Document:

EXHIBIT 10.23

APPENDIX 1

SHARE PLEDGE AGREEMENT

RELATING
TO THE SHARES IN 

KABEL DEUTSCHLAND BREITBAND SERVICES GMBH

12 May 2006

between

KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG

as Pledgor

THE ROYAL BANK OF SCOTLAND PLC

as Security Agent

and

THE FINANCE PARTIES

 

Allen & Overy LLP

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
   

  	
  Independent Pledges

  	
   

  	
  8

  
	
  4.

  	
   

  	
  Security Purposes

  	
   

  	
  9

  
	
  5.

  	
   

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  10

  
	
  7.

  	
   

  	
  Enforcement of Pledges

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
   

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
   

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
   

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
   

  	
  Costs and Expenses 

  	
   

  	
  14

  
	
  14.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  14

  
	
  15.

  	
   

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
   

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
   

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

THIS SHARE
PLEDGE AGREEMENT (the
Agreement) is made on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG, a limited
partnership (Kommanditgesellschaft)
organised under the laws of the Federal Republic of Germany, having its corporate
seat in Unterföhring (Landkreis München), Federal Republic of Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902 (the Pledgor);

on
one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a public limited company, having its
registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of Scotland and being registered with the Companies
House under registration number SC 090312

(the
Security Agent); and

(3)                                  the FINANCE PARTIES as defined in Clause 1.1
below

(the
Security Agent and each Original Finance Party (as defined below) are
hereinafter referred to individually as an Original
Pledgee and together as the Original
Pledgees)

on
the other side.

The
Pledgor and the Pledgees (as defined below) are hereinafter collectively
referred to as the Parties.

WHEREAS:

(A)                              The Lenders
(as defined below) have agreed to make available to each of the Borrowers (as
defined below) certain credit facilities on the terms of and subject to the
Credit Agreement (as defined below).

(B)                                It is a
condition to the Lenders making the credit facilities available pursuant to the
Credit Agreement that the Pledgor enters into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accounting Principles means
accounting principles, policies, standards, bases and practices which, as at
the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze
ordnungsgemäßer Buchführung und Bilanzierung).

Additional Borrower means a member of the Group which
becomes a borrower under the Credit Agreement after the date of its execution.

Additional Facility means an Add-On Facility or an External
Facility.

 1
 

 

Add-On
Facility Accession Agreement means an accession deed pursuant to
which any person or entity accedes to the Credit Agreement as provider of an
Add-On Facility.

Add-On Facility means any additional loan facility
provided under the Credit Agreement which has Eligible Terms.

Add-On Facility Lender means:

(a)                                  an Original
Add-On Facility Lender; or

(b)                                 any person
which has become a lender under an Add-On Facility.

Administrative Party means a Mandated Lead Arranger, the
Facility Agent or the Security Agent.

Agreed Priority Agreement Principles means the
principles pursuant to which the Existing Priority Agreement shall be amended.

Ancillary Facility means any facility or financial
accommodation (including any overdraft, foreign exchange, guarantee, bonding,
documentary or standby letter of credit, credit card or automated payments
facility) established by a Lender in place of all or parts of its respective
facility commitment.

Ancillary Facility Document means any
document evidencing any Ancillary Facility.

Ancillary Lender means any lender providing for an
Ancillary Facility.

Ancillary Outstandings means, at any
time and with respect to any Ancillary Facility of any Ancillary Lender, the
aggregate of all of the following amounts (as calculated by that Ancillary
Lender) outstanding at that time under that Ancillary Facility:

(a)                                  all amounts of
principal then outstanding under any overdraft, cheque drawing or other account
facilities determined on a gross basis unless such facilities are made
available on the basis of netting arrangements satisfactory to the Ancillary
Lender in which case, such outstanding principal amounts shall be determined on
the net debt basis used by that Ancillary Lender;

(b)                                 the maximum
potential liability (excluding amounts stated to be in respect of interest and
fees) under all guarantees, bonds and letters of credit then outstanding under
that Ancillary Facility; and

(c)                                  in respect of
any other facility or financial accommodation, such other amount (excluding
interest and similar charges) as fairly represents the aggregate exposure of
that Ancillary Lender under that facility or accommodation, as reasonably
determined by that Ancillary Lender from time to time in accordance with its
usual banking practice for facilities or accommodation of the relevant type.

BGB means the German Civil Code (Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional Borrower.

Business Day means a day (other than a Saturday or a
Sunday) on which banks are open for general business in London and Frankfurt am
Main and which is also a TARGET Day.

Company means Kabel Deutschland Breitband
Services GmbH, a limited liability company (Gesellschaft
mit beschränkter Haftung) incorporated under the laws of Germany,
having its

 2
 

 

corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRB 122932.

Commitment Letter means the commitment letter dated on or
about the date of the Credit Agreement between the Arranger, the Original
Lender, KDG and KDVS.

Compliance Certificate means any
compliance certificate issued or to be issued by any Obligor in connection with
the Credit Agreement setting out the compliance with certain financial ratios
and/or covenants.

Credit Agreement means the EUR 1,350,000,000 senior
credit agreement dated on or about 13 March 2006 between, amongst others, the
Mandated Lead Arranger, the Facility Agent, the Security Agent, KDVS, KDG and
the Original Lender providing for EUR 1,350,000,000 senior credit facilities
and up to EUR 650,000,000 Add-On Facilities.

Eligible Terms means, in respect of any Additional
Facility:

(a)                                  the final
maturity date of that Additional Facility must be a date falling at least six
months after 31 March 2012;

(b)                                 there must be
no amortisation required in respect of that Additional Facility;

(c)                                  that
Additional Facility must be a term facility (which, in the case of an External
Facility, may include notes, bonds or any other term credit arrangement which
is not capable, by its terms, of being repaid or prepaid and redrawn before the
date falling at least six months after 31 March 2012 (it being acknowledged
that such arrangement may have customary change of control, voluntary
prepayment, asset sale and similar prepayment provisions)); and

(d)                                 the purpose
must be to fund a Permitted Acquisition;

(e)                                  the principal
amount of that Additional Facility (together with the principal amount of all
other Additional Facilities) may not exceed the lower of:

(i)                                     €650,000,000;
and

(ii)                                  the amount
which, if fully utilised on the date of completion of the relevant Permitted
Acquisition, would not result in any breach of certain financial covenant
ratios;

and

(f)                                    the
liabilities of the obligors thereunder are to be treated and rank as a senior
debt under the Existing Priority Agreement and/or the Priority Agreement and to
have the benefit of all relevant Security Documents (whether through execution
of new documents or amendment to existing documents) or (in each case) to have
such lower ranking as is agreed by all the lenders of that Additional
Facility.  For these purposes relevant Security Documents means Security
Documents comprising the same assets and shares comprised in Security Documents
executed prior to the establishment of that Additional Facility, it being
acknowledged that prior-ranking Security Documents will remain in place (with
the proceeds of enforcement of all Security Documents subject to the sharing
provisions of the Priority Agreement).

Euro, euro, EUR
or € means the single European
currency introduced 1 January 1999.

 3
 

 

Existing
Priority Agreement means the priority agreement dated 29 March
2004, as amended and restated prior to the date of the Credit Agreement and in
force on the date of the Credit Agreement to which, amongst others, KDG and
KDVS are parties (disregarding the amendments implemented to create an amended
priority agreement in connection with the Credit Agreement).

Existing Shares means the shares set forth in Clause
2.1.

External Facility means any term credit agreement which
has Eligible Terms.

Event of Default means an event of default under any of
the Finance Documents, which entitles the Facility Agent to declare that all or
part of any amounts outstanding under the Finance Documents or any of them are
immediately due and payable, or payable on demand.

Facility Agent means The Royal Bank of Scotland plc, a
public limited company, having its registered office at: 36 St. Andrew Square,
EH2 2YB Edinburgh, Scotland, incorporated under the laws of the United Kingdom
and being registered with the Companies House under registration number SC
090312.

Fee Letter means any letter entered into by
reference to the Credit Agreement between one or more Administrative Parties
and an Obligor setting out the amount of certain fees which are payable, inter
alia, in relation to the Credit Agreement.

Finance Document means:

(a)                                  the Credit
Agreement;

(b)                                 the Commitment
Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor
Accession Deed;

(e)                                  a Transfer
Certificate;

(f)                                    an Ancillary
Facility Document;

(g)                                 the Hedging
Letter;

(h)                                 an Add-On
Facility Accession Agreement;

(i)                                     a Hedging
Document;

(j)                                     a Security
Document;

(k)                                  the Priority
Agreement;

(l)                                     a Compliance
Certificate;

(m)                               a Request; and

(n)                                 any other
document designated as such by the Facility Agent and KDG.

Finance Party means an Administrative Party, an
Underwriter, a Lender or a Hedging Bank.

Future Pledgee means a Finance Party (other than an
Original Finance Party).

 4
 

 

Future
Shares means any and all shares in the Company issued in addition to the
Existing Shares which the Pledgor may acquire in future (including shares newly
issued by way of capital increase (Kapitalerhöhung)
or otherwise).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries (but excluding
any Unrestricted Subsidiary).

Hedging Letter means a letter dated on or about the
date of the Credit Agreement between KDG, the Mandated Lead Arranger and the
Facility Agent relating to the interest and currency hedging to be effected by
the Group and any other letter designated as such by KDG and the Facility Agent
which amends or supplements the terms of that letter.

Hedging means any interest rate or currency
swap, derivative transaction or hedging facility.

Hedging Bank means:

(a)                                  each Original
Hedging Bank; or

(b)                                 each party
(other than an Obligor) which shall at any relevant time be or become a party
to any Hedging Document.

Hedging Document means

(a)                                  each master
agreement, confirmation or other document evidencing any Hedging provided by a
Hedging Bank to an Obligor; or

(b)                                 otherwise
entered into on the basis that under the terms of the Finance Documents any
party to such document (other than an Obligor) in such regard becomes entitled
to the benefit of, among other things, any security interest created under this
Agreement.

KDG means Kabel Deutschland GmbH, a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht)
of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service
GmbH & Co. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902.

Lender means:

(a)                                  the Original
Lender;

(b)                                 an Original
Add-On Facility Lender; or

(c)                                  any person
which becomes a lender after the date of, and in accordance with the terms of,
this Agreement,

but
only for so long as it has any outstanding commitment or participation in any
loan provided under the Credit Agreement or Ancillary Outstanding or any amount
is owed to it (whether actually or contingently) in its capacity as Lender.

