certificate substantially in the form of Schedule 3 to this Additional Facility AM Accession  Agreement,  bound  by  the  terms  of  this  Additional  Facility  AM  Accession Agreement as if it were an original party hereto as an Additional Facility AM Lender and shall acquire the same rights, grant the same consents and assume the same obligations towards the other  parties  to  this  Additional  Facility  AM  Accession  Agreement  as  would  have  been acquired, granted and assumed had the New Lender been an original party to this Additional Facility AM Accession Agreement as an Additional Facility AM Lender.

		
	26.
	The  Facility  Office  and address  for  notices  of each  Additional  Facility  AM Lender  for  the purposes of Clause 32.2 (Addresses  for notices) of the Credit Agreement  will be that notified by each Additional Facility AM Lender to the Facility Agent.

		
	27.
	This Additional Facility AM Accession Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

		
	28.
	This Additional   Facility   AM Accession   Agreement   may be executed in any number of counterparts, and by each party on separate counterparts.   Each counterpart  is an original, but all  counterparts   shall  together  constitute  one  and  the  same  instrument. Delivery of an executed counterpart signature page of this Additional Facility AM Accession Agreement by e­ mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Additional Facility AM Accession Agreement.

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SCHEDULE 1
ADDITIONAL FACILITY AM LENDERS AND COMMITMENTS

	
		
	Additional Facility AM Lender
	Facility AM Commitment (€)

	ABN Amro Bank N.V.
Bank of America, N.A., London Branch
Barclays Bank PLC
BNP Paribas Fortis SA/NV
Citibank N.A., London
Credit Agricole Corporate and Investment Bank
Crédit Industriel et Commercial, London Branch
Credit Suisse AG, London Branch
Deutsche Bank AG, London Branch
Goldman Sachs Bank USA
HSBC Bank plc
ING Bank N.V., Amsterdam
JPMorgan Chase Bank, N.A., London Branch
Morgan Stanley Bank N.A.
Nomura International plc
The Royal Bank of Scotland plc
Scotiabank Europe PLC
Société Générale, London Branch
UBS AG, London Branch
	50,000,000
76,050,000
50,000,000
50,000,000
50,000,000
84,000,000
30,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000

	Total   
	990,050,000

            

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SCHEDULE 2
CONDITIONS PRECEDENT DOCUMENTS
		
	1.
	Constitutional Documents

		
	(a)
	A copy of the constitutional documents of each Obligor (other than UPC Financing) and the partnership agreement of UPC Financing or, if the Facility Agent already has a copy, a certificate of an authorised signatory of the relevant Obligor confirming that the copy in the Facility Agent's possession is still correct, complete and in full force and effect as at a date no earlier than the date of this Additional Facility AM Accession Agreement.

		
	(b)
	An extract of the registration of each Obligor established in the Netherlands in the trade register of the Dutch Chamber of Commerce.

		
	2.
	Authorisations

		
	(a)
	A copy of a resolution of the board of managing and, to the extent applicable, board of supervisory directors (or equivalent) and, to the extent that a shareholders' resolution is required, a copy of the shareholders' resolution of each Obligor:

		
	(i)
	approving the terms of and the transactions contemplated by this Additional Facility AM Accession Agreement and (in the case of each of UPC Broadband and UPC Financing) resolving that it execute the same (and, in the case of the Guarantors and the Charging Entities (as defined in the Security Deed) resolving that it execute the confirmation described at paragraph 4(a) below; and

		
	(i)
	(in the case of UPC Broadband and UPC Financing) authorising the issuance of a power of attorney to a specified person or persons to execute this Additional Facility AM Accession Agreement on its behalf and (in the case of the Guarantors and the Charging Entities (as defined in the Security Deed)) authorising the issuance of a power of attorney to a specified person or persons to execute the confirmation described in paragraph 4(a) below.

		
	(b)
	A specimen of the signature of each person authorised  pursuant  to  its  constitutional documents or to the power of attorney referred to in paragraph (a) above to sign this Additional Facility AM Accession Agreement or the confirmation described in paragraph 4(a) below (as appropriate).

		
	(c)
	A certificate of an authorised signatory of UPC Broadband, each Guarantor and each Charging Entity certifying that each copy document specified in this Schedule and supplied by UPC Broadband, each Guarantor and each Charging Entity is correct, complete and in full force and effect as at a date no earlier than the date of this Additional Facility AM Accession Agreement.

		
	(d)
	A copy of any other authorisation or other document, opinion or assurance which the Facility Agent has notified UPC Broadband is necessary in connection with the entry into and performance of, and the transactions contemplated by, this Additional Facility AM Accession Agreement or for the validity and enforceability of this Additional Facility AM Accession Agreement.

 
		
	3.
	Legal opinions

		
	(a)
	A legal opinion of Allen & Overy LLP, English legal advisers to the Facility Agent, addressed to the Finance Parties.

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	(b)
	A legal opinion of Allen & Overy LLP, Dutch legal advisers to the Facility Agent, addressed to the Finance Parties.

		
	(c)
	A legal opinion of Allen & Overy LLP, New York legal advisers to the Facility Agent, addressed to the Finance Parties.

		
	4.
	Other documents

		
	(a)
	Confirmation (in writing) from (i) each of the Guarantors that its obligations under Clause 14 (Guarantee) of the Credit Agreement and (ii) each of the Charging Entities (as defined in the Security Deed) that the Security Interests granted to the Beneficiaries pursuant to the Security Documents and its obligations under the Finance Documents, shall continue unaffected and that such obligations extend to the Total Commitments as increased by the addition of Facility AM and that such obligations shall be owed to each Finance Party including the Additional Facility AM Lenders.

		
	(b)
	Evidence that there are no amounts outstanding under Facility AI as at the Effective Date and an executed copy of an irrevocable Cancellation Notice confirming that Facility AI has been, or will be, prepaid and cancelled in full on or before the Effective Date.

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SCHEDULE 3
NOVATION CERTIFICATE
		
	To: 
	The Bank of Nova Scotia as Facility Agent and UPC Financing as Borrower

		
	From:
	[THE EXISTING LENDER] and [THE NEW LENDER]

Date:    [l]
UPC Broadband Holding B.V. - €1,072,000,000 Term  Credit  Agreement  dated 16 January, 2004 as amended from time to time (the Credit Agreement)
We refer to:
(a)Clause 26.3 (Procedure for novations) of the Credit Agreement;
(a)    Clause 9.3 (Transfers by the Lenders) of the Security Deed; and
		
	(b)
	the Accession Agreement dated [l] 2015, pursuant to which a EUR €[l] redrawable term  loan  facility  is  being  made  available  to  the  Borrower  as  an  Additional  Facility (Additional  Facility AM) under the Credit Agreement (the Additional  Facility AM Accession Agreement).

Terms defined in the Credit Agreement or, if not defined in the Credit Agreement, the Additional Facility AM Accession Agreement, have the same meaning in this Novation Certificate.
		
	1.
	We [●] (the Existing Lender) and [●] (the New Lender) agree to the Existing Lender and the New Lender novating all the Existing Lender's rights and obligations referred  to in the Schedule on and from the Effective Date in accordance with Clause 26.3 (Procedure for novations) of the Credit Agreement and clause 9.3 (Transfers by the Lenders) of the Security Deed.

		
	2.
	The  New  Lender confirms  that it  is  bound  by  the  terms  of  the  Additional  Facility  AM Accession Agreement as if it were an original party thereto as an Additional Facility AM Lender and shall acquire the same rights grant the same consents and assume the same obligations towards the other parties to this Agreement as would have been acquired, granted and assumed had the New Lender been an original party to the Additional Facility AM Accession Agreement as an Additional Facility AM Lender.

		
	3.
	For the purposes of this Novation Certificate, "Effective Date" means the date on which the Facility Agent countersigns this certificate.

		
	4.
	The Facility Office and address for notices of the New Lender for the purposes of Clause 32.2 (Addresses for notices) of the Credit Agreement are set out in the Schedule.

		
	5.
	This Novation Certificate may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Novation Certificate by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Novation Certificate.

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	6.
	This Novation Certificate is a Finance Document and any non-contractual obligations arising out of or in connection with it are governed by English law.

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THE SCHEDULE
Rights and obligations to be novated
EXISTING LENDER
Existing Lender's Commitment under Additional Facility AM: [EUR €[•]]
Assignee:  New Lender

[New Lender]
[Facility Office         Address for notices for administrative purposes
Address for notices for credit purposes]

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[The Existing Lender], as the Existing Lender
By:
 
Name:
 
Title:

[The New Lender], as the New Lender
By:
 
Name:
 
Title:

UPC BROADBAND HOLDING B.V., as Obligors agent

By:
 
Name:
 
Title:

THE BANK OF NOVA SCOTIA, as Facility Agent

By:
 
Name:
 
Title:
 
Date:
 
The Facility Agent confirms that the Effective Date is the date on which it countersigns this Novation Certificate.

SCHEDULE 4
AMENDMENTS, WAIVERS, CONSENTS AND OTHER MODIFICATIONS
All references to Clauses, Paragraphs, Schedules and definitions contained in this Schedule 4 are to Clauses, Paragraphs, Schedules and definitions of the Credit Agreement. All capitalised terms used in this Schedule but not defined shall have the meanings given to such terms in the Credit Agreement.

In this Schedule, references to "recent Liberty precedent" shall be construed to mean any Liberty Global Reference Agreement.
		
	1.
	Business: amend the definition of Business to include the provision, creation, distribution and broadcasting of content and any business or provision of services substantially the same or similar to that of any member of the Wider Group on the amendment and restatement date as set out in recent Liberty precedent.

		
	2.
	Cash and Cash Equivalent Investments: amend the definition of Cash and the definition of Cash Equivalent Investments to bring each substantially in line with and/or by reference to clauses and language used in recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market.

		
	3.
	Acceptable Bank: amend the definition of Acceptable Bank such that an acceptable bank has a rating of “BBB+” and “Baa1” respectively.

		
	4.
	Optional Currencies:  amend the Credit Agreement to provide that any revolving credit facility commitments may also be utilised in currencies other than euro on the basis set out in recent Liberty precedent which contain a revolving credit facility.

		
	5.
	Revolving Facilities: amend the Credit Agreement to include mechanical provisions in relation to revolving credit facilities on the basis set out in recent Liberty precedent which contain revolving credit facilities for the purposes of facilitating future Additional Facilities that are revolving credit facilities. 

		
	6.
	Screen Rate: amend the definition of Screen Rate to provide for the replacement of the British Bankers’ Association by the ICE Benchmark Administration as the administrator of LIBOR and the replacement of the Banking Federation of the European Union by the European Money Markets Institute as the administrator of EURIBOR together with other amendments to the definition of Screen Rate by reference to clauses and language used in recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market.

		
	7.
	Financial Indebtedness: amend the definition of Financial Indebtedness as follows:

		
	(a)
	delete paragraph (e) in relation to deferred payments for assets acquired or services supplied;

		
	(b)
	by excluding the following items from the definition:

		
	(i)
	cash-collateralised indebtedness;

		
	(ii)
	indebtedness in the nature of equity (other than redeemable shares); 

		
	(iii)
	any deposits or prepayments received by any member of the Borrower Group from a customer or subscriber for its service;

		
	(iv)
	obligations under finance leases and hire purchase contracts in accordance with recent Liberty precedent; and otherwise exclude obligations in respect of finance leases or capital leases (including by deleting limb (f) of the definition of Financial Indebtedness);

		
	(v)
	any indebtedness in respect of any transactions relating to transfers of receivables (and related assets) to asset securitisation Subsidiaries or by an asset securitisation Subsidiary to any other person, or the grant of security in respect of such receivables or related assets, in connection with any asset securitisation programmes or receivables factoring transactions;

		
	(vi)
	any parallel debt obligations to the extent such obligations mirror other Financial Indebtedness;

		
	(vii)
	any pension obligations;

		
	(viii)
	any obligations to make payments in relation to earn outs; and

		
	(ix)
	any payments for assets acquired or services supplied deferred in accordance with the terms pursuant to which the relevant assets were or are to be acquired or services were or are to be supplied.

		
	8.
	Majority Lenders: amend Clause 1.1 of the Credit Agreement to reduce the fractions specified in the definitions of Majority Lenders, from 662⁄3 per cent. or more (for any or all purposes under the Credit Agreement or any other Finance Document (including for the purposes of any Additional Facility)) to more than 50 per cent. and to exclude the available commitments of defaulting lenders for the purposes of amendments or waivers.

		
	9.
	Super Majority Lenders: amend Credit Agreement to provide for a definition of Super Majority Lenders so that amendments and waivers in respect of the release of any guarantee or security only requires the consent of Lenders representing 90 per cent. of Commitments.

		
	10.
	Mandatory Costs: delete all references in the Credit Agreement and each Additional Facility Accession Agreement to Mandatory Costs and any related provisions.

		
	11.
	Increase: amend Clause 2 (Facilities) to provide for the ability to increase Commitments under a Facility by increasing a Lender’s Commitments with that Lender’s consent or by including new Commitments of any bank, financial institution, trust, fund or any other entity selected by UPC Broadband, including (but without limitation) the ability to increase the Commitments in an amount equal to the amount of any commitments cancelled as a result of (i) illegality, or (ii) Commitments cancelled as a result of the relevant Lender becoming a defaulting lender. Amend to permit the Borrower to pay a fee to any increase Lender.

		
	12.
	Additional Facilities: amend paragraph (c) of Clause 2.2 (Additional Facilities) so that Additional Facilities can be revolving credit facilities. 

		
	13.
	Documentary Credits: amend the Credit Agreement to permit utilisation of any Additional Facility that is a revolving credit facility by way of letters of credit, bank guarantees, indemnity, performance bonds and other documentary credits and include all consequential mechanical provisions to support the same, in each case in accordance with recent Liberty precedent.

		
	14.
	Ancillary Facilities: amend the Credit Agreement to provide for an ability to incur bilateral ancillary lines with a Lender (with the consent of that Lender) as a carve-out to the Commitments under any Additional Facility that is a revolving credit facility and include all consequential mechanical provisions to support the same.

		
	15.
	Rollover Loans: 

		
	(a)
	amend the Credit Agreement to clarify that, to the extent that a Borrower is due to repay (in full or in part) a revolving credit facility Advance on the same day on which such Borrower has also requested a revolving credit facility Advance in the same currency and in the same or a lesser amount, a rollover of such revolving credit facility Advance shall be effected on a cashless basis in accordance with recent Liberty precedent and to make consequential amendments to the Credit Agreement in accordance with recent Liberty precedent to reflect consistent rollover Advance provisions; and

(b)   amend Clause 4.2 (Further conditions precedent) so that the applicable condition precedent to a rollover Advance is that the Facility Agent shall not have received instructions from the Lenders to whom more than 50 per cent. of the relevant rollover Advance or documentary credit is owed (not taking into account outstandings in respect of which a prepayment or cancellation notice has been delivered), requiring the Facility Agent to refuse such rollover or renewal of a documentary credit following a written notice having been served under Clause 18.21 (Acceleration).
		
	16.
	Change of Control:  amend the  Credit  Agreement  or  any  other Finance Document to revise the change of control provisions in Clause 7.4 (Change of Control) of the Credit Agreement as follows:

		
	(a)
	delete Clause 7.4(a)(i) of the Credit Agreement; 

		
	(b)
	in Clause 7.4(a)(ii) of the Credit Agreement:

		
	(i)
	replace all references to "UGCE Inc." with "Liberty Global Europe Financing BV"; and

		
	(ii)
	delete the words "and economic"; and

		
	(iii)
	permit the distribution or other transfer of UPC Broadband Holdco and its Subsidiaries or a Holding Company of UPC Broadband Holdco to Liberty Global plc (the Ultimate Parent) or another direct Subsidiary  of  the  Ultimate  Parent  through one or more mergers, transfers, consolidations or other similar transactions (the Reorganization), without the Reorganization being deemed to trigger a Change of Control and, upon such Reorganization, the Change of Control reference entity referred to in Clause 7.4(a)(ii) of the Credit Agreement will be replaced with the Ultimate Parent (or, if the distribution or other transfer pursuant 

to the Reorganization is to a direct Subsidiary of the Ultimate Parent, such direct Subsidiary); and
		
	(c)
	amend Clause 7.4 (Change of Control) to extend the requirement to repay so that it falls 30 Business Days after the date of the notice from the Facility Agent and amend such Clause and the definition of Change of Control to reflect recent Liberty precedent, including the ability to effect a post-closing reorganization and a spin-off without triggering a mandatory prepayment thereunder.

		
	17.
	Cancellation: amend Clause 7.9 (Right of repayment and cancellation in relation to a single Lender) (i) to provide for the transfer in full and at par (in addition to the right of repayment and cancellation) of the Commitment and participation in a utilisation of a single Lender to another Lender; and (ii) to provide that the right to repay, cancel or transfer also arises in respect of a Lender’s Commitment or participation in a utilisation where that Lender invokes the market disruption clause, such right to be exercisable subject to the same conditions as recent Liberty precedent.

		
	18.
	Notice of Prepayment or Cancellation: amend Clause 7.10 (Miscellaneous provisions) to provide that a notice of prepayment or cancellation may be conditional and be revoked provided that a Borrower has, within 10 Business Days, indemnified any Lender in respect of such Lender’s Break Costs if the prepayment or cancellation does not occur as notified and the notice period can be reduced with the consent of the Majority Lenders under the relevant Facility.  The definition of Break Costs will be amended to include a Lender’s losses as a result of having to unwind any related funding contract (which it had entered into or initiated upon receipt of such notice) as a result of the revocation of a notice of prepayment or cancellation.

		
	19.
	Interest on Additional Facilities: amend Clause 8.2 (Selection of Interest Periods) to permit interest periods to be any period from 1, 2, 3 or 6 months or such other period of up to 12 months for all Advances as the Majority Lenders under the relevant Facility may agree and in addition and for Advances under a revolving credit facility only, any period between 1 day and 30 days.

		
	20.
	Mandatory Prepayment from Excess Cash Flow and Relevant Convertible Preference Shares: delete Clause 7.5 (Mandatory Prepayment from Excess Cash Flow and Relevant Convertible Preference Shares) and make all necessary amendments to the Credit Agreement that are consequential and required by such deletion. 

