Document:

Distribution Agreement by and between Macromedia, Inc. and Tech Data

 Exhibit 10.28 
 MACROMEDIA 
  
 Domestic Distribution
Agreement 
  
 This Distribution Agreement (the “Agreement”) between
Macromedia, Inc., a Delaware corporation with principal offices at 600 Townsend St., San Francisco, California 94103 (“Macromedia”) and Tech Data Product Management. Inc. (“Distributor”), a Florida corporation, with principal
offices at 5350 Tech Data Drive, Clearwater, Florida 33760 shall be effective as of the date of execution by Macromedia (“Effective Date”). 
  
 In consideration of the representations, warranties, covenants and agreements set forth herein and intending to be mutually bound, the parties hereto agree as follows:

  
 1. Definitions Capitalized terms shall have the meaning set
forth in Exhibit A, attached hereto and incorporated herein by this reference. 
  
 2. Distribution Rights 
  
 2.1 During the
term of this Agreement, Macromedia grants to Distributor the non-exclusive right and license to purchase and to distribute the Products, identified on Exhibit B, to Resellers located in the Territory. 
  
 2.2 Macromedia reserves the right at any time to discontinue the production
or distribution of any of its Products, to modify the design of or upgrade its Products and to change its support, warranty, or other Product-related policies upon written notice to Distributor. Macromedia also reserves the right to add Products to
or delete Products from Exhibit B, at any time, upon written notice to Distributor. 
  
 3. Price, Payment 
  
 3.1 Macromedia will
charge Distributor the Purchase Price for the Products according to its Price List (see Exhibit B) in effect at the time of the order. Macromedia reserves the right to change its Purchase Prices at any time, upon written notice to Distributor, and
shall provide thirty (30) days notice of any increase in Prices. 
  
 3.2 In the event Macromedia reduces the Purchase Price of any Product, Macromedia will credit to Distributor an amount equal to the product of (a) the difference between the new Purchase Price and the former Purchase Price for such Product,
and (b) the number of units of such Product then in Distributor’s and its customers’ inventory plus (c) the number of units sold to Resellers Forty-Five (45) days prior to the reduction provided that (i) the Resellers are entitled to price
protection, and (ii) Distributor can provide evidence, within Forty-Five (45) days of notification by Macromedia, that price production has been claimed by the Resellers for such units. In the event that Macromedia should raise the Purchase Price of
any Product, Macromedia will honor each order made or mailed by Distributor before such price change becomes effective at the Purchase Price in effect when such order was made or mailed. 
  
 3.3 Payments on credit terms shall be made in accordance with Payment Terms, defined on Exhibit A. If Distributor does not
qualify for credit terms, or upon prior agreement with Macromedia, Distributor shall prepay orders, after first contacting Macromedia to obtain the invoice total. Macromedia shall ship Products after receipt and clearing of full prepayment. Should
Macromedia grant credit terms, Macromedia reserves the right to cancel or delay delivery of Products if Distributor fails to make timely payments for Products purchased under the Agreement or if Macromedia deems itself insecure. Failure to make
timely payments of undisputed obligations shall be deemed to be a material breach of the Agreement. 
  
 3.4 Any claims for a credit to Distributor’s account, upon any basis (e.g., for price protection, defective Product returns, marketing activities,
etc.), shall be brought to Macromedia’s attention, in writing, within ninety (90) days of the date of the event upon which the claim is based. Macromedia agrees to consider any claims brought thereafter on a case-by-case basis. 
  
 3.5 Macromedia’s prices do not include any foreign, federal, state,
local sales, or use taxes, which Macromedia may be required to pay or collect upon the delivery of the Products or upon collection of the price. Should any tax or levy be made, Distributor agrees to pay such tax or levy and indemnify Macromedia for
any claim for such tax or levy demanded. Distributor covenants to Macromedia that all Products acquired hereunder will be for redistribution in the ordinary course of Distributor’s business, and Distributor agrees to provide Macromedia with
appropriate resale certificate numbers and other documentation satisfactory for the applicable taxing authorities to substantiate any claim of exemption from any such taxes or fees. 
  
 4. Return of Discontinued Products; Stock Rotation 
  
 4.1 Discontinued Products Following the procedure set forth in Section 4.4 and on a dollar-for-dollar reorder basis,
Distributor may return any and all discontinued Products in its inventory and discontinued Products returned to it by its Resellers, providing it does so within ninety (90) days of the release by Macromedia of the superseding Product or
Macromedia’s notice of discontinuance of the Product, as applicable. If return levels of inventory are higher than 4 weeks of current run rate which means the average weekly sales by product over the past for consecutive weeks (“Run
Rate”), Macromedia will work in good faith with Tech Data to take back product without having to place an offsetting PO. 
  

			
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 4.2 Stock Rotation Following the procedure set forth in Section 4.4 and on a dollar-for-dollar
reorder basis Distributor may rotate its stock by returning up to ten percent (10%), in dollar value, of the previous calendar quarter’s purchases of Products, net of returns. If Distributor’s inventory levels exceed a 4 week current Run
Rate, Macromedia will work in good faith with Tech Data to take back product. 
  
 4.3 Defective Products. Following the procedure set forth in Section 4.4 and on a dollar for dollar basis, Distributor shall return any opened units of Product returned by Resellers or End Users which is
defective. Defective Product is defined as a product which (a) is considered defective in accordance with the terms of the Macromedia warranty set forth in the End User License accompanying the Product (b) has had the shrink wrap or other packaging
seal broken before sale to the End User (c) is missing any components of the original package or the components of the original packaging are damaged or modified and/or (d) is in a box that has become damaged and is not otherwise fit for resale.
Distributor shall place an offsetting order for any returns under this section. Distributor shall not knowingly distribute any defective products. 
  
 4.4 RMA. Distributor shall request a Return Merchandise Authorization (“RMA”) number, offering a purchase order equal to or greater in
value to the aggregate Purchase Price of the Products to be returned. Upon receipt of the purchase order, Macromedia shall issue an RMA number, which must accompany the return shipment, To be eligible for return, such Products must be new, unused
and in their original, sealed packaging. Returns under Section 4.2 shall be at Distributor’s expense. Returns under Section 4.3 shall be at Macromedia’s expense. However, no return will be accepted by Macromedia if, at the time of the
requested return, Distributor is in material default or material breach of any provision of this Agreement, including without limitation failure to comply with any applicable credit terms or delinquency in any payment to Macromedia. 
  
 5. Orders and Shipping 
  
 5.1 Upon receipt of an order by Distributor, Macromedia shall use reasonable
efforts to deliver such order to Distributor within ten (10) days of the date of such order. Orders shall be shipped F.O.B. Macromedia’s continental United States warehouse location(s). Macromedia shall ship orders in accordance with Tech
Data’s published routing guides, Macromedia requests that orders be placed at least two 2 weeks in advance of the requested date for shipment but in no event shall any order be placed more than ninety (90) days in advance of the requested ship
date. All risk of loss or damage to the Products will pass to Distributor upon delivery by Macromedia to the carrier, freight forwarder, or Distributor, whichever occurs first. Macromedia shall ship orders to Distributor at least as promptly as
Macromedia ships any other orders received at or about the same time. Should orders for Products exceed Macromedia’s available inventory, Macromedia may allocate its available inventory and make deliveries on a basis Macromedia deems equitable,
in its sole discretion, and without liability to Distributor on account of the method of allocation chosen or its implementation. In any event, Macromedia will not be liable for any damages, direct, consequential, special or otherwise, to
Distributor or to any other person for failure to deliver or for any delay or error in delivery of Products. Macromedia shall provide to Distributor, at no charge, a hard copy Proof of Delivery for any drop shipment and all shipments when reasonably
requested by Distributor. Macromedia shall also provide packing slips when requested. The POD shall be faxed to Distributor within ten (10) business days of the initial request. If the POD is not received within the specified time, the invoice will
be considered disputed and no payment shall be made to Macromedia on that invoice until Distributor receives the POD. 
  
 5.2 Distributor shall be required to purchase a quarterly minimum in the amounts set forth in Exhibit B. All orders for Products shall be subject to the
minimum order quantity set forth in Exhibit B, and Distributor will maintain inventory equal in value to the average of the preceding four week’s sale of Product, or as may otherwise be jointly agreed between Macromedia and Distributor.

  
 5.3 Macromedia reserves the right to cancel any orders placed
by Distributor and accepted by Macromedia or to refuse or delay shipment thereof, upon prior written notice, if Distributor (i) fails to make any payment of undisputed obligations as provided in this Agreement or under the terms of payment set forth
in any invoice or otherwise agreed to by Macromedia and Distributor, (ii) fails to meet reasonable credit or financial requirements established by Macromedia, including any limitations on allowable credit, or (iii) otherwise fails to comply with the
terms and conditions of this Agreement. No such cancellation, refusal or delay will be deemed a termination (unless Macromedia so advises Distributor) or breach of this Agreement by Macromedia. 
  
 6 . Advertising and Promotion 
  
 6.1 Distributor shall be entitled to participate in Macromedia’s
Marketing Development Fund (“MDF”) Program in accordance with the terms and conditions set forth in Exhibit C attached hereto and made a part hereof. Macromedia shall be entitled to either cancel or change the terms and conditions of the
MDF Program on thirty (30) days written notice. 
  
 6.2 Macromedia
agrees to provide reasonable training and sales collateral materials as Distributor may request, and to provide sales training for Distributor’s staff, at times to be mutually agreed upon. In addition, Macromedia agrees to provide reasonable
number of units of Product for in-house training, resources library and technical support use. These units, as well as any Not For Resale (“NFR”) units Distributor may purchase (with the exception of special, promotional “NFR”
units), may not be distributed or resold. Distribution of such Products in violation of the terms of this Section will constitute a material breach of this Agreement. 
  
 6.3 Pass through Marketing Activities. Distributor shall not be financially responsible for any pass through advertising
and/or marketing activities to which Macromedia 
  

			
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 has committed to Distributor’s Customers. Macromedia shall notify Distributor’s Product Marketing division of
any such activities at least 30 days prior to the promotion or activity date. Macromedia’s notification should include the following information: the date of the activity, the type of event (i.e. end cap, preprint, etc), the Product titles
involved, the specifics of the deal, and the cost of the activity. Distributor shall be entitled to deduct the full amount due for such activities from the next monies owed to Macromedia. If the amount owed by Macromedia to Distributor exceeds any
balances owed by Distributor to Macromedia, then Macromedia shall, upon Distributor’s request, issue a check payable to Distributor within ten (10) business days of Distributor’s request. 
  
 6.4 Core Communication Program. Following the procedures set forth in
section 6.1 and Exhibit C, Macromedia will agree to participate in the Core Communication Program as long as the cost of the program does not exceed the total MDF accrued for one quarter. 
  
 7. Reports Distributor will provide Macromedia, within three (3) business days after the end of each week, and month, a
written report and computer media data files (in a format, style and manner approved by Macromedia) showing, for such week, and month (i) Distributor’s shipments of each the Products with the ship-to address, Reseller or VAR name, and the
quantity and type of Product sold, and (ii) Distributor’s current inventory level for each of the Products. 
  
 8. Notice Any notices, requests and demands hereunder to be given by either party to the other shall be in writing and sent by certified mail to each
party’s address as set forth above and sent to the attention of the Senior Buyer or Product Manager as applicable if sent to Distributor, and to the attention of the Account Manager - Distributor Sales, if sent to Macromedia, with a courtesy
copy to the General Counsel of Macromedia. 
  
 9. Warranties and Disclaimers.

  
 9.1 Warranty to Distributor. Macromedia hereby
warrants that Macromedia has all right, title, and ownership interest necessary to sell the Products to Distributor pursuant to this Agreement, the Products are new and shall be free and clear of all liens and encumbrances. 
  
 9.2 Macromedia and Distributor shall comply with any and all applicable
United States codes, laws and regulations. 
  
 9.3 Product
Warranty. Macromedia provides a limited warranty to end users of the Products in the End User License Agreement which is incorporated into the Products. Distributor will make no other warranty on Macromedia’s behalf. 
  
 9.4 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE
PRODUCTS ARE PROVIDED WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. MACROMEDIA DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN THE PRODUCTS WILL BE UNINTERRUPTED OR ERROR FREE. MACROMEDIA DISCLAIMS ALL OTHER WARRANTIES AND CONDITIONS,
EITHER EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
  
 10. Indemnification 
  
 10.1 Indemnification of Distributor. 
  
 Macromedia agrees that,
if notified promptly in writing and given sole control of the defense and all related settlement negotiations, and if Distributor cooperates and provides reasonable assistance at Macromedia’s expense, Macromedia will defend Distributor against
any claim based on an allegation that (i) a Product supplied hereunder infringes a US copyright, US trademark, US Patent or state trade secret right, (ii) a Product supplied hereunder caused the death of or a personal injury to, any person, (iii)
Macromedia violated any United States law, statute or ordinance or any United States governmental or administrative order, rule or regulation with regard to the Product or its manufacture, possession, use or sale or (iv) arises from
Macromedia’s acts or omissions to the extent that Macromedia was found liable by a court of competent jurisdiction. Macromedia will pay any resulting costs, damages and attorneys’ fees finally awarded by a court with respect to any such
claims. Distributor agrees that, if the Products in the inventory of Distributor, or the operation thereof, become, or in Macromedia’s opinion are likely to become, the subject of such a claim, Distributor will permit Macromedia, at
Macromedia’s option and expense, to, among other things, procure the right for Distributor to continue marketing and using such Products, or to replace or modify them so that they become non-infringing. If neither of the foregoing alternatives
is available on terms that Macromedia in its sole discretion deems reasonable, Distributor will return such Products on written request from Macromedia. Macromedia will grant Distributor a credit equal to the price paid by Distributor for such
returned Products, as adjusted for discounts, returns and credits actually given, provided that such returned Products are in an undamaged condition. Macromedia will have no obligation to Distributor with respect to infringement of patents,
copyrights, trademarks or trade secrets or other proprietary rights beyond that stated in this Section 10.1 
  
 10. 2 Limitation 
  
 Notwithstanding Section 10.1 Macromedia will not be liable to Distributor for any claim arising from or based upon any alteration or modification of the Products by
Distributor or any third party under the control or direction of Distributor. 
  

			
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 10.3 Indemnification of Macromedia 
  
 Distributor agrees to indemnify and hold harmless Macromedia, its affiliates, employees and agents, against any and all claims and
liabilities (including reasonable attorney’s fees and costs of litigation) arising from Distributor’s acts, omissions or misrepresentations, regardless of the form of action. 
  
 11. Term and Termination 
  
 11.1 This Agreement shall become effective as of the Effective Date and shall continue in force until terminated by either party, as set forth in Sections
11.2 and 11.3, below. 
  
 11.2 Either party hereto may terminate
this Agreement upon thirty (30) days written notice to the other (a) following any material breach or omission by the other with respect to any term, representation, warranty, condition, or covenant hereof and the failure of such other party to cure
such breach or omission prior to the expiration of such thirty (30) day period, provided that in the event Distributor defaults in any payment due Macromedia such notice period prior to termination will be reduced to ten (10) days; or (b) if (i) the
other party is adjudged insolvent or bankrupt or circumstances arise that would entitle a court to make such a finding, (ii) all or a substantial portion of its assets are transferred to an assignee for the benefit of creditors, to a receiver or a
trustee in bankruptcy or (iii) the other party ceases its business operations 
  
 11.3 Either party may terminate this Agreement at will, at any time during the term of this Agreement, with or without cause, by written notice given to the other party not less than one hundred days (100) days prior
to the effective date of such termination. 
  
 11.4 Upon
termination of this Agreement, Distributor shall submit to Macromedia within ten (10) days after the effective date of termination, a list of all Products in Distributor’s inventory. If either Macromedia or Distributor terminates this Agreement
in accordance with Section 11.3 or if Distributor terminates this Agreement in accordance with Section 11.2, then Macromedia shall repurchase all such Products, if they are in new and original condition. If Macromedia terminates this Agreement in
accordance with Section 11.2, Macromedia may, at its option, repurchase any such Products, if they are in new and original condition. If Macromedia exercises its option to repurchase, Distributor shall return all products, which Macromedia has
agreed to repurchase. After receipt of all returned Products, which must be returned to Macromedia at Distributor’s expense within thirty (30) days of Macromedia’s authorization, Macromedia will pay Distributor the actual price Distributor
paid for such Products, less applicable rebates or credits and subtracting any amounts then owing to Macromedia. If Macromedia chooses not to repurchase any Products in Distributor’s inventory, Distributor shall have sixty (60) days from the
effective date of termination to distribute such Products on a non-exclusive basis, in accordance with normal business practice and the terms and conditions of this Agreement including the limitations of Section 4.3, except for the offsetting
purchase order. 
  