Mandated Lead Arranger means each
of:

 5
 

 

(a)                                  The Royal Bank
of Scotland plc;

(b)                                 Deutsche Bank
AG London;

(c)                                  Goldman Sachs
International; and

(d)                                 J.P. Morgan
plc.

Obligor means KDG or a Borrower.

Obligor Accession Deed means a deed
of accession pursuant to which any person or entity accedes, inter alia, to the
Credit Agreement as Additional Borrower.

Original Add-On Facility Lender means any
lender providing for an additional facility under the Credit Agreement by way
of executing an Add-On Facility Accession Agreement.

Original Finance Party means an
Administrative Party, an Original Lender or an Original Hedging Bank.

Original Hedging Bank means each
of:.

(a)                                  Goldman Sachs
International;

(b)                                 Morgan Stanley
Capital Services Inc.;

(c)                                  Société
Générale;

(d)                                 Coöperatieve
Centrale Raiffeisen-Boerenleenbank B.A.;

(e)                                  The Royal Bank
of Scotland plc;

(f)                                    BNP Paribas
S.A.;

(g)                                 Deutsche Bank
AG, London;

(h)                                 HSBC Bank plc;
and

(i)                                     Calyon
Corporate and Investment Bank.

Original Lender means each of:

(a)                                  The Royal Bank
of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank
AG London;

(c)                                  JPMorgan Chase
Bank, N.A.; and

(d)                                 Goldman Sachs
Credit Partners L.P.

Pledge means each of the pledges constituted under
Clause 2.2.

Pledgee means an Original Pledgee or a Future
Pledgee (together the Pledgees).

Priority Agreement means the Existing Priority Agreement
amended on a basis consistent with the Agreed Priority Agreement Principles
after the date of the Credit Agreement.

 6
 

 

Request means any
request for the draw down of any credit facility under the Credit Agreement by
any Obligor.

Secured Claims means all present and future rights and
claims (Ansprüche) (whether
actual or contingent and whether owed jointly or severally or in any other
capacity whatsoever) of any of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties (or any of them) in connection
with the protection, preservation or enforcement of their respective rights
under the Finance Documents.

Security means any and all security granted to
secure the Secured Claims.

Security Document means any document evidencing or
creating security over any asset of any Obligor to secure any obligation of any
Obligor to a Finance Party under any Finance Document referred to under (a) to
(i) and (k) to (n) of the definition of “Finance Document”.

Security Trust Agreement means the
agreement dated on or about the date hereof between, amongst others, KDG, KDVS,
the Security Agent and the other Finance Parties under which the Security Agent
has been granted certain rights and has assumed certain obligations.

Shares means the Existing Shares and the Future
Shares.

Subsidiary means any of:

(a)                                  an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control
for this purpose means the power to direct the management and the policies of
the entity whether through the ownership of voting capital, by contract or
otherwise; or

(b)                                 an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

Underwriter means each of:

(a)                                  The Royal Bank
of Scotland plc;

(b)                                 Deutsche Bank
AG London;

(c)                                  Goldman Sachs
Credit Partners L.P.; and

(d)                                 JPMorgan Chase
Bank, N.A.

Unrestricted Subsidiary means any
Subsidiary of KDVS or KDG (which is not an Obligor) nominated by KDVS to the
Facility Agent at any time when no Event of Default is outstanding.

TARGET Day means a day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer System is open for the
settlement of payments in Euro.

Transfer Certificate means any transfer certificate pursuant
to which any rights under the Credit Agreement shall be transferred by novation
or otherwise to any New Lender.

1.2                               Construction

(a)                                  In this
Agreement, unless the contrary intention appears, a reference to:

 7
 

 

(i)                                     the Security
Agent means the Security Agent acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as
contemplated in § 121 (1) BGB.

(b)                                 Where the
context so admits, the singular includes the plural and vice versa.

(c)                                  The headings
in this Agreement are for convenience only and are to be ignored in construing
this Agreement.

(d)                                 Any reference
in this Agreement to a defined document is a reference to that defined document
as amended, restated, novated or supplemented from time to time.

(e)                                  References to
parties herein shall also be deemed to include references to their respective
successors, transferees and assignees.

2.                                      PLEDGES

2.1                               Pledged Shares

(a)                                  The Pledgor is
the sole shareholder of the Company.

(b)                                 The total
registered share capital (Stammkapital)
of the Company amounts to EUR 3,069,000 (in words: Euro three million sixty
nine thousand).  At present, the Pledgor
holds one share in the Company in an amount of EUR 3,068,000 (in words: Euro
three million sixty eight thousand) and one share in an amount of EUR 1,000 (in
words: Euro one thousand) (the Existing
Shares).  There are no other
shares in the Company.

(c)                                  The Existing
Shares are fully paid up.  There is no
obligation for the Pledgor to make additional contributions.

2.2                               Constitution of Pledges

(a)                                  The Pledgor
hereby pledges the Shares to each of the Original Pledgees and to each Future
Pledgee for their rateable interest.

(b)                                 Each of the
Original Pledgees hereby accepts the Pledge. 
In addition, the Security Agent accepts each of the Pledges for and on
behalf of each Future Pledgee hereunder as proxy without power of attorney (Vertreter ohne Vertretungsmacht).  Each Future Pledgee will ratify such
acceptance for itself by executing an accession agreement to the Security Trust
Agreement thereby becoming a Pledgee. 
All Parties hereto confirm that the validity of any of the Pledges
constituted hereunder shall not be affected by the Security Agent acting as
proxy without power of attorney for each Future Pledgee.

3.                                      INDEPENDENT PLEDGES

The
validity and effect of each of the Pledges shall be independent from the
validity and the effect of any of the other Pledges created hereunder and is in
addition, and without any prejudice, to any other security which any and all of
the Pledgees may now or hereafter hold in respect of the Secured Claims.  Each of the Pledges to each of the Pledgees
shall be separate and individual pledges. Each of the Pledges shall rank pari
passu to each other Pledge created hereunder.

 8
 

 

4.                                      SECURITY PURPOSES

The
Pledges are constituted in order to secure the prompt and complete satisfaction
of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The
Pledge constituted by this Agreement includes the present and future rights to
receive

(a)                                  dividends, if
any, payable on the Shares;

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal
(Austritt) of a shareholder of
the Company, the surplus in case of surrender (Preisgabe)
and all other pecuniary claims associated with the Shares; and

(c)                                  the right to
subscribe for newly issued shares.

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in respect of the Shares until the
requirements for enforcement referred to under Clause 7 below are met and
unless the Facility Agent has notified the Pledgor that according to the
Facilities Agreement any dividend payments in respect of the Shares are no
longer permitted to be made to the Pledgor, in which case the payments are to
be made to the Security Agent.

5.3                               Pledgees’ Rights

Notwithstanding
Clause 5.2 above:

(a)                                  dividends paid
or payable to the Pledgor other than in cash and other property received (Sachdividenden), receivable or otherwise
distributed in respect of or in exchange for the Shares;

(b)                                 dividends or
other distributions paid or payable to the Pledgor in cash in respect of the
Shares in connection with the partial or total liquidation or dissolution or in
connection with the reduction of capital, capital surplus or paid-in surplus;
and

(c)                                  cash paid,
payable or otherwise distributed to the Pledgor in respect of principal of, or
in redemption of, or in exchange for the Shares;

(d)                                 dividends paid
to the Security Agent in accordance with Clause 5.2 above,

shall
be and shall forthwith be delivered to the Security Agent for itself and for
the other Pledgees to be held as security and shall, if received by the
Pledgor, be received as holder for the Pledgees and segregated from the other
property or funds of the Pledgor and be forthwith delivered to the Security Agent
for itself and for the Pledgees as security in the same form as so received
(with any necessary endorsement).  Any
further reaching obligations of the Company and/or the Pledgor in respect of
the use of profits and/or dividends shall not be affected by this Clause 5.3.

 9
 

 

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The
voting rights resulting from the Shares remain with the Pledgor.  This shall, however, not affect the
obligations of the Pledgor under Clause 7.1 below.  The Pledgor, however, shall at all times
until the full and complete satisfaction of all Secured Claims or the release
of the Pledges be required, in exercising its voting rights, to act in good
faith to ensure that the Pledges are not in any way adversely affected.

6.2                               Impairment

The
Pledgor shall not take, or participate in, any action which impairs, or which
would for any other reason be inconsistent with, the security interest of the
Pledgees or the security purpose as described in Clause 4 hereof or which would
defeat, impair or circumvent the rights of the Pledgees hereunder in each case
in any respect.

6.3                               Information by the Pledgor

The
Pledgor shall inform the Security Agent promptly of all other actions
concerning the Company which might adversely affect the security interest of the
Pledgees. In particular, the Pledgor shall notify the Security Agent forthwith
of any shareholders’ meeting at which a resolution is intended to be adopted
which could be expected to have an adverse effect upon the Pledges.  In any event the Security Agent shall
promptly receive, as soon as they are available, a copy of the convocation
notice for such ordinary or extraordinary shareholders’ meeting setting forth
the agenda (to the extent it relates to such resolution) and all applications
and decisions to be taken and the minutes of any such shareholders’ meeting (in
each case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF PLEDGES

7.1                               Pledgees’ Rights

(a)                                  If (i) an
Event of Default has occurred, (ii) the requirements set forth in §§ 1204 et
seq. of the German Civil Code (Bürgerliches
Gesetzbuch) with regard to the enforcement of pledges are met (Pfandreife), and (iii) the Event of
Default has not been remedied within 5 (five) Business Days following the
receipt of a notification in accordance with Clause 7.1(b), the Pledgees may
enforce any of the Pledges (or any part thereof) through the Security Agent by
way of public auction (öffentliche
Versteigerung) or in any other way permitted under German law, in
all cases notwithstanding § 1277 of the German Civil Code without any
enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security
Agent shall notify the Pledgor of the intention to realise any of the Pledges
over the Shares not less than 5 (five) Business Days before the date on which
the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient. The public auction may be held at any place in Germany which will
be determined by the Security Agent.

(c)                                  If the
Security Agent should seek to enforce any of the Pledges pursuant to, and in
accordance with Clause 7.1(a) above, the Pledgor shall, at his own expense,
render forthwith all assistance necessary in order to facilitate the prompt
sale of the Shares or any part thereof and/or the exercise by the Security
Agent of any other right the Pledgees may have under German law.

 10
 

 

(d)                                 The Pledges
will be realised to the extent necessary to discharge in full the Secured
Claims.  The Pledgees shall at all times
until the full and complete satisfaction of all the Secured Claims in
exercising their rights under this Agreement take into consideration the
legitimate interests of the Pledgor.