		
	21.
	Mandatory Prepayment from Disposals Proceeds: amend Clause 7.6 (Mandatory Prepayment from disposal proceeds) and 7.7 (Date for prepayment) to require prepayment of disposal proceeds only to the extent required to ensure compliance with the Senior Debt to Annualised EBITDA maintenance financial covenant, exclude any proceeds from any other Permitted Disposal other than the general Permitted Disposals basket, remove the requirement to transfer disposal proceeds to a blocked account pending reinvestment, include a de minimis threshold of the greater of €250,000,000 and 5% of total assets and increase the reinvestment period from 12 months to 18 months (provided the disposal proceeds have been contracted to be reinvested within 12 months of the relevant Permitted Disposal) (and subject to the proviso that the financial covenant discussed above shall be retested at the end of such period and proceeds shall then be prepaid to the extent required to ensure compliance in line with recent Liberty precedent). 

		
	22.
	Increased Costs: amend Clause 12.3 (Exceptions) to include:

		
	(c)
	costs attributable to gross negligence or wilful breach by a Finance Party; 

		
	(d)
	costs not notified within 30 days of a Finance Party becoming aware; 

		
	(e)
	FATCA deductions; and

		
	(f)
	Bank Levies to the extent not more onerous than existing actual or draft laws (as applicable). 

		
	23.
	Tax: amend Clause 10 (Tax Gross-Up and Indemnities) to provide that the Finance Parties and the Borrower shall cooperate in good faith to complete any procedural steps to allow the Borrower to make payments without or with a reduced rate of withholding or deduction for taxes and each Finance Party will provide information requested by the Borrower in order for the Borrower to be exempt from withholding or deduction for any taxes under any applicable international treaty and in connection with FATCA and any applicable reporting requirements under FATCA in each case, in accordance with recent Liberty precedent. The Borrower will not be liable under any tax gross up or tax indemnity provisions in respect of any FATCA deductions other than in respect of any payments due to an SPV lender that has issued notes and advanced the proceeds of such notes to a member of the Borrower Group under an Additional Facility (provided that no gross up or indemnity shall be required for a FATCA deduction where such FATCA deduction arises from any non-compliance by a holder of such notes).  Each Finance Party will be obliged to act reasonably and in good faith in making any determination for the purpose of Clause 10 (Tax Gross-Up and Indemnities). 

		
	24.
	VAT: amend Clause 10.6 (Value Added Tax) to (i) provide that no Party shall exercise any potential option for waiving a VAT exemption, (ii) provide that no payment shall be required from an Obligor to a Finance Party if the relevant VAT charge is caused by that Finance Party’s option to waive a VAT exemption and (iii) conform it such that it is consistent with any VAT provisions in recent Liberty precedent.

		
	25.
	Market Disruption: amend the Credit Agreement to include market disruption provisions, provisions in relation to alternative interest rates and provisions for the protection of reference banks and their officers in accordance with recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market.

		
	26.
	Borrower Group: amend the definition of Borrower Group to exclude, dormant subsidiaries that are not guarantors, project companies (as defined in accordance with recent Liberty precedent), asset securitisation subsidiaries (as defined in accordance with recent Liberty precedent) and entities that become subsidiaries as a result of an asset passthrough (as defined in accordance with recent Liberty precedent). 

		
	27.
	Permitted Affiliate Parent: amend the Credit Agreement in line with recent Liberty precedent to provide an ability to acquire Affiliates that are not Subsidiaries of UPC Broadband but are Subsidiaries of another Affiliate common holding company that is not a member of the Borrower Group (the holding entity of the acquired group being the “Permitted Affiliate Parent”) and to allow conforming changes including the ability to designate (subject to certain deliverables in accordance with recent Liberty precedent) any new holding company as the common holding company of the Borrower Group for the purposes of, amongst other things, the definitions of Change of Control, Restricted Payments and Permitted Payments, in each case, in accordance 

with recent Liberty precedent and for the purpose of reflecting a similar structure which supports the concept of a Permitted  Affiliate Parent as set out in recent Liberty precedent.  Provide an ability for UPC Broadband to deliver financial statements that are consolidated at the level of the common holding company provided that UPC Broadband also delivers a Borrower Group reconciliation in accordance with recent Liberty precedent, introducing the concept of a Reporting Entity.
		
	28.
	Representations: remove Clause 15.14 (Business Plan), paragraph (c) of Clause 15.11 (Environmental) Clause 15.7 (Material Contracts), paragraph (b) of Clause 15.8 (No Default), Clause 15.18 (Works councils), Clause 15.25 (Dutch Banking Act) and Clause 15.27 (Public Utility Holding Company Act and Federal Power Act) and amend Clause 15.28 (Times for making representations and warranties) to exclude Clauses 15.5 (Non-violation) 15.8 (No default) 15.6 (Consents) 15.11 (Environmental), 15.21 (United States Regulations) and 15.22 (Anti-Terrorism Laws) from the representations and warranties deemed repeated under that clause. 

		
	29.
	Undertakings: 

		
	(a)
	amend Clause 16.2 (Financial information) to provide that to the extent financial statements are filed on a public register or published on the Borrower’s or Liberty Global plc’s website they shall be deemed supplied to the Facility Agent;

		
	(b)
	amend Clause 16.3 (Information – miscellaneous) to provide for delivery of information by the Borrower to the Lenders (who have not objected) by posting to a designated website or email address of each Lender;

		
	(c)
	amend Clause 27 (Disclosure of Information) (i) to create a confidentiality obligation on the finance parties which applies to information of any member of the Borrower Group; (ii) to survive 12 months from the earlier of the date the Commitments have been repaid or cancelled in full and (in respect of that Finance Party only) the date a Finance Party resigns; and (iii) to reflect such clauses and language used in recent Liberty precedent as the company considers beneficial; and

		
	(d)
	include new confidentiality provisions in relation to funding rates and reference bank quotations in accordance with recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market.

		
	30.
	Financial Ratios:

		
	(a)
	amend the definition of EBITDA to provide that the starting point for EBITDA may be operating income and include the following limbs as add backs:

		
	(i)
	depreciation;

		
	(ii)
	amortisation;

		
	(iii)
	all stock-based compensation expenses;

		
	(iv)
	(at the Parent’s option) other non-cash impairment charges;

		
	(v)
	any extraordinary, one-off, non-recurring, exceptional or unusual gain, loss, expense or charge including any one-off reorganization or restructuring charges;

		
	(vi)
	non-cash charges;

		
	(vii)
	direct or related acquisition, disposal, recapitalization, debt incurrence or equity offering costs;

		
	(viii)
	losses (gains) on the sale of operating assets; 

		
	(ix)
	(at the Parent’s option) the effects of adjustments under IFRS or GAAP attributable to the application of recapitalization accounting or acquisition accounting, as the case may be,  in relation to any consummated merger or acquisition or joint venture investment  or the amortisation or write-off or write-down of amounts thereof, net of taxes;

		
	(x)
	(at the Parent’s option) any adjustments to reduce the impact of the cumulative effect of a change in accounting principles and changes as a result of the adoption or modification of accounting policies;

		
	(xi)
	any specified legal expenses (and include a definition as per recent Liberty precedent);

		
	(xii)
	any stock based compensation exercise;

		
	(xiii)
	the amount of loss on the sale of any assets in connection with asset securitisation programme or receivables factoring transaction; 

		
	(xiv)
	any accrued management fees (and include a definition as per recent Liberty precedent) (whether or not paid) and any permitted holding company expenses;

		
	(xv)
	any net earnings or losses attributable to non-controlling interests;

		
	(xvi)
	any share of income or loss on equity investments; 

		
	(xvii)
	deferred financing cost written off and premiums paid to extinguish debt early;

		
	(xviii)
	unrealised gains/losses in respect of hedging;

		
	(xix)
	tangible or intangible asset impairment charges;

		
	(xx)
	capitalised interest on Subordinated Shareholder Loans;

		
	(xxi)
	accruals and reserves established or adjusted within twelve months after the closing date of any acquisition required to be established or adjusted in accordance with GAAP;

		
	(xxii)
	any expense to the extent covered by insurance or indemnity and actually reimbursed; 

		
	(xxiii)
	any realized and unrealized gains and losses due to changes in the fair value of equity investments, any up front installation fees associated with commercial contract installations completed during the applicable reporting period (less any portion of such fees included in earnings);

		
	(xxiv)
	any fees of other amounts charged or credited to UPC Broadband and the guarantors related to intra-Group services may be excluded to the extent such fees or other amounts (i) are not included in UPC Broadband’s externally reported operating cash flow or equivalent measure or (ii) are deemed to be exceptional or unusual items;

		
	(xxv)
	to the extent not already included in operating income, the amount received from business interruption insurance and reimbursements of any expenses covered by indemnification or other reimbursement in connection with a permitted acquisition, investment or disposal of assets;

		
	(xxvi)
	earn out payments to the extent such payments are treated as capital payments under the accounting principles; and

		
	(xxvii)
	realised gains (losses) (to the extent not already included) arising out of the maturity or on termination of forward foreign exchange or other currency hedging contracts entered into with respect to operational cash flows,

		
	(b)
	amend the definition of Senior Debt so that it starts with the consolidated Financial Indebtedness of the Borrower Group and excludes:

		
	(i)
	intra-group borrowings;

		
	(ii)
	shareholder loans subordinated under the term of the existing Security Deed or under any intercreditor agreement on terms satisfactory to the Facility Agent (acting reasonably);

		
	(iii)
	borrowings represented by deposits or prepayments from subscribers/customers;

		
	(iv)
	borrowings of acquired companies that will be discharged within 6 months;

		
	(v)
	for the avoidance of doubt Financial Indebtedness arising by reason of mark-to-market fluctuations on hedging;

		
	(vi)
	borrowings from the holders of equity to the extent advanced pro rata and repayable only on liquidation;

		
	(vii)
	in respect of drawings under any Revolving Facility at the relevant time up to an amount of 0.25 multiplied by Annualised EBITDA for that latest Ratio Period (the “Revolving Facility Excluded Amount”);

		
	(viii)
	Financial Indebtedness of a member of the Borrower Group under which the person to whom the Financial Indebtedness is owed does not have or will not have recourse to any member of the Borrower Group other than recoveries made on enforcement and such person is not entitled to commence proceedings for the 

winding up of any member of the Borrower Group until after the Commitments have been reduced to zero and all amounts owing under the Finance Documents have been repaid in full; and
		
	(ix)
	Financial Indebtedness in respect of any contingent obligations.

		
	31.
	Senior Debt to Annualised EBITDA: amend Clause 17.2(a) (Financial Ratios) such that the Senior Debt to Annualised EBITDA financial ratio may not be greater than 4.50:1.00 for each Ratio Period.

		
	32.
	Interest Cover Covenant: remove the requirement for UPC Broadband to ensure that the ratio of EBITDA to Total Cash Interest is not less than certain ratios for each Ratio Period contained in Clause 17.2(b) (Financial Ratios) and remove any other references to such ratio.

		
	33.
	EBITDA to Senior Debt Service Covenant: remove the EBITDA to Senior Debt Service covenant set out in Clause 17.2(c) (Financial Ratios) and remove any other references to such ratio.

		
	34.
	EBITDA to Senior Interest Covenant: remove the EBITDA to Senior Interest covenant set out in Clause 17.2(d) (Financial Ratios) and remove any other references to such ratio.

		
	35.
	Total Debt to Annualised EBITDA: amend Clause 17.2(e) (Financial Ratios) such that the Total Debt to Annualised EBITDA financial ratio may not be greater than 5.50:1.00 for each Ratio Period.

		
	36.
	Pro forma EBITDA: amend Clause 17.3 (Calculations), so that, for the purposes of testing compliance with the financial ratios set out in Clause 18 (Financial Covenants) or in calculating EBITDA in connection with any transaction, investment, acquisition, disposition, restructuring, corporate reorganization or otherwise:

		
	(a)
	the calculations are determined in good faith by a responsible financial or accounting officer and are made on a pro forma basis giving effect to all material acquisitions and disposals made by the Borrower Group (including in respect of anticipated expense and cost reductions) and including as a result of, or that would result from, any actions taken, committed to be taken or with respect to which substantial steps have been taken, by UPC Broadband or any other member of the Borrower Group including in connection with any cost reduction synergies or cost savings plan or program or in connection with any transaction, investment, acquisition, disposition, restructuring, corporate reorganizations or otherwise (regardless of whether these cost savings and cost reduction synergies could then be reflected in pro forma financial statements to the extent prepared);

		
	(b)
	EBITDA for the relevant period will be calculated after giving pro forma effect thereto as if any incurrence, repayment, acquisition, discharge or disposal or acquisition occurred on the first day of such period; and

		
	(c)
	interest on any indebtedness that bears interest at a floating rate and that is being given pro forma effect shall be calculated as if the rate in effect on the date of calculation had been applicable for the entire period (taking into account any hedging in respect of such indebtedness).

		
	37.
	Equity Cures: amend Clause 17.4 (Cure provisions):

		
	(a)
	so that the financial ratios set out in Clause 17 (Financial Covenants) may be remedied by deeming that such cure proceeds are (as applicable):

		
	(i)
	added to Annualised EBITDA; or 

		
	(ii)
	applied to reduce Senior Debt and/or Total Debt, as applicable,

in each case, at the discretion of UPC Broadband;
		
	(b)
	to remove the requirement to repay or prepay the cure proceeds against any of the Facilities or Advances and to clarify that there is no requirement to repay or prepay all or any part of the Facilities or any Advances or to use the proceeds for any particular purpose; and

		
	(c)
	so that an equity cure may be effected up to 15 Business Days following the delivery of the financial statements which showed a breach.

		
	38.
	Additional Obligors: amend Clause 26.4 (Additional Obligors) to remove the obligation at sub-paragraph (b)(ii).

		
	39.
	Additional Borrowers: amend paragraph (c) of Clause 26.4 (Additional Obligors) to provide that any member of the Borrower Group may become a Borrower in respect of a Facility if (i) it would not be materially adverse to the interests of any Lender under that Facility as determined by each such Lender (acting reasonably), (ii) the Majority Lenders consent, (iii) such member of the Borrower Group is incorporated in the same jurisdiction as an existing Borrower under that Facility or (iv) each Lender in respect of any proposed Additional Facility agrees.

		
	40.
	Accounting Principles: amend, amongst other provisions, Clauses 15.9 (Accounts) and Clause 17.5 (Determinations) to permit UPC Broadband to elect (and to re-elect) to prepare its financial statements in accordance with IFRS or US GAAP; and adjust its financial covenants and definitions accordingly, or retain its existing financial covenants and definitions in each case in accordance with recent Liberty precedent (including provision of a reconciliation where applicable) provided that following any election to revert back to US GAAP the ratios, definitions and financial covenant levels in existence at the original date of the Credit Agreement (updated to reflect any other amendments made since the original date of the Credit Agreement) shall be automatically reinstated.

		
	41.
	Asset Securitisation Subsidiary: amend the Credit Agreement, as per recent Liberty precedent, to permit, amongst other things, acquisitions, disposals and investments in respect of asset securitisation subsidiaries and also to include (i) an ability for one or more members of the Borrower Group to provide limited recourse credit support by way of letter of credit, revolving facility commitment, guarantee or other credit enhancement up to a maximum amount of 25% of the principal amount of the indebtedness of an asset securitisation subsidiary (and such credit enhancement shall not count as Financial Indebtedness), (ii) the following as Permitted Security Interests:  rights of set-off granted to any financial institution acting as a lockbox bank in connection with any asset securitisation programme or a receivables factoring transaction, security interests for the purpose of perfecting the ownership interests of a purchaser of receivables and related assets pursuant to any asset securitisation programme or a receivables factoring transaction, cash deposits or other security interests for the purposes of securing the limited recourse credit 

support at (i) above, security interests over investments in asset securitisation subsidiaries and liens arising in connection with other sales of receivables permitted under the Credit Agreement without recourse to the Borrower Group and (iii) an ability to make investments in cash in or to invest in indebtedness of asset securitisation subsidiaries. An asset securitisation subsidiary is any subsidiary of UPC Broadband or a Permitted Affiliate Parent that is engaged solely in the business of effecting or facilitating any asset securitisation programme or programmes or one or more receivables factoring transaction.
		