 11.5 In the event Macromedia issues a notice
of termination due to Distributor’s breach of this Agreement, Macromedia will be entitled to reject all or part of any orders received from Distributor after notice but prior to the effective date of termination. In the event a notice of
termination is issued by either party, Macromedia may limit monthly shipments to Distributor during the notice period to Distributor’s average monthly shipments from Macromedia during the twelve (12) months prior to the date of notice of
termination. Notwithstanding any credit terms made available to Distributor prior to the date of a termination notice, any Products shipped thereafter will be paid for by certified or cashier’s check prior to shipment. The due dates of all
outstanding invoices to Distributor for the Products will be accelerated automatically so they become due and payable on the effective date of termination, even if longer terms had been provided previously. All orders or portions thereof remaining
unshipped as of the effective date of termination will automatically be canceled and any unused MDF will be forfeited. 
  
 11.6 DISTRIBUTOR AND MACROMEDIA EACH WAIVE ANY RIGHT IT MAY HAVE TO RECEIVE ANY COMPENSATION OR REPARATIONS ON TERMINATION OF THIS AGREEMENT IN ACCORDANCE
WITH ITS TERMS. THE PARTIES ACKNOWLEDGE THAT THIS SECTION 11.6 HAS BEEN INCLUDED AS A MATERIAL INDUCEMENT FOR MACROMEDIA TO ENTER INTO THIS AGREEMENT AND THAT MACROMEDIA WOULD NOT HAVE ENTERED INTO THIS AGREEMENT BUT FOR THE LIMITATIONS OF LIABILITY
AS SET FORTH HEREIN. 
  
 11.7 The termination of this Agreement
shall not affect any rights of either party with respect to any breach of this Agreement, or any rights under Section 10 (Indemnification) hereof or Distributor’s rights to market and promote Distributor’s inventory of Products as provided
in Section 11.4 above. In addition the following Sections shall survive any termination of this Agreement: 3.3, 3.4, 3.5, 9.4, 11.6, 11.7, 12, 13, and 14. 
  
 12. Limitation of Liability 
  
 12.1 NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT OR OTHERWISE, NEITHER PARTY WILL BE LIABLE TO THE OTHER, UNDER ANY THEORY, FOR ANY INDIRECT,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS OR LOSS OF PROFITS) OR THE COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

			
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 MACROMEDIA’S LIABILITY FOR DAMAGES UNDER THIS AGREEMENT SHALL IN NO EVENT EXCEED THE TOTAL AMOUNTS PAID TO
MACROMEDIA FOR THE PREVIOUS TWELVE (12) MONTHS AGGREGATE PURCHASES, BASED FROM THE DATE THE ACTION ACCURED (“CAP”); PROVIDED, HOWEVER, SUCH CAP SHALL NOT APPLY TO MACROMEDIA’S INDEMNITY OBLIGATION TO DISTRIBUTOR FOR THIRD PARTY
INTELLECTUAL PROPERTY CLAIMS AS EXPRESSLY SET FORTH IN SECTION 10.1(i) OF THIS AGREEMENT. THE PARTIES AGREE TO THE ALLOCATION OF LIABILITY AND RISK SET FORTH IN THIS SECTION. 
  
 12.2 No action arising out of or related to this Agreement, regardless of form, may be brought by Distributor more than two
(2) year after the cause of action has accrued. 
  
 13 Trademarks, Trade
Names And Copyrights 
  
 13.1 During the term of this
Agreement, Distributor is authorized by Macromedia to use the trademarks Macromedia uses for the Products solely in connection with Distributor’s advertisement, promotion and distribution of the Products. Distributor’s use of such
trademarks and logos will be in accordance with Macromedia’s written policies in effect from time to time, including but not limited to trademark usage Guidelines at www.macromedia.com. 
  
 13.2 As both a covenant by Distributor and a condition of Macromedia’s
authorization of Distributor’s distribution, Distributor will include on each copy of any materials that it creates regarding or referring to the Products all trademark, copyright and other notices of proprietary rights included by Macromedia
on the Products or requested to be so included by Macromedia from time to time. Distributor agrees not to alter, erase, deface or obscure any such notice on anything provided by Macromedia. 
  
 13.3 Distributor has paid no consideration for the use of Macromedia’s
trademarks, logos, copyrights, trade secrets, trade names or designations, and nothing contained in this Agreement will give Distributor any interest in any of them. Distributor acknowledges that Macromedia owns and retains all copyrights and other
proprietary rights in all the Products, and agrees that it will not at any time during or after this Agreement assert or claim any interest in or do anything that may adversely affect the validity or enforceability of any trademark, trade name,
trade secret, copyright or logo belonging to or licensed to Macromedia (including, without limitation, any act, or assistance to any act, which may infringe or lead to the infringement of any copyright in the Products) or attempt to grant any right
therein. Distributor agrees not to attach any additional trademarks, logos, trade designations or other legends to any Product without the prior written consent of Macromedia. Distributor further agrees not to affix any Macromedia trademark, logo or
trade name to any non-Macromedia product. 
  
 13.4 Except to the
extent permitted pursuant to Section 11.4 hereof, upon termination of this Agreement, Distributor will forthwith cease all display, advertising and use of all Macromedia names, marks, logos and designations and will not thereafter use, advertise or
display any name, make or logo which is, or any part of which is, similar to or confusing with any such designation associated with any Product. 
  
 13.5 Distributor agrees to cooperate at Macromedia’s expense in Macromedia’s efforts to protect its proprietary rights. Distributor agrees to
notify Macromedia of any known or suspected breach of Macromedia’s proprietary rights that comes to Distributor’s attention. 
  
 14. Other Terms and Provisions 
  
 14.1 This Agreement and the Exhibits attached hereto contain all the Agreements, understanding, representations, conditions, warranties and covenants, and
constitutes the sole and entire agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior communications or agreements, written or oral. This Agreement may not be released or modified except by the mutual
written consent of both Distributor and Macromedia as attested to by an instrument signed by an officer of each of them. 
  
 14.2 Macromedia and Distributor are each independent entities and neither party shall be, nor represent itself to be, a franchiser, franchisee, joint
venture, partner, master, servant, principal, agent or legal representative of the other party for any purpose whatsoever. 
  
 14.3 If any provision of this Agreement is declared invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and
effect. 
  
 14.4 All terms, conditions, or provisions which may
appear as preprinted language or otherwise be inserted within any purchase order, confirmation or invoice for any Product shall be of no force (unless mutually agreed upon by both parties) and effect notwithstanding the execution of such purchase
order or other document subsequent to the date of this Agreement. 
  
 14.5 The rights and liabilities of the parties hereto will bind and inure to the benefit of their respective assignees, successors, executors and administrators, as the case may be; provided, that, as the license from Macromedia hereunder
is personal to Distributor, Distributor may not sublicense, assign or transfer any of its rights, privileges or obligations hereunder either in whole or in part, without the prior written consent of Macromedia. Nor shall an assignment or transfer of
the 
  

			
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 Agreement and the licenses granted herein be affected by operation of law, such as for example, by merger, consolidation,
sale of the business or assets, or by acquisition of a majority of the voting stock of Distributor by a third party, without the prior written consent of Macromedia. Any attempted assignment in violation of the provisions of this Section 14.5 will
be void. 
  
 14.6 In the event any litigation is brought by either
party in connection with this Agreement, the prevailing party in such litigation will be entitled to recover from the other party all the costs, attorney’s fees and other expenses incurred by such prevailing party in the litigation. 

 
 14.7 Waiver by either Distributor or Macromedia of one or more terms,
conditions, or defaults of this Agreement shall not constitute a waiver of the remaining terms and conditions or of any future defaults of this Agreements. 
  
 14.8 The validity. interpretation and performance of this Agreement shall be controlled by and construed under the laws of the State of California
excluding that body of laws controlling conflict of laws. Any suit between the parties relating to this Agreement shall take place in the state courts located in San Francisco County, California, or the federal courts for the Northern District of
California. The parties hereby submit to the personal jurisdiction of, and waive any objection to, the jurisdiction of or venue in such courts. 
  
 14.9 Insurance. Macromedia shall maintain Commercial General Liability Insurance in an amount standard and reasonable for the industry. Upon request by
Tech Data, Macromedia shall provide certificates of insurance as proof of such coverage. 
  
 14.10 Confidentiality. Each party acknowledges that in the course of performance of its obligations pursuant to this Agreement, it may obtain certain information specifically marked as confidential or proprietary
(“Confidential Information”). Each party hereby agrees that all such Confidential Information communicated to it by the other party whether before or after the Effective Date, shall be and was received in strict confidence, shall be used
only for purposes of this Agreement, and shall not be disclosed without the prior written consent of the other party. Confidential Information shall not include information which: (a) was lawfully in the receiving party’s possession from a
source other than the disclosing party before receipt from the disclosing party; (b) is or became available to the public through no fault of the receiving party; (c) was obtained in good faith by the receiving party from a third party who was
lawfully in possession of such information, not subject to an obligation of confidentiality owed to the disclosing party; (d) was independently developed by the receiving party, without reference to Confidential Information received hereunder and
not in breach of this Agreement; or (e) was communicated in response to a valid order by a court or other governmental body, or was otherwise required by law. The provisions of this Section shall survive termination or expiration of this Agreement
until such time as the information is no longer Confidential Information or three years after said termination or expiration, whichever period is shorter. 
  

			
	 MACROMEDIA, INC.

		
	 By:
	 	 /s/    STEPHEN ELOP

		
	 Name:
	 	 STEPHEN ELOP

  

		
	 Title:
	 	 EVP

		
	 Date:
	 	 6/29/01

	
	 TECH DATA PRODUCT MANAGEMENT, INC.

		
	 By:
	 	 /s/    ELIO LEVY

		
	 Name:
	 	 ELIO LEVY

		
	 Title:
	 	 Senior Vice President, Marketing

		
	 Date:
	 	 4/30/01

		
	 Tel/Fax:
	 	 727-539-7429/ 727-538-7094

  

			
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 Exhibit A 
  

Definitions 
  
 For the purpose of this Agreement, the following terms shall have the meanings set forth below: 
  
 1. “Intellectual Rights” shall mean any rights relating to any trademark, trade name, service
mark, copyright, trade secret, invention, industrial model, patent, process, technology, know-how or design. 
  
 2. “Payment Terms”, unless otherwise specified by Macromedia, shall mean “net 30”, defined as requiring payment to
arrive in Macromedia’s account by the 30th calendar day after Macromedia ships the Product. 
  
 3. “Products” shall mean the products listed on the Price List identified on Exhibit B, which may be amended by Macromedia from
time to time, in its sole discretion and any documentation relating to the Products. All references to the “sale” of Products shall mean the sale by Distributor of the media, on which the Products are embodied, and of Macromedia’s
license to use the Software Products. 
  
 4.
“Purchase Price” shall mean the price at which Distributor may purchase the Product, set forth on Exhibit B. 
  
 5. “Resellers” shall mean persons or entities who purchase Products from Distributor and resell Product to end-users.

  
 6 “Return Price” for any unit of
Product shall mean the amount originally billed Distributor for such unit less any rebates with respect to such unit actually paid or credited by Macromedia to Distributor. 
  
 7. “Territory” means the United States of America. This does not include any US territories.

 Exhibit B 
  

Products and Prices 
  
 See the Price List supplied in conjunction with this Agreement. 
  
 Macromedia shall give written notice to Distributor of any change in the price of any Product. Upon the addition of new Products, the Price List will be amended to
include the prices for any such additional Products. 
  
 Minimum Order Quantity 
  
 All orders for Products shall be
subject to a minimum quantity of 5 units per SKU 
  
 Quarterly Minimum Purchase Commitment 
  
 There is no quarterly
minimum purchase requirement under this Agreement other than the requirement to maintain inventory as set forth in Section 5.2. 

 Exhibit C 
  

Macromedia Marketing Development Funds Program 
  
 The Marketing Development Funds (“MDF”) Program is designed to assist Distributors to promote Macromedia products in the Territory. Funds are accrued at
Macromedia as a percentage of Distributor’s purchases at the rate of one and one-half per cent (1.5%) of each invoice and are deemed “earned” as of the date of the invoice. Funds always remain the property of Macromedia and are
provided to Distributor, as a credit to its account with Macromedia, as follows: 
  
 Distributor must first contact Macromedia for prior approval of contemplated marketing expenditures. After approval and expenditure, Distributor shall request reimbursement by invoice to Macromedia, providing proof of performance and
requesting a credit to its account. Once Macromedia has verified Distributor’s request, it will debit Distributor’s MDF account and confirm a credit to Distributor’s account, in the form of a credit memo. Distributor may deduct the
amount of its credit from its payments due Macromedia, only after receipt of the credit memo. 
  
 MDF claims for credit, along with an invoice and supporting documentation of performance, must be received by Distributor’s Macromedia Sales Representative, by mail, within three (3) months of Distributor’s
approved expenditure, in order to be considered. Funds are available for six months after they are earned. After six months, unclaimed funds will expire, revert to Macromedia and cannot be re-instated. Requests for reimbursement are always charged
against the oldest outstanding accrual. Funds that are not timely claimed after termination of the Distribution Agreement will revert to Macromedia and will not be paid out in cash or credit. 
  
 Macromedia may provide periodic reports of the status of Distributor’s account.
However, management of marketing expenditures, tracking of Distributor’s MDF account and timely requests for reimbursement of expenditures are the sole responsibility of Distributor. 

 Amendment Number One 
 to 
 Macromedia Domestic Distribution Agreement 
  
 This Amendment Number One (the “Amendment”) to Macromedia Domestic
Distribution Agreement is entered into as of the 1st day of March, 2002 (the “Amendment Effective
Date”) by and between Macromedia, Inc., a Delaware corporation with a principal place of business at 600 Townsend Street, San Francisco, California, 94103 (“Macromedia”) and Tech Data Product Management Inc., a Florida corporation
with a principal place of business at 5350 Tech Data Drive, Clearwater, Florida, 33760 (“Distributor or Tech Data”) with regard to that certain Macromedia Domestic Distribution Agreement, effective as of June 29, 2001 (the “Effective
Date”) by and between Macromedia and Distributor (the “Agreement”). Capitalized terms used herein without definition shall have the respective meanings assigned to them in the Agreement 
  
 RECITALS 
  
 WHEREAS, Macromedia and Distributor entered into the Agreement pursuant to which Macromedia provides Products to Distributor and Distributor
distributes the Products to Resellers; 
  
 WHEREAS, certain Resellers to whom
Products are distributed are involved in the sale of Products to federal, state and local governments, and their various agencies and departments (the “Government”); 
  
 WHEREAS, Macromedia desires to promote and enhance the sale of Products to the Government and Distributor is willing to assist Macromedia by
providing services to promote Products to Resellers bidding on Government business on the terms of this Amendment; 
  
 NOW THEREFORE, in consideration of the foregoing premises and the mutual agreements, provisions and covenants contained in this Amendment and the Agreement, the parties
hereby agree, pursuant to Section 14.1 of the Agreement, as follows: 
  

	 	1.	 	Attach the attached “Government Sales Addendum” as an Addendum to the Agreement. 

  

	 	2.	 	No Effect on Remaining Provisions. Except as amended by this Amendment, the provisions of the Agreement remain in full force and effect. 

  

	 	3.	 	This Amendment may be executed in one or more counterparts each of which shall be deemed an original instrument, but all of which together shall constitute one and the same
Amendment. 

  

	 	4.	 	This Amendment shall be governed by, and construed in accordance with, the laws of the State of California and the United States (excluding the United Nations Convention on
Contracts for the International Sale of Goods) without regard to conflict of laws principles thereof or of any other jurisdiction. 

  
 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment as of the Amendment Effective Date. 
  

			
	MACROMEDIA, INC.	  	TECH DATA PRODUCT MANAGEMENT, INC.
		
	 /s/ Scott Larrimer

	  	 /s/ Elio Levy

	Signature	  	Signature
		
	 Scott Larrimer

	  	 Elio Levy

	Printed Name	  	Printed Name
		
	 V.P. Sales Ops.