(e)                                  In derogation
of § 1225 of the German Civil Code, in the event of enforcement of the Pledges,
no rights of the Pledgees shall pass to the Pledgor by subrogation or otherwise
unless and until all of the Secured Claims have been satisfied and discharged
in full. Until then, the Security Agent shall be entitled to treat all
enforcement proceeds as additional collateral for the Secured Claims,
notwithstanding its right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Pledges (or part thereof) shall be transferred to the Pledgor at the cost
and expense of the Pledgor.

7.2                               Ancillary Rights

Provided
that the requirements for enforcement referred to under Clause 7.1(a) above are
met, all payments based on ancillary rights attributed to the Shares may be
applied by the Security Agent in satisfaction in whole or in part of the
Secured Claims notwithstanding the Pledgees’ right to treat such payments as
additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds
resulting from the enforcement of the Pledge must be applied by the Security
Agent in the following order of priority:

(i)                                     first, in or towards payment of, or provision for, all costs and expenses
incurred by the Security Agent in connection with the enforcement of the
Pledge; and

(ii)                                  second, in or towards payment of the Secured Claims by transferring the
proceeds to the Facility Agent for distribution.

(b)                                 The Security
Agent may determine which part of the Security, if applicable, shall be used to
satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon
the full and complete satisfaction of all Secured Claims the Security Agent
shall confirm to the Pledgor upon its request that the Shares are released from
the Pledges and retransfer to the Pledgor any documents received by the
Security Agent or any designee pursuant to Clause 7.1(f) hereof.

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The
Pledgor undertakes:

(a)                                  to notify the
Security Agent promptly of any change in the shareholding in, or the capital
contributions to, the Company or of any change in the articles of association (Satzung) or the registration of the
Company in the commercial register other than with respect to holders of a
statutory power of attorney (Prokura);

 11

(b)                                 to notify the Security Agent promptly of any
event or circumstance other than interpretation of laws which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)                                  to effect promptly any payments to be made to
the Company in respect of the Shares;

(d)                                 at its own expense, to execute and do all
such assurances, acts and things as the Security Agent may reasonably require:

(i)                                     for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)                                  if the Pledges have become enforceable
pursuant to Clause 7.1, for facilitating the realisation of all or any part of
the Shares which are subject to this Agreement and the exercise of all powers,
authorities and discretions vested in the Security Agent,

and in particular to execute all transfers,
conveyances, assignments and releases of that property whether to the Security
Agent or to its nominees and give all notices, orders and directions which the
Security Agent may reasonably think expedient;

(e)                                  at the Security Agent’s reasonable request,
to furnish to the Security Agent such information concerning the Shares as is
available to the Pledgor, to permit the Security Agent and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Shares on
reasonable notice and during normal business hours, and, upon the reasonable
request of the Security Agent, to deliver to the Security Agent copies of all
such records and papers;

(f)                                    to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Pledges
or the effect of which results in the Shares ceasing to exist; and

(g)                                 that all Future Shares will be fully paid and
that there will be no obligation for a Shareholder to make additional
contributions.

8.2                               Pledges over all Shares

The Security Agent may at all times for itself and
for the Pledgees request to hold a pledge over all Shares held by the Pledgor
(and in the case of a merger an equivalent security interest over the shares in
the surviving or, as the case may be, the new company) in accordance with all
terms of this Agreement.

9.                                      REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  the Existing Shares pledged hereunder are the
only shares in the Company in existence at the date hereof;

(b)                                 the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Existing Shares;

(c)                                  all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

 12
 

(d)                                 the Existing Shares are fully paid and there
is no obligation for a shareholder to make additional contributions; and

(e)                                  the Existing Shares are free from any rights
of third parties;

(f)                                    no third party has any pre-emption rights for
shares in the Company; and

(g)                                 there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.                               RELEASE
OF SECURITY

Even prior to the full and complete satisfaction of
all Secured Claims, the Security Agent is obliged to release upon the Pledgor’s
request all or part of the Security insofar as the realisable value of the
Security and any other security given to the Security Agent or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10%.  The Security Agent may, at its discretion, determine
which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Agent nor the Pledgees shall be
liable for any loss or damage suffered by the Pledgor save in respect of such
loss or damage which is suffered as a result of the gross negligence (grobe Fahrlässigkeit) or wilful misconduct
(Vorsatz) of the Security Agent.

11.2                        Indemnification

The Pledgor will indemnify the Security Agent and
each of the Pledgees and keep the Security Agent and each of the Pledgees
indemnified against any losses, actions, claims, expenses, demands and
liabilities which may be incurred by or made against the Security Agent and/or
each of the Pledgees as a result of any breach of the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of
the Pledgees or the Security Agent.

11.3                        This Clause 11 shall survive the termination
of this Agreement under Clause 12 or otherwise.

12.                               DURATION
AND INDEPENDANCE

12.1                        Duration

This Agreement shall remain in full force and effect
until the full and complete satisfaction of the Secured Claims.  None of the Pledges shall cease to exist if
any payments made in satisfaction of the Secured Claims have only temporarily
discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create a continuing security
which means that no change or amendment whatsoever in any Finance Document or
in any document or agreement related to it shall affect the validity of this
Agreement.

 13
 

12.3                        Independence

This Agreement is independent from any other
security or guarantee which may have been or will be given to the Security
Agent and/or any of the other Pledgees with respect to any obligation of any of
the Obligors under the Finance Documents. None of such other securities or
guarantees shall prejudice, or shall be prejudiced by, or shall be merged in
any way with, this Agreement.

13.                               COSTS
AND EXPENSES

Any notarial fees and expenses incurred in
connection with the execution of this Agreement shall be borne by the
Pledgor.  The Pledgor must pay to each
Finance Party the amount of all costs and expenses (including the costs and
expenses of legal advisers) incurred by it in connection with the enforcement
of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL
INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this Agreement or any part thereof
should be or become invalid or unenforceable, this shall not affect the
validity of the remaining provisions hereof. 
The invalid or unenforceable provision shall be replaced by that
provision which best meets the intent of the replaced provision.

In particular the Pledges shall not be affected and
shall in any event extend to any and all Shares in the Company even if the
number or nominal value of the Existing Shares or the aggregate liable capital
of the Company as stated in Clause 2.1(b) are inaccurate and deviate from the
actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No
failure to exercise, nor any delay in exercising, on the part of the Security
Agent or the Pledgees (or any of them), any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy prevent any further or other exercise thereof or the exercise
of any other right or remedy. The rights and remedies provided hereunder are
cumulative and not exclusive of any rights or remedies provided by law.

(b)                                 The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Pledges created hereunder.

15.                               AMENDMENTS

Changes and amendments of this Agreement including
this Clause 15 shall be made in writing.

16.                               NOTICES
AND THEIR LANGUAGE

16.1                        Notices

Any notice or other communication under or in
connection with this Agreement to the Pledgor or the Security Agent and/or the
Pledgees shall be in writing and shall be delivered personally, by post or
facsimile and shall be sent to the address or facsimile number of the party,
and for the attention of

 14
 

the individual, set forth in Schedule 1 hereto or
such other address or facsimile number as is notified by that party for this
purpose to the Security Agent from time to time.

16.2                        Language

Unless otherwise agreed from time to time, any
notice or other communication under or in connection with this Agreement shall
be in the English language or, if in any other language, accompanied by a
translation into English.  In the event
of any conflict between the English text and the text in any other language,
the English text shall prevail.

17.                               APPLICABLE
LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be governed by and construed in
accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction for all Parties shall be
Frankfurt am Main, Germany.  The Security
Agent and/or any of the other Finance Parties, however, shall also be entitled
to take legal action against the Pledgor before any other competent court of
law having jurisdiction over the Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the Pledgees hereby instruct and
authorise the undersigned Notary Public to notify the Company of the Pledges
pursuant to, and in accordance with, § 1280 of the German Civil Code and § 16
of the German Limited Liabilities Companies Act by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 15
 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  
	
   

  	
   

  	
   

  
	
  To the Security
  Agent and all other Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Breitband Services GmbH

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  

 

 16

 

APEPNDIX 1 - GMBH

SHARE PLEDGE AGREEMENT

RELATING
TO THE SHARES IN 

KABEL DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS VERWALTUNGS GMBH

12 May 2006

between

KABEL
DEUTSCHLAND GMBH

as Pledgor

THE ROYAL BANK OF SCOTLAND PLC

as Security Agent

and

THE FINANCE PARTIES

Allen & Overy LLP

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
   

  	
  Independent Pledges

  	
   

  	
  8

  
	
  4.

  	
   

  	
  Security Purposes

  	
   

  	
  9

  
	
  5.

  	
   

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  10

  
	
  7.

  	
   

  	
  Enforcement of Pledges

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
   

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
   

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
   

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
   

  	
  Costs and Expenses

  	
   

  	
  14

  
	
  14.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  14

  
	
  15.

  	
   

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
   

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
   

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

THIS SHARE
PLEDGE AGREEMENT (the
Agreement) is made on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND GMBH, a limited liability company (Gesellschaft mit beschränkter Haftung)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRB 145837

(the
Pledgor)

on
one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a public limited company, having its
registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of Scotland and being registered with the Companies
House under registration number SC 090312

(the
Security Agent); and

(3)                                  the FINANCE PARTIES as defined in Clause 1.1
below

(the
Security Agent and each Original Finance Party (as defined below) are
hereinafter referred to individually as an Original
Pledgee and together as the Original
Pledgees)

on
the other side.

The
Pledgor and the Pledgees (as defined below) are hereinafter collectively
referred to as the Parties.

WHEREAS:

(A)                              The Lenders
(as defined below) have agreed to make available to each of the Borrowers (as
defined below) certain credit facilities on the terms of and subject to the
Credit Agreement (as defined below).

(B)                                It is a
condition to the Lenders making the credit facilities available pursuant to the
Credit Agreement that the Pledgor enters into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In this Agreement:

Accounting
Principles means accounting principles, policies, standards, bases and practices
which, as at the date of the Credit Agreement, are in accordance with the
German generally accepted accounting principles (Grundsätze ordnungsgemäßer Buchführung und Bilanzierung).

Additional
Borrower means a member of the Group which becomes a borrower under the Credit
Agreement after the date of its execution.

Additional
Facility means an Add-On Facility or an External Facility.

 

Add-On
Facility Accession Agreement means an accession deed pursuant to
which any person or entity accedes to the Credit Agreement as provider of an
Add-On Facility.