	42.
	Permitted Disposals: 

		
	(a)
	amend the definition of Permitted Disposal at Clause 16.10(b) (Disposals) to include in addition to the existing “Permitted Disposals”:

		
	(i)
	a payment required to be made under the senior secured finance documents;

		
	(ii)
	disposals of property or other assets on bona fide arm’s length commercial terms in the ordinary course of business in consideration for, or to the extent that contractual arrangements are in place within 12 months of such disposals and the proceeds of that disposal are applied within 18 months after such disposal in the acquisition of property or other assets of a similar nature and approximately equal value to be used in the Business of the Borrower Group;

		
	(iii)
	disposals by one member of the Borrower Group to another member of the Borrower Group provided that, if such assets subject to the disposal are subject to existing security, the Borrower within 15 Business Days of such disposal ensures that the assets remain subject to security;

		
	(iv)
	disposals of any interest in real or heritable property by way of a lease or licence granted by a member of the Borrower Group to another member of the Borrower Group;

		
	(v)
	disposals of any assets pursuant to the implementation of an Asset Passthrough (as such term is defined in recent Liberty precedent) or of any funds  received pursuant to the implementation of a Funding Passthrough (as such term is defined in recent Liberty precedent);

		
	(vi)
	disposals of property or other assets required to satisfy any pension plan contribution liabilities;

		
	(vii)
	disposals of accounts receivable on arms’ length terms pursuant to an asset securitisation programme or receivables factoring transactions (recourse and non-recourse), provided that the aggregate amount of all such securitisations or receivables factoring transactions does not exceed the greater of €250,000,000 and 5% of Total Assets at any time;

		
	(viii)
	disposals of shares or other interests in project companies, entities excluded from the Borrower Group which are subsidiaries of UPC Broadband or joint venture companies (each as defined in recent Liberty precedent) or the assignment of any Financial Indebtedness owed to a member of the Borrower Group by any project 

companies, entities excluded from the Borrower Group which are subsidiaries of UPC Broadband or a joint venture company;
		
	(ix)
	disposals of accounts receivables which have remained due and owing from a third party for a period of more than 90 days and in respect of which the relevant member of the Borrower Group has diligently pursued in the normal course of business and where such disposal is on non-recourse terms to a member of the Borrower Group;

		
	(x)
	disposals of assets subject to finance or capital leases pursuant to the exercise of an option by the lessee under such finance or capital leases;

		
	(xi)
	disposals of assets in exchange for the receipt of assets of a similar or comparable value provided that where the assets being disposed of and replaced exceed a book value of €50,000,000, a certificate signed by an authorised signatory of UPC Broadband is delivered to the Facility Agent certifying (without personal liability) that the assets being received by the relevant member of the Borrower Group are of a similar or comparable value to the assets being disposed of; 

		
	(xii)
	disposals constituting the surrender of tax losses by any member of the Borrower Group (i) to another member of the Borrower Group, (ii) to any member of the Wider Group where the surrendering company receives fair market value for such tax losses from the relevant recipient, and (iii) in order to eliminate, satisfy or discharge any Tax liability of a former member of the Wider Group which has been disposed of in accordance with the terms of the Credit Agreement where a member of the Borrower Group would incur a liability if the Tax liability were not so eliminated, satisfied or discharged;

		
	(xiii)
	disposals of assets to and sharing assets with any person who is providing services the provision of which have been or are to be outsourced to that person by any member of the Borrower Group subject to certain conditions reflected as set out in recent Liberty precedent and where the value of those assets does not exceed 5% of Bank Group Consolidated Revenues (as defined in recent Liberty precedent and subject to a carry forward to the following year);

		
	(xiv)
	disposals of assets pursuant to sale and leaseback transactions where the aggregate fair market value does not exceed the greater of €250,000,000 and 5% of total assets in any financial year; 

		
	(xv)
	disposals of non-core assets acquired in connection with a transaction permitted under Clause 16.11 (Acquisitions and Mergers); 

		
	(xvi)
	disposals in connection with any sale , transfer, demerger, contribution, spin off or distribution of, any creation or participation in a joint venture and/or entering into a transaction or taking action with respect to, any assets, undertakings and/or businesses of the Borrower Group which compromise all or part of a business division within or outside of the Borrower Group, in each case, where such transaction has the prior approval of the Majority Lenders;

		
	(xvii)
	disposals constituted by licences of intellectual property rights permitted by Clause 16.18 (Intellectual Property Rights);

		
	(xviii)
	disposals of assets made pursuant to the establishment of a Permitted Joint Venture or the disposal of assets to a Permitted Joint Venture;

		
	(xix)
	disposals made in relation to a compulsory purchase order or any other order of any agency of state, authority or other regulatory body not exceeding €25,000,000 in any financial year;

		
	(xx)
	disposals by any member of the Borrower Group of customer premises equipment to a customer;

		
	(xxi)
	disposals of assets on arm’s length commercial terms where the cash proceeds of the disposal are reinvested within 12 months of the date of the disposal (or 18 months of the date of the disposal if, within 12 months, the proceeds are contractually committed to be so applied);

		
	(xxii)
	disposal of real property if the fair market value in any financial year does not exceed the greater of €250,000,000 and 5% of total assets;

		
	(xxiii)
	direct or indirect sale (or otherwise) of any part of a present or future undertaking, shares, property, rights or remedies or other assets by one or a series of transactions, related or not, required by a regulatory authority or court of competent jurisdiction; and

		
	(xxiv)
	disposals of assets where the aggregate fair market value does not exceed the greater of €50,000,000 and 1% of total assets in any financial year; and

		
	(b)
	a new paragraph (e) at Clause 16.10 such that if a transaction (or any portion) meets the criteria of a Permitted Disposal and also meets the criteria of a Permitted Payment, the Borrower, in its sole discretion, will be entitled to divide and classify such transaction (or any portion) as a disposal permitted under Paragraph (b) of Clause 16.10 (Disposals) and/or a Restricted Payment permitted under Clause 16.13 (Restricted Payments) in accordance with recent Liberty precedent.

		
	43.
	Asset Passthrough and Funding Passthrough: amend, amongst others, Clauses 16.10 (Disposals), 16.11 (Acquisitions and mergers), 16.12 (Restrictions on Financial Indebtedness), 16.13 (Restricted Payments) and 16.14 (Loans and Guarantees) and any related definitions to permit, as per recent Liberty precedent, (i) asset transfers between a holding company of a Borrower outside of the Borrower Group and/or any other members of the wider Liberty group (excluding members of the Borrower Group) where such assets pass through one or more members of the Borrower Group before being finally transferred to the relevant holding company or wider Liberty group member (as applicable), subject to certain restrictions and (ii) funding transfers between a  holding company of a Borrower outside of the Borrower Group and/or any other members of the wider Liberty group (excluding members of the Borrower Group) where funding is passed through one or more members of the Borrower Group before being finally being transferred to the relevant holding company or wider Liberty group member (as applicable), subject to certain restrictions.

		
	44.
	Project Companies: amend the Credit Agreement to permit, as per recent Liberty precedent, amongst other things (a) the disposal of shares or other interests (including shareholder loans) in any special purpose company or its holding company whose creditors have no recourse to any member of the Borrower Group (except to the extent of any security granted over such shares or other interests) and (b) the grant of security over the shares or other interests in, or the assets of, such special purpose company (or its holding company).

		
	45.
	Content Transactions: amend the Credit Agreement, as per recent Liberty precedent, such that, amongst other things:

		
	(a)
	an amount (being the greater of €250,000,000 and 5% of total assets) of net proceeds are not required to be prepaid against the Facilities in mandatory prepayment; and

		
	(b)
	payments (being up to the greater of €250,000,000 and 5% of total assets) in respect thereof will constitute Permitted Payments,

in respect of any sale, distribution or other transaction relating to any broadcasting or distribution rights or images, audio, visual or interactive content provided that no Event of Default is continuing or would occur as a result of such transaction.
		
	46.
	Permitted Acquisitions: amend the Permitted Acquisitions definition to include in addition to the existing “Permitted Acquisitions”:

		
	(a)
	the purchase of or investment in Cash Equivalent Investments or marketable securities (as defined in recent Liberty precedent) (including by way of consideration in respect of any disposal as contemplated in Clause 16.10 (Disposals));

		
	(a)
	the incorporation of a company or the acquisition of an “off-the-shelf” company which is or becomes a member of the Borrower Group;

		
	(b)
	any acquisition by any member of the Borrower Group in connection with a disposal permitted under Clause 16.10 (Disposals) and any acquisition by a member of the Borrower Group of shares issued in a Subsidiary of UPC Broadband or a subsidiary of any Permitted Affiliate Parent (as such term is defined in recent Liberty precedent)  which in any case is a member of the Borrower Group and which will, after the acquisition of such shares, become a wholly-owned direct or indirect Subsidiary of UPC Broadband or a subsidiary of any Permitted Affiliate Parent as the case may be, provided that if the other shares of such Subsidiary are subject to existing Security Interests such newly issued shares shall also be subject to any existing Security Interest within 10 Business Days of their issue;

		
	(c)
	any acquisition made by a member of the Borrower Group pursuant to the implementation of an asset passthrough or a funding passthrough; 

		
	(d)
	any acquisition by a member of the Borrower Group of any loan receivable security or other asset by way of capital contribution or in consideration of the issue of any securities or of subordinated debt;

		
	(e)
	the acquisition of any leasehold interest in any assets which are the subject of a sale and lease back permitted under Clause 16.10 (Disposals);

		
	(f)
	arising from the conversion of any company (the “Original Company”) from one form of organisation to another form of organisation provided that (i) if, prior to the time of such conversion, the Security Agent has the benefit of security over the shares of such Original Company or such Original Company is an Obligor, then UPC Broadband shall ensure that the Security Agent is provided with Security Interests over the equivalent ownership interests in, and substantially all of the assets of, the converted organisation of at least equivalent nature and ranking to the Security Interest previously provided by the Original Company and (ii) the Security Agent is satisfied that any possibility of such additional Security Interest being challenged or set aside is not materially greater than the possibility in respect of the share capital of the Original Company;

		
	(g)
	investments in any asset securitisation subsidiary in connection with any asset securitisation programme or receivables factoring transaction otherwise permitted by Clause 16.10 (Disposals) that is reasonably necessary or advisable to effect such asset securitisation programme or receivables factoring programme;

		
	(h)
	an amendment to increase the de minimis threshold on Majority Acquisitions to refer to €250,000,000 as the threshold amount rather than €40,000,000 and to extend the period of time for UPC Broadband to deliver a certificate in respect of such Majority Acquisition to the Facility Agent from 15 to 60 days;

		
	(i)
	in respect of Majority Acquisitions, to delete any requirement to provide a business plan, acquisition business plan, or other financial projections subject however to retention of a requirement to certify pro forma compliance with the ratio of Senior Debt to Annualised EBITDA and being less than or equal to 4.50:1.00; increase time period for deliverables to within 60 days of the acquisition; provide that any certificate required may be signed by an authorized officer of the Borrower; and make such other conforming changes required to bring in line with recent Liberty precedent.

		
	(j)
	any acquisition of share capital of any existing member of the Borrower Group provided that if any share capital in such member of the Borrower Group is subject to existing Security Interests such acquired share capital shall also be subject to a Security Interest within 10 Business Days;

		
	(k)
	any purchase or acquisition of assets in the ordinary course of business; and 

		
	(l)
	acquisitions which are not otherwise permitted under the definition of Permitted Acquisitions provided that the aggregate consideration paid in respect of such acquisitions does not exceed 300,000,000.

		
	47.
	Permitted Joint Ventures: amend the Permitted Joint Venture provisions to, in addition to the existing “Permitted Joint Ventures”:

		
	(a)
	increase the de minimis threshold on JV Minority Acquisitions to refer to €250,000,000 as the threshold amount rather than €40,000,000 and to extend the period of time for UPC Broadband to deliver a certificate in respect of such JV Minority Acquisitions to the Facility Agent from 15 to 60 days; and

		
	(b)
	delete any requirement to provide a business plan, acquisition business plan, or other financial projections subject however to retention of a requirement to certify pro forma compliance with the ratio of Senior Debt to Annualised EBITDA and being less than or equal to 4.50:1.00; increase time period for deliverables to within 60 days of the acquisition; provide that any certificate required may be signed by an authorized officer of the Borrower; and make such other conforming changes required to bring in line with recent Liberty precedent.

		
	48.
	Permitted Financial Indebtedness: amend the definition of Permitted Financial Indebtedness to, in addition to the existing “Permitted Financial Indebtedness”:

		
	(a)
	permit any Financial Indebtedness arising in relation to either an asset passthrough or a funding passthrough;

		
	(b)
	permit vendor financing arrangements and sale and leaseback transactions provided that the pro forma Senior Debt to Annualised EBITDA is equal to or less than, 4.50:1.00 provided that the vendor financing provider or lessor is not permitted to benefit  from any Security Interest other than the assets subject to such financing arrangements;

		
	(c)
	permit members of the Borrower Group to give subordinated unsecured guarantees in respect of any debt issued by a Holding Company of UPC Broadband in accordance with recent Liberty precedent subject to the terms of an intercreditor agreement on terms satisfactory to the Facility Agent (acting reasonably);

		
	(d)
	permit any Financial Indebtedness arising in respect of any performance bond, guarantee, standby letter of credit or similar facility entered into by any member of the Borrower Group to the extent that cash is deposited as security for the obligations of such member of the Borrower Group thereunder;

		
	(e)
	permit Financial Indebtedness of asset securitisation subsidiaries (as described above) incurred solely to finance any asset securitisation programme or receivables factoring transaction otherwise permitted under the definition of Permitted Disposals; 

		
	(f)
	permit Financial Indebtedness arising under tax-related financings designated in good faith as such by prior written notice from the Borrower to the Facility Agent provided that such indebtedness does not exceed €250,000,000 at any time;

		
	(g)
	permit Financial Indebtedness which is incurred by an Obligor provided that (after the incurrence of such indebtedness) on the quarterly Accounting Period prior to such incurrence the ratios contained within Clause 17.2 (Financial Ratios) are not exceeded or breached, calculated on a pro forma basis, and provided further that the Financial Indebtedness is subject to the terms of an intercreditor agreement on terms satisfactory to the Facility Agent (acting reasonably);

		
	(h)
	permit Financial Indebtedness in connection with Senior Secured Notes (as such term is defined in recent Liberty precedent) and any guarantee in respect of any Senior Secured Notes given by a member of the Borrower Group which is an Obligor subject to the terms of an intercreditor agreement, on terms satisfactory to the Facility Agent (acting reasonably);

		
	(i)
	include a provision such that if that Financial Indebtedness meets the criteria of more than one of the types of Permitted Financial Indebtedness in the definition of Permitted Financial Indebtedness, UPC Broadband, in its sole discretion, may classify such item of Financial Indebtedness on the date of its incurrence and shall only be required to include the amount and type of such Financial Indebtedness in one of the limbs of that definition and will be permitted on the date of such incurrence to divide and classify an item of such Financial Indebtedness in more than one of such limbs, and, from time to time, may reclassify all or a portion of such Financial Indebtedness;

		
	(j)
	at Clause 16.12(b)(xi), delete the requirements that such Financial Indebtedness was not incurred in contemplation of the acquisition and that it is discharged within 6 months of the date of completion of the acquisition; and

		
	(k)
	at Clause 16.12(b)(xvii), permit any member of the Borrower Group to incur Financial Indebtedness under this general basket of up to an aggregate of the greater of €250,000,000 and 5% of total assets.

		
	49.
	Permitted Transaction: include a definition of “Permitted Transaction” and make consequential amendments to the Credit Agreement to ensure the following are permitted by the covenants in accordance with recent Liberty precedent:

		
	(a)
	transactions conducted in the ordinary course of trading on arm’s length terms (other than (i) any sale, lease, licence, transfer or other disposal and (ii) the granting or creation of any Security Interest or the incurring or permitting to subsist of Financial Indebtedness);

		
	(b)
	a post-closing reorganisation and spin offs in line with recent Liberty precedent;

		
	(c)
	any other transaction approved by the Majority Lenders; and

		
	(d)
	the solvent liquidation or reorganisation of any member of the Borrower Group which is not an Obligor so long as distributions are made to other members of the Borrower Group.

		
	50.
	New Notes Issuances and Additional Senior Secured Debt: amend the Finance Documents to provide that (subject to certain protections such that creditors of the new indebtedness are not structurally senior to the Lenders) any member of the Borrower Group (including a newly incorporated company which is a member of the Borrower Group) may issue notes and incur additional term or revolving debt or operational expenditure facilities which rank pari passu with the rights of the Lenders and shall be capable of being secured by the transaction security and provided that the proceeds of such debt may be used to, amongst other things, refinance the Additional Facilities and for general working capital or operational purposes provided that (other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) such Financial Indebtedness is Permitted Financial Indebtedness.

		
	51.
	Permitted Business: delete the definition of Permitted Business so that there are no geographic restrictions and delete Clause 16.8 (Permitted Business) and replace it with a clause that provides that no member of the Borrower Group shall, without the prior written consent of the Majority Lenders or save as otherwise permitted by the terms of this Agreement, make any change in the nature of its business as carried on immediately prior to the date of the amendment and restatement, which would give rise to a substantial change in the business of the Borrower Group taken as a 

whole from that set forth in the definition of Business, provided that such clause shall not be breached by an Obligor or any member of the Borrower Group making a permitted disposal, a permitted acquisition or investment or entering into any permitted joint venture, in line with recent Liberty precedent.
		
	52.
	Permitted Payments: 

		
	(a)
	amend the definition of Permitted Payment to include in addition to the existing “Permitted Payments”:

		
	(i)
	a de minimis threshold of €5,000,000 under which the restrictions on entering into transactions with a Restricted Person in Clause 16.13 (Restricted Payments) will not apply;

		
	(ii)
	payments in respect of a Permitted Acquisition or a Permitted Disposal;

		
	(iii)
	paragraph (b) of the definition containing a carve out for management fees to be amended to refer to the greater of €50,000,000 and 1% of total assets of the Borrower Group in any financial year;

		
	(iv)
	payments to the extent required to pay subordinated notes trustee amounts;

		
	(v)
	following the occurrence of an Event of Default, payments to the extent required to fund Permitted Payments not otherwise prohibited under the Intercreditor Agreement as amended from time to time;

		
	(vi)
	payments to the extent such distribution, dividend, transfer of assets, loan or other payment is in respect of a nominal amount;

		
	(vii)
	payments made directly by means of discounts with respect to any participation interest issued or sold in connection with an asset securitisation programme or receivables factoring transaction which is otherwise permitted under the Credit Agreement;

		
	(viii)
	payments or distributions or the repayment of a loan  or redeemable equity made pursuant to an Asset Passthrough or a Funding Passthrough, in each case, funded from cash generated by entities outside of the Borrower Group;

		
	(ix)
	payments or distributions, or the repayment of a loan, or the redemption of loan stock or redeemable equity made to any member of the Wider Group (other than a member of the Borrower Group) provided that (i) an amount equal to such payment is reinvested by such member of the Wider Group (other than a member of the Borrower Group) into a member of the Borrower Group within three days of receipt thereof; (ii) the total amount of such payments and reinvested amounts does not exceed €300,000,000 and (iii) where such payments are made in cash, any reinvested amounts are also made in cash provided that reinvested amounts shall be in the form of subordinated debt, equity or the repayment of an intercompany loan or advance;

		
	(x)
	payments of any dividend, payment, loan or other distribution, or the repayment of a loan or the redemption of loan stock or redeemable equity, in each case, which is required in order to facilitate the making of payments by any person and to the extent required by the terms of (i) the Finance Documents, (ii) the Senior Secured Notes (as such term is defined in recent Liberty precedent), (iii) Holdco Debt (as defined in recent Liberty precedent), subject to the same conditions as set out in recent Liberty precedent, (iv) by the terms of any hedging agreements of Holdco Debt to which any immediate holding company of UPC Broadband is a party and which is not prohibited by the terms of an intercreditor agreement on terms satisfactory to the Facility Agent (acting reasonably) and (v) for the purposes of implementing a Content Transaction or Business Division Transaction (as each term is defined in recent Liberty precedent);

		
	(xi)
	payments to enable any holding company of a member of the Borrower Group to pay taxes that are due by such holding company but which are allocable to (I) the Borrower Group and due by such holding company as a result of the Borrower Group being included in a fiscal unity with such holding company or (II) acting as a holding and/or financing company of the Borrower Group;

		
	(xii)
	transactions contemplated by a disposal or similar transaction required by a regulatory authority or a court of competent jurisdiction;

		
	(xiii)
	payments of an amount up to €250,000,000 from the cash proceeds of a Content Transaction (as such term is defined in recent Liberty precedent) provided that no Event of Default has occurred and is continuing;

		
	(xiv)
	payments made to the Borrower’s holding company and any permitted affiliate of the Borrower’s holding company of amounts outstanding in relation to Subordinated Shareholder Loans or subordinated debt the proceeds of which are to be used by such holding company of the Borrower to refinance debt which it has incurred in an amount equal to the amount of Subordinated Shareholder Loan or subordinated debt received by the Borrower’s holding company;

		
	(xv)
	payments made with the consent of the Majority Lenders;

		
	(xvi)
	payments to any direct or indirect shareholder of a member of the Borrower Group for out-of-pocket expenses incurred in connection with its direct or indirect investment in a Borrower Group company;

		
	(xvii)
	payments for certain holding company expenses (as defined in accordance with a recent Liberty precedent) including expenses payable in connection with, amongst other things, compliance with laws and regulations, reporting obligations, related indemnification payments, employee, directors and officers insurance policies and general corporate overhead expenses);

		
	(xviii)
	payments for financial advisory, financing, underwriting or placement services or other investment banking activities, in particular acquisitions or divestitures, approved by the board of the holding company; 

		
	(xix)
	any other distribution, dividend, transfer of assets, loan or other payment not falling within the other limbs of the definition and not exceeding an aggregate amount of the greater of €250,000,000 and 5% of total assets in any financial year; 

		
	(xx)
	payment of an amount corresponding to the Revolving Facility Excluded Amount at any time provided that if at any time after a Permitted Payment under this limb is made the revolving facility is prepaid or repaid in full or in part, a further Permitted Payment may be made under this limb equal to (A) if in full, the Revolving Facility Excluded Amount; and (B) if in part, the lower of an amount equal to (i) the Revolving Facility Excluded Amount and (ii) the amount of the partial prepayment or repayment referred to above, at any time after the date of such repayment (in each case in accordance with recent Liberty precedent);

		
	(xxi)
	payments in connection with any earn out;

		
	(xxii)
	the transfer of tax losses to Restricted Persons (provided that the amount of such tax losses shall be deemed reduced by any payment received by any member of the Borrower Group from any Restricted Person for such tax losses) subject to pro rata leverage covenant compliance and no default having occurred or occurring;

		
	(xxiii)
	payments in relation to any tax losses received by any member of the Borrower Group from any Restricted Person provided that such payments shall only be made in relation to such tax losses in an amount equal to the amount of tax that would have otherwise been required to be paid by any member of the Borrower Group if those tax losses were not so received and such payment shall only be made in the tax year in which such losses are utilised by any member of the Borrower Group; and

		
	(xxiv)
	payments to fund the purchase of any management equity which is subsequently transferred to other or new management (together with the purchase or repayment of any related loans) and/or to make other compensation payments to departing management. 