	  	 S.V.P., Marketing

	Title	  	Title
		
	 3/8/02

	  	 3/1/02

	Date	  	Date

 GOVERNMENT SALES ADDENDUM TO 
 DOMESTIC DISTRIBUTION AGREEMENT 
  
 1. Tech Data Services. Tech Data agrees to provide the following services and support relating to the sale of Macromedia’s Products to Resellers for resale to the Government: 
  
 (a) Government Point-of-Sale Report. Tech Data shall provide
to Macromedia a weekly Point-of-Sale Report via Electronic Data Interchange and monthly Point-of-Sale Report via electronic spreadsheet showing sales of Products to Resellers which Tech Data has been advised are to fulfill Government orders and for
which Tech Data is seeking a service discount under section 2 of this Addendum. 
  
 (b) Government End User Data. Prior to any Service Discount application or payment, Tech Data shall provide Government End User Data demonstrating that Reseller’s end user is a federal, state or
local government, or other agency as indicated herein. Such Government End User Data can be part of the Government Point-of-Sale report but, must be provided to Macromedia in order for Service Discounts to be applied and paid by Macromedia.
Government end user data must be provided monthly and such reports shall be sent to the attention of Mike Xenakis, Macromedia, Inc., 600 Townsend Street, San Francisco, CA 94103. 
  
 (c) Bids. When solicited for quotes on Product pricing related to Government orders, Tech Data will quote
Macromedia Products if the Products meet the bid criteria, price criteria and other criteria of Tech Data, Resellers and the Government order. 
  
 2. Compensation for Services. In consideration of the services provided by Tech Data and the opportunities arising through Resellers for resale of the
Products to the Government, Macromedia shall provide Tech Data with the following: 
  
 (a) Service Discount. Discount percentages will be stated within the Macromedia Government Box Price List. The discount percentages are SKU specific. Macromedia agrees to provide the Government
Box Price List to Tech Data on a monthly basis. The discounts stated within the Macromedia Government Box Price list will be given to Tech Data off the price paid by Tech Data to Macromedia (over the present discount percentage stated in the
Agreement) for Products sold by Tech Data to Resellers for Government orders shown on the Government Point-of-Sale Report. Macromedia will give a payment credit to Tech Data within thirty (30) days of Macromedia’s receipt of the Government
Point-of-Sale Report. 
  
 (b) Agencies. In
addition to orders shown on the Government Point-of-Sale Report, the Service Discount shall apply to the following other markets, such as private schools or private hospitals, if any. Macromedia reserves the right, in its discretion and at any time
in the future, to amend this Addendum by adding Agencies, pursuant to this Section, upon notice to Tech Data. 
  

					
	  

	 	 NONE

	 	  

	  

	 	  

	 	  

	  

	 	  

	 	  

  
 3. Term. The term of
this Addendum shall commence on the Amendment Effective Date of the Amendment to which it is attached and shall continue until the earlier of (a) expiration or termination of the Agreement or (b) termination of this Addendum as set forth herein.
Either party may terminated this Addendum for cause by written notice if the other party breaches a material provision of this Addendum and fails to cure such breach within thirty (30) days of receipt of notice of such breach by the non-breaching
party. Either party may terminate this Addendum solely for its convenience upon thirty (30) days prior written notice to the other party. Termination of this Addendum shall not affect the Agreement nor affect any specific agreement between
Macromedia and Tech Data, including, but not limited to any purchase orders or letters of supply entered into prior to the date of termination. Upon termination of this Addendum, Macromedia shall pay to Tech Data all amounts due hereunder for
Government sales shown on Government Point-of-Sale Reports through the date of termination. Macromedia will also honor the Service Discount for the complete term of all outstanding contracts awarded to resellers prior to the date of termination of
this Addendum. 
  
 4. Terms and Conditions. The terms and
conditions contained in the Agreement, as modified by this Addendum and the Amendment to which it is attached, shall apply to this Addendum, as if set out herein in full. Any modifications to the Agreement set forth herein are effective only for the
matters covered by this Addendum.Commitment Letter, dated March 17, 2004, from CIBC World Markets plc

 Exhibit 10.1 
  

			
	To:	  	 Telewest Communications Networks Limited (TCN)
 (on behalf of itself and the other TCN Entities),
  
 Telewest
Communications plc (Telewest),
  
 Telewest Global, Inc. (New
Telewest),
  
 and to Telewest UK Limited (Telewest UK)
  
 160 Great Portland Street
 London W1N 5QA

		
	Attention:	  	Barry Elson

  
 17 March 2004

  
 COMMITMENT LETTER 
  
 Dear Sirs, 
  
 Loan agreement dated 16 March 2001 made between TCN as Facility A Borrower (1), TCN as Facility B Borrower (2), TCN as Facility C
Borrower (3), TCN and Telewest Finance Corporation as Facility D Borrowers (4), the Subsidiaries of TCN set out in part A of schedule 1, thereto (5), the Associated Partnerships of TCN set out in part C of schedule 1 thereto (6), BNY Markets
Limited, Canadian Imperial Bank of Commerce, London branch, TD Bank Europe Limited, Barclays Capital, Bayerische Hypo-und Vereinsbank AG, Credit Suisse First Boston, Deutsche Bank AG London, The Fuji Bank, Limited, JPMorgan Chase Bank, The Royal
Bank of Scotland plc, Salomon Brothers International Limited, West LB AG London branch (formerly Westdeutsche Landesbank Girozentrale), Fortis Bank S.A./N.V. and Bank of America International Limited as Lead Arrangers (7), certain banks and
financial institutions described therein as Lenders (8), CIBC World Markets plc and Canadian Imperial Bank of Commerce as Agents (9) and CIBC World Markets plc as Security Trustee (10) (as from time to time amended, varied, extended, restated,
refinanced or replaced, the Loan Agreement) 
  

	1.	Introduction and Definitions 

  

	1.1	This letter sets out the terms and conditions on which the Lenders are prepared to make available to TCN credit facilities of £2,030,000,000 and uncommitted facilities of
£125,000,000 pursuant to an amended and restated facility agreement. 

  

	1.2	Terms defined in the Loan Agreement shall, unless otherwise defined in this agreement, have the same meaning when used in this agreement. 

  

	1.3	In this letter: 

  
 Agreed Form means in relation to any documentation relating to the Facilities in the form agreed by the Lenders, TCN, Telewest, the Relevant
Committee Members and Huff, and initialled for the purposes of identification by Norton Rose, Weil Gotshal Manges and Cadwalader Wickersham & Taft; 
  
 Agreed Percentage means at least 60 per cent.; 
  

 Agreed Securities means the $300,000,000 9 5/8% senior debentures due 2006 and the $1,536,413,000 11% senior discount debentures due 2007 issued by Telewest on 3 October 1995; the $350,000,000 11 1/4% senior notes due 2008 issued by Telewest on 9 November 1998; the £300,000,000 5 1/4% senior convertible notes due 2007 issued by Telewest on 19 February 1999; the £325,000,000 9 7/8% senior discount notes due 2009 and the $500,000,000 9 1/4% senior discount notes due 2009 issued by Telewest on 15 April 1999; the $450,000,000 11 3/8% senior discount notes due 2010 and the £180,000,000 9 7/8% senior notes due 2010; the $350,000,000 9 7/8% senior notes due
2010 issued by Telewest on 19 January 2000; the $500,000,000 6% senior convertible notes due 2005 issued by Telewest Jersey on 7 July 2000; the notes exchanged for the £255,073,000 5% Accreting Notes due 2003, issued by Telewest on 1 November
2000; the £34,440,000 5% Accreting Notes due 2003, issued by Telewest on 15 January 2001; and the £4,026,000 5% Accreting Notes due 2003, issued by Telewest on 2 April 2001;

  
 Bondholder Agreement means any or all of the separate Voting Agreements entered into between (1) Telewest and (2) each of the Relevant Committee Members and Huff; 
  
 Co-ordinators means Canadian Imperial Bank of Commerce, London branch, The Royal Bank of Scotland plc and JPMorgan
Chase Bank; 
  
 Co-ordinators and Steering Committee Letter
means the letter confirming, inter alia, the terms of the appointment of the Steering Committee dated 21 August 2002; 
  
 Derivative Agreements means (a) the agreement dated 14 October 1997 between The Royal Bank of Scotland plc and Telewest and the schedule and
confirmations thereto; (b) the agreement dated 8 October 1998 between JPMorgan Chase Bank and Telewest and the schedule and confirmations thereto; (c) the agreement dated 15 June 2000 between Credit Agricole Indosuez (London branch) and Telewest and
the schedule and confirmations thereto; and (d) the agreement dated 21 August 2000 between The Bank of New York and Telewest and the schedule and confirmations thereto; 
  
 Effective Date means the date on which the office copies of the relevant orders of the High Court of Justice of
England and Wales sanctioning the Plc Scheme and the Jersey Scheme have been delivered to the Registrar of Companies and the office copy of the order of the Royal Court of Jersey approving the Jersey Scheme has been delivered to the Jersey Registrar
of Companies for registration as required by Section 425 of the English Companies Act 1985 or Article 125 of the Companies (Jersey) Law 1991; 
  
 Facilities means the proposed credit facilities of £2,030,000,000 and uncommitted facilities of £125,000,000 to be made available to
TCN on the terms contained in the Term Sheet; 
  
 Fee Letter
means the letter with this title between the Steering Committee, TCN and Telewest dated 21 August 2002; 
  
 Hedge Agreements means the heads of terms and settlement deeds to be entered into by Telewest and TCN with each Swap Bank pursuant to which
outstanding liabilities arising under the Derivative Agreements will be discharged and TCN will enter into new derivative agreements with each of the Swap Banks; 
  
 Huff means W.R. Huff Asset Management Co. L.L.C.; 
  
 IDT Voting Agreement means an agreement between Telewest and IDT Corporation by which IDT Corporation have, inter
alia, agreed to exercise certain rights to vote in favour of the Shareholder Resolutions at a meeting of Telewest shareholders; 
  

 2 

 Jersey Scheme means the compromise or scheme between Telewest Jersey and its creditors pursuant to
Section 425 of the Companies Act 1985 and Article 125 of the Companies (Jersey) Law 1991 implementing the Restructuring; 
  
 Jersey Scheme Claims means the claims of creditors of Telewest Jersey proposed by Telewest Jersey to be compromised pursuant to the Jersey Scheme;

  
 Lessors means in respect of the Telewest Lease,
Royal Bank of Scotland (Industrial Leasing) Limited and in respect of the TCN Lease, Royal Bank Leasing Limited, W. & G. Lease Finance Limited and Lombard Corporate Finance (June 2) Limited; 
  
 Liberty Media means Liberty Media International, Inc. a company
incorporated in Delaware, USA whose principal place of business is 12300 Liberty Media Boulevard, Englewood, Colorado 80112 USA; 
  
 Longstop Date means the later of 90 days after the date of this letter or 60 days after the date of any vote by creditors to approve the Plc Scheme
and the Jersey Scheme, subject to such vote occurring on or before 75 days after the date of this letter*; 
  
 MediaOne means any or all of MediaOne International Holdings Limited, MediaOne UK Cable, Inc. and MediaOne Cable Partnership Holdings, Inc and
their successors; 
  
 Meetings means the meeting(s)
ordered by the High Court of Justice of England and Wales and the Royal Court of Jersey for creditors to consider and, if thought fit, approve the Plc Scheme and the Jersey Scheme pursuant to Section 425 of the Companies Act 1985 and Article 125 of
the Companies (Jersey) Law 1991, and any adjournment of such meetings; 
  
 Microsoft means Microsoft Corporation, a company incorporated in Washington, whose principal place of business is One Microsoft Way, Redmond WA 98052 6399 USA; 
  
 New Telewest means Telewest Global, Inc. a company incorporated under the laws of Delaware, USA, with its registered
office at 1209 Orange Street, Wilmington, DE 19801 USA being the sole parent of Telewest UK; 
  
 Plc Scheme means the compromise or scheme between Telewest and its creditors pursuant to Section 425 of the Companies Act 1985 implementing the Restructuring; 
  
 Plc Scheme Claims means the claims of creditors of Telewest proposed
by Telewest to be compromised pursuant to the Plc Scheme; 
  
 PwC Letter means the letter between PricewaterhouseCoopers and TCN dated 2 August 2002; 
  
 RB Leases means the Telewest Lease and the TCN Lease; 
  
 Relationship Agreement means any or all of the following: 
  

	 	(a)	the relationship agreement dated 22nd November 1994 between inter alios Telewest Communications Cable Limited, MediaOne and Liberty Media; 

  

	 	(b)	the amended and restated relationship agreement dated 21st May 1999 between Telewest, MediaOne, Liberty Media and certain of Liberty Media’s subsidiaries;

	*	In the interests of certainty, actual dates calculated on this basis will be inserted when the date of signing the letter is known. 

  

 3 

	 	(c)	the revised existing relationship agreement dated 3 March 2000 between Telewest, MediaOne, Liberty Media and certain of Liberty Media’s subsidiaries; and

  

	 	(d)	the revised new relationship agreement as amended by an amendment agreement dated 18 May 2001 between Telewest, Microsoft, Liberty Media and certain of Liberty Media’s
subsidiaries. 

  
 Relevant Committee Members
means Angelo Gordon & Co. LLP, Franklin Mutual Advisors L.L.C., Fidelity Management & Research Co., Goldentree Asset Management, LP, Oaktree Capital Management L.L.C., and OZ Management L.L.C.; 
  
 Relevant Creditor means holders of the Agreed Securities and any
other creditor of the Telewest Group (which is not a member of the TCN Group); 
  
 Restructuring means the financial restructuring of Telewest, Telewest Jersey and their respective creditors as described in the explanatory statement for the Plc Scheme and Jersey Scheme approved by the
Steering Committee; 
  
 Shareholder Resolutions means the
necessary resolutions to be passed by shareholders of Telewest in order to implement the Restructuring other than the resolutions required for the solvent liquidation of Telewest and Telewest Jersey; 
  
 Steering Committee means the committee by that name as set out in the
Co-ordinators and Steering Committee Letter; 
  
 Swap Banks
means each of JPMorgan Chase Bank, The Royal Bank of Scotland plc, The Bank of New York and Credit Agricole Indosuez (London branch); 
  
 TCN Lease means the master leasing agreement dated 1 December 2000 made between TCN and Royal Bank Leasing Limited for itself and as agent for W.
& G. Lease Finance Limited and W. & G. Equipment Leasing Limited (certain of which have been assigned to Lombard Corporate Finance (June 2) Limited) and all lease contracts entered into pursuant to that master leasing agreement; 

 
 Term Sheet means the term sheet set out in the schedule to (and
forming part of) this letter; 
  
 Telewest Jersey means
Telewest Finance (Jersey) Limited; 
  
 Telewest Lease
means the master leasing agreement dated 28 March 1996 between Telewest and R.B. Leasing March Limited (assigned to Royal Bank of Scotland (Industrial Leasing) Limited) and all lease contracts entered into pursuant to that master leasing agreement;

  
 Telewest UK means Telewest UK Limited a newly
incorporated company incorporated under UK law with its registered office at Export House, Cawsey Way, Woking, Surrey GU21 6QX UK, which is a wholly-owned subsidiary of New Telewest; and 
  
 Voting Agreements means the agreements between Telewest and holders of the Agreed Securities or Telewest and Liberty
Media Corporation by which: 
  

	 	(a)	the holders of the Agreed Securities and Liberty Media have, inter alia, agreed to exercise certain rights to vote in favour of the Plc Scheme and the Jersey Scheme at the Meetings;
and 

  

	 	(b)	Liberty Media has, inter alia, agreed to exercise certain rights to vote in favour of the Shareholder Resolutions at a meeting of Telewest shareholders. 

  

 4 

	1.4	Clause 1.4 of the Loan Agreement shall be deemed to be incorporated in this letter in full, mutatis mutandis, save that in this letter, references to paragraphs, schedules or
clauses are, unless otherwise specified, references to paragraphs, schedules and clauses of this letter and clause 1.4.7 shall not apply. 

  

	2.	Commitment and Conditions 

  

	2.1	Subject to the terms and conditions in paragraph 2.2, the Agent acting on behalf of and at the direction of each Lender confirms that the Lenders will make available to TCN the
Facilities pursuant to an amended and restated facility agreement. 