Add-On
Facility means any additional loan facility provided under the Credit Agreement
which has Eligible Terms.

Add-On
Facility Lender means:

(a)                                  an Original
Add-On Facility Lender; or

(b)                                 any person which
has become a lender under an Add-On Facility.

Administrative
Party means a Mandated Lead Arranger, the Facility Agent or the Security
Agent.

Agreed
Priority Agreement Principles means the principles pursuant to which
the Existing Priority Agreement shall be amended.

Ancillary
Facility means any facility or financial accommodation (including any
overdraft, foreign exchange, guarantee, bonding, documentary or standby letter
of credit, credit card or automated payments facility) established by a Lender
in place of all or parts of its respective facility commitment.

Ancillary
Facility Document means any document evidencing any Ancillary
Facility.

Ancillary
Lender means any lender providing for an Ancillary Facility.

Ancillary
Outstandings means, at any time and with respect to any
Ancillary Facility of any Ancillary Lender, the aggregate of all of the
following amounts (as calculated by that Ancillary Lender) outstanding at that
time under that Ancillary Facility:

(a)                                  all amounts of
principal then outstanding under any overdraft, cheque drawing or other account
facilities determined on a gross basis unless such facilities are made
available on the basis of netting arrangements satisfactory to the Ancillary
Lender in which case, such outstanding principal amounts shall be determined on
the net debt basis used by that Ancillary Lender;

(b)                                 the maximum
potential liability (excluding amounts stated to be in respect of interest and
fees) under all guarantees, bonds and letters of credit then outstanding under
that Ancillary Facility; and

(c)                                  in respect of
any other facility or financial accommodation, such other amount (excluding
interest and similar charges) as fairly represents the aggregate exposure of
that Ancillary Lender under that facility or accommodation, as reasonably
determined by that Ancillary Lender from time to time in accordance with its
usual banking practice for facilities or accommodation of the relevant type.

BGB means the German
Civil Code (Bürgerliches Gesetzbuch).

Borrower means KDVS or
an Additional Borrower.

Business
Day means a day (other than a Saturday or a Sunday) on which banks are
open for general business in London and Frankfurt am Main and which is also a
TARGET Day.

Company means Kabel
Deutschland Vertrieb und Service Beteiligungs Verwaltungs GmbH, a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of

 

Germany, having its
corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRB 153081.

Commitment
Letter means the commitment letter dated on or about the date of the Credit
Agreement between the Arranger, the Original Lender, KDG and KDVS.

Compliance
Certificate means any compliance certificate issued or to be issued by any Obligor
in connection with the Credit Agreement setting out the compliance with certain
financial ratios and/or covenants.

Credit
Agreement means the EUR 1,350,000,000 senior credit agreement dated on or
about 13 March 2006 between, amongst others, the Mandated Lead Arranger, the
Facility Agent, the Security Agent, KDVS, KDG and the Original Lender providing
for EUR 1,350,000,000 senior credit facilities and up to EUR 650,000,000 Add-On
Facilities.

Eligible
Terms means, in respect of any Additional Facility:

(a)                                  the final
maturity date of that Additional Facility must be a date falling at least six
months after 31 March 2012;

(b)                                 there must be
no amortisation required in respect of that Additional Facility;

(c)                                  that
Additional Facility must be a term facility (which, in the case of an External
Facility, may include notes, bonds or any other term credit arrangement which
is not capable, by its terms, of being repaid or prepaid and redrawn before the
date falling at least six months after 31 March 2012 (it being acknowledged
that such arrangement may have customary change of control, voluntary
prepayment, asset sale and similar prepayment provisions)); and

(d)                                 the purpose
must be to fund a Permitted Acquisition;

(e)                                  the principal
amount of that Additional Facility (together with the principal amount of all
other Additional Facilities) may not exceed the lower of:

(i)                                     €650,000,000;
and

(ii)                                  the amount
which, if fully utilised on the date of completion of the relevant Permitted
Acquisition, would not result in any breach of certain financial covenant
ratios;

and

(f)                                    the
liabilities of the obligors thereunder are to be treated and rank as a senior
debt under the Existing Priority Agreement and/or the Priority Agreement and to
have the benefit of all relevant Security Documents (whether through execution
of new documents or amendment to existing documents) or (in each case) to have
such lower ranking as is agreed by all the lenders of that Additional
Facility.  For these purposes relevant Security Documents means Security
Documents comprising the same assets and shares comprised in Security Documents
executed prior to the establishment of that Additional Facility, it being
acknowledged that prior-ranking Security Documents will remain in place (with
the proceeds of enforcement of all Security Documents subject to the sharing
provisions of the Priority Agreement).

Euro,
euro, EUR or € means the single European currency
introduced 1 January 1999.

 

Existing
Priority Agreement means the priority agreement dated 29 March
2004, as amended and restated prior to the date of the Credit Agreement and in
force on the date of the Credit Agreement to which, amongst others, KDG and
KDVS are parties (disregarding the amendments implemented to create an amended
priority agreement in connection with the Credit Agreement).

Existing
Share means the share set forth in Clause 2.1.

External
Facility means any term credit agreement which has Eligible Terms.

Event
of Default means an event of default under any of the Finance Documents, which
entitles the Facility Agent to declare that all or part of any amounts
outstanding under the Finance Documents or any of them are immediately due and
payable, or payable on demand.

Facility
Agent means The Royal Bank of Scotland plc, a public limited company, having
its registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of the United Kingdom and being registered with the
Companies House under registration number SC 090312.

Fee
Letter means any letter entered into by reference to the Credit Agreement
between one or more Administrative Parties and an Obligor setting out the amount
of certain fees which are payable, inter alia, in relation to the Credit
Agreement.

Finance
Document means:

(a)                                  the Credit
Agreement;

(b)                                 the Commitment
Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor
Accession Deed;

(e)                                  a Transfer
Certificate;

(f)                                    an Ancillary
Facility Document;

(g)                                 the Hedging
Letter;

(h)                                 an Add-On
Facility Accession Agreement;

(i)                                     a Hedging
Document;

(j)                                     a Security
Document;

(k)                                  the Priority
Agreement;

(l)                                     a Compliance
Certificate;

(m)                               a Request; and

(n)                                 any other
document designated as such by the Facility Agent and KDG.

Finance
Party means an Administrative Party, an Underwriter, a Lender or a Hedging
Bank.

Future
Pledgee means a Finance Party (other than an Original Finance Party).

 

Future Shares means any and all shares in the Company issued
in addition to the Existing Share which the Pledgor may acquire in future
(including shares newly issued by way of capital increase (Kapitalerhöhung) or otherwise).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries (but
excluding any Unrestricted Subsidiary).

Hedging
Letter means a letter
dated on or about the date of the Credit Agreement between KDG, the Mandated
Lead Arranger and the Facility Agent relating to the interest and currency
hedging to be effected by the Group and any other letter designated as such by
KDG and the Facility Agent which amends or supplements the terms of that
letter.

Hedging means any interest rate or currency swap,
derivative transaction or hedging facility.

Hedging
Bank means:

(a)                                  each Original Hedging Bank; or

(b)                                 each party (other than an Obligor) which
shall at any relevant time be or become a party to any Hedging Document.

Hedging
Document means

(a)                                  each master agreement, confirmation or other
document evidencing any Hedging provided by a Hedging Bank to an Obligor; or

(b)                                 otherwise entered into on the basis that
under the terms of the Finance Documents any party to such document (other than
an Obligor) in such regard becomes entitled to the benefit of, among other
things, any security interest created under this Agreement.

KDG means Kabel Deutschland GmbH, a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht)
of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service GmbH
& Co. KG, a limited
partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902.

Lender means:

(a)                                  the Original Lender;

(b)                                 an Original Add-On Facility Lender; or

(c)                                  any person which becomes a lender after the
date of, and in accordance with the terms of, this Agreement,

but only for so long as it
has any outstanding commitment or participation in any loan provided under the
Credit Agreement or Ancillary Outstanding or any amount is owed to it (whether
actually or contingently) in its capacity as Lender.

Mandated
Lead Arranger means
each of:

 

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG
London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

Obligor
Accession Deed means
a deed of accession pursuant to which any person or entity accedes, inter alia,
to the Credit Agreement as Additional Borrower.

Original
Add-On Facility Lender
means any lender providing for an additional facility under the Credit
Agreement by way of executing an Add-On Facility Accession Agreement.

Original
Finance Party means
an Administrative Party, an Original Lender or an Original Hedging Bank.

Original
Hedging Bank means
each of:

(a)                                  Goldman Sachs International;

(b)                                 Morgan Stanley Capital Services Inc.;

(c)                                  Société Générale;

(d)                                 Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.;

(e)                                  The Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche Bank
AG, London;

(h)                                 HSBC Bank plc; and

(i)                                     Calyon Corporate and Investment Bank.

Original
Lender means each of:

(a)                                  The Royal Bank of Scotland plc, Niederlassung
Frankfurt;

(b)                                 Deutsche Bank AG
London;

(c)                                  JPMorgan Chase Bank, N.A.; and

(d)                                 Goldman Sachs Credit Partners L.P.

Pledge means each of the pledges constituted under
Clause 2.2.

Pledgee means an Original Pledgee or a Future
Pledgee (together the Pledgees).

Priority
Agreement means the
Existing Priority Agreement amended on a basis consistent with the Agreed
Priority Agreement Principles after the date of the Credit Agreement.

 

Request means any request for the draw down of any
credit facility under the Credit Agreement by any Obligor.

Secured
Claims means all
present and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of any of the Finance Parties against any of the
Obligors under the Finance Documents, each as amended, restated, varied,
supplemented, novated or extended from time to time, including, without
limitation, any increase of principal or interest, in each case together with
all costs, charges and expenses incurred by the Finance Parties (or any of
them) in connection with the protection, preservation or enforcement of their
respective rights under the Finance Documents.

Security means any and all security granted to secure
the Secured Claims.

Security
Document means any
document evidencing or creating security over any asset of any Obligor to
secure any obligation of any Obligor to a Finance Party under any Finance
Document referred to under (a) to (i) and (k) to (n) of the definition of “Finance
Document”.

Security
Trust Agreement means
the agreement dated on or about the date hereof between, amongst others, KDG,
KDVS, the Security Agent and the other Finance Parties under which the Security
Agent has been granted certain rights and has assumed certain obligations.

Shares means the Existing Share and the Future Shares.

Subsidiary means any of:

(a)                                  an entity of which a person has direct or
indirect control or owns directly or indirectly more than 50% of the voting
capital or similar right of ownership, and control for this purpose means the
power to direct the management and the policies of the entity whether through
the ownership of voting capital, by contract or otherwise; or

(b)                                 an entity consolidated for the purpose of the
financial statements of any person pursuant to the Accounting Principles.