		
	(b)
	amend Clause 16.13 (Restricted Payment) to include a provision, such that if a Permitted Payment meets the criteria of more than one of the categories described, UPC Broadband will be entitled to classify such Permitted Payment (or portion thereof) on the date of its payment or later reclassify such Permitted Payment (or portion thereof) in any manner that complies with the covenant in that Clause; and

		
	(c)
	amend Clause 16.13 (Restricted Payment) to exclude Permitted Affiliate Transactions from the restriction in such Clause (with a new definition of such term to be included, consistent with recent Liberty precedent) and so that such Clause does not restrict transactions to the extent they constitute Permitted Payments.

		
	53.
	Permitted Loans: amend Clause 16.14 (Loans and Guarantees):

		
	(a)
	to include a limb for counter guarantees in relation to any rental guarantees;

		
	(b)
	to include any credit given by a member of the Borrower Group to another member of the Borrower Group which arises by reason of a cash pooling, set off or other cash management arrangements of the Borrower Group or by reason of other credits relating to services performed or allocation of expenses;

		
	(c)
	to include a limb for loans to employees in the ordinary course of employment or to fund exercise of share options or purchase of capital stock of up to €10,000,000 in aggregate;

		
	(d)
	to include a loan made by a member of the Borrower Group pursuant to either an asset passthrough or a funding passthrough;

		
	(e)
	to include a limb to include loans made by a member of the Borrower Group to a member of the Wider Group where the proceeds of the loan are to be used to make payments or for guarantees in relation to any senior unsecured notes (as such term is defined in the recent Liberty precedent) or to make Permitted Payments, provided that no Event of Default has occurred and is continuing or to fund any Permitted Payments following the occurrence of an Event of Default which are not prohibited under the terms of the Intercreditor Agreement as amended from time to time; 

		
	(f)
	to include loans granted by any member of the Borrower Group to a member of the Wider Group where the indebtedness outstanding relates to intra-group services in the ordinary course of business;

		
	(g)
	to provide for the granting of customary title guarantees given in connection with the assignment of leases which are permitted under Clause 16.10 (Disposals); 

		
	(h)
	to include any loans arising from Subscribers (as defined in recent Liberty precedent) resulting from deferred purchase terms;

		
	(i)
	to include loans made which are Permitted Financial Indebtedness or are in connection with Permitted Acquisitions;

		
	(j)
	to replace the reference to €100,000,000 in paragraph (f) with €300,000,000 to increase the basket for lending transactions in connection with permitted acquisitions;

		
	(k)
	to permit customary liquidity loans in connection with a permitted asset securitisation program or receivables factoring transaction; and

		
	(l)
	to provide for the Borrower to be able to make loans and guarantees under a general basket of up to an aggregate of the greater of €100,000,000 and 2% of total assets.

		
	54.
	Permitted Security Interest: Amend the definition of “Permitted Security Interest” to include Security Interests in addition to the existing “Permitted Security Interests”:

		
	(a)
	which arise under any senior secured finance document which is subject to the term of an intercreditor agreement on terms satisfactory to the Facility Agent (acting reasonably);

		
	(b)
	which arise by operation of law or by a contract having a similar effect or under an escrow arrangement required by a trading counterparty or a member of the Borrower Group in 

each case entered into in the ordinary course of business of the relevant member of the Borrower Group;
		
	(c)
	which arise in respect of any right of set-off, netting arrangement, title transfer or title retention arrangements which arise in the ordinary course of business or by operation of law, under banking arrangements, retention of title arrangements or hedging arrangements;

		
	(d)
	which arise from any finance leases, sale and leaseback arrangements or vendor financing arrangements which are permitted under Clause 16.12 (Restrictions on Financial Indebtedness);

		
	(e)
	which arise over any asset acquired by a member of the Borrower Group and subject to which such asset is acquired provided that such Security Interest was not created in contemplation of the acquisition of the asset and the Financial Indebtedness secured thereby (i) is Financial Indebtedness of the relevant acquiring member of the Borrower Group, (ii) is Permitted Financial Indebtedness on the basis that it existed at the date of completion of a Permitted Acquisition or is Financial Indebtedness under permitted sale and leaseback transactions or vendor financing arrangements and (iii) the amount of such Financial Indebtedness is not increased at any time;  

		
	(f)
	which arise over any property or other assets to satisfy any pension plan contribution liabilities provided that the value of such property and assets, taken together in aggregate, and together in aggregate with any disposals permitted pursuant to (a)(vi) of clause 42 above, do not exceed €150,000,000 at any time;

		
	(g)
	constituted by a rent deposit deed entered into on arm’s length commercial terms and in the ordinary course of business which secure obligations of a member of the Borrower Group in relation to property leased to a member of the Borrower Group;

		
	(h)
	which is granted over the shares or indebtedness owed by or over assets attributable to a Project Company (as such term is defined in recent Liberty precedent) or a Permitted Joint Venture;

		
	(i)
	over cash deposited as security for the obligations of a member of the Borrower Group in respect of a performance bond, guarantee, standby letter of credit or similar facility entered into in the ordinary course of business by a member of the Borrower Group; and

		
	(j)
	which is created by a member of the Borrower Group in favour of the Security Agent in substitution for any Security Interest under an existing Security Document provided that the principal amount secured thereunder may not be increased unless any Security Interest in respect of such increased amount would be otherwise permitted under the Credit Agreement.

		
	55.
	Changes to Thresholds:

		
	(a)
	in the definition of Permitted Security Interest, permit the Borrower to secure Financial Indebtedness on a pari passu or junior-ranking basis provided that (other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) the Senior Debt to Annualised EBITDA ratio on a pro forma basis would not be 

greater than 4.50:1.00 and provided that such Financial Indebtedness is subject to an intercreditor agreement on terms satisfactory to the Facility Agent (acting reasonably) and where (in the case of such Financial Indebtedness being secured on a junior-ranking basis) the rights of the holders of such Financial Indebtedness in respect of any payment will be contractually subordinated to the rights of the Lenders on terms comparable to the Loan Market Association’s form of intercreditor agreement at such time for mezzanine debt, as referred to in recent Liberty precedent);
		
	(b)
	in Paragraph (n) of the definition of Permitted Security Interest, provide that the Borrower  may secure Financial Indebtedness under this general basket of up to the greater of €250,000,000 and 5% of total assets, such security to be either on assets not subject to the security in favour of the Lenders or otherwise secured on a junior ranking basis over assets subject to the Lenders’ security (in the latter case provided that the rights of the holders of such Financial Indebtedness in respect of any payment will be contractually subordinated to the rights of the Lenders on terms comparable to the Loan Market Association’s form of intercreditor agreement at such time for mezzanine debt, as referred to in recent Liberty precedent); and

		
	(c)
	in Clause 18.5 (Cross default), delete references to €15,000,000  and €50,000,000 and replace them with €75,000,000.

		
	56.
	Security and Guarantee Release: amend the relevant provisions of the Credit Agreement (in particular Clauses 26.4 (Additional Obligors), and 16.23 (Share Security)) to provide that, subject to certain thresholds being met no Obligor nor any other member of the Borrower Group is required to provide any Security or guarantee other than (i) Security over the shares that it holds in any Obligor, (ii) Security required under the terms of the Credit Agreement in respect of Subordinated Shareholder Loans, (iii) Security over loans made by Obligors to other members of the Borrower Group in accordance with clause 16.14 (Loans and guarantees) and (iv) a guarantee from the Obligors under the terms of the Credit Agreement and include a provision to authorise the Security Agent to release any other Security or guarantees other than the aforementioned and to release Security and guarantees in respect of Permitted Disposals and to permit relevant Security to be released if a Guarantor resigns and that guarantors can resign provided that the guarantor coverage test would still be met notwithstanding such release.

		
	57.
	Events of Default:

		
	(a)
	amend Clause 1.2 (Construction) to clarify that both a Default and an Event of Default is not continuing if remedied or waived; 

		
	(b)
	amend Clause 18.2 (Non-payment) to delete the qualification relating to technical or administrative errors and to include a 3 Business Day grace period for payment of principal and a 5 Business Day grace period for any other payments;

		
	(c)
	include a new Paragraph (v) of Clause 18.6 (Insolvency) by clarifying that commencing negotiations with the Finance Parties will not constitute an Event of Default under this Paragraph and amend Paragraph (a) of Clause 18.7 (Insolvency Proceedings) including a general exclusion for contested proceedings that are frivolous, vexatious or an abuse of the process of the court but without the requirement to provide a legal opinion with respect thereto to the Facility Agent;

		
	(d)
	amend Clause 18.5 (Cross default) to carve out circumstances being contested in good faith, Financial Indebtedness relating to hedging permitted under the Credit Agreement where a termination event arises as a result of a financing and Financial Indebtedness that is cash collateralised and such cash is available for application in satisfaction of this indebtedness in each case in line with recent Liberty precedent; and

		
	(e)
	delete Clause 18.14 (Seizure), Clause 18.15 (Environmental Matters) 18.17 (Material Contracts) (and all references to Material Contracts) and Clause 18.19(b) (ERISA).

		
	58.
	Impaired Agent: amend the Credit Agreement to provide for impaired agent provisions language used in recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market so that alternative payment and notice arrangements are permitted if the Facility Agent is impaired.

		
	59.
	Defaulting Lender: include standard defaulting lender provisions used in recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market so as the commitments of a defaulting lender may be cancelled and it will have no rights to vote in respect of such cancelled commitments. Clarify that no commitment fee will be payable to a defaulting lender.

		
	60.
	Replacement of Agent/Security Agent: amend Clause 19.14 (Resignation of Agents), in accordance with recent Liberty precedent, to:

		
	(a)
	remove the requirements for UPC Broadband to: (a) be unsatisfied with the performance of the Agent; (b) specify reasonable grounds for replacement in the relevant notice and (c) add a requirement that no Default is outstanding at the relevant time; 

		
	(b)
	provide that UPC Broadband may remove the Facility Agent if the status or identity of the Facility Agent causes any Obligor to become liable for any withholding tax in connection with FATCA; and

		
	(c)
	provide that UPC Broadband will have the right to appoint a successor Facility Agent without the Lenders’ consent twice during the life of the Facilities,

and, in each case, permits the removal of the Security Agent as the joint creditor for the purposes of any “parallel debt”.
		
	61.
	Assignments / Transfers of Lenders: clarify that the Borrower should have the right to withhold consent in respect of an assignment/transfer of any revolving credit facility to an entity which is not a lender under a revolving facility to the wider Liberty group (subject to no consent being required in the case of transfers to other Lenders or affiliates of Lenders or following an event of default which is continuing). There should be no unreasonableness or delay qualifier on this right (in respect of any revolving credit facility only) and no deemed consent concept.

		
	62.
	Replacement of a Lender: amend the Credit Agreement to include the right to replace a Lender (in whole and at par) if the Obligor becomes obliged to make payment under Illegality, Increased Costs, Tax Gross up or Tax Indemnity provisions to any Lender, if a Lender invokes the provisions of Clause 11.2 (Market Disruption) or if a Lender is a defaulting lender.

		
	63.
	Expenses: amend Clause 21.2 (Amendment costs) to make legal fees subject to any agreed caps; and Clause 22 (Stamp Duties) to ensure that any liability of the Borrower for the payment of any tax (including stamp taxes) does not extend to taxes payable in respect of an assignment or transfer of a Lender’s interest.

		
	64.
	Amendments: 

		
	(a)
	amend Clause 25 (Amendments and waivers) to introduce a class exception, whereby any amendment or waiver that relates only to the rights or obligations of a particular utilisation or Facility and does not materially and adversely affect the rights or interests of Lenders in respect of other utilisations or Facilities only requires the consent of the relevant proportion of Lenders participating in such Utilisation or Facility; 

		
	(b)
	amend Clause 25.2 (Exceptions) to require the consent of affected Lenders only and not all Lenders (and make any consequential changes by amending for example, all references to matters requiring all Lender consent to only requiring affected Lender consent);

		
	(c)
	include a new paragraph (e) to Clause 25.2 (Exceptions), to permit the Facility Agent to make technical, minor, operational and OID amendments without consent from any Lenders, on terms consistent with recent Liberty precedent as at the date of implementation of the amendments; 

		
	(d)
	include a new clause 25.5 (Calculation of Consent), such that where a request for a waiver of, or an amendment to, any provision of any Finance Document has been sent by the Facility Agent to the Lenders at the request of an Obligor, each Lender that does not respond to such request for waiver or amendment within 10 Business Days after receipt by it of such request (or within such other period as the Facility Agent and UPC Broadband shall specify), shall be excluded from the calculation in determining whether the requisite level of consent to such waiver or amendment was granted; and

		
	(e)
	include a new paragraph (f) of Clause 25.2 (Exceptions) such that the release of guarantees and security under the Finance Documents (and not in accordance with the Finance Documents) requires the consent of affected Lenders whose undrawn Commitments and participations are greater than 90 per cent. of all undrawn Commitments and participations and delete paragraph (a)(x) of Clause 25.2 (Exceptions).

		
	65.
	Covenant Compliance: disapply Clause 4.3 (Pro forma covenant compliance) so that there is no drawstop if the financial covenants would not be complied with in relation to a rollover of a revolving credit facility Advance or the redrawing of a term Advance. 

		
	66.
	Indemnification requirements: amend the Credit Agreement in respect of any indemnity granted by the Borrower to conform to recent Liberty precedent including, amongst others, amending Clause 10.3 (Tax Indemnity) such that the indemnity is paid within 10 Business Days and the loss is calculated on a reasonable basis.

		
	67.
	Non-consenting Lenders: include a provision whereby if 80 per cent. of affected Lenders have consented to a request for an amendment or waiver, UPC Broadband may elect to replace any Lender that has not consented to such request by procuring that its relevant Commitments are acquired at par in accordance with the provisions in recent Liberty precedent.

		
	68.
	References: amend the Credit Agreement:

		
	(a)
	so that all references to any party include any assignees, transferees, successors in title and merged entities thereof; and

		
	(b)
	to take account of the fact that certain Facilities under the Credit Facility have been (as at the date of this Agreement) repaid and cancelled in full.

		
	69.
	Subsidiary: amend the definition of Subsidiary so that for the purposes of the financial covenants and related provisions that a “Subsidiary” of a person includes legal entity which is accounted for under applicable GAAP or IFRS as a Subsidiary.

		
	70.
	Material Adverse Effect: amend definition of Material Adverse Effect so that it relates only to payment obligations and not “other material obligations”.

		
	71.
	Certain Funds Acquisitions: amend Clause 4.2 (Further Conditions Precedent) to provide that the relevant Additional Facility Lenders may amend or waive any of the conditions at paragraphs (a) and (b) in relation to any Advance under an Additional Facility in relation to an acquisition where the relevant vendor requires, or it is commercially advantageous in connection with any competitive bid process that, such acquisition is completed on a certain funds basis other than an Event of Default that has arisen under Clause 18.2 (Non-payment) or Clauses 18.6 (Insolvency) to 18.10 (Similar proceedings).

		
	72.
	Calculation of EURIBOR/LIBOR: amend the Credit Agreement to include provisions for the calculation of EURIBOR/LIBOR in accordance with recent Liberty precedent and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market provided that in no circumstances will EURIBOR/LIBOR be deemed to be zero and to include a requirement for the Facility Agent to notify the relevant Borrower of each funding rate.

		
	73.
	Voluntary cancellation/prepayment:  amend clauses 7.2 (Voluntary cancellation) and 7.3 (Voluntary prepayment) to delete the references to delivering to the Facility Agent a duly completed Cancellation Notice not less than “five” Business Days prior to the due date of the cancellation/prepayment and replace it with a reference to not less than “three” Business Days or such other time period agreed between UPC Broadband and the Facility Agent prior to the due date of the cancellation/prepayment.

		
	74.
	Deferred Acquisition Costs:  amend the thresholds in clause 4.4 (Deferred Acquisition Costs) such that the reference to €100,000,000 is replaced with a reference to €250,000,000 and the references to €150,000,000 are replaced with references to €300,000,000.

		
	75.
	Additional Facility Accession Agreement:  amend the Additional Facility Accession Agreement definition to delete the reference to “with such amendments as the Facility Agent may approve or reasonably require” and replace it with a reference to “with such amendments as may be agreed between UPC Broadband and the relevant Lender or Lenders under the proposed Additional Facility”.