  

	2.2	Each Lender’s commitment under paragraph 2.1 is subject to: 

  

	 	(a)	the terms and conditions set forth in this letter and in the Term Sheet as modified by the draft amended and restated facility agreement and ancillary documents in the Agreed Form;

  

	 	(b)	the accuracy and completeness of all representations that TCN, Telewest, New Telewest and Telewest UK make to each Lender in paragraph 4 below; 

  

	 	(c)	execution of an amended and restated facility agreement documenting the Facilities in the Agreed Form; 

  

	 	(d)	receipt, on or before the date of this letter, by the Steering Committee of effective and binding Voting Agreements (and any schedules or appendices thereto) between Telewest and
holders of the Agreed Securities where those holders represent the Agreed Percentage of the value of Agreed Securities in aggregate entitled to vote at the Meetings (including, without limitation, each Relevant Committee Member, Huff and Liberty
Media), such agreements to be in a form satisfactory to the Steering Committee; 

  

	 	(e)	receipt, on or before the date of this letter, by the Steering Committee of an effective and binding IDT Voting Agreement, such agreement to be in a form satisfactory to the
Steering Committee; 

  

	 	(f)	receipt, on or before the date of this letter, by the Steering Committee of effective and binding Hedge Agreements, such agreements to be in a form satisfactory to the Steering
Committee; 

  

	 	(g)	receipt, on or before the date of this letter, by the Steering Committee of an effective and binding waiver and agreement letter between Telewest, TCN and the Lessors relating to
the RB Leases, such waiver and agreement letter to be in form and substance satisfactory to the Steering Committee and attaching, without limitation, an agreed form (i) novation and amendment agreement in relation to the Telewest Lease and (ii)
amendment agreement in relation to the TCN Lease; and 

  

	 	(h)	payment to the Agent for the account of the Lenders, of a fee of up to 40 basis points on the committed amount of the Facilities under this letter as of the date such fee is earned
determined on the basis set out in the following table: 

  

			
	 Determination Date

	 	 Basis points

	 March 7 to March 17  
	 	40
	 March 18 to March 24
	 	30
	 March 25 to March 31
	 	20
	 April 1 to April 7          
	 	10
	 April 8 onwards            
	 	0

  

 5 

 where the determination date is the first date on which both (i) CIBC World Markets plc has signed this
letter in its capacity as Agent on behalf of all the Lenders and in its capacity as Security Trustee and has delivered (a) an original of this letter to Norton Rose to be held in escrow pending receipt of counterparts signed by New Telewest,
Telewest UK, Telewest and TCN and (b) a copy of this letter to Fried, Frank, Harris, Shriver and Jacobson and Weil, Gotshal & Manges and (ii) all the Lenders have confirmed to the Agent their approval of this letter and the form of each of the
amended and restated facility agreement, the supplemental deed and the amendment fee letter. Such fee shall be earned on the day on which all parties hereto have signed this letter and all counterparts are released from escrow, and payable on the
following business day. If the original of this letter is held in escrow for more than 60 days, the letter may only be accepted by New Telewest, Telewest UK, Telewest and TCN with the consent of all the Lenders. 
  
 For the purposes of this paragraph 2.2 an agreement shall not be deemed to
be “effective and binding” unless it shall have been released from any escrow arrangements to which it may have been subject. 
  

	2.3	The commitment of each Lender is several and failure by one Lender to perform its obligations under this letter shall not prejudice the rights or obligations of any other Lender.
Each Lender may separately enforce its rights hereunder. No Lender shall be responsible for the obligations of any other Lender. 

  

	3.	Termination 

  

	3.1	Subject to the conditions contained in paragraphs 2.2(d), (e), (f) and (g) the commitment of the Lenders will commence upon the signature of the enclosed copy of this letter by TCN
and Telewest. 

  

	3.2	Following acceptance of this letter, the Agent on the instructions of the Majority Lenders may terminate the Lenders’ obligations under this letter by giving notice of such
termination to TCN, Telewest, New Telewest and Telewest UK on the occurrence of one or more of the following events: 

  

	 	(a)	the posting of the public documents in respect of the Plc Scheme and the Jersey Scheme shall not have occurred on or before 15 days after the date of this letter; or

  

	 	(b)	the Effective Date of the Plc Scheme and the Jersey Scheme shall not have occurred on or before the Longstop Date; or 

  

	 	(c)	Telewest withdraws the Plc Scheme or Telewest Jersey withdraws the Jersey Scheme or indicates in writing its intention to do so, or states publicly that it will not support the
Restructuring, or Telewest fails to confirm to the Co-ordinators within 48 hours of a request from the Co-ordinators that it is Telewest’s intention to continue with and recommend the Restructuring in all material respects, or there is a
material change in the terms of the Plc Scheme or the Jersey Scheme in the opinion of the Majority Lenders; or 

  

 6 

	 	(d)	any of the Voting Agreements are materially amended by the parties to those agreements other than by virtue of termination of a Voting Agreement by reason of a beneficial owner of
the Agreed Securities directing the disposal of some or all of the Agreed Securities in circumstances outlined in clause 3(f)(B) of the Bondholder Agreement; or 

  

	 	(e)	any of the Voting Agreements are withdrawn or terminated by the parties to those agreements and such termination would result in the Voting Agreements representing holders of less
than the Agreed Percentage of the value of Agreed Securities in aggregate entitled to vote at the Meetings (including, without limitation, each Relevant Committee Member, Huff and Liberty Media). For the purposes of sub-paragraph 3.2(e) of this
letter, if any of the Voting Agreements are terminated by reason of the beneficial owner of the Agreed Securities directing the disposal of some or all of the Agreed Securities in circumstances outlined in clause 3(f)(B) of the Bondholder Agreement,
then such termination shall be ignored for the purposes of calculating the percentage of the holders of the Agreed Securities UNLESS, in the opinion of the Majority Lenders, such termination would cause the Effective Date to be delayed beyond the
Longstop Date or likely to result in the Effective Date not occurring at all; or 

  

	 	(f)	any of the agreements described in paragraphs 2.2(e), (f) and (g) are withdrawn, terminated or materially amended by the parties to those agreements, or any of the Swap Banks, Royal
Bank of Scotland (Industrial Leasing) Limited and Royal Bank Leasing Limited take any action or exercise any remedy inconsistent with the Restructuring; or 

  

	 	(g)	an amended and restated facility agreement documenting the Facilities in the Agreed Form is not signed on or before the Effective Date; or 

  

	 	(h)	any of TCN, Telewest, New Telewest or Telewest UK breach any representations or warranties in, or any term of, this letter, the Co-ordinators and Steering Committee Letter, the PwC
Letter or the Fee Letter (save such existing breaches as acknowledged and agreed by the Co-ordinators) and, if such breach is capable of remedy, fails promptly to remedy the breach; or 

  

	 	(i)	there occurs an event or circumstance in relation to the Restructuring which would result in the Agent or a Lender acting contrary to any law, regulation, or treaty, or any official
directive or official request in each case having the force of law or being of a kind customarily complied with by the Agent or Lender applicable to any of them in connection with this letter, the Term Sheet or the Facilities provided that the Agent
or a Lender as the case may be will take such reasonable steps as may, in its absolute discretion, be open to it to enable it to avoid acting contrary to such law, regulation, treaty, official directive or official request, but so that the Agent or
a Lender shall not be under any obligation to take any such steps if, in its opinion, to do so would or would be likely to have an adverse effect upon its business, operations or financial condition; or 

  

	 	(j)	there occurs: 

  

	 	(A)	a failure to obtain any order of any court (including for the avoidance of doubt, any interim order), when applied for, or a requisite majority for any vote, when sought, in order
for the Shareholder Resolutions to be passed or the creditors to approve the Plc Scheme and the Jersey Scheme; or 

  

 7 

	 	(B)	the making of any order (including, for the avoidance of doubt, any interim order) of any court or governmental body of competent jurisdiction restraining, enjoining or otherwise
preventing the consummation of the Restructuring; or 

  

	 	(k)	any event occurs or circumstances arise which, in the opinion of the Majority Lenders, has a material adverse change to the business plan of the Telewest Group or a material adverse
change to the assets, liabilities, business or prospects of the Telewest Group or affect the ability of the TCN Entities (taken as a whole) or Telewest, New Telewest or Telewest UK to perform all or any of their respective material obligations under
the Finance Documents (as it is proposed they be amended as set out in the Term Sheet); or 

  

	 	(l)	any written information provided by a member of the Telewest Group or its advisers or any oral information provided by any of Katherine Burns-Rivington, Charles Burdick or advisers
to the Telewest Group (the Information Providers), in each case in connection with the Restructuring to the Co-ordinators, the Steering Committee or the Agent or any of their respective advisers is inaccurate or incomplete (other than in the
case of oral information where such information is accurate and complete at the time given to the best of the Information Provider’s knowledge and belief after due enquiry provided that, in the event that any Information Provider becomes aware
that any oral information provided to the Co-ordinators, the Steering Committee or the Agent or any of their respective advisers is inaccurate or incomplete there will be a termination event under this clause 3.2(l) unless such Information Provider
promptly informs the Co-ordinators of the manner in which such information is inaccurate or incomplete) in any respect which, in the reasonable opinion of the Majority Lenders, is regarded as material in the context of the Restructuring, or the
decision to provide the Facilities; or 

  

	 	(m)	TCN or Telewest or New Telewest or Telewest UK (as the case may be) fails to disclose facts or information in connection with the Restructuring to the Agent which, in the reasonable
opinion of the Majority Lenders, is regarded as material in the context of the Restructuring, or the decision by a Lender to provide the Facilities; or 

  

	 	(n)	any creditor or creditors of TCN or Telewest or New Telewest or Telewest UK as the case may be takes any action or step which in the reasonable opinion of the Majority Lenders is
likely to impair any of the security given for the benefit of the Lenders under the Security Documents; or 

  

	 	(o)	Telewest or Telewest Jersey does not obtain, at least two Banking Days before the Effective Date, the agreement of the US Bankruptcy Court to enter a permanent injunction order
pursuant to section 304 of the United States Bankruptcy Code 11 U.S.C. § 101 et seq. in respect of the Plc Scheme or the Jersey Scheme respectively. 

  

	3.3	Subject to paragraph 3.2, the obligations of the Lender under this letter will automatically terminate on the earlier of: 

  

	 	(a)	the Longstop Date; and 

  

	 	(b)	the date on which the Facilities have become effective. 

  

	3.4	 Subject to sub-paragraph 3.6, the obligations of each of TCN, Telewest, New Telewest and Telewest UK under paragraphs 6 (Indemnity), 12 (Governing
law) and sub-paragraph 3.5 of 

  

 8 

	 	 
this letter will survive the termination (for whatever reason) of the obligations of a Lender under this letter. 

  

	3.5	This letter is: 

  

	 	(a)	without prejudice to any other rights or remedies which the Agent, any Lender or any other person may, now or at any time in the future, have or be available to them under the terms
of the Finance Documents or as a matter of law; and 

  

	 	(b)	nothing contained in this letter will constitute or be deemed to constitute a waiver, release or discharge of any or all of the rights and remedies which the Agent, any Lender or
any other person may have under the Finance Documents or as a matter of law, including (without limitation) any rights and remedies which may arise or have arisen as a result of a Default. 

  

	3.6	Without prejudice to Telewest UK’s existing obligations under this letter, upon the passing of the shareholder resolutions required to commence the solvent winding up of
Telewest and Telewest Jersey, all obligations and liabilities of Telewest under this letter (including, without limitation, any claims against Telewest under this letter accrued at the Effective Date) shall be assumed by Telewest UK and Telewest
shall be released from such obligations and liabilities hereunder. Notwithstanding the previous sentence, if the proposed transfer of assets by Telewest to Telewest UK pursuant to the Restructuring is set aside or reversed or otherwise avoided
(whether due to the insolvency of Telewest or Telewest UK or otherwise), the obligations of Telewest under this letter shall be reinstated as if such assumption of obligations and liabilities by Telewest UK and release of Telewest had never
occurred. 

  

	4.	Representations and Warranties 

  

	4.1	On the signing of this letter, each of TCN (on behalf of itself and each other TCN Entity) (but excluding sub-paragraph 4.1(b)), Telewest, New Telewest and Telewest UK (in respect
of sub-paragraphs 4.1(b) and (c) only) represent and warrant to the Agent for the benefit of each Lender: 

  

	 	(a)	in the terms of each representation and warranty as set out in clauses 10.1.1 to 10.1.6 (inclusive) and 10.2.2 of the Loan Agreement, but as if references therein to the Loan
Agreement and/or the Security Documents were to this letter; 

  

	 	(b)	in the terms of each representation and warranty as set out in clauses 5.1.1 to 5.1.4 (inclusive) and 5.1.8 of the Deed of Subordination, but as if references therein to the Deed of
Subordination were to this letter; and 

  

	 	(c)	that all material information relating to the Telewest Group which has been delivered to the Agent by or on behalf of any member of the Telewest Group was true, correct and accurate
in all material respects when so delivered. 

  

	4.2	The representations and warranties in this paragraph shall be deemed to be repeated by TCN (on behalf of itself and each other TCN Entity) (but excluding paragraph 4.1(b)) and
Telewest, New Telewest and Telewest UK (in respect of sub-paragraphs 4.1(b) and (c) only) every seven days or multiple thereof following the signing of this letter by those parties. 

  

	5.	Undertakings 

  

	5.1	 Telewest and TCN agree that Telewest will pay to TCN within five Banking Days of signing this letter the sum of £41,000,000 (together with accrued interest)
held by Telewest on trust 

  

 9 

	 	 
for itself and TCN pursuant to the terms of the trust deed dated 1 October 2002, such payment to be made on the basis that TCN shall be absolutely entitled
to any cash or property in the sum of £41,000,000 (together with accrued interest) from the time of receipt of the payment. 

  

	5.2	Telewest and TCN undertake from the date on which the conditions specified in sub-paragraphs 2.2(d), (e), (f) and (g) are satisfied until termination of this letter:

  

	 	(a)	that the Borrowers will not issue a Drawdown Notice nor make any request for a Utilisation under the Ancillary Facilities Letter; and 

  

	 	(b)	not to make, or fund the making of, any payments in respect of principal or cash interest that is owing or may become owing under the terms of the Agreed Securities; and

  

	 	(c)	that TCN will not make (and TCN will procure that no other member of the TCN Group makes) any Restricted Payment; and 

  

	 	(d)	to promptly inform the Agent of any breach of this letter forthwith upon becoming aware thereof, and will, if so requested by the Agent, confirm to the Agent in writing that, save
as otherwise stated in such confirmation, no such breach has occurred and is continuing; and 

  

	 	(e)	to provide the Steering Committee with a copy of each proposed public announcement in respect of the Restructuring prior to the announcement and in the case where the proposed
public announcement makes any reference to any or all of the Lenders, the Term Sheet, the Loan Agreement or this letter, such announcement shall be subject to obtaining the prior consent of the Steering Committee, save where Telewest or TCN is
obliged by an order of a court of competent jurisdiction or pursuant to any law or regulation in accordance with which it is required to act, to make such public announcement, in which case it shall use reasonable endeavours to obtain the consent of
the Steering Committee; and 

  

	 	(f)	to supply the Co-ordinators with any material information relating to the Restructuring, Telewest, the Telewest Group or any member of the Telewest Group no later than two Banking
Days after receipt or delivery of the information by a member of the Telewest Group (including any material exchanged between a member of the Telewest Group and a Relevant Creditor, a shareholder or any other strategic investor); and

  

	 	(g)	to use reasonable endeavours to procure the termination of the Relationship Agreement by MediaOne and Microsoft and a release of their accrued rights against Telewest under that
agreement. 

  

	6.	Indemnity and Guarantee 

  

	6.1	 Each of TCN, Telewest and Telewest UK jointly and severally indemnifies, and holds harmless, each Lender and its directors, officers, employees, agents, advisers
and affiliates (each an Indemnified Party) from and against any and all losses, claims, costs, expenses, damages and liabilities, whether joint or several, to which any such Indemnified Party may become subject under any applicable law or
regulation, in connection with or arising by reason of such Indemnified Party’s negotiation, execution or performance of this letter or the Term Sheet or participation in the Restructuring, and will promptly reimburse any Indemnified Party for
any expenses (including legal fees and expenses and any value added tax thereon) which they incur in connection with the investigation of, or preparation for, or defence of, any 

  

 10 

	 	 
pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto (the Indemnity).
The Indemnity shall not apply to the extent such claim, damage, loss, liability or expense resulted from such Indemnified Party’s gross negligence or wilful misconduct or a breach of the Indemnified Party’s contractual obligations under
this letter. An Indemnified Party may separately instruct legal advisers in connection with any such investigation, claim, action or proceeding. 

  

	6.2	New Telewest irrevocably and unconditionally: 

  

	 	(a)	guarantees to the Indemnified Parties prompt performance by TCN, Telewest and Telewest UK of each of their obligations under paragraph 6.1 of this letter; and

  

	 	(b)	undertakes with the Indemnified Parties that, whenever TCN, Telewest or Telewest UK does not pay any amount when due under paragraph 6.1 of this letter, New Telewest must
immediately on demand from an Indemnified Party, pay that amount (in the currency in which it is due) as if it was the principal obligor (the Guarantee). 