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG
London;

(c)                                  Goldman Sachs Credit Partners L.P.; and

(d)                                 JPMorgan Chase Bank, N.A.

Unrestricted
Subsidiary means any
Subsidiary of KDVS or KDG (which is not an Obligor) nominated by KDVS to the
Facility Agent at any time when no Event of Default is outstanding.

TARGET Day means a day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer System is open for the
settlement of payments in Euro.

Transfer
Certificate means any
transfer certificate pursuant to which any rights under the Credit Agreement
shall be transferred by novation or otherwise to any New Lender.

1.2                               Construction

(a)                                  In this Agreement, unless the contrary
intention appears, a reference to:

 

(i)                                     the Security Agent means the Security Agent
acting as agent for and on behalf of the Pledgees unless otherwise provided
herein; and

(ii)                                  promptly means promptly (unverzüglich) as contemplated in § 121 (1)
BGB.

(b)                                 Where the context so admits, the singular
includes the plural and vice versa.

(c)                                  The headings in this Agreement are for
convenience only and are to be ignored in construing this Agreement.

(d)                                 Any reference in this Agreement to a defined
document is a reference to that defined document as amended, restated, novated
or supplemented from time to time.

(e)                                  References to parties herein shall also be
deemed to include references to their respective successors, transferees and
assignees.

2.                                      PLEDGES

2.1                               Pledged Shares

(a)                                  The Pledgor is the sole shareholder of the
Company.

(b)                                 The total registered share capital (Stammkapital) of the Company amounts to
EUR 25,000 (in words: Euro twenty five thousand).  At present, the Pledgor holds the only share
in the Company in an amount of EUR 25,000 (in words: Euro twenty five thousand)
(the Existing Share).  There are no other shares in the Company.

(c)                                  The Existing Share is fully paid up.  There is no obligation for the Pledgor to
make additional contributions.

2.2                               Constitution of Pledges

(a)                                  The Pledgor hereby pledges the Shares to each
of the Original Pledgees and to each Future Pledgee for their rateable
interest.

(b)                                 Each of the Original Pledgees hereby accepts
the Pledge.  In addition, the Security
Agent accepts each of the Pledges for and on behalf of each Future Pledgee
hereunder as proxy without power of attorney (Vertreter
ohne Vertretungsmacht).  Each
Future Pledgee will ratify such acceptance for itself by executing an accession
agreement to the Security Trust Agreement thereby becoming a Pledgee.  All Parties hereto confirm that the validity
of any of the Pledges constituted hereunder shall not be affected by the
Security Agent acting as proxy without power of attorney for each Future
Pledgee.

3.                                      INDEPENDENT
PLEDGES

The validity and effect of
each of the Pledges shall be independent from the validity and the effect of
any of the other Pledges created hereunder and is in addition, and without any
prejudice, to any other security which any and all of the Pledgees may now or
hereafter hold in respect of the Secured Claims.  Each of the Pledges to each of the Pledgees
shall be separate and individual pledges. Each of the Pledges shall rank pari
passu to each other Pledge created hereunder.

4.                                      SECURITY
PURPOSES

The Pledges are constituted
in order to secure the prompt and complete satisfaction of any and all Secured
Claims.

 

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The Pledge constituted by
this Agreement includes the present and future rights to receive

(a)                                  dividends, if any, payable on the Shares;

(b)                                 liquidation proceeds, consideration for
redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or
withdrawal (Austritt) of a
shareholder of the Company, the surplus in case of surrender (Preisgabe) and all other pecuniary claims
associated with the Shares; and

(c)                                  the right to subscribe for newly issued
shares.

5.2                               Entitlement to Receive
Dividend Payments

Notwithstanding that the
dividends are pledged hereunder, the Pledgor shall be entitled to receive and
retain all dividend payments in respect of the Shares until the requirements
for enforcement referred to under Clause 7 below are met and unless the
Facility Agent has notified the Pledgor that according to the Facilities
Agreement any dividend payments in respect of the Shares are no longer
permitted to be made to the Pledgor, in which case the payments are to be made
to the Security Agent.

5.3                               Pledgees’ Rights

Notwithstanding Clause 5.2
above:

(a)                                  dividends paid or payable to the Pledgor
other than in cash and other property received (Sachdividenden), receivable or otherwise distributed in
respect of or in exchange for the Shares;

(b)                                 dividends or other distributions paid or
payable to the Pledgor in cash in respect of the Shares in connection with the
partial or total liquidation or dissolution or in connection with the reduction
of capital, capital surplus or paid-in surplus; and

(c)                                  cash paid, payable or otherwise distributed
to the Pledgor in respect of principal of, or in redemption of, or in exchange
for the Shares;

(d)                                 dividends paid to the Security Agent in
accordance with Clause 5.2 above,

shall be and shall forthwith
be delivered to the Security Agent for itself and for the other Pledgees to be
held as security and shall, if received by the Pledgor, be received as holder
for the Pledgees and segregated from the other property or funds of the Pledgor
and be forthwith delivered to the Security Agent for itself and for the
Pledgees as security in the same form as so received (with any necessary
endorsement).  Any further reaching
obligations of the Company and/or the Pledgor in respect of the use of profits
and/or dividends shall not be affected by this Clause 5.3.

6.                                      EXERCISE
OF VOTING RIGHTS

6.1                               Voting Rights

The voting rights resulting
from the Shares remain with the Pledgor. 
This shall, however, not affect the obligations of the Pledgor under
Clause 7.1 below.  The Pledgor, however,
shall at all times until

 

the full and complete satisfaction of all Secured
Claims or the release of the Pledges be required, in exercising its voting
rights, to act in good faith to ensure that the Pledges are not in any way
adversely affected.

6.2                               Impairment

The Pledgor shall not take,
or participate in, any action which impairs, or which would for any other
reason be inconsistent with, the security interest of the Pledgees or the
security purpose as described in Clause 4 hereof or which would defeat, impair
or circumvent the rights of the Pledgees hereunder in each case in any respect.

6.3                               Information by the Pledgor

The Pledgor shall inform the
Security Agent promptly of all other actions concerning the Company which might
adversely affect the security interest of the Pledgees. In particular, the
Pledgor shall notify the Security Agent forthwith of any shareholders’ meeting
at which a resolution is intended to be adopted which could be expected to have
an adverse effect upon the Pledges.  In
any event the Security Agent shall promptly receive, as soon as they are
available, a copy of the convocation notice for such ordinary or extraordinary
shareholders’ meeting setting forth the agenda (to the extent it relates to
such resolution) and all applications and decisions to be taken and the minutes
of any such shareholders’ meeting (in each case to the extent they relate to
such resolution).

7.                                      ENFORCEMENT
OF PLEDGES

7.1                               Pledgees’ Rights

(a)                                  If (i) an Event of Default has occurred, (ii)
the requirements set forth in §§ 1204 et seq. of the German Civil Code (Bürgerliches Gesetzbuch) with regard to the
enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in accordance with Clause 7.1(b),
the Pledgees may enforce any of the Pledges (or any part thereof) through the
Security Agent by way of public auction (öffentliche
Versteigerung) or in any other way permitted under German law, in
all cases notwithstanding § 1277 of the German Civil Code without any
enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security Agent shall notify the Pledgor
of the intention to realise any of the Pledges over the Shares not less than 5
(five) Business Days before the date on which the respective Pledge is intended
to be realised.  The Pledgor expressly
agrees that in the event of a realisation by way of public auction 5 (five)
Business Days prior written notice of the place and time of any such public
auction shall be sufficient. The public auction may be held at any place in
Germany which will be determined by the Security Agent.

(c)                                  If the Security Agent should seek to enforce
any of the Pledges pursuant to, and in accordance with Clause 7.1(a) above, the
Pledgor shall, at his own expense, render forthwith all assistance necessary in
order to facilitate the prompt sale of the Shares or any part thereof and/or
the exercise by the Security Agent of any other right the Pledgees may have
under German law.

(d)                                 The Pledges will be realised to the extent
necessary to discharge in full the Secured Claims.  The Pledgees shall at all times until the
full and complete satisfaction of all the Secured Claims in exercising their
rights under this Agreement take into consideration the legitimate interests of
the Pledgor.

 

(e)                                  In derogation of § 1225 of the German Civil
Code, in the event of enforcement of the Pledges, no rights of the Pledgees
shall pass to the Pledgor by subrogation or otherwise unless and until all of
the Secured Claims have been satisfied and discharged in full. Until then, the
Security Agent shall be entitled to treat all enforcement proceeds as
additional collateral for the Secured Claims, notwithstanding its right to seek
satisfaction from such proceeds at any time.

(f)                                    After the complete unconditional, irrevocable
and full payment and discharge of all Secured Claims any remaining proceeds
resulting from the enforcement of any of the Pledges (or part thereof) shall be
transferred to the Pledgor at the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided that the requirements
for enforcement referred to under Clause 7.1(a) above are met, all payments
based on ancillary rights attributed to the Shares may be applied by the
Security Agent in satisfaction in whole or in part of the Secured Claims
notwithstanding the Pledgees’ right to treat such payments as additional
collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds resulting from the enforcement
of the Pledge must be applied by the Security Agent in the following order of
priority:

(i)                                     first, in or towards payment of, or provision for,
all costs and expenses incurred by the Security Agent in connection with the
enforcement of the Pledge; and

(ii)                                  second, in or towards payment of the Secured Claims
by transferring the proceeds to the Facility Agent for distribution.

(b)                                 The Security Agent may determine which part
of the Security, if applicable, shall be used to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon the full and complete
satisfaction of all Secured Claims the Security Agent shall confirm to the
Pledgor upon its request that the Shares are released from the Pledges and
retransfer to the Pledgor any documents received by the Security Agent or any
designee pursuant to Clause 7.1(f) hereof.