		
	76.
	Guarantor Coverage:  replace the reference to “95%” at paragraph (b)(i)(B) of Clause 26.4 (Additional Obligors) with a reference to “80%” and at paragraph (b)(i)(A) of Clause 26.4 (Additional Obligors) replace “the Guarantors as of the Effective Date (other than UPC Broadband, any UPC Broadband Holdco, UPC Holding and UPC Holding II) and their respective Subsidiaries” 

with “the Guarantors as of the Effective Date (other than UPC Broadband, any UPC Broadband Holdco, UPC Holding, UPC Holding II and any Subsidiary of UPC Broadband that is a Holding Company of all other Subsidiaries of UPC Broadband) and their respective Subsidiaries”.
		
	77.
	UGCE Borrower Group:  amend the definition of UGCE Borrower Group so that it refers to UPC Holding and any other company of which UPC Broadband is a Subsidiary and which is a Subsidiary of UPC Holding.

		
	78.
	Benefit of Maintenance Covenant: amend the Credit Agreement to provide that:

		
	(a)
	the maintenance covenants at Clause 17.2 (Financial ratios) shall only be for the benefit of those Lenders under Additional Facilities that (i) are stated to have the benefit of such maintenance covenants or (ii) do not contain a statement that they do not have the benefit of such maintenance covenants, in each case, in the relevant Additional Facility Accession Agreement;

		
	(a)
	a new definition of “Composite Maintenance Covenant Instructing Group” is included which shall consist of a Lender or Lenders whose Additional Facility Commitments in respect of Additional Facilities that benefit from the maintenance covenants at Clause 17.2 (Financial ratios) amount in aggregate to more than 50% of the total Additional Facility Commitments in respect of Additional Facilities that benefit from the maintenance covenants calculated in accordance with the new clause 25.5 (Calculation of Consent) (as referred to in paragraph 64(d) of this Schedule) and not taking into account Commitments in respect of which a cancellation notice has been issued;

		
	(b)
	following a breach of Clause 17.2 (Financial ratios), subject to the expiry of the cure period in accordance with Clause 17.4 (Cure provisions), (i) the Facility Agent shall, if instructed by the Composite Maintenance Covenant Instructing Group, take acceleration action in respect of the Additional Facilities and Commitments held by Lenders in the Composite Maintenance Covenant Instructing Group in accordance with recent Liberty precedent, (ii) there shall be a drawstop in relation to future Advances and (iii) there shall be an Event of Default continuing for the purposes of the operative covenants e.g. paragraph 52(a)(v) above;

		
	(c)
	an Event of Default will be triggered if the Composite Maintenance Covenant Instructing Group give a direction to the Facility Agent in accordance with the new acceleration clause at (c) above; and

		
	(d)
	amendments and waivers of Clauses 17.2 (Financial ratios) to 17.4 (Cure provisions) and the new acceleration clause at (c) above shall only be made with the consent of UPC Broadband and the Composite Maintenance Covenant Instructing Group and shall not require the consent of any other Finance Party.

SCHEDULE 5
FURTHER AMENDMENTS, WAIVERS, CONSENTS AND OTHER MODIFICATIONS
All references to Clauses, Paragraphs, Schedules and definitions contained in this Schedule 5 are to Clauses, Paragraphs, Schedules and definitions of the Credit Agreement. All capitalised terms used in this Schedule but not defined shall have the meanings given to such terms in the Credit Agreement.
In this Schedule, references to "recent Liberty precedent" shall be construed to mean any Liberty Global Reference Agreement.
		
	1.
	Financial Indebtedness: amend the definition of Financial Indebtedness as follows:

		
	(a)
	deleting paragraph (d) in relation to receivables sold or discounted; and

(b)    by excluding the following items from the definition:
		
	(i)
	receivables sold or discounted, whether recourse or non-recourse;

		
	(ii)
	any payments for assets acquired or services supplied which are deferred; and

		
	(iii)
	indebtedness raised through sale and leaseback transactions.

		
	2.
	Asset Securitisation Subsidiary: amend the Credit Agreement to include (i) an ability to carry out internal corporate reorganizations reasonably required in connection with, or to effect, any asset securitisation programme or a receivables factoring transaction, (ii) without limiting any of the foregoing, any other amendments reasonably necessary to permit or effect, or in connection with, any asset securitisation programme or receivables factoring transaction and (iii) an ability to undertake an asset securitisation programme or receivables factoring transaction using a deferred purchase price structure i.e. so as “receivables” are deemed to include notes received from a purchaser and other amounts payable over time, including amounts payable pursuant to financing or operating leases.

		
	3.
	Permitted Disposals: amend the definition of Permitted Disposal to include in addition to the existing “Permitted Disposals”:

		
	(a)
	instead of the amendment referred to at paragraph 42(a)(xxii) of Schedule 5 of this Additional Facility AM Accession Agreement, any disposal of real property if the fair market value in any financial year does not exceed the greater of €250,000,000 and 5% of Total Assets (with unused amounts in any financial year being carried over to the next succeeding financial year subject to a maximum of the greater of €250,000,000 million and 5% of Total Assets of carried over amounts for any financial year);

		
	(b)
	instead of the amendment referred to at paragraph 42(a)(xiii) of Schedule 5 of this Additional Facility AM Accession Agreement, any disposition of assets to a person who is providing services related to such assets, the provision of which have been or are to be outsourced by UPC Broadband or any member of the Borrower Group to such person; 

		
	(c)
	any disposal of the share capital of, or an interest in, any person which is not a member of the Borrower Group; and

		
	(d)
	disposals of assets permitted by sub-paragraph (c)(iii) of Clause 16.13 (Restricted Payments).

		
	4.
	Permitted Payments: amend (i) paragraph (a) of Clause 16.13 (Restricted Payments) to delete the words “or enter into any transaction with a Restricted Person other than on bona fide arm’s length commercial terms or on terms which are fair and reasonable and in the best interests of the Borrower Group.” and (ii) paragraph (c)(iii) of Clause 16.13 (Restricted Payments) to delete the words “paid by UPC Broadband in respect of its share capital”.

		
	5.
	Permitted Security: amend Clause 16.7 (Negative Pledge) as follows to add an additional limb in paragraph (c) to include any Security Interest on (a) proceeds from the offering of any debt securities or other Financial Indebtedness (and accrued interest thereon) paid into escrow accounts with an independent escrow agent on the date of the applicable offering or incurrence pursuant to escrow arrangements that permit the release of amounts on deposit in such escrow accounts upon satisfaction of certain conditions or the occurrence of certain events for the benefit of the related holders of debt securities or other Financial Indebtedness (or the underwriters or arrangers thereof) or (b) cash set aside at the time of the incurrence of any Financial Indebtedness or government securities purchased with such cash, in either case, to the extent such cash or government securities prefund the payment of interest on such Financial Indebtedness and are held in escrow accounts or similar arrangement to be applied for such purpose.

		
	6.
	Revolving Facility Excluded Amount: amend the definition of Revolving Facility Excluded Amount as referenced at paragraph 30(b)(vii) of Schedule 5 of this Additional Facility AM Accession Agreement such that it means the greater of (1) €350,000,000 (or its equivalent in other currencies) and (2) 0.25 multiplied by Annualised EBITDA.

		
	7.
	Intra-Group Services: include a new definition of Intra-Group Services for the purposes of paragraphs 30(a)(xxiv) and 53(f) of Schedule 5 of this Additional Facility AM Accession Agreement as set out in recent Liberty precedent but delete the reference to “IT” and replace it with a reference to “branding, marketing, network, technology, research and development, installation and customer service,”.

		
	8.
	Wholly-owned Subsidiary:  include a new definition of “wholly-owned Subsidiary” to provide carve outs for (a) directors’ qualifying shares or an immaterial amount of shares required to be owned by other persons pursuant to applicable law, regulation or to ensure limited liability and (b) in the case of an asset securitization subsidiary, shares held by a person that is not an Affiliate of UPC Broadband solely for the purpose of permitting such person (or such person’s designee) to vote with respect to customary major events with respect to such asset securitization subsidiary, including without limitation the institution of bankruptcy, insolvency or other similar proceedings, any merger or dissolution, and any change in charter documents or other customary events).

		
	9.
	Change in Accounting Principles: with reference to paragraph 40 of Schedule 5 of this Additional Facility AM Accession Agreement, amend the Credit Agreement to clarify that in the event of any changes to accounting policies, practices or procedures resulting from UPC Broadband’s decision to adopt IFRS or GAAP (as applicable), if UPC Broadband wishes not to prepare additional information in the form of a statement with reasonable detail confirming that the relevant changes would have no effect on the operation of the ratios set out in Clause 17.2 (Financial ratios) (the Additional Information) for each set of financial information, UPC Broadband may provide the Facility Agent with a confirmation that (i) the ratios set out in Clause 17.2 (Financial ratios) can be tested on a substantially equivalent basis or (ii) that there will be no material effect on the operation of the ratios set out in Clause 17.2 (Financial ratios), following the adoption of IFRS or GAAP (as applicable) without the need for any amendments to such ratios or the financial definitions set out in Clause 17.1 (Financial definitions) and if the Facility Agent (acting on the instructions of the Majority Lenders) has not objected (acting reasonably) within 60 days of the 

date of such confirmation, UPC Broadband will no longer have to provide the Additional Information for each set of financial information. 
		
	10.
	Second Lien: amend the Finance Documents to permit UPC Broadband to incur and secure Financial Indebtedness on a second lien ranking basis provided that (other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) the Total Debt to Annualised EBITDA ratio on a pro forma basis would not be greater than 5.50:1.00 and provided that such Financial Indebtedness is subject to an intercreditor agreement on terms satisfactory to the Facility Agent and the Security Agent (in each case, acting reasonably) and, where the rights of the holders of such Financial Indebtedness will be contractually subordinated to the rights of the Lenders, on terms comparable to the intercreditor agreement that relates to the Liberty Global Reference Agreement referenced under paragraph (iii) of the definition of “Liberty Global Reference Agreements” with such adjustments and amendments agreed between UPC Broadband, the Security Agent and the Facility Agent (acting reasonably in each case).

		
	11.
	New Reporting Entity: amend Clause 16.2 (Financial information) to provide that the relevant financial statements may be provided by any Holding Company of UPC Broadband (the Reporting Entity) instead of UPC Broadband Holdco, in each case, provided that a reconciliation is given showing the necessary adjustments to the financial statements of the Reporting Entity to derive financial information applicable to the Borrower Group.

		
	12.
	Ancillary Facilities:  with reference to paragraph 14 of Schedule 5 of this Additional Facility AM Accession Agreement, ensure that the Credit Agreement provides that (i) a date specified in a conversion notice as the effective date for an ancillary facility commitment may be a date not less than 3 Business Days after the date such conversion notice is received by the Facility Agent, (ii) any proposed increase or reduction or extension of the ancillary facility commitment shall only take effect from a date not less than 3 Business Days after the date the Facility Agent has received notice of the relevant modification or variation or extension and (iii) an ancillary facility lender may demand repayment or prepayment of any amounts under its ancillary facility if the ancillary facility outstandings under that ancillary facility can be repaid by a revolving facility advance (and not less than 7 Business Days notice (or such shorter period as agreed to by UPC Broadband) is given to the relevant Borrower before payment becomes due).

		
	13.
	Financial Covenants:  amend the definition of EBITDA, so that, at UPC Broadband’s option, it may include (i) the amount of loss on the sale or transfer of any assets in connection with an asset securitisation programme, receivables factoring transaction or other receivables transaction and/or (ii) any gross margin (revenue minus cost of goods sold) recognised by any Affiliate of UPC Broadband in relation to the sale of goods and services relating to the Business, as add backs to that definition (instead of the add back referred to at paragraph (a)(xiii) of paragraph 30 of Schedule 5 of this Additional Facility AM Accession Agreement).

		
	14.
	Unrestricted Subsidiary:  amend the definition of Unrestricted Subsidiary to provide that it means each Subsidiary of UPC Broadband that is not an Obligor and which is designated by the Company in writing as an Unrestricted Subsidiary (and such that there is no requirement to ensure that such entity’s acquisition cost and on-going funding requirements are not funded directly or indirectly (in whole or in part) by any member of the Borrower Group by way of drawings under the Facilities).

		
	15.
	Holding Company Expenses:  amend the Credit Agreement to provide that the definition of holding company expenses (as defined in accordance with recent Liberty precedents) to be incorporated in accordance with paragraphs 30(a)(xiv) and 52(a)(xvii) of Schedule 5 of this Additional Facility AM Accession Agreement includes Liberty Global plc and its direct and 

indirect subsidiaries as the relevant holding companies instead of the direct or indirect holding companies of members of the Borrower Group.
		
	16.
	Permitted Acquisitions and Permitted Joint Ventures:  amend the credit agreement (i) to delete paragraphs (b)(i) and (b)(ii) of each of the definition of Permitted Acquisition and the definition of Permitted Joint Venture and to add a condition that the business of the acquired entity or the business acquired, as the case may be, is substantially of the same nature as that set out in the definition of Business, (ii) increase the de minimis threshold in paragraph (b)(iv) of each of the definition of Permitted Acquisition and the definition of Permitted Joint Venture to refer to €250,000,000 as the threshold amount rather than €40,000,000 (but excluding from the Acquisition Cost for these purposes any consideration to be paid in cash other than the proceeds of a Utilisation of an Additional Facility or any other incurrence of debt that ranks pari passu in right of payment with the Facilities under the Intercreditor Agreement as amended) and to extend the period of time for UPC Broadband to deliver the relevant certificate to the Facility Agent from 15 to 60 days and (iii) delete Clause 4.4 (Deferred Acquisition Costs).

SIGNATORIES
Facility Agent and Security Agent
THE BANK OF NOVA SCOTIA as Facility Agent
By: 
Authorized Signatory

Head of Credit Risk Control

Authorized Signatory

Manager, Credit Risk Control

THE BANK OF NOVA SCOTIA as Security Agent
By:
Authorized Signatory

Head of Credit Risk Control

Authorized Signatory

Manager, Credit Risk Control

(Signature Page to AM Accession Agreement)

Company
UPC BROADBAND HOLDING B.V

By: 
Authorized Signatory

By:
Authorized Signatory

(Signature Page to AM Accession Agreement)

Borrower
UPC FINANCING PARTNERSHIP

By:
Authorized Signatory

By: 
Authorized Signatory

(Signature Page to AM Accession Agreement)

Additional Facility AM Lenders
ABN AMRO BANK N.V.

By: 
Authorized Signatory

Director

By:
Authorized Signatory

(Signature Page to AM Accession Agreement)

BANK OF AMERICA, N.A., LONDON BRANCH

By:
Authorized Signatory
2 King Edward St.
London, EC1A 1HQ

By:

(Signature Page to AM Accession Agreement)

BARCLAYS BANK PLC

By: 
Authorized Signatory
Director

By:

(Signature Page to AM Accession Agreement)

BNP PARIBAS FORTIS SA/NV

By:
Authorized Signatory

Head of Media & Telecom Finance
(Paris & Bruxelles)

By:
Authorized Signatory

Head of Media & Telecom Fnance

(Signature Page to AM Accession Agreement)

CITIBANK N.A., LONDON

By:
Authorized Signatory

Managing Director
By:

(Signature Page to AM Accession Agreement)

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK

By:
Authorized Signatory

By:
Authorized Signatory

(Signature Page to AM Accession Agreement)

CRÉDIT INDUSTRIEL ET COMMERCIAL, LONDON BRANCH

By:
Authorized Signatory

Head Project Finance, London
30/7/15
By:
Authorized Signatory

Credit Officer

(Signature Page to AM Accession Agreement)

CREDIT SUISSE AG, LONDON BRANCH

By:
Authorized Signatory

Director
By:
Authorized Signatory

(Signature Page to AM Accession Agreement)

DEUTSCHE BANK AG, LONDON BRANCH

By:
Authorized Signatory

Vice President
By:
Authorized Signatory

Managing Director

(Signature Page to AM Accession Agreement)

GOLDMAN SACHS BANK USA

By:
Authorized Signatory

By:

(Signature Page to AM Accession Agreement)

HSBC BANK PLC

By:
Authorized Signatory

By:

(Signature Page to AM Accession Agreement)

ING BANK N.V., AMSTERDAM

By: 
Authorized Signatory

Director

By:
Authorized Signatory

Managing Director
Structured Finance
Telecom, Media & Technology Finance

(Signature Page to AM Accession Agreement)

JPMORGAN CHASE BANK, N.A., LONDON BRANCH

By:
Authorized Signatory

Vice President
By:

(Signature Page to AM Accession Agreement)

MORGAN STANLEY BANK N.A.