  

	6.3	Prior to making a demand on New Telewest under the Guarantee, an Indemnified Party must make demand on Telewest UK under the Indemnity in respect of the same liability.

  

	6.4	The obligations of New Telewest under the Guarantee will not be affected by any act, omission or thing which, but for this provision, would reduce, release or prejudice any of its
obligations under the Guarantee (whether or not known to it or any Indemnified Party). 

  

	6.5	Save for the obligation stipulated in paragraph 6.3 of this letter, New Telewest waives any right it may have of first requiring an Indemnified Party (or any trustee or agent on its
behalf) to proceed against or enforce any other right or security or claim payment from any person (including without limitation TCN) before claiming from New Telewest under the Guarantee. 

  

	6.6	Until all amounts which may be or become owing to a Beneficiary or a New Beneficiary (as that term is defined in the draft amended and restated facility agreement in the Agreed
Form) have been irrevocably paid in full, an Indemnified Party (or any trustee or agent on its behalf) may without affecting the liability of New Telewest under the Guarantee: 

  

	 	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by an Indemnified Party (or any trustee or agent on its behalf) in respect of those amounts;

  

	 	(b)	apply and enforce them in such manner and order as it sees fit (whether against those amounts or otherwise); and 

  

	 	(c)	hold in an interest-bearing suspense account any moneys received from New Telewest or on account of New Telewest’s liability under the Guarantee. 

  

	6.7	Unless: 

  

	 	(a)	all amounts which may be or become owing to a Beneficiary or a New Beneficiary (as that term is defined in the draft amended and restated facility agreement in the Agreed Form) have
been irrevocably paid in full; or 

  

	 	(b)	an Indemnified Party otherwise directs, 

  
 New Telewest will not, after a claim has been made or by virtue of any payment or performance by it under the Guarantee: 
  

	 	(i)	be subrogated to any rights, security or moneys held, received or receivable by an Indemnified Party (or any trustee or agent on its behalf); 

  

 11 

	 	(ii)	be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of the New Telewest’s liability under the Guarantee;

  

	 	(iii)	claim, rank, prove or vote as a creditor of TCN, Telewest or Telewest UK or its estate in competition with an Indemnified Party (or any trustee or agent on its behalf); or

  

	 	(iv)	receive, claim or have the benefit of any payment, distribution or security from or on account of TCN, Telewest or Telewest UK, or exercise any right of set-off as against any of
those entities. 

  
 New Telewest must hold in trust
for and immediately pay or transfer to the Agent on behalf of an Indemnified Party any payment or distribution or benefit of security received by it contrary to this paragraph 6 or in accordance with any directions given by the Agent (acting on the
directions of the Indemnified Party) under this paragraph 6. 
  

	6.8	Unless: 

  

	 	(a)	all amounts which may be or become owing to a Beneficiary or a New Beneficiary (as that term is defined in the draft amended and restated facility agreement in the Agreed Form) have
been irrevocably paid in full; or 

  

	 	(b)	an Indemnified Party otherwise directs, 

  
 TCN, Telewest or Telewest UK will not, after a claim has been made or by virtue of any payment or performance by any of them under the Indemnity:

  

	 	(i)	be subrogated to any rights, security or moneys held, received or receivable by an Indemnified Party (or any trustee or agent on its behalf); 

  

	 	(ii)	be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of their liability under the Indemnity; 

 

	 	(iii)	claim, rank, prove or vote as a creditor of TCN, Telewest or Telewest UK or their respective estates in competition with an Indemnified Party (or any trustee or agent on its
behalf); or 

  

	 	(iv)	receive, claim or have the benefit of any payment, distribution or security from or on account of TCN, Telewest or Telewest UK, or exercise any right of set-off as against any of
those entities. 

  
 Each of TCN, Telewest and
Telewest UK must hold in trust for and immediately pay or transfer to the Agent on behalf of an Indemnified Party any payment or distribution or benefit of security received by it contrary to this paragraph 6 or in accordance with any directions
given by the Agent (acting on the directions of the Indemnified Party) under this paragraph 6. 
  

	6.9	The Guarantee is a continuing guarantee and will extend to the ultimate balance of all sums payable by New Telewest under this letter, regardless of any intermediate payment or
discharge in whole or in part. 

  

	6.10	 If any discharge or arrangement is made in whole or in part on the faith of any payment, security or other disposition of New Telewest which is avoided or must be
restored on 

  

 12 

	 	 
insolvency, liquidation or otherwise (without limitation), the liability of New Telewest under the Guarantee will continue as if the discharge or arrangement
had not occurred. 

  

	6.11	The Guarantee and the Indemnity are in addition to and are not in any way prejudiced by any other security now or subsequently held by an Indemnified Party.

  

	6.12	The parties to this letter agree that an Indemnified Party shall not have any liability for any claims on behalf of or by TCN, Telewest or the Telewest Group in connection with or
arising out of this letter, the Term Sheet or the Restructuring except to the extent any claims are the result of a breach by the Indemnified Party of the contractual obligations contained in this letter, gross negligence or wilful misconduct of the
Indemnified Party. 

  

	6.13	Any director, officer, employee, agent, adviser or affiliate of the Lenders may rely on this paragraph 6 and enforce its terms under the Contracts (Rights of Third Parties) Act
1999. 

  

	7.	Whole Agreement 

  

	7.1	Save for those terms of the suspension letter dated 21 August 2002 between the Agent (acting on behalf of the Majority Lenders), TCN, Telewest Finance Corporation and Telewest (and
any amendment of that letter) (the Suspension Letter) which continue in effect pursuant to clauses 5.2, 9.2 or 9.3 of the Suspension Letter, this letter represents the entire understanding and agreement between the parties with respect
to the subject matter hereof. 

  

	7.2	This letter can be amended, supplemented or changed or any provision waived, only by written instrument and with the written consent of TCN, Telewest, New Telewest, Telewest UK and
the Lenders. 

  

	8.	Partial Invalidity 

  
 The illegality, invalidity or unenforceability of any provision of this letter under the law of any jurisdiction shall not affect its legality, validity
or enforceability under the law of any other jurisdiction, nor shall it affect the legality, validity or enforceability of any other provision. 
  

	9.	Finance Documents 

  
 This letter is a Finance Document for the purposes of the Loan Agreement. 
  

	10.	Third Party Rights 

  
 Save as provided for in paragraph 6.3 above, a person who is not a party to this letter has no right under the Contracts (Rights of Third Parties)
Act 1999 to enforce any term of this letter. 
  
 Notwithstanding
any third party rights arising pursuant to paragraph 6.3 above, the consent of any third party is not required for any variation (including any waiver) or termination of this letter). 
  

	11.	Counterparts 

  
 This letter may be signed in any number of counterparts, all of which taken together and when delivered to the Agent constitute one and the same
instrument. Any party may enter into this letter by signing any such counterpart. 
  

 13 

	12.	Governing Law and Jurisdiction 

  
 Clause 21 (Governing Law and Jurisdiction) of the Loan Agreement shall apply, mutatis mutandis, to this letter as it applies to the Loan
Agreement. 
  

 14 

 If you agree with the terms and conditions of this letter, please confirm your acceptance (and the acceptance of those on
whose behalf you are entering into this letter) by signing and returning the enclosed copy of this letter to the Agent. 
  

			
	 CIBC World Markets plc
 as Agent
acting on behalf of the Lenders
 pursuant to clause 19.2 of the Loan Agreement

		
	By:	 	/s/ CIBC World Markets plc
	 	 	 

  

			
	 CIBC World Markets plc
 in its
capacity as Security Trustee for and on behalf of the Beneficiaries

		
	By:	 	/s/ CIBC World Markets plc
	 	 	 

  

 15 

	To:	CIBC World Markets plc 

	  	as Agent acting on behalf of the Lenders 

	  	pursuant to clause 19.2 of the Loan Agreement 

	  	and as Security Trustee for and on behalf of the Beneficiaries 

  
 We acknowledge receipt of the Commitment Letter dated 17 March 2004 of which this is a copy and hereby confirm our agreement to the terms and conditions thereof.

  

			
	Yours faithfully
	
	 For and on behalf of
 Telewest
Communications Networks Limited
 for and on behalf of itself and each other TCN Entity

		
	By:	 	/s/ Stephen S. Cook
	 Date:
	 	 

  

			
	Yours faithfully
	
	 For and on behalf of
 Telewest
Communications plc

		
	By:	 	/s/ Stephen S. Cook
	 Date:
	 	 

  

 16 

			
	Yours faithfully
	
	 For and on behalf of
 Telewest Global,
Inc.

		
	By:	 	/S/ Stephen S. Cook
	 Date:
	 	 

  

			
	Yours faithfully
	
	 For and on behalf of
 Telewest UK
Limited

		
	By:	 	/S/ Stephen S. Cook
	 Date:
	 	 

  

 17 

 Schedule 
  

Private & confidential 
  
 TELEWEST COMMUNICATIONS NETWORKS LIMITED 
  
 Amended and Restated Facilities of £2.03 billion 
 together with
uncommitted Facilities of £125 million 
  
 DETAILED
INDICATIVE TERMS AND CONDITIONS 
  
 Terms set out herein are
indicative terms and conditions only and do not represent a commitment by any of the Lenders to provide or continue to provide funding on these or on any other terms. 
  

 18 

			
		
	Borrower:	  	Telewest Communications Networks Limited (“TCN”).
		
	 	  	TCN and its Subsidiaries and Associated Partnerships are referred to herein as the “TCN Group”. “TCN Entity” means each company or partnership within the TCN
Group required to give guarantees or security.
		
	Definitions:	  	“Delco” means the newly formed Delaware company which is to be the ultimate holding company of the TCN Group.
		
	 	  	“Subco” means Telewest or, subject to the Lenders’ consent, a newly formed English company which is 100% directly owned by Delco and which owns directly 100% of TCN.
NB: Subject to review of and satisfaction with the proposed Subco structure by the Lenders and their professional advisers and the shares in TCN and the rights in respect of loans to TCN being transferred by Telewest to such newly formed
English company subject to, and without prejudicing, the existing security over such assets entered into by Telewest.
		
	 	  	“Telewest” means Telewest Communications plc.
		
	Documentation:	  	Amendment and restatement of the Facility Agreement dated 16 March 2001 (as subsequently amended). Save where inconsistent or otherwise indicated in these Indicative Terms and Conditions, it
is intended by the parties that the Facilities will be on the terms set out in the Facility Agreement. Unless otherwise defined in these Indicative Terms and Conditions, or the context otherwise requires, words and expressions defined in the
Facility Agreement shall have the same meanings when used in these Indicative Terms and Conditions.
		
	 	  	The overdrafts provided by Overdraft Lenders have been documented by separate overdraft letters from such Overdraft Lenders which will be amended to take account of these Indicative Terms and
Conditions. A loss sharing arrangement will be inserted in the Restated Facility Agreement in respect of Facility C borrowings.
		
	Amount:	  	Committed Facilities of £2.03 billion together with uncommitted Facilities of £125 million.
		
	Facilities:	  	There will be four Facilities as follows:
		
	 	  	Facility A: a £1695 million term loan maturing on 31 December 2005. [Note: Facility A replaces existing Facilities A and B following repayment of £160 million Advance made on 27
September 2002.]

  

 19 

			
		
	 	  	Facility B: a revolving credit facility of £140 million maturing on 31 December 2005.
		
	 	  	Facility C: The Overdraft Lenders will provide committed overdraft facilities of an aggregate amount of £50 million as an ancillary facility within the terms of the Restated Facility
Agreement with a final maturity of 31 December 2005.
		
	 	  	Facility D: a term loan of £145 million maturing on 30 June 2006. Together with an uncommitted term loan of up to £20 million maturing on 30 June 2006 which may be drawn at any
time and an uncommitted term loan of up to £105 million maturing on 30 June 2006 which may be drawn down only with the prior written consent of the Majority Lenders. For the avoidance of doubt no Lender is under any obligation to contribute to
any additional advance under Facility D.
		
	Purpose:	  	Facilities A, B, C and D
		
	 	  	To finance the general corporate purposes of the TCN Group.
		
	Lead Arrangers and Lenders:	  	As per the current Facility Agreement.
		
	Overdraft Lenders:	  	Barclays Bank plc, National Westminster Bank plc and The Royal Bank of Scotland plc.
		
	Agent/Security Trustee:	  	CIBC World Markets plc.
		
	Repayment:	  	Facility A, B and C will be repaid in full on 31 December 2005.
		
	 	  	Facility D will be repaid in full on 30 June 2006.
		
	Prepayment/Cancellation:	  	Optional Prepayment
		
	 	  	Advances under Facility A, B or D may be prepaid at any time (subject to reimbursement to the Lenders for any funding losses and breakage costs) in a minimum amount of £10,000,000 or
any larger sum which is an integral multiple of £5,000,000. Any Advances under Facility A or Facility D that are prepaid may not be re-borrowed (advances under Facility B may be re-borrowed).
		
	 	  	Voluntary prepayments may, at the option of TCN, be applied either against amounts outstanding under Facility B or (on a pro rata basis) against amounts outstanding under Facility A and
Facility D. Unless Facility A has been fully repaid the Lenders under Facility D shall have the right to refuse to accept a voluntary prepayment of

  

 20 

			
		
	 	  	Facility D in which event the amount shall be applied against Facility A.
		
	 	  	Mandatory Prepayment
		
	(A)	  	There will be mandatory prepayment and cancellation of the entire Facilities unless the Majority Lenders agree otherwise if (i) any person holds or any persons acting in concert hold directly
or indirectly 30% or more of either the voting or the economic interest in Delco; or (ii) TCN (or any Affiliate of TCN) merges (howsoever constituted) with any other entity, unless, in the case of a merger with NTL or any of its subsidiaries or
holding companies only, such merger becomes effective no earlier than the later of (a) 30 June 2006 or, in the event of the final maturity date of any of the Facilities being extended to a date after 30 June 2006, such final maturity date and (b)
the date on which all outstandings in respect of the Facilities are repaid in full. The relevant holders of the Agreed Securities of Telewest (including W.R. Huff Asset Management Co. LLC) will not be deemed to be acting in concert for the purpose
of this provision solely by virtue of either (x) having been members of the ad hoc committee of holders of the Agreed Securities of Telewest or, in the case of W.R. Huff Asset Management Co. LLC, participating in discussions with such committee or
its advisers in relation to the restructuring of Telewest, prior to the scheme of arrangement for Telewest becoming effective or (y) individuals appointed by certain of the holders of the Agreed Securities as directors of Delco or any of its
Affiliates on the basis set out under “Corporate Governance” in the Term Sheet between certain holders of the Agreed Securities, Telewest, Liberty Media, Corporation and IDT Corporation dated 14 August 2003 undertaking their duties as
directors of such companies.
		
	(B)	  	Commencing with the twelve month period ending 31 December 2004, 50% Excess Cash Flow recapture on an annual basis unless the ratio of Total Senior Debt to Annualised EBITDA is less than 3.5
times. The amount of any mandatory prepayment under this paragraph (B) will be reduced on a £ for £ basis by an amount equal to the amount by which the Facilities are prepaid and permanently cancelled out of the proceeds of any raising
of new equity by Delco or any Affiliate of Delco or any raising of new debt by Delco or otherwise voluntarily prepaid and permanently cancelled.
		
	 	  	Excess Cash Flow means the Consolidated TCN Group EBITDA for the relevant twelve month period (A) less (i) any Total Senior Debt Interest Charges accrued during such twelve month period, (ii)
cash repayments and/or prepayments of any Borrowed Money of the TCN Group

  

 21 

			
		
	 	  	made during such twelve month period to the extent not available for redrawing, (iii) cash Capital Expenditure of the TCN Group during such twelve month period and (iv) amounts accrued in
respect of Taxes which are attributable to such twelve month period and (B) adjusted for any changes to working capital.
		
	(C)	  	There will be a mandatory prepayment unless the Majority Lenders agree otherwise of an amount equal to the net cash proceeds of any sale or disposal made pursuant to paragraph (g) of the
definition of Permitted Disposals to the extent that the same have not been reinvested in the business of the TCN Group within 120 days of such disposal.
		
	(D)	  	There will be a mandatory prepayment unless the Majority Lenders agree otherwise of 50 per cent. of the net cash proceeds of any IPO of, or disposal of, any Joint Venture.
		