8.                                      UNDERTAKINGS
OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes:

(a)                                  to notify the Security Agent promptly of any
change in the shareholding in, or the capital contributions to, the Company or
of any change in the articles of association (Satzung)
or the registration of the Company in the commercial register other than with
respect to holders of a statutory power of attorney (Prokura);

(b)                                 to notify the Security Agent promptly of any
event or circumstance other than interpretation of laws which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)                                  to effect promptly any payments to be made to
the Company in respect of the Shares;

 

(d)                                 at its own expense, to execute and do all
such assurances, acts and things as the Security Agent may reasonably require:

(i)                                     for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)                                  if the Pledges have become enforceable
pursuant to Clause 7.1, for facilitating the realisation of all or any part of
the Shares which are subject to this Agreement and the exercise of all powers,
authorities and discretions vested in the Security Agent,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Agent or to its nominees and give all notices, orders and
directions which the Security Agent may reasonably think expedient;

(e)                                  at the Security Agent’s reasonable request,
to furnish to the Security Agent such information concerning the Shares as is
available to the Pledgor, to permit the Security Agent and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Shares on
reasonable notice and during normal business hours, and, upon the reasonable
request of the Security Agent, to deliver to the Security Agent copies of all
such records and papers;

(f)                                    to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Pledges
or the effect of which results in the Shares ceasing to exist; and

(g)                                 that all Future Shares will be fully paid and
that there will be no obligation for a Shareholder to make additional
contributions.

8.2                               Pledges over all Shares

The Security Agent may at
all times for itself and for the Pledgees request to hold a pledge over all
Shares held by the Pledgor (and in the case of a merger an equivalent security
interest over the shares in the surviving or, as the case may be, the new
company) in accordance with all terms of this Agreement.

9.                                      REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and
warrants to the Pledgees that:

(a)                                  the Existing Share pledged hereunder is the
only share in the Company in existence at the date hereof;

(b)                                 the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Existing Share;

(c)                                  all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

(d)                                 the Existing Share is fully paid and there is
no obligation for a shareholder to make additional contributions; and

(e)                                  the Existing Share is free from any rights of
third parties;

(f)                                    no third party has any pre-emption rights for
shares in the Company; and

 

(g)                                 there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.                               RELEASE
OF SECURITY

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Agent is obliged to
release upon the Pledgor’s request all or part of the Security insofar as the
realisable value of the Security and any other security given to the Security
Agent or the other Finance Parties with respect to the Secured Claims exceeds,
not only temporarily, the Secured Claims by more than 10%.  The Security Agent may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Agent
nor the Pledgees shall be liable for any loss or damage suffered by the Pledgor
save in respect of such loss or damage which is suffered as a result of the
gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of
the Security Agent.

11.2                        Indemnification

The Pledgor will indemnify the
Security Agent and each of the Pledgees and keep the Security Agent and each of
the Pledgees indemnified against any losses, actions, claims, expenses, demands
and liabilities which may be incurred by or made against the Security Agent
and/or each of the Pledgees as a result of any breach of the Pledgor of any of
its obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of
the Pledgees or the Security Agent.

11.3                        This Clause 11 shall survive the termination
of this Agreement under Clause 12 or otherwise.

12.                               DURATION
AND INDEPENDANCE

12.1                        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Pledges
shall cease to exist if any payments made in satisfaction of the Secured Claims
have only temporarily discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it shall affect the
validity of this Agreement.

12.3                        Independence

This Agreement is
independent from any other security or guarantee which may have been or will be
given to the Security Agent and/or any of the other Pledgees with respect to
any obligation of any of the Obligors under the Finance Documents. None of such
other securities or guarantees shall prejudice, or shall be prejudiced by, or
shall be merged in any way with, this Agreement.

 

13.                               COSTS
AND EXPENSES

Any notarial fees and
expenses incurred in connection with the execution of this Agreement shall be
borne by the Pledgor.  The Pledgor must
pay to each Finance Party the amount of all costs and expenses (including the
costs and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL
INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced
provision.

In particular the Pledges
shall not be affected and shall in any event extend to any and all Shares in
the Company even if the number or nominal value of the Existing Share or the
aggregate liable capital of the Company as stated in Clause 2.1(b) are
inaccurate and deviate from the actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No
failure to exercise, nor any delay in exercising, on the part of the Security
Agent or the Pledgees (or any of them), any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy prevent any further or other exercise thereof or the exercise
of any other right or remedy. The rights and remedies provided hereunder are
cumulative and not exclusive of any rights or remedies provided by law.

(b)                                 The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Pledges created hereunder.

15.                               AMENDMENTS

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.                               NOTICES
AND THEIR LANGUAGE

16.1                        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Agent and/or the Pledgees shall be in writing and shall be delivered
personally, by post or facsimile and shall be sent to the address or facsimile
number of the party, and for the attention of the individual, set forth in
Schedule 1 hereto or such other address or facsimile number as is notified by
that party for this purpose to the Security Agent from time to time.

16.2                        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,

 

accompanied by a translation into English.  In the event of any conflict between the
English text and the text in any other language, the English text shall
prevail.

17.                               APPLICABLE
LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be governed
by and construed in accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Agent and/or any of the other
Finance Parties, however, shall also be entitled to take legal action against
the Pledgor before any other competent court of law having jurisdiction over
the Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the Pledgees
hereby instruct and authorise the undersigned Notary Public to notify the
Company of the Pledges pursuant to, and in accordance with, § 1280 of the
German Civil Code and § 16 of the German Limited Liabilities Companies Act by
means of forwarding a certified copy of this Agreement to the Company by
registered mail (return receipt requested).

 

SCHEDULE 1

ADDRESSES
OF NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland GmbH

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  
	
   

  	
   

  	
   

  
	
  To the Security
  Agent and all other Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vertrieb und Service Beteiligungs

  Verwaltungs GmbH

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  

 

 

APPENDIX 2 - GMBH

SHARE PLEDGE AGREEMENT

RELATING
TO THE SHARES IN 

KABEL DEUTSCHLAND VERWALTUNGS GMBH

12 May 2006

between

KABEL DEUTSCHLAND GMBH

as Pledgor

THE ROYAL BANK OF SCOTLAND PLC

as Security Agent

and

THE FINANCE PARTIES

Allen & Overy LLP

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
   

  	
  Independent Pledges

  	
   

  	
  8

  
	
  4.

  	
   

  	
  Security Purposes

  	
   

  	
  9

  
	
  5.

  	
   

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  10

  
	
  7.

  	
   

  	
  Enforcement of Pledges

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
   

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
   

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
   

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
   

  	
  Costs and Expenses

  	
   

  	
  14

  
	
  14.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  14

  
	
  15.

  	
   

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
   

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
   

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

THIS SHARE
PLEDGE AGREEMENT (the
Agreement) is made on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND GMBH, a limited liability company (Gesellschaft mit beschränkter Haftung)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRB 145837

(the
Pledgor)

on
one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a public limited company, having its
registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of Scotland and being registered with the Companies
House under registration number SC 090312

(the
Security Agent); and

(3)                                  the FINANCE PARTIES as defined in Clause 1.1
below

(the
Security Agent and each Original Finance Party (as defined below) are
hereinafter referred to individually as an Original
Pledgee and together as the Original
Pledgees)

on
the other side.

The
Pledgor and the Pledgees (as defined below) are hereinafter collectively
referred to as the Parties.

WHEREAS:

(A)                              The Lenders
(as defined below) have agreed to make available to each of the Borrowers (as
defined below) certain credit facilities on the terms of and subject to the
Credit Agreement (as defined below).

(B)                                It is a
condition to the Lenders making the credit facilities available pursuant to the
Credit Agreement that the Pledgor enters into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accounting Principles means
accounting principles, policies, standards, bases and practices which, as at
the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze
ordnungsgemäßer Buchführung und Bilanzierung).

Additional Borrower means a member of the Group which
becomes a borrower under the Credit Agreement after the date of its execution.

Additional Facility means an Add-On Facility or an External
Facility.

 

Add-On
Facility Accession Agreement means an accession deed pursuant to
which any person or entity accedes to the Credit Agreement as provider of an
Add-On Facility.

Add-On Facility means any additional loan facility
provided under the Credit Agreement which has Eligible Terms.

Add-On Facility Lender means:

(a)                                  an Original
Add-On Facility Lender; or

(b)                                 any person
which has become a lender under an Add-On Facility.

Administrative Party means a Mandated Lead Arranger, the
Facility Agent or the Security Agent.

Agreed Priority Agreement Principles means the
principles pursuant to which the Existing Priority Agreement shall be amended.

Ancillary Facility means any facility or financial
accommodation (including any overdraft, foreign exchange, guarantee, bonding,
documentary or standby letter of credit, credit card or automated payments
facility) established by a Lender in place of all or parts of its respective
facility commitment.

Ancillary Facility Document means any
document evidencing any Ancillary Facility.

Ancillary Lender means any lender providing for an
Ancillary Facility.

Ancillary Outstandings means, at any
time and with respect to any Ancillary Facility of any Ancillary Lender, the
aggregate of all of the following amounts (as calculated by that Ancillary
Lender) outstanding at that time under that Ancillary Facility:

(a)                                  all amounts of
principal then outstanding under any overdraft, cheque drawing or other account
facilities determined on a gross basis unless such facilities are made
available on the basis of netting arrangements satisfactory to the Ancillary
Lender in which case, such outstanding principal amounts shall be determined on
the net debt basis used by that Ancillary Lender;

(b)                                 the maximum
potential liability (excluding amounts stated to be in respect of interest and
fees) under all guarantees, bonds and letters of credit then outstanding under
that Ancillary Facility; and

(c)                                  in respect of
any other facility or financial accommodation, such other amount (excluding
interest and similar charges) as fairly represents the aggregate exposure of
that Ancillary Lender under that facility or accommodation, as reasonably
determined by that Ancillary Lender from time to time in accordance with its
usual banking practice for facilities or accommodation of the relevant type.

BGB means the German Civil Code (Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional Borrower.

Business Day means a day (other than a Saturday or a
Sunday) on which banks are open for general business in London and Frankfurt am
Main and which is also a TARGET Day.

Company means Kabel Deutschland Verwaltungs
GmbH, a limited liability company (Gesellschaft
mit beschränkter Haftung) incorporated under the laws of Germany,
having its corporate seat in

 

Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRB 145835.

Commitment Letter means the commitment letter dated on or
about the date of the Credit Agreement between the Arranger, the Original
Lender, KDG and KDVS.

Compliance Certificate means any
compliance certificate issued or to be issued by any Obligor in connection with
the Credit Agreement setting out the compliance with certain financial ratios
and/or covenants.

Credit Agreement means the EUR 1,350,000,000 senior
credit agreement dated on or about 13 March 2006 between, amongst others, the
Mandated Lead Arranger, the Facility Agent, the Security Agent, KDVS, KDG and
the Original Lender providing for EUR 1,350,000,000 senior credit facilities
and up to EUR 650,000,000 Add-On Facilities.