By:
Authorized Signatory

By:

(Signature Page to AM Accession Agreement)

NOMURA INTERNATIONAL PLC

By:
Authorized Signatory

By:

(Signature Page to AM Accession Agreement)

THE ROYAL BANK OF SCOTLAND PLC

By:
Authorized Signatory

By:

(Signature Page to AM Accession Agreement)

SCOTIABANK EUROPE PLC

By:
Authorized Signatory

Director
By:
Authorized Signatory

Director

(Signature Page to AM Accession Agreement)

SOCIETE GENERALE, LONDON BRANCH

By:
Authorized Signatory

MD
By:

(Signature Page to AM Accession Agreement)

UBS AG, LONDON BRANCH

By:
Authorized Signatory

Director

By:
Authorized Signatory

Managing Director

(Signature Page to AM Accession Agreement)EX-10.1

 Exhibit 10.1 

NOTES PURCHASE AGREEMENT 

DATED AS OF AUGUST 5, 2015 

BY AND BETWEEN 
 LUMOS
NETWORKS CORP. 
 AND 

LUMOS DEBT HOLDINGS, L.P. 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I PURCHASE AND SALE OF NOTES
	  	 	1	  
	 SECTION 1.1
	  	 PURCHASE AND SALE OF NOTES
	  	 	1	  
	 SECTION 1.2
	  	 CLOSING
	  	 	1	  
	 SECTION 1.3
	  	 DEFINED TERMS USED IN THIS
AGREEMENT
	  	 	2	  
	 ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	4	  
	 SECTION 2.1
	  	 SUBSIDIARIES
	  	 	4	  
	 SECTION 2.2
	  	 ORGANIZATION AND POWER
	  	 	4	  
	 SECTION 2.3
	  	 AUTHORIZATION, ENFORCEMENT
	  	 	5	  
	 SECTION 2.4
	  	 NO CONFLICT
	  	 	5	  
	 SECTION 2.5
	  	 GOVERNMENT APPROVALS
	  	 	6	  
	 SECTION 2.6
	  	 AUTHORIZED AND OUTSTANDING STOCK
	  	 	6	  
	 SECTION 2.7
	  	 SEC DOCUMENTS; FINANCIAL INFORMATION
	  	 	7	  
	 SECTION 2.8
	  	 MATERIAL CHANGES; UNDISCLOSED EVENTS, LIABILITIES
OR DEVELOPMENTS
	  	 	7	  
	 SECTION 2.9
	  	 LITIGATION
	  	 	8	  
	 SECTION 2.10
	  	 COMPLIANCE WITH LAWS
	  	 	8	  
	 SECTION 2.11
	  	 TAXES
	  	 	8	  
	 SECTION 2.12
	  	 INTELLECTUAL PROPERTY
	  	 	8	  
	 SECTION 2.13
	  	 CONTRACTS AND COMMITMENTS
	  	 	9	  
	 SECTION 2.14
	  	 EMPLOYEE MATTERS
	  	 	9	  
	 SECTION 2.15
	  	 TRANSACTIONS WITH AFFILIATES
	  	 	10	  
	 SECTION 2.16
	  	 INSURANCE
	  	 	10	  
	 SECTION 2.17
	  	 INVESTMENT COMPANY ACT
	  	 	10	  
	 SECTION 2.18
	  	 MARGIN REGULATIONS
	  	 	10	  
	 SECTION 2.19
	  	 NASDAQ
	  	 	10	  
	 SECTION 2.20
	  	 APPLICATION OF TAKEOVER PROTECTIONS
	  	 	10	  
	 SECTION 2.21
	  	 ISSUANCES EXEMPT
	  	 	11	  
	 SECTION 2.22
	  	 NO INTEGRATED OFFERING
	  	 	11	  
	 SECTION 2.23
	  	 INTERNAL ACCOUNTING AND DISCLOSURE CONTROLS
	  	 	11	  
	 SECTION 2.24
	  	 OFF BALANCE SHEET ARRANGEMENTS
	  	 	12	  
	 SECTION 2.25
	  	 TRANSFER TAXES
	  	 	12	  
	 SECTION 2.26
	  	 OWNERSHIP OF PROPERTY
	  	 	12	  
	 SECTION 2.27
	  	 WAIVER OF SECTION 203
	  	 	12	  
	 SECTION 2.28
	  	 NO OTHER REPRESENTATIONS OR WARRANTIES
	  	 	12	  
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
	  	 	13	  
	 SECTION 3.1
	  	 ORGANIZATION AND POWER
	  	 	13	  
	 SECTION 3.2
	  	 AUTHORIZATION, ENFORCEMENT
	  	 	13	  
	 SECTION 3.3
	  	 NO CONFLICT
	  	 	13	  
	 SECTION 3.4
	  	 GOVERNMENT APPROVALS
	  	 	14	  
	 SECTION 3.5
	  	 INVESTMENT REPRESENTATIONS
	  	 	14	  
	 SECTION 3.6
	  	 NO OTHER REPRESENTATIONS OR WARRANTIES
	  	 	14	  
	 ARTICLE IV COVENANTS OF THE PARTIES
	  	 	15	  
	 SECTION 4.1
	  	 REGULATORY
	  	 	15	  
	 SECTION 4.2
	  	 PUBLICITY
	  	 	15	  

							
	 SECTION 4.3
	  	 USE OF PROCEEDS
	  	 	15	  
	 SECTION 4.4
	  	 PURCHASER TRANSACTION EXPENSES
	  	 	15	  
	 SECTION 4.5
	  	 PLACEMENT AGENT’S FEES
	  	 	16	  
	 SECTION 4.6
	  	 FURTHER ASSURANCES
	  	 	16	  
	 ARTICLE V MISCELLANEOUS
	  	 	17	  
	 SECTION 5.1
	  	 EXECUTION AND COUNTERPARTS
	  	 	17	  
	 SECTION 5.2
	  	 GOVERNING LAW
	  	 	17	  
	 SECTION 5.3
	  	 WAIVER OF JURY TRIAL
	  	 	17	  
	 SECTION 5.4
	  	 ENTIRE AGREEMENT; NO THIRD PARTY
BENEFICIARY
	  	 	17	  
	 SECTION 5.5
	  	 NO RECOURSE
	  	 	17	  
	 SECTION 5.6
	  	 NOTICES
	  	 	18	  
	 SECTION 5.7
	  	 SUCCESSORS AND ASSIGNS
	  	 	19	  
	 SECTION 5.8
	  	 HEADINGS
	  	 	19	  
	 SECTION 5.9
	  	 AMENDMENTS AND WAIVERS
	  	 	19	  
	 SECTION 5.10
	  	 INTERPRETATION; ABSENCE OF PRESUMPTION
	  	 	19	  
	 SECTION 5.11
	  	 SEVERABILITY
	  	 	20	  
	 SECTION 5.12
	  	 ENFORCEMENT
	  	 	20	  
	 SECTION 5.13
	  	 REMEDIES; SURVIVAL OF REPRESENTATIONS AND
WARRANTIES
	  	 	20	  

 SCHEDULES 
  

			
	Schedule 2.1	  	Subsidiaries of the Company
	Schedule 2.6(c)	  	Other Securities and Rights
	Schedule 2.7	  	SEC Documents
	Schedule 2.12	  	Intellectual Property
	Schedule 2.26	  	Ownership of Property

 EXHIBITS 
  

			
	Exhibit A	 	Third Amendment to the Credit Agreement
	Exhibit B	 	Form of 8% Notes due 2022
	Exhibit C	 	Form of Opinion of Counsel to the Company
	Exhibit D	 	Form of Press Release
	Exhibit E	 	Form of 8-K

  
 ii 

 NOTES PURCHASE AGREEMENT 

This Notes Purchase Agreement, dated as of August 5, 2015 (this “Agreement”), is by and between Lumos Networks Corp., a
Delaware corporation (the “Company”), and Lumos Debt Holdings, L.P., a Delaware limited partnership (the “Purchaser”). 

WHEREAS, the Purchaser desires to purchase from the Company, and the Company desires to issue and sell to the Purchaser, US$150,000,000
aggregate principal amount of the Company’s 8% Notes due 2022 (the “Notes”), all in accordance with this Agreement; and 

WHEREAS, immediately prior to the entry into this Agreement, the Company shall have caused its wholly-owned subsidiary to enter into an
amendment (the “Third Amendment”), in the form set forth in Exhibit A hereto, to that certain Credit Agreement, dated as of April 30, 2013, among Lumos Networks Operating Company (the “Borrower”), the
Subsidiary Guarantors (as defined therein), the Lenders (as defined therein), the Initial Issuing Bank (as defined therein) and CoBank, ACB, as collateral agent and administrative agent (the “Administrative Agent”), as amended by
(i) the First Amendment Agreement, dated as of October 8, 2013, among the Borrower, the Subsidiary Guarantors listed on the signature pages thereto, and the Negative Pledgors (as defined therein), the Administrative Agent and the Lenders
(as defined therein), (ii) the Joinder Agreement and Second Amendment to Credit Agreement, dated as of January 2, 2015, among the Borrower, the New Term Lenders (as defined therein), the Subsidiary Guarantors (as defined therein), the
Negative Pledgors (as defined therein), and each of Fifth Third Bank, Royal Bank of Canada and Branch Banking and Trust Company, as documentation agents, and the Lenders (as defined therein) (the “Credit Agreement”). 

In consideration of the promises and the mutual representations, warranties, covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 ARTICLE I 

PURCHASE AND SALE OF NOTES 

Section 1.1 Purchase and Sale of Notes. Subject to the terms herein, at the Closing (as defined below), the Company shall issue
and sell the Notes to the Purchaser and the Purchaser shall purchase the Notes from the Company for the aggregate purchase price of US$140,000,000 (the “Purchase Price”). The Notes shall be in the form of Exhibit B hereto.

 Section 1.2 Closing. The closing (the “Closing”) shall take place (and shall be deemed to occur) at 8:30
a.m. on August 6, 2015, New York City time at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York by electronic exchange of documents and signatures, or at such other time and place as the
parties may mutually agree in writing. The date on which the Closing occurs is referenced to as the “Closing Date”. At the Closing: 

(a) The Company shall duly execute and deliver the Notes in the same form attached hereto as Exhibit B, to the Purchaser in exchange
for the payment by the Purchaser of the Purchase Price to the Company. 

  
 1 

 (b) Purchaser shall, in full satisfaction of its payment of the Purchase Price pursuant to clause
(a) above, deliver or cause to be delivered, the Closing Payment by wire transfer of immediately available funds to an account previously designated in writing by the Company to the Purchaser. 

(c) The Company shall deliver an opinion addressed to the Purchaser, dated as of the date of the Closing, from counsel to the Company, in the
form attached hereto as Exhibit C (and the Company hereby instructs its counsel to deliver such opinion to the Purchaser). 
 (d) The
Company shall have delivered evidence reasonably satisfactory to the Purchaser that the Third Amendment has been executed and delivered and is in full force and effect as of the entry into this Agreement. 

Section 1.3 Defined Terms Used in this Agreement. In addition to the terms defined above and elsewhere herein, each of the
following terms takes its meaning as defined below. 
 “Affiliate” of any Person means any other Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlling,” “controlled by” and “under common
control with”) as used with respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise. 
 “Board” means the Board of Directors of the Company. 

“Business Day” means any day other than a Saturday, Sunday or holiday on which banks in New York City are required or
permitted to be closed. 
 “Certificate of Incorporation” means the Amended and Restated Certificate of Incorporation,
effective as of October 31, 2011, of the Company. 
 “Common Stock” means the Company’s common stock, par value
$0.01 per share. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“FINRA” means the Financial Industry Regulatory Authority, Inc. 

“GAAP” means generally accepted accounting principles as in effect in the United States. 

  
 2 

 “Governmental Entity” means any national, federal, state, municipal, local,
territorial, foreign or other government or any department, commission, board, bureau, agency, regulatory authority or instrumentality thereof, or any court, judicial, administrative or arbitral body or public or private tribunal. 

“Intellectual Property Rights” means all registered copyrights, copyright registrations and copyright applications, trademark
registrations and applications for registration, patents and patent applications, trademarks, service marks, service names, trade names, Internet domain names and any other intellectual property rights or licenses that are used by the Company or its
Subsidiaries in their business as presently conducted, including all: (i) databases, computer programs and other computer software user interfaces, know-how, trade secrets, customer lists, proprietary technology, processes and formulae, source
code, object code, algorithms, development tools, instructions and templates created by or on behalf of the Company or its Subsidiaries; and (ii) inventions, trade dress, logos and designs created by or on behalf or any of the Company or any of
its Subsidiaries. 
 “Investment Company Act” mean the Investment Company Act of 1940, as amended. 

“Lien” means any mortgage, pledge, security interest or other encumbrance. 

“Material Adverse Effect” means any material adverse effect with respect to: (i) the business, financial condition,
prospects or results of operations of the Company and its Subsidiaries taken as a whole; or (ii) the Company’s ability to perform fully on a timely basis its obligations under this Agreement or any of the Related Agreements. 

“NASDAQ” means The NASDAQ Stock Market, but if The NASDAQ Stock Market is not then the principal U.S. trading market for the
Common Stock, then “NASDAQ” shall be deemed to mean the principal U.S. national securities exchange registered under the Exchange Act on which the Common Stock, or such other applicable common stock, is then traded or, if such
Common Stock or other applicable common stock is not then listed or admitted to trading on any national securities exchange, then the OTC Bulletin Board. 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust,
unincorporated organization, association, corporation, institution, public benefit corporation, Governmental Entity or any other entity. 

“Proxy Statement” means the Company’s definitive proxy statement for its 2015 annual meeting of stockholders, as filed
with the SEC on March 20, 2015. 
 “Representative” means, with respect to a particular Person, any director, officer,
manager, partner, employee, agent, consultant, advisor or other representative of such Person, including legal counsel, accountants and financial advisors. 

“Restricted Affiliate” means: (i) any Person who is directly or indirectly responsible for the formation, management,
operations, oversight or administration of the Purchaser (including any principal, partner or employee of any such Person); (ii) any investment fund directly or indirectly formed or controlled by any one or more Persons referred to in the
preceding clause (i); and (iii) any direct or indirect Subsidiary of any Person referred to in the preceding clauses (i) or (ii) in which any one or more such Persons have the right to elect (directly or indirectly) a

  
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majority of the board of directors (or a comparable governing body with a different name) of such Subsidiary or own a majority of the voting securities entitled to elect the board of directors
(or comparable governing body with a different name) of such Subsidiary. 
 “SEC” means the U.S. Securities and Exchange
Commission. 
 “SEC Documents” means all filings under the Securities Act or under Section 13 or 15(d) of the Exchange
Act (including all financial statements, amendments, exhibits and schedules thereto and the results of the Company’s operations and cash flow contained therein) filed by the Company with the SEC on or after January 1, 2014. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Stock Plan” means the Lumos Networks Corp. 2011 Equity and Cash Incentive Plan, as amended. 

“Subsidiary” has the meaning set forth in Rule 1-02(x) of Regulation S-X promulgated by the SEC. 

“Tax” means all federal, state, local, foreign and other taxes, including income, gross receipts, franchise, property, sales,
withholding, payroll, use and employment taxes and custom duties, together with any interest or penalties thereon or other similar additions to tax. 

“Transaction Expenses Cap” means US$1,400,000. 

ARTICLE II 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company represents and warrants to the Purchaser that, on the date hereof, except as set forth in the SEC Documents filed before the date
of this Agreement (other than disclosures in any “risk factors” or “forward looking statements” contained therein or any other disclosure that is predictive or forward looking in nature): 

Section 2.1 Subsidiaries. Schedule 2.1 hereto contains a true and complete list of all Subsidiaries of the Company.
The Company owns, directly or indirectly, all of the capital stock or other equity interests of the Subsidiaries listed on Schedule 2.1 hereto free and clear of all Liens, rights of first refusal, preemptive rights or other restrictions,
and all of the issued and outstanding shares of capital stock of such Subsidiaries are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. Other than the Subsidiaries
listed on Schedule 2.1 hereto, the Company owns no direct or indirect equity interest in any other Person. 
 Section 2.2
Organization and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to own its properties
and to carry on its business as presently conducted and as proposed to be conducted. Each of the Subsidiaries is a corporation or limited liability company duly incorporated or formed, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation 

  
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and has all requisite corporate or limited liability company power and authority to own its properties and to carry on its business as presently conducted and as proposed to be conducted. Each of
the Company and its Subsidiaries is duly licensed or qualified to do business as a foreign corporation or limited liability company and is in good standing in each jurisdiction wherein the character of its property or the nature of the activities
presently conducted by it, makes such qualification necessary, except where the failure to so qualify has not had and would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 

Section 2.3 Authorization, Enforcement. The Company has all necessary corporate right, power and authority and has taken all
necessary corporate action required for the due authorization, execution, delivery and performance by the Company of this Agreement, the Notes and any other agreement or instrument executed by the Company in connection herewith or therewith
(collectively, the “Related Agreements”), and the completion by the Company of the transactions contemplated hereby and thereby and for the due authorization, issuance, sale and delivery of the Notes. The issuance of the Notes does
not require any further corporate action and is not subject to any preemptive right or rights of first refusal under the Certificate of Incorporation or any contract to which the Company is a party. This Agreement and each of the Related Agreements
have been duly executed and delivered by the Company. Assuming due execution and delivery thereof by each of the other parties thereto, this Agreement and the Related Agreements to which the Company is a party will each be a valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable laws relating to bankruptcy, insolvency, reorganization, moratorium or other similar legal requirement
relating to or affecting creditors’ rights generally and except as such enforceability is subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law). 

Section 2.4 No Conflict. The authorization, execution, delivery and performance by the Company of this Agreement and the Related
Agreements to which it is a party, and the completion by the Company of the transactions contemplated hereby and thereby, including the issuance of the Notes do not and will not: (i) violate, conflict with or result in the breach of any
provision of the Certificate of Incorporation and the Amended and Restated Bylaws of the Company; or (ii) with such exceptions that, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect, whether after
the giving of notice or the lapse of time or both: (a) violate any provision of, constitute a breach of, or default under, or result in or permit the cancellation, termination or acceleration of any decree, judgment, order, law, treaty, rule,
regulation or determination of any Governmental Entity having jurisdiction over the Company or its properties or assets; (b) violate any provision of, constitute a breach of, or default under, any applicable state, federal or local law, rule or
regulation; (c) result in the creation of any Lien upon any asset of the Company or its Subsidiaries or the suspension, revocation, material impairment, forfeiture or nonrenewal of any franchise, permit, license or other right granted by a
Governmental Entity to the Company or its Subsidiaries, other than Liens under federal or state securities laws; (d) violate any of the terms of any bond, debenture, indenture, credit agreement, note or any other evidence of indebtedness
(including the Credit Agreement and the Third Amendment thereto), or any agreement, stock option or other similar plan, lease, mortgage, deed of trust or other instrument (including any material contract of the Company of the type described in the
first sentence of Section 2.13) to which the Company is a party, by which the Company is bound, or to which any of the properties or assets of the Company is subject; (e) 

  
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violate any of the terms of any “lock-up” or similar provision of any underwriting or similar agreement to which the Company or any of its Subsidiaries is a party; or (f) violate
any rule or regulation of FINRA or NASDAQ. Neither the Company nor any of its Subsidiaries is in default (or, with the giving of notice or lapse of time, would be in default) (“Default”) under any indenture, mortgage, loan or credit
agreement, note, contract, franchise, lease or other instrument to which the Company or any of its Subsidiaries is a party or by which it or any of them may be bound (including the Credit Agreement), or to which any of the property or assets of the
Company or any of its Subsidiaries is subject, except for such Defaults as would not, individually or in the aggregate, result in a Material Adverse Effect. The Third Amendment has been executed and delivered and is in full force and effect as of
the Closing of the transactions contemplated by this Agreement. 
 Section 2.5 Government Approvals. No consent, approval,
license or authorization of, or designation, declaration or filing with, any Governmental Entity or other third-party is or will be required on the part of the Company in connection with the execution, delivery and performance by the Company of this
Agreement and the Related Agreements to which the Company is a party, or in connection with the issuance of the Notes, except for: (i) those which have already been made or granted; (ii) the filing of a current report on Form 8-K with the
SEC; (iii) filings with applicable state securities commissions; (iv) those which may be made or obtained following the Closing; (v) post-Closing filings as may be required to be made with the SEC and with any state or foreign blue
sky or securities regulatory authority; and (vi) as would not be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect. 