	(E)	  	There will be a mandatory prepayment:
	 	  	 unless on the immediately preceding testing day the ratio of Total Senior Debt to Annualised EBITDA (calculated on the same basis as Financial Covenant (A)) was
less than 3.5:1, of an amount equal to 25 per cent. of the net proceeds of any raising of new equity by Delco or any Affiliate of Delco. To the extent that the Facilities have been voluntarily prepaid and permanently cancelled out of the proceeds of
the raising of new debt by Delco the net proceeds of any raising of new equity by Delco or any Affiliate of Delco may be used to prepay such debt and the amount so used shall be deducted from the net proceeds of such raising of new equity for the
purposes of this paragraph (E)(i); and

		
	 	  	 of an amount equal to the incremental net proceeds of any new debt raised by Delco to the extent that the total aggregate amount raised in cash exceeds
£200,000,000 in 2003, increasing to £300,000,000 in 2004 and £400,000,000 in 2005 and thereafter.

		
	(F)	  	There will be a mandatory prepayment unless the Super Majority Lenders agree otherwise of 100 per cent. of the net cash proceeds of the disposal of all or part of the Flextech
business.
		
	 	  	Mandatory prepayments under paragraphs (B), (C), (D), (E) and (F) will be applied against amounts outstanding under Facility A, Facility B and Facility D (pro rata) (and

  

 22 

			
	 	  	availability under Facility B shall be cancelled permanently in the amount of Facility B outstandings prepaid). Unless Facilites A and B have been fully repaid the Lenders under Facility D
shall have the right to refuse to accept any such mandatory prepayment of Facility D in which event the amount shall be applied against Facility A and Facility B (pro rata).
		
	 	  	To the extent that the TCN Group has outstanding at any time leasing or vendor financing arrangements in excess of £300 million in aggregate Facility B shall be permanently cancelled
and prepaid on a £ for £ basis by the amount in excess of £300 million.
		
	 	  	To the extent that any proceeds of a sale or disposal made pursuant to paragraph (g) of the definition of Permitted Disposals or any IPO of, or disposal of, any Joint Venture or any disposal
referred to in paragraph (F) are received other than in cash, such proceeds shall be deemed to be “cash proceeds” at the time they are converted into cash.
		
	 	  	Cancellation
		
	 	  	Irrevocable voluntary cancellation of the undrawn commitments under Facility B or (as the case may be) Facility D will be permitted on three business days notice in a minimum amount of
£10,000,000 and an integral multiple of £5,000,000.
		
	 	  	In the event that a Facility C Lender cancels its commitment (whether or not drawn), this will be converted automatically to a Facility A Loan in the full amount of such commitment (and the
Facility C Lender will make any necessary advance over and above the amount then drawn under Facility C).
		
	 	  	Fees
		
	 	  	No fees shall be payable in respect of the prepayment and/or cancellation of any Facility.
		
	Security:	  	 
	 	  	 (a)      A floating charge over all the assets of Subco and of each Material Group Entity and any additional
Subsidiaries and Associated Partnerships to the extent necessary to meet the 95% test referred to in Positive Covenants (v) below; NB: TCN has confirmed that it will not be necessary for any additional Subsidiaries or Associated Partnerships
to accede to the security package in order to meet such 95% test.

  

 23 

			
	 	  	 (b)      guarantee from Subco and upstream guarantees/cross guarantees from each Material Group Entity and
any additional Subsidiaries and Associated Partnerships to the extent necessary to meet the 95% test referred to in Positive Covenants (v) below;

		
	 	  	 (c)      first fixed equitable share charges over shares in TCN and the UK Channel Management Limited and UK
Gold Holdings Limited (the “Existing JVs”) and to the extent all relevant consents have been obtained, any other joint ventures, together with first fixed equitable (or in the case of Scottish companies only, legal) charges over the
shares in each Material Group Entity and any additional Subsidiaries and Associated Partnerships to the extent necessary to meet the 95% test referred to in Positive Covenants (v) below;

		
	 	  	 (d)      first fixed charge over the loan notes held in the Existing JVs, and to the extent all relevant
consents have been obtained, any other joint ventures;

		
	 	  	 (e)      assignment by way of security of all Subco’s rights in respect of loans made by it to any
member of the TCN Group and of all Delco’s rights in respect of loans made by it to Subco;

		
	 	  	 (f)       subordination of all rights to dividends, repayment of loans, interest, etc. (i) of Delco from
Subco and (ii) of Subco from any member of the TCN Group pursuant to Deeds of Subordination;

		
	 	  	 (g)      first fixed equitable charge over shares in Subco by Delco; and

		
	 	  	 (h)      a new first fixed charge over bank account with one of the Overdraft Lenders to which cash balances
will be swept on a daily basis as set out in paragraph (aa) of Positive Covenants.

		
	Intercreditor Arrangements:	  	Existing intercreditor arrangements with certain other creditors of the TCN Group (lessors, Crosby Sterling and hedge counterparties of TCN) to remain unaffected. The Facility D Lenders agree
not to block any refinancing of Facilities A, B and C, to accept a refinancing of Facility D at the same time as a refinancing of Facilities A, B and C and that any refinancing of Facility A, B and C prior to the maturity of Facility D will be
entitled to share in the security and be subject to the same intercreditor arrangements as apply to Facility A, B and C.

  

 24 

			
	Interest Rate:	 	Facility A shall bear interest at a rate of LIBOR plus MLAs plus the applicable Margin set out below and Facility C shall bear interest at the relevant overdraft lender’s fluctuating
base rate plus the applicable Margin set out below:

  

						
	 	 	 Total Senior Debt to Annualised EBITDA

	  	Applicable
Margin

	 
	 	 	Greater than or equal to 5x	  	4.00	%
	 	 	Less than 5x but greater than or equal to 4.5x	  	3.50	%
	 	 	Less than 4.5x but greater than or equal to 4 times	  	3.00	%
	 	 	Less than 4x	  	2.50	%

  

			
	 	 	Provided that in respect of each Facility A Advance and Facility C Advance the applicable
Margin in respect of the period of 6 months following the date on which the amendments
to
the Facility Agreement become effective shall not be less than the rate determined from the
above grid by reference to the latest Quarterly Management Accounts delivered to the Agent
immediately prior to the date on which the
amendments to the Facility Agreement become
effective.
		
	 	 	Facility B shall bear interest at a rate of LIBOR plus MLAs plus the applicable margin as follows:

  

						
	 	 	 Total Senior Debt to Annualised EBITDA

	  	Applicable
Margin

	 
	 	 	Greater than or equal to 5x	  	5.50	%
	 	 	Less than or 5x but greater than or equal to 4.5x	  	5.00	%
	 	 	Less than 4.5x but greater than or equal to 4x	  	4.50	%
	 	 	Less than 4x	  	4.00	%

  

			
	 	 	Provided that in respect of each Facility B Advance commencing the applicable Margin in
respect of the period of 6 months following the date on which the amendments to the
Facility
Agreement become effective shall not be less than the rate determined from the above grid by
reference to the latest Quarterly Management Accounts delivered to the Agent immediately
prior to the date on which the amendments to
the Facility Agreement become effective.
		
	 	 	Facility D shall bear interest at a rate of LIBOR plus MLAs plus 5.00 per cent. per annum.

  

 25 

			
	 	  	Interest Periods for Facilities A, B and D will be of 1, 2, 3 or 6 months or such other period as is agreed by the Lenders. Interest shall be paid at the end of each appropriate interest
period or at six monthly intervals in the case of longer periods.
		
	Commitment Fee:	  	In respect of Facility B, one per cent. per annum payable quarterly in arrears on the undrawn uncancelled portion of Facility B.
		
	 	  	In respect of Facility C a fee in lieu of a commitment fee of 0.50 per cent. per annum will be payable quarterly in arrears on the full amount of Facility C.
		
	Upfront Fee for Facilities A, B, C and D:	  	 (i)     0.50 per cent. flat on the committed amount of the Facilities under the commitment letter payable on the
business day after the signing of such commitment letter (in the agreed form) in respect of these Indicative Terms and Conditions by all the Lenders, provided that such commitment letter is signed by all the Lenders on or before 1 December 2003 and
on or before such date all the Lenders have also confirmed their agreement to the form of the Amended and Restated Facility Agreement.

		
	 	  	 (ii)    1.50 per cent. flat on the committed amount of the Facilities (£2.03 billion) payable on the scheme of
arrangement under s.425 of the Companies Act 1985 to implement the restructuring becoming effective (less the amount of any fee paid under (i) above).

		
	 	  	 (iii)  on the earlier of (a) 28 February 2005 and (b) the date on which the Quarterly Management Accounts and Compliance
Certificate are delivered under the Amended and Restated Facility Agreement in respect of the Quarterly Period ending 31 December 2004, a fee calculated on the committed amount of the Facilities on 31 December 2004 determined by reference to the
ratio of Total Senior Debt to Annualised EBITDA as at 31 December 2004 in accordance with the following grid:

  

					
	 	  	 Total Senior Debt to Annualised EBITDA

	  	 Fee

	 	  	 Greater than or equal to 4.25x
	  	0.75 per cent.
	 	  	 Less than 4.25x but greater than or equal to 3.75x
	  	0.375 per cent.
	 	  	 Less than 3.75x
	  	NIL

  

 26 

			
	 	  	In the event that the Quarterly Management Accounts and Compliance Certificate referred to in (b) above are not delivered on or before 28 February 2005, the fee will be calculated on the
basis of 0.75 per cent.
		
	Conditions Precedent to amendment and restatement of the Facility Agreement:	  	Usual and customary in satisfactory form, including:
		
	 	  	 (a)      appointment as a director of TCN of a person who is not, and has not been within the preceding 3
years, and will not in the future be, a shareholder (other than (i) shares in Delco obtained as part of such person’s compensation and (ii) other shareholdings in Delco representing less than 0.25 per cent. of the entire issued share capital of
Delco) of Delco, Subco, Telewest or any member of the TCN Group, is independent of the shareholders of Delco and is not a director of Delco or any Affiliate of Delco (other than a subsidiary of TCN) (the “TCN Independent Director”).
For these purposes a person will be deemed to be “independent of the shareholders of Delco” if such person is not (and has not been for a period of 3 years prior to appointment) an employee, principal officer or director of any institution
that is a member of the ad hoc committee of holders of Agreed Securities, W.R. Huff Asset Management Co. LLC, Liberty Media Corporation, IDT Corporation or any institution that is (or was during the last 3 years) the holder of a 5% or greater
interest in the share capital of Telewest or Delco or any of their respective Affiliates. For the avoidance of doubt, such TCN Independent Director may be a member of management of TCN and its subsidiaries;

		
	 	  	 (b)      certified copy of the constitutional documents of Delco and Subco;

		
	 	  	 (c)      certificate that there has been no change to the constitutional documents of the TCN Entities (other
than TCN) since the date of execution of the Facility Agreement or (as the case may be) accession to the Facility Agreement or a certified copy of any revised constitutional documents;

		
	 	  	 (d)      a certified copy of the constitutional documents of TCN amended to the effect that the following
matters will require the vote of a super majority (66 2/3 per cent.) of the directors of TCN including the TCN
Independent Director:

		
	 	  	 (i)       filing a bankruptcy petition or otherwise instituting or consenting to insolvency proceedings;
dissolving, liquidating; and

  

 27 

			
	 	 	 (ii)    amending the constitutional documents of the company, including removal or amendment of these
provisions;

		
	 	 	 (e)      certified copy of the Certificate of Incorporation and Memorandum and Articles of Association of any
member of the TCN Group which is required to give a guarantee/ security and has not done so already (the “New Obligors”);

		
	 	 	 (f)       resolutions of the Board of Directors of the TCN Entities, Delco, Subco and each New Obligor (if
any);

		
	 	 	 (g)      certified specimen signature of the persons authorised in (f) above;

		
	 	 	 (h)      charge over Bank Account referred to in paragraph (aa) of Positive Covenants duly executed by
TCN;

		
	 	 	 (i)       first fixed equitable charge over the shares in Subco, assignment of loans made to Subco and Deed
of Subordination, duly executed by Delco;

		
	 	 	 (j)       guarantee and debenture and Deed of Subordination duly executed by Subco; N.B: Telewest has
already entered into a first fixed equitable charge over the shares in TCN, an assignment of loans made to TCN (see note under definition of Subco);

		
	 	 	 (k)      legal opinions;

		
	 	 	 (l)       a copy of an annual budget of the TCN Group for 2004 prepared on a month by month
basis;

		
	 	 	 (m)     insurances brokers letter;

		
	 	 	 (n)      confirmation that there are no Encumbrances or outstanding Borrowed Money other than (i) as set out in
the schedules delivered pursuant to the 21 August 2002 suspension letter and (ii) additional Borrowed Money not exceeding £5 million in aggregate;

		
	 	 	 (o)      share certificates and loan stock certificates in relation to Subco and each New Obligor (if
any);

  

 28 

			
	 	 	(p)      execution and delivery of fee letters regarding up front fees and payment of such fees;
		
	 	 	 (q)      repayment to the Lenders under the existing Facility B of the Advance of £160 million made on 27
September 2002;

		
	 	 	 (r)       the proceeds of sale (net of any costs directly attributable to such sale) of the SMG shares
having been downstreamed to TCN;

		
	 	 	 (s)      after payment of all Restructuring Fees, payment by Telewest to TCN of all cash balances not in the TCN
Group at the completion of the Restructuring other than £5 million. For the purposes of these Indicative Terms and Conditions, “Restructuring Fees” means, subject to review by the Lenders’ legal advisers of the relevant
agreements and provision of a schedule of cash at Telewest and the application of such cash, the fees payable to UBS, SSSB and Gleacher & Co in accordance with agreements in place as at the date of these Indicative Terms and Conditions and the
fees of Deloitte & Touche (as prospective administrator and as liquidator of Telewest), together with any other fees and expenses reasonably incurred in relation to the proposed restructuring, including fees and expenses of the legal advisers to
Telewest, the Lenders, W.R. Huff Asset Management Co. LLC (to the extent that such fees and expenses relate solely to the negotiation and implementation of the restructuring; fees relating to items other than negotiation and implementation of the
restructuring to be discussed and agreed) and the ad hoc committee of holders of the Agreed Securities and PWC as financial advisers to the Lenders;

		
	 	 	 (t)       (i) satisfaction with the terms of the scheme of arrangement for Telewest and (ii) evidence that
such scheme has become effective or will become effective on delivery of an office copy of the court order sanctioning the scheme of arrangement to the registrar of companies;

		
	 	 	 (u)      the Lenders having been kept informed of, and consulted in relation to, the proposed composition of the
board of directors and senior management of Delco, Subco and TCN and any directors or management incentivisation scheme and the Lenders’ views having been considered in finalising such composition and any such incentivisation
scheme;

  

 29 

			
	 	 	 (v)    (i) satisfaction with the terms of the cancellation/equitisation of all outstanding loans made by Telewest to
TCN including the Agreed Cash Management Loans and (ii) such loans having been cancelled/equitised;

		
	 	 	 (w)     appointment of appropriate agents to receive service of process (where appropriate);

		
	 	 	 (x)      solvency certificates and certificates of good standing (where appropriate);

		
	 	 	 (y)      the assets which are the subject of leases with RB Leasing having been transferred to the TCN
Group;

		
	 	 	 (z)      list of material/immaterial contracts for the purposes of conditions subsequent (A) and
(B);

		
	 	 	 (aa)    settlement agreements in respect of the hedging arrangements entered into by Telewest with Credit Agricole
Indosuez, The Bank of New York, The Chase Manhattan Bank and The Royal Bank of Scotland plc having been entered into;

		
	 	 	 (bb)    Telewest having been delisted and Delco having been listed on one of NASDAQ, the New York Stock Exchange or the
official list of the UKLA or evidence that the same will become effective on delivery of an office copy of the court order sanctioning the scheme of arrangement for Telewest to the Registrar of Companies or, in the case of a listing on NASDAQ, upon
notice of issuance being given by Delco to NASDAQ which notice will be given upon delivery of such office copy to the Registrar of Companies;

		
	 	 	 (cc)    evidence that the US Borrower has been liquidated or dissolved;

		
	 	 	 (dd)    the passing of appropriate shareholders resolutions by Telewest;

		
	 	 	 (ee)    termination of the Relationship Agreement between Telewest and Liberty Media, Corporation becoming effective upon
the scheme of arrangement for Telewest becoming effective;

		
	 	 	 (ff)     evidence of transfer/assignment of the tax warranties/indemnities given by Deutsche Telecom AG to Telewest
in connection with acquisition of Eurobell;

  

 30 

			
	 	  	 (gg)  amendments to the Colorado law Pledge and Security Agreements having been entered into (together with supporting board
resolutions);

		
	 	  	 (hh)  bring down certificate confirming that all conditions precedent documents have become unconditional subject only to the
delivery of the court order sanctioning the scheme of arrangement for Telewest to the English registrar of companies.