Eligible Terms means, in respect of any Additional
Facility:

(a)                                  the final
maturity date of that Additional Facility must be a date falling at least six
months after 31 March 2012;

(b)                                 there must be
no amortisation required in respect of that Additional Facility;

(c)                                  that
Additional Facility must be a term facility (which, in the case of an External
Facility, may include notes, bonds or any other term credit arrangement which
is not capable, by its terms, of being repaid or prepaid and redrawn before the
date falling at least six months after 31 March 2012 (it being acknowledged
that such arrangement may have customary change of control, voluntary
prepayment, asset sale and similar prepayment provisions)); and

(d)                                 the purpose
must be to fund a Permitted Acquisition;

(e)                                  the principal
amount of that Additional Facility (together with the principal amount of all
other Additional Facilities) may not exceed the lower of:

(i)                                     €650,000,000;
and

(ii)                                  the amount
which, if fully utilised on the date of completion of the relevant Permitted
Acquisition, would not result in any breach of certain financial covenant
ratios;

and

(f)                                    the
liabilities of the obligors thereunder are to be treated and rank as a senior
debt under the Existing Priority Agreement and/or the Priority Agreement and to
have the benefit of all relevant Security Documents (whether through execution
of new documents or amendment to existing documents) or (in each case) to have
such lower ranking as is agreed by all the lenders of that Additional
Facility.  For these purposes relevant Security Documents means Security
Documents comprising the same assets and shares comprised in Security Documents
executed prior to the establishment of that Additional Facility, it being
acknowledged that prior-ranking Security Documents will remain in place (with
the proceeds of enforcement of all Security Documents subject to the sharing
provisions of the Priority Agreement).

Euro, euro, EUR
or € means the single European
currency introduced 1 January 1999.

 

Existing
Priority Agreement means the priority agreement dated 29 March
2004, as amended and restated prior to the date of the Credit Agreement and in
force on the date of the Credit Agreement to which, amongst others, KDG and
KDVS are parties (disregarding the amendments implemented to create an amended
priority agreement in connection with the Credit Agreement).

Existing Shares means the shares set forth in Clause
2.1.

External Facility means any term credit agreement which
has Eligible Terms.

Event of Default means an event of default under any of
the Finance Documents, which entitles the Facility Agent to declare that all or
part of any amounts outstanding under the Finance Documents or any of them are
immediately due and payable, or payable on demand.

Facility Agent means The Royal Bank of Scotland plc, a
public limited company, having its registered office at: 36 St. Andrew Square,
EH2 2YB Edinburgh, Scotland, incorporated under the laws of the United Kingdom
and being registered with the Companies House under registration number SC
090312.

Fee Letter means any letter entered into by
reference to the Credit Agreement between one or more Administrative Parties
and an Obligor setting out the amount of certain fees which are payable, inter
alia, in relation to the Credit Agreement.

Finance Document means:

(a)                                  the Credit
Agreement;

(b)                                 the Commitment
Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor
Accession Deed;

(e)                                  a Transfer
Certificate;

(f)                                    an Ancillary
Facility Document;

(g)                                 the Hedging
Letter;

(h)                                 an Add-On
Facility Accession Agreement;

(i)                                     a Hedging
Document;

(j)                                     a Security
Document;

(k)                                  the Priority
Agreement;

(l)                                     a Compliance
Certificate;

(m)                               a Request; and

(n)                                 any other
document designated as such by the Facility Agent and KDG.

Finance Party means an Administrative Party, an
Underwriter, a Lender or a Hedging Bank.

Future Pledgee means a Finance Party (other than an
Original Finance Party).

 

Future
Shares means any and all shares in the Company issued in addition to the
Existing Shares which the Pledgor may acquire in future (including shares newly
issued by way of capital increase (Kapitalerhöhung)
or otherwise).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries (but excluding
any Unrestricted Subsidiary).

Hedging Letter means a letter dated on or about the
date of the Credit Agreement between KDG, the Mandated Lead Arranger and the
Facility Agent relating to the interest and currency hedging to be effected by
the Group and any other letter designated as such by KDG and the Facility Agent
which amends or supplements the terms of that letter.

Hedging means any interest rate or currency
swap, derivative transaction or hedging facility.

Hedging Bank means:

(a)                                  each Original
Hedging Bank; or

(b)                                 each party
(other than an Obligor) which shall at any relevant time be or become a party
to any Hedging Document.

Hedging Document means

(a)                                  each master
agreement, confirmation or other document evidencing any Hedging provided by a
Hedging Bank to an Obligor; or

(b)                                 otherwise
entered into on the basis that under the terms of the Finance Documents any
party to such document (other than an Obligor) in such regard becomes entitled
to the benefit of, among other things, any security interest created under this
Agreement.

KDG means Kabel Deutschland GmbH, a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht)
of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service
GmbH & Co. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902.

Lender means:

(a)                                  the Original
Lender;

(b)                                 an Original
Add-On Facility Lender; or

(c)                                  any person
which becomes a lender after the date of, and in accordance with the terms of,
this Agreement,

but
only for so long as it has any outstanding commitment or participation in any
loan provided under the Credit Agreement or Ancillary Outstanding or any amount
is owed to it (whether actually or contingently) in its capacity as Lender.

Mandated Lead Arranger means each
of:

 

(a)                                  The Royal Bank
of Scotland plc;

(b)                                 Deutsche Bank
AG London;

(c)                                  Goldman Sachs
International; and

(d)                                 J.P. Morgan
plc.

Obligor means KDG or a Borrower.

Obligor Accession Deed means a deed
of accession pursuant to which any person or entity accedes, inter alia, to the
Credit Agreement as Additional Borrower.

Original Add-On Facility Lender means any
lender providing for an additional facility under the Credit Agreement by way
of executing an Add-On Facility Accession Agreement.

Original Finance Party means an
Administrative Party, an Original Lender or an Original Hedging Bank.

Original Hedging Bank means each
of:

(a)                                  Goldman Sachs
International;

(b)                                 Morgan Stanley
Capital Services Inc.;

(c)                                  Société
Générale;

(d)                                 Coöperatieve
Centrale Raiffeisen-Boerenleenbank B.A.;

(e)                                  The Royal Bank
of Scotland plc;

(f)                                    BNP Paribas
S.A.;

(g)                                 Deutsche Bank
AG, London;

(h)                                 HSBC Bank plc;
and

(i)                                     Calyon
Corporate and Investment Bank.

Original Lender means each of:

(a)                                  The Royal Bank
of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank
AG London;

(c)                                  JPMorgan Chase
Bank, N.A.; and

(d)                                 Goldman Sachs
Credit Partners L.P.

Pledge means each of the pledges constituted under
Clause 2.2.

Pledgee means an Original Pledgee or a Future
Pledgee (together the Pledgees).

Priority Agreement means the Existing Priority Agreement
amended on a basis consistent with the Agreed Priority Agreement Principles
after the date of the Credit Agreement.

 

Request means any
request for the draw down of any credit facility under the Credit Agreement by
any Obligor.

Secured Claims means all present and future rights and
claims (Ansprüche) (whether
actual or contingent and whether owed jointly or severally or in any other
capacity whatsoever) of any of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties (or any of them) in connection
with the protection, preservation or enforcement of their respective rights
under the Finance Documents.

Security means any and all security granted to
secure the Secured Claims.

Security Document means any document evidencing or
creating security over any asset of any Obligor to secure any obligation of any
Obligor to a Finance Party under any Finance Document referred to under (a) to
(i) and (k) to (n) of the definition of “Finance Document”.

Security Trust Agreement means the
agreement dated on or about the date hereof between, amongst others, KDG, KDVS,
the Security Agent and the other Finance Parties under which the Security Agent
has been granted certain rights and has assumed certain obligations.

Shares means the Existing Shares and the Future Shares.

Subsidiary means any of:

(a)                                  an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control
for this purpose means the power to direct the management and the policies of
the entity whether through the ownership of voting capital, by contract or
otherwise; or

(b)                                 an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

Underwriter means each of:

(a)                                  The Royal Bank
of Scotland plc;

(b)                                 Deutsche Bank
AG London;

(c)                                  Goldman Sachs
Credit Partners L.P.; and

(d)                                 JPMorgan Chase
Bank, N.A.

Unrestricted Subsidiary means any
Subsidiary of KDVS or KDG (which is not an Obligor) nominated by KDVS to the
Facility Agent at any time when no Event of Default is outstanding.

TARGET Day means a day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer System is open for the
settlement of payments in Euro.

Transfer Certificate means any transfer certificate pursuant
to which any rights under the Credit Agreement shall be transferred by novation
or otherwise to any New Lender.

1.2                               Construction

(a)                                  In this
Agreement, unless the contrary intention appears, a reference to:

 

(i)                                     the Security
Agent means the Security Agent acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as
contemplated in § 121 (1) BGB.

(b)                                 Where the
context so admits, the singular includes the plural and vice versa.

(c)                                  The headings
in this Agreement are for convenience only and are to be ignored in construing
this Agreement.

(d)                                 Any reference
in this Agreement to a defined document is a reference to that defined document
as amended, restated, novated or supplemented from time to time.

(e)                                  References to
parties herein shall also be deemed to include references to their respective
successors, transferees and assignees.

2.                                      PLEDGES

2.1                               Pledged Shares

(a)                                  The Pledgor is
the sole shareholder of the Company.

(b)                                 The total
registered share capital (Stammkapital)
of the Company amounts to EUR 25,000 (in words: Euro twenty five
thousand).  At present, the Pledgor holds
one share in the Company in an amount of EUR 24,750 (in words: Euro twenty four
thousand seven hundred and fifty) and one share in an amount of EUR 250 (in
words: two hundred and fifty) (the Existing
Shares).  There are no other
shares in the Company.

(c)                                  The Existing
Shares are fully paid up.  There is no
obligation for the Pledgor to make additional contributions.

2.2                               Constitution of Pledges

(a)                                  The Pledgor
hereby pledges the Shares to each of the Original Pledgees and to each Future
Pledgee for their rateable interest.

(b)                                 Each of the
Original Pledgees hereby accepts the Pledge. 
In addition, the Security Agent accepts each of the Pledges for and on
behalf of each Future Pledgee hereunder as proxy without power of attorney (Vertreter ohne Vertretungsmacht).  Each Future Pledgee will ratify such
acceptance for itself by executing an accession agreement to the Security Trust
Agreement thereby becoming a Pledgee. 
All Parties hereto confirm that the validity of any of the Pledges
constituted hereunder shall not be affected by the Security Agent acting as
proxy without power of attorney for each Future Pledgee.