Section 2.6 Authorized and Outstanding Stock 

(a) The authorized capital stock of the Company (immediately prior to the Closing) consists of 55,000,000 shares of Common Stock and 100,000
shares of the Company’s Preferred Stock, par value $0.01 per share (the “Preferred Stock”). 
 (b) As of
August 3, 2015, the issued and outstanding capital stock of the Company consists of 22,900,237 shares of Common Stock. There are no outstanding shares of Preferred Stock. As of August 3, 2015, the Company had reserved an aggregate of
5,500,000 shares of Common Stock for issuance to employees, directors and consultants pursuant to the Stock Plan, of which 2,193,450 shares of Common Stock are subject to outstanding, unexercised options as of such date under such Stock Plan. All of
the issued and outstanding shares of capital stock of the Company are duly and validly authorized and duly and validly issued and fully paid and non-assessable. When issued in accordance with the terms hereof, the Notes will be free and clear of all
Liens imposed by or through the Company, except for restrictions imposed by federal or state securities or “blue sky” laws and except for those imposed pursuant to this Agreement. The designations, powers, preferences, rights,
qualifications, limitations and restrictions in respect of each class or series of capital stock of the Company are as set forth in the Certificate of Incorporation. 

(c) Except as provided in this Agreement or as set forth in Schedule 2.6(c) hereto, as of August 3, 2015: (i) no
subscription, warrant, option, convertible security or other right issued by the Company to purchase or acquire any shares of capital stock of the Company is authorized or outstanding; (ii) there is no option, warrant, calls, rights,
commitments or 

  
 6 

 
agreements of any character to which the Company is a party or by which either the Company is bound or obligating the Company to issue, deliver, sell, repurchase or redeem, or cause to be issued,
delivered, sold, repurchased or redeemed, any shares of the capital stock of the Company or obligating the Company to grant, extend or enter into any such option, warrant, call, right, commitment or agreement or to issue or distribute to holders of
any shares of its capital stock any evidences of indebtedness or assets of the Company; (iii) the Company has no obligation to pay any dividend or make any other distribution in respect thereof; and (iv) there are no agreements between the
Company and any holder of its capital stock relating to the acquisition, disposition or voting of the capital stock of the Company. No Person is entitled to any preemptive right or right of first refusal granted by the Company with respect to the
issuance of any capital stock of the Company and the issuance of the Notes issuable hereunder will not trigger any anti-dilution or similar right that has not been properly waived. 

Section 2.7 SEC Documents; Financial Information. Except as set forth in Schedule 2.7, the Company has timely filed all SEC
Documents required to be filed by the Company with the SEC pursuant to the Exchange Act and the Securities Act since January 1, 2014. As of their respective filing dates (or, if amended or superseded by a filing prior to the date of this
Agreement, on the date of such amended or superseded filing), the SEC Documents complied in all material respects with the requirements of the Securities Act, the Exchange Act and the rules and regulations of the SEC thereunder applicable to such
SEC Documents, and as of their respective dates none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. The financial statements of the Company and its Subsidiaries included in the SEC Documents (the “Financial Statements”) comply as of their respective dates in
all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto (except as may be indicated in the notes thereto or, in the case of the unaudited statements, as permitted by Form 10-Q
promulgated by the SEC), and present fairly in all material respects as of their respective dates the consolidated financial position of the Company and its Subsidiaries as at the dates thereof and the consolidated results of their operations and
their consolidated cash flows for each of the respective periods, in conformity with GAAP (subject, in the case of unaudited financial statements, to normal and recurring year-end adjustments). 

Section 2.8 Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited Financial
Statements, except as specifically disclosed in a subsequent SEC Document (other than disclosures in any “risk factors” or “forward looking statements” contained therein or any other disclosure that is predictive or
forward-looking in nature) filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect; (ii) each of the Company and its
Subsidiaries has not incurred any liability (contingent or otherwise) other than liabilities (a) incurred in the ordinary course of business consistent with past practice, (b) not required by GAAP to be reflected on a consolidated balance
sheet (or the notes thereto) or disclosed in filings made with the SEC; (c) reflected or reserved against in the most recent balance sheet included in the SEC Documents, (d) which have been discharged or paid in full prior to the date of
this Agreement and the Related Agreements, and (e) incurred pursuant to the transactions contemplated by this Agreement and (iii) the Company has not declared, or made, any dividend or distribution of cash or other property to its
stockholders or purchased, redeemed 

  
 7 

 
or made any agreement to purchase or redeem any shares of its capital stock. The Company does not have pending before the SEC any request for confidential treatment of information or any comment
letters from the SEC regarding the SEC Documents. 
 Section 2.9 Litigation. There is no litigation, action, suit, investigation
or governmental proceeding pending or, to the knowledge of the Company, threatened, against the Company or its Subsidiaries or affecting any of the properties or assets of the Company or its Subsidiaries that could, individually or in the aggregate,
be reasonably expected to result in a Material Adverse Effect. Neither the Company nor its Subsidiaries is in default with respect to any order, writ, injunction, decree, ruling or decision of any court, commission, board or other government agency
that is expressly applicable to the Company or its Subsidiaries or any of their assets or property, except in each case as would not, individually or in the aggregate, result in or reasonably be expected to result in a Material Adverse Effect. 

Section 2.10 Compliance with Laws. The business of the Company and its Subsidiaries are not being conducted in violation of any
law, ordinance or regulation of any Governmental Entity, except for violations that, either singly or in the aggregate, would not have, or reasonably be expected to have, a Material Adverse Effect on the Company. Neither the Company nor any
Subsidiary has received notification from any Governmental Entity (a) asserting a violation of any law, statute, ordinance or regulation or the terms of any judgments, orders, decrees, injunctions or writs applicable to the conduct of its
business, (b) threatening to revoke any license, franchise, permit or government authorization, or (c) restricting or in any way limiting its operations as currently conducted or proposed to be conducted, except in each case as would not,
individually or in the aggregate, result in or reasonably be expected to result in a Material Adverse Effect. 
 Section 2.11
Taxes. The Company and its Subsidiaries: (i) have filed all Tax returns required to be filed within the applicable periods for such filings (with due regard to any extension); (ii) have paid all Taxes and other governmental
assessments required to be paid; and (iii) have reserved in the Financial Statements an amount adequate for the payment of all Taxes for periods subsequent to the periods to which such returns, reports or declarations apply, except for any such
failures to file or pay that would not individually or in the aggregate have a Material Adverse Effect. 
 Section 2.12 Intellectual
Property. Except as set forth in Schedule 2.12, all Intellectual Property Rights purported to be owned by the Company or its Subsidiaries that were developed, worked on or otherwise held by any employee, officer, consultant or otherwise
are owned free and clear by the Company or its Subsidiaries (as the case may be) by operation of law or have been validly assigned to the Company or its Subsidiaries (as the case may be) other than those Intellectual Property Rights where the
failure to own or assign such rights would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. The Intellectual Property Rights are sufficient in all material respects to carry on the business of the
Company and its Subsidiaries as presently conducted and as proposed to be conducted and the Company has taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of its material Intellectual Property
Rights. To the knowledge of the Company, with such exceptions as are not, individually or in the aggregate, reasonably likely to have a Material Adverse Effect, the Intellectual Property Rights purported to be owned by the

  
 8 

 
Company or its Subsidiaries do not infringe the intellectual property rights of any third party. Neither the Company nor its Subsidiaries has received any written notice or other written claim
from any third party: (i) asserting that any of the Intellectual Property Rights purported to be owned by the Company or its Subsidiaries infringe any intellectual property right of such third party; (ii) challenging the validity,
effectiveness or ownership by the Company or its Subsidiaries of any of the Intellectual Property Rights; or (iii) asserting that the Company or its Subsidiaries is in material default with respect to any license granting Intellectual Property
Rights to the Company or its Subsidiaries other than, in each such case, if the assertion, challenge or allegation in any such notice or claim were accurate or true, would not, individually or in the aggregate, be reasonably likely to have a
Material Adverse Effect. The Company has no knowledge of any material infringement or improper use by any third party of any of the Company’s Intellectual Property Rights, other than any such infringement or improper use as would not,
individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. 
 Section 2.13 Contracts and
Commitments. All of the material contracts (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) of the Company or its Subsidiaries in effect on the date of this Agreement that are required to be described in the SEC
Documents, or to be filed as exhibits thereto, have been so described or filed and are in full force and effect and, to the knowledge of the Company, upon completion of the transactions contemplated by this Agreement and the Related Agreements, will
continue in full force and effect, without penalty or adverse consequence. Neither the Company nor its Subsidiaries nor, to the knowledge of the Company, any other party is in breach of or in default under any such contract, other than, in each such
case, as would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. 
 Section 2.14
Employee Matters. Except as would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect, the Company has described in, or filed as an exhibit to, the SEC Documents filed prior to the date of this
Agreement all of the following types of documents, agreements, plans or arrangements that are required by federal securities laws to be described in, or filed as an exhibit to, the SEC Documents: employment agreements, consulting agreements,
deferred compensation, pension or retirement agreements or arrangements (including all “employee pension benefit plans” as defined in Section 3(2) of ERISA, bonus, incentive or profit-sharing plans or arrangements, or labor or
collective bargaining agreements in effect by the Company and its Subsidiaries) (the “ERISA Documents”). Except for any compliance failures that, individually or in the aggregate, are not reasonably likely to have a Material Adverse
Effect: (i) the Company and its Subsidiaries are in compliance in all material respects with all applicable laws and regulations relating to labor, employment, fair employment practices, terms and conditions of employment, and wages and hours;
and (ii) each such ERISA Document has been administered in compliance with its terms and all applicable requirements of ERISA. To the Company’s knowledge, none of the Company’s or its Subsidiaries’ employees are obligated under
any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use of his or her employment obligations
to the Company or its Subsidiaries or that would conflict with the Company’s and its Subsidiaries’ business as now conducted or proposed to be conducted, except for such contracts and other agreements, judgments, decrees and orders that
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company is not a party to any collective bargaining agreement. 

  
 9 

 Section 2.15 Transactions with Affiliates. Except as disclosed in the Proxy
Statement, as of March 20, 2015 (the date the Proxy Statement was filed with the SEC), there were no loans, leases or other agreements, understandings or continuing transactions between the Company or its Subsidiaries, on the one hand, and any
officer or director of the Company or its Subsidiaries or any Person that the Company believes is the owner of five percent or more of the outstanding Common Stock or any corporation, partnership, trust or other entity in which any such officer,
director, or stockholder has a substantial interest or is an officer, director, trustee or partner, or any respective family member or Affiliate of such officer, director or stockholder, on the other hand, that were required by federal securities
laws to be disclosed in the Proxy Statement. 
 Section 2.16 Insurance. Each of the Company and its Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as the Company reasonably believes are prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. All such
insurance is fully in force, except where the failure to be in full force has not had and would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. The Company has no reason to believe that it will not be
able to renew or extend its existing insurance coverage as and when such coverage expires or will not be able to obtain similar coverage from similar insurers as may be necessary to continue its business without an increase in cost significantly
greater than general increases in cost experienced for similar companies in similar industries with respect to similar coverage. 

Section 2.17 Investment Company Act. The Company is not, and immediately after giving effect to the sale of the Notes in
accordance with this Agreement and the application of the proceeds thereof will not be required to be registered as, an “investment company” or a company “controlled” by an “investment company,” within the meaning of
the Investment Company Act. 
 Section 2.18 Margin Regulations. The Company is not engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System), and no proceeds of any Note will be used in a manner as would cause the transactions
contemplated hereby to violate Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
 Section 2.19
NASDAQ. As of the date hereof, the Common Stock is listed on NASDAQ, and no event has occurred, and the Company is not aware of any event that is reasonably likely to occur, that would result in the Common Stock being delisted from NASDAQ.
The sale and issuance of the Notes complies with all rules and regulations of NASDAQ. 
 Section 2.20 Application of Takeover
Protections. There is no control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s charter documents or the laws of its
state of incorporation in effect as of the date hereof that is or would become applicable to the Purchaser as a result of the Purchaser and the Company fulfilling their obligations or exercising their rights under this Agreement. 

  
 10 

 Section 2.21 Issuances Exempt. Assuming the truth and accuracy of the representations
and warranties of the Purchaser contained in Article III hereof, the offer, sale, and issuance of the Notes will be exempt from the registration requirements of the Securities Act, and will have been registered or qualified (or are exempt
from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws (or qualification under Blue-sky laws). 

Section 2.22 No Integrated Offering. Assuming the truth and accuracy of the representations and warranties of the Purchaser
contained in Article III hereof, neither the Company, nor any of its Affiliates or any other Person acting on the Company’s behalf, has directly or indirectly engaged in any form of general solicitation or general advertising with
respect to the Notes nor have any of such Persons made any offers or sales of any security or solicited any offers to buy any security under circumstances that would require registration of the Notes under the Securities Act or cause this offering
of Notes to be integrated with any prior offering of securities of the Company for purposes of the Securities Act or any applicable stockholder approval provisions, including, without limitation, NASD Rule 4350(i) or any similar rule. 

Section 2.23 Internal Accounting and Disclosure Controls. (a) The Company and each of its Subsidiaries maintain a system of
internal control over financial reporting (as such term is defined in Rule 13a-15(f) and Rule 15d-15(f) of the Exchange Act) that has been designed by, or under the supervision of, the Company’s principal executive and principal financial
officers sufficient to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States,
including, but not limited to, internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorization, (ii) transactions are
recorded as necessary to permit preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States and to maintain accountability for its assets, (iii) access to the
Company’s assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for the Company’s assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. There are no material weaknesses in the Company’s internal controls. 

(b) (i) The Company and each of its Subsidiaries maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under
the Exchange Act), (ii) such disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company and its Subsidiaries in the reports filed or to be filed or submitted under the Exchange Act is
accumulated and communicated to management of the Company and its Subsidiaries, including their respective principal executive officers and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures to be
made, and (iii) such disclosure controls and procedures are effective in all material respects to perform the functions for which they were established. 

(c) (i) The Company has not been advised of or become aware of (A) any significant deficiencies in the design or operation of internal
controls that has not been adequately remediated or that could adversely affect the ability of the Company or any of its Subsidiaries to record, process, summarize and report financial data, or any material weaknesses in internal controls, and
(B) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal controls of the Company and each of its Subsidiaries; and (ii) there has been no change in the Company’s
internal controls over financial reporting that has materially affected, or is reasonably likely to materially adversely affect, the Company’s or its Subsidiaries’ internal controls over financial reporting. 

  
 11 

 Section 2.24 Off Balance Sheet Arrangements. There is no transaction, arrangement or
other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in the Company’s SEC Documents and is not so disclosed, other than as
would not have a Material Adverse Effect. 
 Section 2.25 Transfer Taxes. All stock transfer or other taxes (other than income
or similar Taxes) which are required to be paid in connection with the transactions contemplated hereby have been fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with. 

Section 2.26 Ownership of Property. Except as set forth in the Financial Statements or in Schedule 2.26, the Company has:
(i) good and marketable fee simple title to its owned real property, if any, free and clear of all liens, except for liens which do not individually or in the aggregate have a Material Adverse Effect; (ii) except as would not, individually
or in the aggregate, have a Material Adverse Effect, a valid leasehold interest in all leased real property, and each of such leases is valid and enforceable in accordance with its terms (subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies, and to limitations of public policy) and is in full force and effect, and (iii) good title to, or
valid leasehold interests in, all of its other properties and assets, free and clear of all liens, except for liens disclosed in the SEC Documents or which otherwise do not individually or in the aggregate have a Material Adverse Effect. 

Section 2.27 Waiver of Section 203; etc. The Company represents and warrants to the Purchaser that the Board has heretofore
taken all necessary action to approve, and has approved, for purposes of Section 203 of the Delaware General Corporation Law (including any successor statute thereto (“Section 203”)) or any other similar applicable
Law, the Purchaser’s becoming, together with its Restricted Affiliates, an “interested stockholder” within the meaning of Section 203, such that, after the Closing, neither Section 203 nor any other similar
applicable Law will be applicable to the Purchaser or any “business combination” within the meaning of Section 203 (or its analogue with respect to any similar such law) that may take place between the Purchaser and/or its
Restricted Affiliates, on the one hand, and the Company, on the other. 
 Section 2.28 No Other Representations or Warranties.
Except for the representations and warranties of the Company expressly set forth in this Article II (as modified by the Schedules hereto), with respect to the transactions contemplated by this Agreement, the

  
 12 

 
Company (i) expressly disclaims any representation or warranties of any kind or nature, express or implied, including with respect to the condition, value or quality of the Company and its
Subsidiaries or any of the assets or properties of the Company and its Subsidiaries, and (ii) specifically disclaims any representation or warranty of merchantability, usage, suitability or fitness for any particular purpose with respect to any
of the assets or properties of the Company and its Subsidiaries. Except for the representations and warranties set forth within this Article II, the Company does not make any representation or warranty to the Purchaser regarding any
projection or forecast regarding future results or activities or the probable success or profitability of the Company. 
 ARTICLE III

 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

The Purchaser represents and warrants to the Company that: 

Section 3.1 Organization and Power. The Purchaser is an entity duly formed, validly existing and in good standing under the laws
of the jurisdiction of its formation and has all requisite power and authority to own its properties and to carry on its business as presently conducted. 

Section 3.2 Authorization, Enforcement. The Purchaser has all necessary power and authority, and has taken all necessary action
required for the due authorization, execution, delivery and performance by the Purchaser of this Agreement and the Related Agreements to which it is a party and the completion by the Purchaser of the transactions contemplated hereby and thereby.
This Agreement and each of the Related Agreements to which the Purchaser is a party have been duly executed and delivered by the Purchaser. Assuming due execution and delivery thereof by the other Persons contemplated to be party thereto, this
Agreement and the Related Agreements to which the Purchaser is a party will each be a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by
applicable laws relating to bankruptcy, insolvency, reorganization, moratorium or other similar legal requirement relating to or affecting creditors’ rights generally and except as such enforceability is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or at law). 
 Section 3.3 No Conflict. The
authorization, execution, delivery and performance by the Purchaser of this Agreement and the Related Agreements to which it is a party, and the completion by the Purchaser of the transactions contemplated hereby and thereby do not and will not:
(i) violate or result in the breach of any provision of the certificate of limited partnership and limited partnership agreement (or in the case of an entity other than a limited partnership, the organizational documents) of the
Purchaser; or (ii) with such exceptions that, individually or in the aggregate, are not reasonably likely to have a material adverse effect on its ability to perform its obligations under this Agreement and the Related Agreements to which it is
a party, whether after the giving of notice or the lapse of time or both: (a) violate any provision of, constitute a breach of, or default under, or result in or permit the cancellation, termination or acceleration of any material contract to
which the Purchaser is a party; or (b) violate any provision of, constitute a breach of, or default under, any federal, state or local law, rule or regulation applicable to the Purchaser. 