		
	 	  	For the avoidance of doubt, it is acknowledged that prior to the filing of the scheme of arrangement it will be necessary for the Agent to confirm, on behalf of the Lenders, satisfaction with
the conditions precedent set out in paragraphs (t)(i) and (v)(i), other than in relation to any changes made thereto subsequent to such filing.
		
	Condition Subsequent:	  	 (A)   All material agreements entered into by Telewest and used in the business of the TCN Group having been transferred to
a TCN Entity by not later than six months after the effective date of the Supplemental Agreement.

		
	 	  	 (B)   TCN to use reasonable endeavours to transfer all immaterial agreements entered into by Telewest and used in the
business of the TCN Group to a TCN entity prior to their expiry or termination.

		
	 	  	 (C)   Delivery of a revised Long Range Plan which encompasses the new hedging arrangements set out in the settlement
agreements referred to under condition precedent (aa) within 60 days of the Telewest scheme of arrangement becoming effective. The Majority Lenders may request PWC to report on such Long Range Plan, in which event Delco and its Affiliates (and their
respective directors and officers) shall co-operate fully to enable PWC to prepare such report.

		
	 	  	 (D)   Delivery of share certificates and loan stock certificates upon signing of the shareholders agreement in connection
with the UKTV New Ventures Joint Venture.

		
	 Conditions Precedent
 to all
Drawdowns under
 Facility B:
	  	 
		
	 	  	 (a)    no potential or actual Event of Default;

		
	 	  	 (b)    pro-forma covenant compliance (based on the numbers for covenant compliance purposes demonstrated by most
recently produced quarterly

  

 31 

			
		
	 	  	 management accounts, but recalculating Total Senior Debt as at the drawdown date, including the amount to be drawn down); and

		
	 	  	 (c)    reaffirmation of repeating representations and warranties.

		
	Financial Covenants:	  	For the purposes of the financial covenants the following definitions will apply:
		
	 	  	 (i)     Total Senior Debt will be gross total TCN Group debt including leasing (but excluding subordinated debt
from Subco);

		
	 	  	 The definition of EBITDA will be as agreed (save as set out below) in the draft Amended and Restated Facility Agreement, being the total of TCN Group EBITDA and
the TCN Group’s share of the UKTV Joint Ventures’ EBITDA (determined on the basis set out in the existing Facility Agreement). To the extent that the auditors of TCN require all or any of the Restructuring Fees to be included in the
calculation of TCN Group EBITDA, such costs will be ignored in determining TCN Group EBITDA for the purposes of these Indicative Terms and Conditions (including, without limitation, the determination of the Interest Rate). Exceptional items will not
be excluded from the calculation of TCN Group EBITDA save that (a) severance costs and the costs of disposal of surplus properties will be excluded up to an aggregate amount of £4m in 2003 and £16m in 2004 (to the extent such limit is
not reached in 2003 the shortfall may be carried forward to 2004) and (b) exceptional expenses in respect of the transfers referred to in conditions subsequent (A) and (B) up to £5,000,000 in aggregate will be excluded;

		
	 	  	 Annualised EBITDA will be four times the last Quarter’s EBITDA;

		
	 	  	 The definitions of Total Capital Expenditure and Contribution will be as agreed in the draft Amended and Restated Facility Agreement;

		
	 	  	 Total Senior Debt Interest Charges will be the total accrued interest cost of the TCN Group including lease interest, bank interest and periodic commission and
fees and amounts up-streamed to fund interest payable on new debt raised by Delco that has been used to prepay and permanently cancel the Facilities (as set out under Negative Covenants (m)) (less)

  

 32 

			
	 	  	 interest income from cash on deposit of the TCN Group. (taking account of interest rate hedging arrangements).

		
	 	  	The financial covenants (tested on a quarterly basis) will comprise:
		
	 	  	 (A)   Total Senior Debt to Annualised EBITDA -determined on the basis of a headroom from the EBITDA projections
contained in the Long Range Plan as follows:

  

					
	 	  	 Quarter ending

	  	Ratio of Total Senior
Debt to Annualised
EBITDA (maximum)

	 	  	 31 March 2004
	  	5.75:1
	 	  	 30 June 2004
	  	5.40:1
	 	  	 30 September 2004
	  	5.00:1
	 	  	 31 December 2004
	  	4.80:1
	 	  	 31 March 2005
	  	4.80:1
	 	  	 30 June 2005
	  	4.50:1
	 	  	 30 September 2005
	  	4.20:1
	 	  	 31 December 2005
	  	4.05:1

  

			
	 	 	 (B)   Rolling six months EBITDA to rolling six months Total Senior Debt Interest Charges -determined on the basis of
a headroom from the EBITDA projections contained in the Long Range Plan as follows:

  

					
	 	  	 Quarter ending

	  	Ratio of rolling six
months EBITDA to
rolling six months Total
Senior Debt Interest
Charges (minimum)

	 	  	 31 March 2004
	  	1.95:1
	 	  	 30 June 2004
	  	2.05:1
	 	  	 30 September 2004
	  	2.25:1
	 	  	 31 December 2004
	  	2.40:1
	 	  	 31 March 2005
	  	2.40:1
	 	  	 30 June 2005
	  	2.65:1
	 	  	 30 September 2005
	  	2.90:1
	 	  	 31 December 2005
	  	3.15:1

  

			
	 	  	 (C)   Maximum rolling twelve months Total Capital Expenditure - determined on the basis of a headroom from the
rolling 12 month Total Capital Expenditure contained in the Long Range Plan as set out below. The headroom shall be increased by 50 per cent. of the amount by which actual EBITDA for the twelve month period ending immediately prior to the testing
period and in respect of which Quarterly

  

 33 

			
	 	 	 Management Accounts have been delivered exceeds the projected EBITDA for such twelve month period contained in the Long Range Plan. This covenant shall cease to
apply in respect of all Quarterly Periods after the Quarterly Period in respect of which Total Senior Debt to Annualised EBITDA is less than 4x, save that should Total Senior Debt to Annualised EBITDA be more than or equal to 4x for any subsequent
Quarterly Period, this covenant will be reinstated automatically for such Quarterly Period and all subsequent Quarterly Periods (unless the ratio of Total Senior Debt to Annualised EBITDA is again less than 4x, in which event the provisions of this
sentence shall apply again).

  

					
	 	  	 Quarter ending

	  	Maximum rolling 12
month Total Capital
Expenditure (£’m)

	 	  	31 March 2004	  	410
	 	  	30 June 2004	  	400
	 	  	30 September 2004	  	390
	 	  	31 December 2004	  	390
	 	  	31 March 2005	  	385
	 	  	30 June 2005	  	375
	 	  	30 September 2005	  	370
	 	  	31 December 2005	  	365

  

			
	 	 	 (D)   Contribution on a six month rolling basis - to be determined on the basis of a headroom from the Contribution
contained in the Long Range Plan as set out below. This covenant shall cease to apply in respect of all Quarterly Periods after the Quarterly Period in respect of which Total Senior Debt to Annualised EBITDA is less than 4x save that should Total
Senior Debt to Annualised EBITDA be more than or equal to 4x for any subsequent Quarterly Period this covenant will be reinstated automatically for such Quarterly Period and all subsequent Quarterly Periods (unless the ratio of Total Senior Debt to
Annualised EBITDA is again less than 4x, in which event the provisions of this sentence shall apply again).

  

					
	 	  	 Quarter ending

	  	Minimum rolling six
month Contribution
(£’m)

	 	  	31 March 2004	  	420
	 	  	30 June 2004	  	430
	 	  	30 September 2004	  	445
	 	  	31 December 2004	  	455
	 	  	31 March 2005	  	465
	 	  	30 June 2005	  	480
	 	  	30 September 2005	  	495
	 	  	31 December 2005	  	505

  

 34 

			
		
	 	  	For the avoidance of doubt, there will be no cure provisions in respect of financial covenants.
		
	Positive Covenants:	  	Save as set out below, it is intended that the Positive Covenants will be on the same terms as and subject to the existing limitations, exceptions and materiality.
		
	 	  	 (a)    notification of defaults;

		
	 	  	 (b)    obtain and maintain all consents, etc. required in connection with the Finance Documents;

		
	 	  	 (c)    obtain and maintain, as necessary, every telecommunications, cable and broadcasting
licence;

		
	 	  	 (d)    obtain and maintain all other necessary authorisations;

		
	 	  	 (e)    only engage in the business of acting as holder of shares and/or partnership interests in other TCN Entities,
constructing, installing, operating and utilising cable television and/or telecommunications systems and/or the business of broadcasting and directly related business;

		
	 	  	 (f)     prepare consolidated financial statements for the TCN Group;

		
	 	  	 (g)    prepare quarterly management accounts and monthly management accounts for the TCN Group (monthly management
accounts to be delivered within 28 days of month end). [The format of quarterly/monthly accounts is to be agreed];

		
	 	  	 (h)    prepare 13 week cash flow forecasts on a monthly basis and deliver the same on the first day of each
month;

		
	 	  	 (i)     ensure financial statements/annual budget are prepared in accordance with GAAP and on a consistent basis
(or provide a reconciliation statement);

		
	 	  	 (j)     deliver to the Agent (i) all documents issued to creditors, (ii) documents evidencing default/
crystallisation of Lessor/Crosby Sterling obligations, (iii) Compliance Certificates

  

 35 

			
	 	 	 (quarterly by TCN, annually by auditors), (iv) annual monthly budget by 31 December, (v) revised financial projections and revised projections for operating
statistics by 31 December and (vi) documents delivered to shareholders/public documents;

		
	 	 	 (k)    PWC to perform quarterly review of KPIs and quarterly review of management accounts and cash flow forecasts and
attend quarterly meetings with senior management (to report back to Lenders). The terms of engagement of PWC will be agreed between TCN and the Agent. The role of PWC will fall away (save in relation to the quarter ending 31 December 2004 for the
purposes of reviewing the calculation of the upfront fee under paragraph (iii) thereof) once the ratio of Total Senior Debt to Annualised EBITDA is less than 4x, save that should Total Senior Debt to Annualised EBITDA be more than or equal to 4x for
any subsequent Quarterly Period the role of PWC will be reinstated automatically (unless the ratio of Total Senior Debt to Annualised EBITDA is again less than 4x, in which event the provisions of this sentence will apply
again);

		
	 	 	 (l)     maintain financial year end of 31 December;

		
	 	 	 (m)   ensure new authorised officers have provided evidence of authorisation;

		
	 	 	 (n)    maintain KPMG or another recognised international firm as auditors;

		
	 	 	 (o)    supply details of (i) litigation, (ii) communications from any relevant regulatory body and (iii) all such other
financial information reasonably required;

		
	 	 	 (p)    maintenance of insurances;

		
	 	 	 (q)    permit Agent access to properties, books and records, officers and auditors;

		
	 	 	 (r)     notify the Agent of material environmental claims etc. and provide copies of any material environmental
licences etc.;

		
	 	 	 (s)    comply with law and regulations;

		
	 	 	 (t)     notify the Agent of Relevant Substances brought into property giving rise to an Environment
Claim;

  

 36 

			
	 	 	 (u)    prompt payment of taxes;

		
	 	 	 (v)    ensure TCN Entities account for not less than 95 per cent. in aggregate of the gross assets, consolidated EBITDA
and revenues;

		
	 	 	 (w)   ensure all Material Group Entities give guarantees and enter into the security package;

		
	 	 	 (x)    make one of the Chief Executive Officer, Managing Director and Chief Financial Officer of the Delco Group and
other appropriate senior management of the Delco Group available for Lender meetings on a six monthly basis;

		
	 	 	 (y)    comply with the Reimbursement Agreement;

		
	 	 	 (z)    maintain a prudent policy for management of interest rate and foreign exchange exposures (to be agreed and
implemented);

		
	 	 	 (aa)  on a daily basis all cash balances in excess of £20 million to be swept into a charged account maintained by one of
the Overdraft Lenders. The amount of up to £20 million held outside the charged account may be held in Permitted Financial Investments;

		
	 	 	 (bb)  (i) all contracts entered into by Telewest to be renewed on expiry in the name of a TCN Entity and (ii) all contracts
entered into after the Recapitalisation Supplemental Effective Date in connection with the business of the TCN Group to be in the name of a TCN Entity;

		
	 	 	 (cc)  inform the Agent of any changes to the Board of Directors of TCN as soon as reasonably practicable and in any event at
least one Banking Day prior to any public announcement thereof; and

		
	 	 	 (dd)  notify the Agent (i) prior to convening a meeting of the directors to consider filing for any voluntary US bankruptcy
proceedings, (ii) prior to making any such filing, (iii) of any resolution of the directors to make such filing and (iv) upon becoming aware of any creditor intending to make any filing under US bankruptcy proceedings.

  

 37 

			
	Negative Covenants:	  	Save as set out below, it is intended that the Negative Covenants will be on the same terms as and subject to the existing limitations, exceptions and materiality:
		
	 	  	 (a)    negative pledge in respect of each TCN Entity (carve out for permitted encumbrances set out in paragraphs (a),
(b), (e), (f), (g), (h), (i), (j), (l) and (m) of the current definition of Permitted Encumbrances);

		
	 	  	 (b)    no merger or consolidation by any TCN Entity other than as set out in the current Facility
Agreement;

		
	 	  	 (c)    no disposals by any TCN Entity (carve out for the permitted disposals set out in paragraphs (a), (b), (c), (d),
(e), (g), (h) and (i) of the current definition of Permitted Disposals). For the avoidance of doubt, an IPO of, or the disposal of, any Joint Venture, vendor financing or sale and leasebacks of newly acquired assets and the rolling over of existing
vendor financing and sale and leasebacks shall be permitted, subject to the mandatory prepayment provisions and paragraph (d) below. There will be an additional permitted disposal in respect of all or part of the Flextech business provided that such
disposal is on bona fide arms length terms and subject to the Mandatory Prepayment provisions;

		
	 	  	 (d)    no borrowing by any TCN Entity (carve out for the permitted borrowings set out in paragraphs (a), (b), (c), (d),
(e) and (i) of the current definition of Permitted Borrowings save that paragraph (d) shall be amended to allow leases and vendor financing in respect of newly acquired assets and the rollover of existing leasing and vendor financing arrangements on
fair market terms (provided that security is limited to the assets supplied) up to a maximum aggregate amount of £350 million and paragraph (i) shall be amended to read £20 million). Additional permitted borrowing in respect of deferral
of PAYE by TCN with the agreement of the Inland Revenue;

		
	 	  	 (e)    no guarantees by any TCN Entity (carve out for permitted guarantees set out in paragraphs (a) to (e) inclusive
of the current definition of Permitted Guarantees save that paragraph (e) shall be amended to read £20 million);

		
	 	  	 (f)     no issue of shares by TCN or any TCN Entity other than to Subco or (as the case may be) a TCN Entity in
circumstances where such shares are charged to the Lenders;

		
	 	  	 (g)    no TCN Entity to lend any money to any person (carve out for all the permitted loans as set out in the current
definition of Permitted Loans);

  

 38 

			
	 	 	 (h)    no TCN Entity will create or acquire any subsidiary company or partnership or otherwise make any acquisition of
a business or make any other investment (including debt securities/ commercial paper) (carve out for the permitted investments set out in each of paragraphs (a), (d) (in relation to the amount of up to £20 million held outside the charged
account only), (e) and (f) of the current definition of Permitted Investments, save that paragraph (f) shall be amended to read £15 million save that if the TCN Group is free cash flow positive for two consecutive Quarterly Periods the figure
shall be increased to £25 million. In addition any investment made pursuant to this exception above £15 million shall be counted as Capital Expenditure and only be permitted to the extent that it would not cause a breach of financial
covenant at paragraph (C);

		
	 	 	 (i)     the TCN Group (taken as a whole) will not change its business in any material
respect;

		
	 	 	 (j)     no TCN Entity to change its constitutional documents;

		
	 	 	 (k)    no TCN Entity to enter into any arrangements with Restricted Persons (other than bona fide arms length
arrangements in the ordinary course of trading and those existing and approved prior to signing);

		
	 	 	 (l)     no Restricted Person to have outstanding liabilities to TCN Entities which are not satisfied within 60
days;

		
	 	 	 (m)   prohibition on distributions or other upstream payments of any nature by the TCN Group (including, without limitation
a prohibition on payments to fund payments on borrowings and derivatives contracts outside the TCN Group) save for (i) payments on an arm’s length basis to Subco to fund costs and expenses of Delco and Subco incurred in relation to acting as
holding companies for the Delco Group of up to £5,000,000 in respect of each financial year and (ii) payments from TCN to Subco and by Subco to Delco to fund the interest payable on new debt raised by Delco that has been used to prepay and
permanently cancel the Facilities provided that the amount thereof does not exceed the lower of (A) the amount of interest that would have been paid on the amount of the Facilities so prepaid in respect of the same period and (B) the amount of
interest due and payable on that part of

  

 39 

			
		
	 	  	 the new debt used to make such prepayment in respect of the same period;

		
	 	  	 (n)    no member of the TCN Group will employ employees or carry on any business, maintain any place of business,
books, records, bank or similar accounts, property or other assets in the USA;

		
	 	  	 (o)    TCN may not reduce its share capital;

		
	 	  	 (p)    restrictions in respect of members of the Joint Venture Group regarding borrowings, encumbrances, loans and
disposals;

		
	 	  	 (q)    no swaps or hedging (other than in accordance with the agreed policy referred to in paragraph (z) of Positive
Covenants);

		
	 	  	 (r)     TCN may not allow any Joint Ventures to be terminated, disposed of or convene any meeting to create new
shares; and

		
	 	  	 (s)    not to purchase or exchange any debt of the TCN Group or prepay (or offer to prepay) any such debt other than
(i) the Facilities (ii) permitted borrowings under the permitted borrowings £20,000,000 basket and (iii) the refinancing of finance leases and vendor financing arrangements on fair market terms.

		
	Covenants by Subco:	  	 
		
	 	  	 (a)    to maintain 100 per cent of the voting and economic interest in TCN;

		
	 	  	 (b)    to act solely as a holding company so that Subco does not own any assets used in the TCN Group or any other
material assets (other than the shares in TCN), does not undertake any borrowing (other than of the proceeds of new equity or debt issues on-lent by Delco), does not establish or acquire any person or business other than TCN or make any other
investment, does not enter into any derivatives contracts, does not give any security or give any guarantees (save for (i) guarantees given by Telewest in respect of trading obligations of the TCN Group outstanding on the date of these Indicative
Terms and Conditions, (ii) guarantees to be given by Subco under finance leases with Hewlett Packard outstanding on the date of these Indicative Terms and Conditions and in respect of the obligations of Telewest Communications Holdco Limited under
the sale and purchase agreement dated 28 March 2002 in relation to the sale of TV Travel Group Limited, in

  

 40 

			
		
	 	  	 circumstances where the counterparty requires such guarantees in consideration for release of existing guarantees of Telewest and (iii) guarantees given to the
Lenders);

		
	 	  	 (c)    not to raise any new equity (other than from Delco) or to merge or consolidate with any other
person;

		
	 	  	 (d)    to inform the Agent of any changes to the Board of Directors as soon as reasonably practicable and in any event
at least one Banking Day prior to making any public announcement thereof;

		
	 	  	 (e)    not to, and ensure that the TCN Group does not, employ any employees or carry on any business or maintain any
place of business, books, records, bank or similar accounts, property or other assets in the USA; and

		
	 	  	 (f)     to notify the Agent (i) prior to convening a meeting of the directors to consider filing for any voluntary
US bankruptcy proceedings, (ii) prior to making any such filing, (iii) of any resolution of the directors to make such filing and (iv) upon becoming aware of any creditor intending to make any filing under US bankruptcy
proceedings.

		
	Covenants by Delco:	  	 (a)    to maintain 100 per cent of the voting and economic interest in Subco;

		
	 	  	 (b)    to act solely as a holding company so that Delco does not own any assets used in the TCN Group or any other
material assets (other than the shares in Subco), does not establish or acquire any person or business (other than Subco) or make any other investment or give any security or guarantees (save to the Lenders);

		
	 	  	 (c)    to maintain a listing on one of NASDAQ, the New York Stock Exchange or the official list of the UKLA and to
provide financial information as soon as it is available publicly;

		
	 	  	 (d)    to inform the Agent of any changes to the Board of Directors and provide the Agent with copies of all material
public announcements, in each case as soon as reasonably practicable and in any event, to the extent not prohibited by law or regulation, at least one Banking Day prior to any public announcement thereof;

  

 41 

			
		
	 	 	 (e)    there will be no restriction on the raising of new equity by Delco or any Affiliate of Delco. Delco will procure
that no holding company of TCN or other subsidiary of Delco (other than Subco in respect of the borrowing of the proceeds of new equity or debt issues by Delco) undertakes any borrowing, save that raising of new debt (including PIK) by Delco will be
permitted subject to the following conditions:

		
	 	 	 (i)     subject to Mandatory Prepayment, to a limit in respect of the net proceeds received of 5.5x Total Delco
Group Gross Debt to Annualised EBITDA (tested at the time the debt is incurred and including such debt and accreted interest to the testing date). In addition, to the extent that Delco raises PIK debt, the accreted amount of PIK debt to 30 June 2006
cannot exceed £500,000,000;

		
	 	 	 (ii)    maturity date no earlier than 1 January 2010. Refinancing out of the proceeds of new equity issues (subject to
the terms set out in paragraph (j) below) or new debt issues (on no worse terms) subject to the terms of this paragraph (e) will be permitted;

		
	 	 	 (iii)  save as permitted under Negative Covenant (m), no principal or interest to be serviced (in whole or in part) before, at or
after maturity by the TCN Group;

		
	 	 	 (iv)   to the extent that any amounts are downstreamed by way of subordinated debt to Subco, save as permitted under
Negative Covenant (m), this will be on a non-interest bearing basis, with a maturity no earlier than 1 January 2010 and with no early right of redemption;

		
	 	 	 (f)     to keep the Lenders informed of, and consulted in relation to, the proposed composition of the board of
directors and senior management of Delco and any directors or management incentivisation scheme and ensure that the Lenders’ views are considered in finalising such composition and any such incentivisation scheme;

		
	 	 	 (g)    not to merge or consolidate with any other person save as permitted under Mandatory Prepayment
(A);

  

 42 

			
		
	 	  	 (h)    to notify the Agent (i) prior to convening a meeting of the directors to consider filing for any voluntary US
bankruptcy proceedings, (ii) prior to making any such filing, (iii) of any resolution of the directors to make such filing and (iv) upon becoming aware of any creditor intending to make any filing under US bankruptcy
proceedings;

		
	 	  	 (i)     to ensure that the TCN Group does not employ any employees or carry on any business or maintain any place
of business, books, records, bank or similar accounts, property or assets in the USA;

		
	 	  	 (j)     unless on the immediately preceding testing day the ratio of Total Senior Debt to Annualised EBITDA
(calculated on the same basis as Financial Covenant (A)) was less than 3.5:1, to procure that 50 per cent. of the net proceeds of any raising of new equity by Delco or any Affiliate of Delco are (indirectly through Subco) downstreamed to TCN and 25
per cent. of the net proceeds of any raising of new equity by Delco or any Affiliate of Delco are used to prepay and permanently cancel the Facilities in accordance with Mandatory Prepayment (E)(i). To the extent that the Facilities have been
voluntarily prepaid and permanently cancelled out of the proceeds of the raising of new debt by Delco the net proceeds of any raising of new equity by Delco or any Affiliate of Delco may be used to prepay such debt and the amount so used shall be
deducted in determining the net proceeds of such raising of equity for the purposes of this paragraph (j); and

		
	 	  	 (k)    represent and warrant that the latest audited financial statements of the Delco Group present the financial
position of the Delco Group fairly and accurately.

		
	 Delco, Subco
 and TCN
separate
 entities:
	  	Without prejudice to other covenants set out in these Indicative Terms and Conditions, each of Delco, Subco and TCN will be maintained as separate corporate entities, including the following
measures:
		
	 	  	 (a)    maintain separate books and records;

		
	 	  	 (b)    not co-mingle assets;

		
	 	  	 (c)    conduct business in their own names;

  

 43 

			
		
	 	  	 (d)    maintain separate financial statements;

		
	 	  	 (e)    pay their own liabilities from their own funds (save for guarantees referred to under paragraph (b) of Covenants
by Subco or under paragraph (b) of Covenants by Delco (as the case may be));

		
	 	  	 (f)     observe all corporate formalities;

		
	 	  	 (g)    maintain an arm’s length relationship with affiliates;

		
	 	  	 (h)    pay salaries of their own employees;

		
	 	  	 (i)     not guarantee or become obligated for the debts of each other or hold their credit out as being available
to satisfy the obligations of creditors of each other (save for guarantees referred to under paragraph (b) of Covenants by Subco or under paragraph (b) of Covenants by Delco (as the case may be));

		
	 	  	 (j)     use separate stationery, invoices and cheques;

		
	 	  	 (k)    not pledge their assets for the benefit of each other, except as expressly required by the Facilities;
and

		
	 	  	 (l)     hold themselves out as separate entities.

		
	 	  	The above restrictions shall not preclude TCN from taking out or maintaining liability insurance in respect of the entire Delco Group provided that this is consistent with Negative Covenant
(n).
		
	Events of Default:	  	Save as set out below, it is intended that the Events of Default will be on the same terms as and subject to the existing limitations, grace periods, exceptions, materiality and qualifiers.
The Events of Default shall apply to Delco, Subco, each TCN Entity and, in the case of paragraphs (h) to (o) and (v), each member of a Joint Venture Group.
		
	 	  	 (a)    non-payment;

		
	 	  	 (b)    breach of certain key terms of the Financing Documents (including financial covenants);

		
	 	  	 (c)    breach of other terms of the Financing Documents (subject to a grace period);

		
	 	  	 (d)    any representation or warranty being incorrect or misleading in any material respect;

  

 44 

			
		
	 	 	 (e)    any security document being ineffective or ceasing to constitute the security purported to be constituted
thereby at the date of closing;

		
	 	 	 (f)     cross default subject to an aggregate de minimis limit of £35,000,000. Cross acceleration subject to
an aggregate de minimis limit of £20,000,000;

		
	 	 	 (g)    the relevant counterparty being entitled to terminate interest rate or currency hedging arrangements subject to
an aggregate de minimis limit of £35,000,000. The relevant counterparty terminating interest rate or currency hedging arrangements subject to an aggregate de minimis limit of £20,000,000;

		
	 	 	 (h)    the appointment of an administrative or other receiver or the taking of legal proceedings to enforce any
Encumbrance;

		
	 	 	 (i)     an insolvency event occurs or the relevant entity stops or suspends making payments in respect of its
debts or is unable or announces an intention so to do;

		
	 	 	 (j)     any judgment or order is made and not stayed or complied with or a creditor takes possession of or process
is levied against any material assets;

		
	 	 	 (k)    steps are taken or negotiations commenced by or with any creditors with a view to proposing any kind of
arrangement with creditors;

		
	 	 	 (l)     legal proceedings are started for winding-up the relevant entity, a winding-up order is made, a resolution
is passed to wind-up the relevant entity or a notice is issued of a meeting for such purpose;

		
	 	 	 (m)   any step is taken for the purposes of the appointment of an administrator or an administration order is
made;

		
	 	 	 (n)    any filing for proceedings under the US bankruptcy code;

		
	 	 	 (o)    an analogous insolvency event occurs in any other jurisdiction;

		
	 	 	 (p)    Subco ceasing to be a wholly owned subsidiary of Delco or TCN ceasing to be a wholly owned subsidiary of Subco
or any TCN Entity ceasing to be wholly owned by TCN (with the exception of existing minority interests);

  

 45 

			
		
	 	  	 (q)    TCN ceases to have a TCN Independent Director at any time;

		
	 	  	 (r)     performance of any Finance Document becomes unlawful;

		
	 	  	 (s)    non-compliance with telecommunications laws;

		
	 	  	 (t)     repudiation of any Finance Document;

		
	 	  	 (u)    seizure, nationalisation, appropriation or compulsory acquisition of Material Assets;

		
	 	  	 (v)    Material Adverse Effect; and

		
	 	  	 (w)   Joint Venture material events.

		
	Novation:	  	Each Lender will have the right to novate its commitment and/or outstandings under the Facilities in a minimum amount of £5 million to a Qualifying Lender, subject to, other than when
there is an outstanding Default, the consent of TCN (not to be unreasonably withheld or delayed) provided that the holding level of each Lender after such transfer is in excess of £5 million.
		
	 	  	Each Lender shall be permitted to transfer its commitment and/or outstandings under any Facility without transferring on a pro rata basis its commitment and/or outstandings under any other
Facility.
		
	Sub-participation:	  	Unrestricted.
		
	Taxes:	  	All payments are to be made free and clear of all taxes except where required by law and subject to gross up in the case of a Qualifying Lender.
		
	Majority Lenders:	  	The provisions of the Finance Documents will be subject to amendment and/or waiver by the Majority Lenders (namely 66 2/3 per cent. of the undrawn commitments and outstandings under all
facilities) save that (i) the unanimous consent of the Lenders will be required for certain matters typical for facilities of this nature and (ii) the consent of the Lenders whose commitments or outstandings represent 95 per cent. or more of the
total commitments or outstandings will be required in order to release any asset or entity from the security package.

  

 46 

			
		
	Representations And Warranties:	 	Save as set out below, it is intended that the representations and warranties will be on the same terms as and subject to the existing limitations, exceptions, materiality and
qualifiers:
		
	 	 	Repeated Representations and Warranties
		
	 	 	 (a)    due incorporation or formation of each TCN Entity and power of the same to carry on its business and execute,
deliver and perform its obligations under the Finance Documents;

		
	 	 	 (b)    the taking of all necessary action to execute, deliver and perform the Finance Documents;

		
	 	 	 (c)    the Finance Documents constitute valid and legally binding obligations of all relevant parties enforceable in
accordance with their terms (subject to legal opinion qualifications);

		
	 	 	 (d)    execution, delivery and performance of the Finance Documents not contravening any law, judgement etc., any
constitutional document, any licence or agreement evidencing borrowed money or resulting in the creation of an encumbrance;

		
	 	 	 (e)    no filings, registrations etc. required in relation to any of the Finance Documents;

		
	 	 	 (f)     the choice of law and the submission to the jurisdiction being valid and binding;

		
	 	 	 (g)    save as disclosed and subject to permitted encumbrances, legal and beneficial ownership of all relevant material
assets with valid title;

		
	 	 	 (h)    solvency of Associated Partnerships;

		
	 	 	 (i)     certain environmental matters;

		
	 	 	 (j)     maintenance of intellectual property rights and copyrights and no infringement of third parties’
intellectual property rights or copyrights;

		
	 	 	 (k)    drawdown proceeds to be used for the permitted purposes;

		
	 	 	 (l)     no material litigation;

		
	 	 	 (m)   (i) the latest audited financial statements of the TCN Group present the financial position of the TCN Group fairly
and accurately, (ii) the latest quarterly management accounts and monthly management accounts present the relevant financial position fairly and accurately, (iii) the latest 13 week cash flow forecasts having been prepared in good faith and based
upon reasonable assumptions and (iv) latest projections prepared in

  

 47 

			
		
	 	  	 good faith and based upon reasonable assumptions; and

		
	 	  	 (n)    TCN Group carrying on business solely in the United Kingdom.

		
	 	  	Further representations and warranties to be given on date of Amendment and Restatement Agreement
		
	 	  	 (a)    the Licences being in full force and effect and all necessary Licences having been
maintained;

		
	 	  	 (b)    all necessary consents having been obtained;

		
	 	  	 (c)    no withholding tax;

		
	 	  	 (d)    compliance in all material respects with telecommunications, cable and broadcasting laws;

		
	 	  	 (e)    no Default has occurred and is continuing;

		
	 	  	 (f)     projections in the Long Range Plan prepared in good faith and based upon reasonable
assumptions;

		
	 	  	 (g)    each member of the TCN Group (other than Immaterial Group Entities) being party to the Facility
Agreement;

		
	 	  	 (h)    neither TCN Entities or any member of the Joint Venture Group being a “disqualified” person for the
purposes of the Broadcasting Act 1990 (as amended);

		
	 	  	 (i)     Joint Venture Documentation in full force and effect; and

		
	 	  	 (j)     latest Group structure chart delivered true, complete and accurate.

		
	 	  	The repeated representations and warranties will be repeated on each drawdown and on all interest payment dates.
		
	TCN Hedging:	  	Hedging Counterparties of TCN to be a member of the syndicate and to share rateably in the security package to be given to the Lenders. The existing interest rate hedging arrangements to
remain in place.
		
	Other Terms:	  	All other terms appropriate for a facility of this nature including indemnities, unlawfulness, increased costs set-off, confidentiality, disruption in financial markets and costs and
expenses.

  

 48

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