  
 13 

 Section 3.4 Government Approvals. No consent, approval, license or authorization of,
or designation, declaration or filing with, any Governmental Entity is or will be required on the part of the Purchaser in connection with the execution, delivery and performance by the Purchaser of this Agreement and the Related Agreements to which
it is a party, except for: (i) those which have already been made or granted; (ii) any filing with the SEC to report, or that includes disclosure regarding, the Purchaser’s ownership of any Notes, if applicable; (iii) those which
may be made or obtained following the Closing; or (iv) those where the failure to obtain such consent, approval or license would not have a material adverse effect on the ability of the Purchaser to perform its obligations hereunder. 

Section 3.5 Investment Representations 

(a) The Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the
Securities Act. 
 (b) The Purchaser understands that the Notes are “restricted securities” under applicable U.S. federal and
state securities laws. The Purchaser acknowledges that the Company has no obligation to register or qualify the Notes for resale. The Purchaser has been advised by the Company that the Notes have not been registered under the Securities Act, that
the Notes will be issued on the basis of the statutory exemption provided by Section 4(a)(2) under the Securities Act or Regulation D promulgated thereunder, or both, relating to transactions by an issuer not involving any public offering and
under similar exemptions under certain state securities laws, that this transaction has not been reviewed by, passed on or submitted to any U.S. federal or state agency or self-regulatory organization where an exemption is being relied upon, and
that the Company’s reliance thereon is based in part upon the representations made by the Purchaser in this Agreement and the Related Agreements. The Purchaser acknowledges that it has been informed by the Company of, or is otherwise familiar
with, the nature of the limitations imposed by the Securities Act and the rules and regulations thereunder on the transfer of securities. 

(c) The Purchaser is purchasing the Notes for its own account and not with a view to, or for sale in connection with, any distribution thereof
in violation of U.S. federal or state securities laws. 
 (d) The source of the funds used by the Purchaser to pay the Purchase Price for
the Notes does not include assets of (i) any employee benefit plan within the meaning of Section 3(3) of ERISA that is not exempt from the coverage of ERISA, (ii) any plan as defined in Section 4975(e)(1) of the Internal Revenue
Code of 1986, as amended, or (iii) any governmental plan as defined in Section 3(32) of ERISA. 
 Section 3.6 No Other
Representations or Warranties. Except for the representations and warranties of the Purchaser expressly set forth in this Article III (as modified by the Schedules hereto), with respect to the transactions contemplated by this Agreement,
the Purchaser (i) expressly disclaims any representation or warranties of any kind or nature, express or implied, including with respect to the condition, value or quality of the Purchaser and its Subsidiaries or any of the assets or properties
of the Purchaser and its Subsidiaries, and (ii) specifically disclaims any representation or warranty of merchantability, usage, suitability or fitness for any particular purpose with respect to any of the assets or properties of the Purchaser
and its Subsidiaries. 

  
 14 

 ARTICLE IV 

COVENANTS OF THE PARTIES 

Section 4.1 Regulatory. 

(a) For so long as the Purchaser, or any of its Affiliates holds any portion of the Notes, the Company shall promptly, upon the request of the
Purchaser, use its commercially reasonable efforts to cooperate with, and assist the Purchaser in any regulatory consent, filing, notification or clearance that the Purchaser, upon advice of counsel, determines is advisable as to or by reason of its
ownership or holding, or potential ownership or holding, of securities, or any investment in, in each case, whether of debt or equity, of the Company. Each party shall promptly furnish to the other party all necessary information and provide
reasonable assistance as the other party may reasonably request in connection with this Section 4.1(a). Each party shall keep the other party apprised of the status of any communication with, and any inquiries or requests for
additional information from, any Governmental Entity (or other Person regarding any of the transactions contemplated by this Agreement or the Related Agreements) with respect to this Section 4.1(a) and shall use its respective
commercially reasonable efforts to comply promptly with any such inquiry or request (and, unless otherwise prohibited by law, provide copies of any such communications that are in writing). 

(b) All fees, costs and expenses incurred in connection with Section 4.1(a) above shall be paid by the party incurring such costs
or expenses. 
 Section 4.2 Publicity. The parties hereby agree that the Company shall issue a press release in the form of
Exhibit D hereto on the date of this Agreement and, on the Closing Date or no later than the first trading day following the Closing Date, the Company shall file a Current Report on Form 8-K substantially in the form of Exhibit E (the
“Form 8-K”) describing the terms of the transactions contemplated by this Agreement and the Related Agreements in the form required by the Exchange Act, and attaching the material transaction documents. 

Section 4.3 Use of Proceeds. The Company covenants and agrees, and the Purchaser acknowledges, that no less than US$103,000,000 of
the proceeds of the Notes shall be used by the Company for any lawful corporate purpose (including with respect to Section 4.4 herein) and (ii) up to US$37,000,000 of the proceeds of the Notes shall be used by the Company to pay
down existing and outstanding debt issued under, and pursuant to, the Credit Agreement. 
 Section 4.4 Purchaser Transaction
Expenses. 
 (a) The Company shall reimburse the Purchaser (and shall be responsible for discharging) all reasonable and documented (or
invoiced) out-of-pocket fees, costs and expenses incurred by the Purchaser, including the fees and expenses of attorneys, accountants and other outside professionals and consultants engaged by the Purchaser and/or its Affiliates, in connection with
the preparation, negotiation and execution of this Agreement, the Related 

  
 15 

 
Agreements and the transactions contemplated hereby and thereby, including any preliminary discussions or undertakings with respect to such transactions (but excluding any “success” or
similar transaction fees payable by the Purchaser (or an Affiliate of Purchaser) to any financial advisors engaged in connection with the transactions contemplated hereby) (the “Purchaser Transaction Expenses”)). 

(b) With respect to any Purchaser Transaction Expenses that are either evidenced by an invoice therefore and for which such invoice has been
delivered by the Purchaser to the Company, or for which reasonable documentation has been made available by the Purchaser to the Company (the aggregate amounts evidenced thereby up to the Transaction Expenses Cap, the “Closing Transaction
Expenses Amount”), in either case on or prior to the Closing Date, the Company hereby directs the Purchaser to withhold on the Company’s behalf, from the amount of the Purchase Price an amount equal to the Closing Transaction Expenses
Amount in satisfaction of its reimbursement obligations pursuant to Section 4.4(a) above, subject to Section 4.4(c) below (for purposes of this Agreement, the amount of the Purchase Price less the Closing Transaction Expenses
Amount being the “Closing Payment”). 
 (c) With respect to any Purchaser Transaction Expenses for which the Purchaser
delivers the invoice or for which reasonable documentation is delivered or made available to the Company after the Closing, the Company shall reimburse Purchaser for, or pay as directed by the Purchaser, such Purchaser Transaction Expenses within
ten Business Days of delivery by the Purchaser of the invoice or documentation referenced above, by wire transfer in immediately available funds; but, in no event shall the Company be obligated to reimburse (or pay on behalf of) the Purchaser for
any Purchaser Transaction Expenses, in the aggregate pursuant to this clause 4.4(c) (after taking into account the payment of the Closing Transaction Expenses Amount pursuant to Section 4.4(b)) in excess of the Transaction Expenses Cap.
Notwithstanding the foregoing, nothing in this Section 4.4(c) shall relieve the Company from reimbursing or paying the Purchaser’s fees or expenses as explicitly contemplated in any of the Related Agreements. 

Section 4.5 Placement Agent’s Fees. The Company shall be responsible for the payment of any placement agent’s fees,
financial advisory fees, or brokers’ commissions, in each case payable to third parties retained by the Company, relating to or arising out of the transactions contemplated by this Agreement. The Company shall pay, and hold the Purchaser
harmless against, any liability, loss or expense (including reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any such claim for fees arising out of the transactions contemplated by this Agreement. 

Section 4.6 Further Assurances. After the Closing, and for no further consideration, each of the parties shall, and shall cause
its Affiliates to, execute, acknowledge and deliver such assignments, transfers, consents, assumptions and other documents and instruments and take such other actions as may reasonably be requested to more effectively consummate the transactions
contemplated by this Agreement and the Related Agreements. In addition, prior to the Closing, the Board will not take any action that may frustrate the transactions contemplated by this Agreement and the benefits to be derived therefrom by the
Purchaser. 

  
 16 

 ARTICLE V 

MISCELLANEOUS 

Section 5.1 Execution and Counterparts. This Agreement may be executed in multiple counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof. 
 Section 5.2 Governing Law. This Agreement is to be construed in accordance with and
governed by the internal laws of the State of New York without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of New York to the rights and duties of
the parties. All disputes and controversies arising out of or in connection with this Agreement shall be resolved exclusively in (i) the Supreme Court of the State of New York, New York County, and (ii) the United States District
Court for the Southern District of New York, and each party agrees to submit to the jurisdiction of said courts and agrees that venue shall lie exclusively with such courts. 

Section 5.3 Waiver of Jury Trial. Each party hereby waives, and agrees to cause each of its Affiliates to waive, to the fullest
extent permitted by applicable Law, any right it may have to a trial by jury in respect of any litigation directly or indirectly arising out of, under or in connection with this Agreement, the Related Agreements or any transaction contemplated
hereby or thereby. Each party (i) certifies that no representative of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(ii) acknowledges that it and the other parties hereto and thereto have been induced to enter into this Agreement and the Related Agreements by, among other things, the mutual waivers and certifications in this Section 5.3. 

Section 5.4 Entire Agreement; No Third Party Beneficiary. This Agreement and the Related Agreements contain the entire agreement
by and among the parties with respect to the subject matter hereof and all prior negotiations, writings and understandings relating to the subject matter of this Agreement are merged in and are superseded and canceled by, this Agreement and the
Related Agreements. 
 Section 5.5 No Recourse. This Agreement may only be enforced against, and any action that may be based
upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may only be made against the entities that are expressly identified as parties hereto (or their successors and permitted assigns, and none
of (a) the Purchaser’s or any of its Affiliates’ or any direct or indirect stockholders (other than the Purchaser), members, managers, directors, officers, employees, agents, representatives or assignees of any of the foregoing
(collectively, the “Purchaser Related Parties”) or (b) the Company’s or any of its Affiliates’ stockholders (other than the Company), members, managers, directors, officers, employees, agents, representatives or
assignees of any of the foregoing (collectively, the “Company Related Parties”), in each case, shall have any liability for any 

  
 17 

 
obligations or liabilities of the other parties to this Agreement or for any action (whether in tort, contract or otherwise) based on, in respect of, or by reason of, the transactions
contemplated hereby or in respect of any oral representations made or alleged to be made in connection herewith. Without limiting the rights of the parties hereunder against the other parties to this Agreement, in no event shall (i) the Company
or any of its Affiliates, and the Company agrees not to and to cause its Affiliates not to, seek to enforce this Agreement against, commence any actions for breach of this Agreement against, or seek to recover monetary damages from, any Purchaser
Related Party, or (ii) the Purchaser or any of its Affiliates, and the Purchaser agrees not to and to cause its Affiliates not to, seek to enforce this Agreement against, commence any actions for breach of this Agreement against, or seek to
recover monetary damages from, any Company Related Party. 
 Section 5.6 Notices. All notices and other communications hereunder
shall be in writing and given by certified or registered mail, return receipt requested, nationally recognized overnight delivery service, such as Federal Express, or electronic mail with confirmation of transmission by the transmitting equipment or
personal delivery against receipt to the party to whom it is given, in each case, at such party’s address or electronic mail address set forth below or such other address or electronic mail address as such party may hereafter specify by notice
to the other parties given in accordance herewith. Any such notice or other communication shall be deemed to have been given as of the date so personally delivered or transmitted by electronic mail, on the next Business Day when sent by overnight
delivery services or five days after the date so mailed if by certified or registered mail. 
 If to the Company, to: 

Lumos Networks Corp. 
 One Lumos
Plaza 
 Waynesboro, Virginia 22980 

Attention: Mary McDermott 

Email: mcdermottm@lumosnet.com 

with a copy to: 
 Troutman
Sanders LLP 
 1001 Haxall Point 

Richmond, VA 23219 

			
	Attention:	  	David M. Carter
		  	R. Mason Bayler, Jr.
	Email:	  	david.carter@troutmansanders.com
		  	mason.bayler@troutmansanders.com

  
 18 

 If to the Purchaser, to: 

Lumos Debt Holdings, L.P. 
 c/o
Pamplona Capital Management LLC 
 375 Park Avenue, 17th Floor 

New York, NY 10152 

			
	Attention:	  	William Pruellage
		  	Jordan Lee
	E-mail:	  	 wpruellage@pamplonafunds.com

jlee@pamplonafunds.com

 with a copy to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

Four Times Square 
 New York, New
York 10036 

			
	Attention:	  	Kenneth M. Wolff
		  	Michael J. Schwartz
	E-mail:	  	kenneth.wolff@skadden.com
		  	michael.schwartz@skadden.com

 Section 5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns, and no other Person shall have any right or obligation hereunder. Neither party hereto may assign its rights or obligations under this Agreement without the prior written
consent of the other party; provided, however, that the rights and obligations hereunder may be assigned by the Purchaser to a controlled Affiliate of the Purchaser; provided, that, in such event, the Purchaser shall remain
responsible for all obligations of the Purchaser under this Agreement following the Closing. Any purported assignment or delegation in violation of this Agreement shall be null and void ab initio. 

Section 5.8 Headings. The Section, Article and other headings contained in this Agreement are inserted for convenience of
reference only and shall not affect the meaning or interpretation of this Agreement. 
 Section 5.9 Amendments and Waivers. This
Agreement may not be modified or amended except by an instrument or instruments in writing signed by each party. Any party may, only by an instrument in writing, waive compliance by any other party or parties with any term or provision hereof on the
part of such other party or parties to be performed or complied with. No failure or delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or power, or
any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The waiver by any party of a breach of any term or provision hereof shall not be
construed as a waiver of any subsequent breach. The rights and remedies of the parties are cumulative and are not exclusive of any rights or remedies that they would otherwise have hereunder. 

Section 5.10 Interpretation; Absence of Presumption. 

(a) For the purposes hereof: (i) words in the singular shall be held to include the plural and vice versa and words of one gender shall
be held to include the other gender as the 

  
 19 

 
context requires; (ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this
Agreement as a whole (including all of the Schedules and Exhibits) and not to any particular provision of this Agreement, and Article, Section, paragraph, Exhibit and Schedule references are to the Articles, Sections, paragraphs, Exhibits, and
Schedules to this Agreement unless otherwise specified; (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or
unless otherwise specified; and (iv) the word “or” shall not be exclusive. 
 (b) With regard to each and every term and
condition of this Agreement, the Related Agreements and any agreement or instrument subject to the terms hereof, the parties understand and agree that the same have or has been mutually negotiated, prepared and drafted, and if at any time the
parties desire or are required to interpret or construe any such term or condition or any agreement or instrument subject hereto, no consideration shall be given to the issue of which party actually prepared, drafted or requested any term or
condition of this Agreement or any agreement or instrument subject hereto. 
 (c) The Company agrees that the parties have negotiated in
good faith and at arms’ length concerning the transactions contemplated herein, and that the Purchaser would not have agreed to the terms of this Agreement without each and every of the terms, conditions, protections and remedies provided
herein and in the Related Agreements. 
 Section 5.11 Severability. Any provision hereof that is held to be invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, shall be ineffective only to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof; provided,
however, that the parties shall attempt in good faith to reform this Agreement in a manner consistent with the intent of any such ineffective provision for the purpose of carrying out such intent. 

Section 5.12 Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions to prevent
breaches of this Agreement or the Related Agreements in addition to any other remedy to which each party is entitled at law or in equity. Each of the parties further hereby waives (i) any defense in any action for specific performance that
a remedy at law would be adequate and (ii) any requirement under any law to post security as a prerequisite to obtaining equitable relief. 

Section 5.13 Remedies; Survival of Representations and Warranties. Any and all remedies set forth in this Agreement or the Related
Agreements: (i) shall be in addition to any and all other remedies the Purchaser or the Company may have at law or in equity; (ii) shall be cumulative; and (iii) may be pursued successively or concurrently as the Purchaser and the
Company may elect. The exercise of any remedy by the Purchaser or the Company shall not be deemed an election of remedies or preclude the Purchaser or the Company, respectively, from exercising any other remedy in the future. The representations and
warranties of the parties herein shall terminate as of, and shall not survive, or be of any further force or effect following, 

  
 20 

 
the Closing, except that the representations and warranties of the Company set forth in Sections 2.1, 2.2, 2.3, the final two sentences of 2.4, 2.6(b), the
first sentence of 2.6(c) and 2.27 shall survive the Closing until the expiration of the statute of limitations therefore, and, with respect to such representations and warranties that survive the Closing, the Purchaser shall be
entitled to any right or remedy available to the Purchaser relating to, or as a result of, any breach of such representations and warranties, provided that the Purchaser shall not be entitled to damages, in the aggregate, from the Company that is in
excess of the Purchase Price (but damages may be determined on a cumulative basis with the transactions contemplated by any other agreement entered into on the date hereof by and between the Company and any Affiliate of the Purchaser). Under no
circumstance shall either party be entitled to exemplary or punitive damages or lost profits. The covenants set forth in this Agreement shall survive in accordance with their terms and until fully performed at which time they shall terminate. 

*** 

  
 21 

 The parties have executed this Notes Purchase Agreement as of the date first written above. 

 

			
	LUMOS NETWORKS CORP.
		
	By:	 	 /s/ Timothy G. Biltz

		
	Name:	 	Timothy G. Biltz
	Title:	 	President and Chief Executive Officer
	
	LUMOS DEBT HOLDINGS, L.P.
		
	By:	 	 /s/ William Pruellage

		
	Name:	 	William Pruellage
	Title:	 	Attorney-in-Fact

  
 S-1 

 Exhibit A 

Third Amendment to the Credit Agreement 

 Exhibit B 

Form of 8% Notes due 2022 

 Exhibit C 

Form of Opinion of Counsel to the Company 

 Exhibit D 

Form of Press Release 

 Exhibit E 

Form of 8-K

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