3.                                      INDEPENDENT PLEDGES

The
validity and effect of each of the Pledges shall be independent from the
validity and the effect of any of the other Pledges created hereunder and is in
addition, and without any prejudice, to any other security which any and all of
the Pledgees may now or hereafter hold in respect of the Secured Claims.  Each of the Pledges to each of the Pledgees
shall be separate and individual pledges. Each of the Pledges shall rank pari
passu to each other Pledge created hereunder.

 

4.                                      SECURITY PURPOSES

The
Pledges are constituted in order to secure the prompt and complete satisfaction
of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The
Pledge constituted by this Agreement includes the present and future rights to
receive

(a)                                  dividends, if
any, payable on the Shares;

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or
withdrawal (Austritt) of a
shareholder of the Company, the surplus in case of surrender (Preisgabe) and all other pecuniary claims
associated with the Shares; and

(c)                                  the right to
subscribe for newly issued shares.

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in respect of the Shares until the
requirements for enforcement referred to under Clause 7 below are met and unless
the Facility Agent has notified the Pledgor that according to the Facilities
Agreement any dividend payments in respect of the Shares are no longer
permitted to be made to the Pledgor, in which case the payments are to be made
to the Security Agent.

5.3                               Pledgees’ Rights

Notwithstanding
Clause 5.2 above:

(a)                                  dividends paid
or payable to the Pledgor other than in cash and other property received (Sachdividenden), receivable or otherwise
distributed in respect of or in exchange for the Shares;

(b)                                 dividends or
other distributions paid or payable to the Pledgor in cash in respect of the
Shares in connection with the partial or total liquidation or dissolution or in
connection with the reduction of capital, capital surplus or paid-in surplus;
and

(c)                                  cash paid,
payable or otherwise distributed to the Pledgor in respect of principal of, or
in redemption of, or in exchange for the Shares;

(d)                                 dividends paid
to the Security Agent in accordance with Clause 5.2 above,

shall
be and shall forthwith be delivered to the Security Agent for itself and for
the other Pledgees to be held as security and shall, if received by the
Pledgor, be received as holder for the Pledgees and segregated from the other
property or funds of the Pledgor and be forthwith delivered to the Security
Agent for itself and for the Pledgees as security in the same form as so
received (with any necessary endorsement). 
Any further reaching obligations of the Company and/or the Pledgor in
respect of the use of profits and/or dividends shall not be affected by this
Clause 5.3.

 

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The
voting rights resulting from the Shares remain with the Pledgor.  This shall, however, not affect the
obligations of the Pledgor under Clause 7.1 below.  The Pledgor, however, shall at all times
until the full and complete satisfaction of all Secured Claims or the release
of the Pledges be required, in exercising its voting rights, to act in good
faith to ensure that the Pledges are not in any way adversely affected.

6.2                               Impairment

The
Pledgor shall not take, or participate in, any action which impairs, or which
would for any other reason be inconsistent with, the security interest of the
Pledgees or the security purpose as described in Clause 4 hereof or which would
defeat, impair or circumvent the rights of the Pledgees hereunder in each case
in any respect.

6.3                               Information by the Pledgor

The
Pledgor shall inform the Security Agent promptly of all other actions
concerning the Company which might adversely affect the security interest of
the Pledgees. In particular, the Pledgor shall notify the Security Agent
forthwith of any shareholders’ meeting at which a resolution is intended to be
adopted which could be expected to have an adverse effect upon the
Pledges.  In any event the Security Agent
shall promptly receive, as soon as they are available, a copy of the
convocation notice for such ordinary or extraordinary shareholders’ meeting
setting forth the agenda (to the extent it relates to such resolution) and all
applications and decisions to be taken and the minutes of any such shareholders’
meeting (in each case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF PLEDGES

7.1                               Pledgees’ Rights

(a)                                  If (i) an
Event of Default has occurred, (ii) the requirements set forth in §§ 1204 et
seq. of the German Civil Code (Bürgerliches
Gesetzbuch) with regard to the enforcement of pledges are met (Pfandreife), and (iii) the Event of
Default has not been remedied within 5 (five) Business Days following the
receipt of a notification in accordance with Clause 7.1(b), the Pledgees may
enforce any of the Pledges (or any part thereof) through the Security Agent by
way of public auction (öffentliche
Versteigerung) or in any other way permitted under German law, in
all cases notwithstanding § 1277 of the German Civil Code without any
enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security
Agent shall notify the Pledgor of the intention to realise any of the Pledges
over the Shares not less than 5 (five) Business Days before the date on which
the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient. The public auction may be held at any place in Germany which will
be determined by the Security Agent.

(c)                                  If the
Security Agent should seek to enforce any of the Pledges pursuant to, and in
accordance with Clause 7.1(a) above, the Pledgor shall, at his own expense,
render forthwith all assistance necessary in order to facilitate the prompt
sale of the Shares or any part thereof and/or the exercise by the Security
Agent of any other right the Pledgees may have under German law.

 

(d)                                 The Pledges
will be realised to the extent necessary to discharge in full the Secured
Claims.  The Pledgees shall at all times
until the full and complete satisfaction of all the Secured Claims in
exercising their rights under this Agreement take into consideration the
legitimate interests of the Pledgor.

(e)                                  In derogation
of § 1225 of the German Civil Code, in the event of enforcement of the Pledges,
no rights of the Pledgees shall pass to the Pledgor by subrogation or otherwise
unless and until all of the Secured Claims have been satisfied and discharged
in full. Until then, the Security Agent shall be entitled to treat all
enforcement proceeds as additional collateral for the Secured Claims,
notwithstanding its right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Pledges (or part thereof) shall be transferred to the Pledgor at the cost
and expense of the Pledgor.

7.2                               Ancillary Rights

Provided
that the requirements for enforcement referred to under Clause 7.1(a) above are
met, all payments based on ancillary rights attributed to the Shares may be
applied by the Security Agent in satisfaction in whole or in part of the
Secured Claims notwithstanding the Pledgees’ right to treat such payments as
additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds
resulting from the enforcement of the Pledge must be applied by the Security
Agent in the following order of priority:

(i)                                     first, in or towards payment of, or provision for, all costs and expenses
incurred by the Security Agent in connection with the enforcement of the
Pledge; and

(ii)                                  second, in or towards payment of the Secured Claims by transferring the
proceeds to the Facility Agent for distribution.

(b)                                 The Security
Agent may determine which part of the Security, if applicable, shall be used to
satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon
the full and complete satisfaction of all Secured Claims the Security Agent
shall confirm to the Pledgor upon its request that the Shares are released from
the Pledges and retransfer to the Pledgor any documents received by the
Security Agent or any designee pursuant to Clause 7.1(f) hereof.

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The
Pledgor undertakes:

(a)                                  to notify the
Security Agent promptly of any change in the shareholding in, or the capital
contributions to, the Company or of any change in the articles of association (Satzung) or the registration of the
Company in the commercial register other than with respect to holders of a
statutory power of attorney (Prokura);

 

(b)                                 to notify the Security Agent promptly of any
event or circumstance other than interpretation of laws which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)                                  to effect promptly any payments to be made to
the Company in respect of the Shares;

(d)                                 at its own expense, to execute and do all
such assurances, acts and things as the Security Agent may reasonably require:

(i)                                     for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)                                  if the Pledges have become enforceable
pursuant to Clause 7.1, for facilitating the realisation of all or any part of
the Shares which are subject to this Agreement and the exercise of all powers,
authorities and discretions vested in the Security Agent,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Agent or to its nominees and give all notices, orders and
directions which the Security Agent may reasonably think expedient;

(e)                                  at the Security Agent’s reasonable request,
to furnish to the Security Agent such information concerning the Shares as is
available to the Pledgor, to permit the Security Agent and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Shares on
reasonable notice and during normal business hours, and, upon the reasonable
request of the Security Agent, to deliver to the Security Agent copies of all
such records and papers;

(f)                                    to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Pledges
or the effect of which results in the Shares ceasing to exist; and

(g)                                 that all Future Shares will be fully paid and
that there will be no obligation for a Shareholder to make additional
contributions.

8.2                               Pledges over all Shares

The Security Agent may at
all times for itself and for the Pledgees request to hold a pledge over all
Shares held by the Pledgor (and in the case of a merger an equivalent security
interest over the shares in the surviving or, as the case may be, the new
company) in accordance with all terms of this Agreement.

9.                                      REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and
warrants to the Pledgees that:

(a)                                  the Existing Shares pledged hereunder are the
only shares in the Company in existence at the date hereof;

(b)                                 the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Existing Shares;

(c)                                  all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

 

(d)                                 the Existing Shares are fully paid and there
is no obligation for a shareholder to make additional contributions; and

(e)                                  the Existing Shares are free from any rights
of third parties;

(f)                                    no third party has any pre-emption rights for
shares in the Company; and

(g)                                 there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.                               RELEASE
OF SECURITY

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Agent is obliged to
release upon the Pledgor’s request all or part of the Security insofar as the
realisable value of the Security and any other security given to the Security
Agent or the other Finance Parties with respect to the Secured Claims exceeds,
not only temporarily, the Secured Claims by more than 10%.  The Security Agent may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Agent
nor the Pledgees shall be liable for any loss or damage suffered by the Pledgor
save in respect of such loss or damage which is suffered as a result of the
gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of
the Security Agent.

11.2                        Indemnification

The Pledgor will indemnify
the Security Agent and each of the Pledgees and keep the Security Agent and each
of the Pledgees indemnified against any losses, actions, claims, expenses,
demands and liabilities which may be incurred by or made against the Security
Agent and/or each of the Pledgees as a result of any breach of the Pledgor of
any of its obligations or undertakings contained herein except to the extent
that such losses, actions, claims, expenses, demands or liabilities have
resulted from the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Pledgees or the Security Agent.

11.3                        This Clause 11 shall survive the termination
of this Agreement under Clause 12 or otherwise.

12.                               DURATION
AND INDEPENDANCE

12.1                        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Pledges
shall cease to exist if any payments made in satisfaction of the Secured Claims
have only temporarily discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it shall affect the
validity of this Agreement.

 

12.3                        Independence

This Agreement is
independent from any other security or guarantee which may have been or will be
given to the Security Agent and/or any of the other Pledgees with respect to
any obligation of any of the Obligors under the Finance Documents. None of such
other securities or guarantees shall prejudice, or shall be prejudiced by, or
shall be merged in any way with, this Agreement.

13.                               COSTS
AND EXPENSES

Any notarial fees and
expenses incurred in connection with the execution of this Agreement shall be
borne by the Pledgor.  The Pledgor must
pay to each Finance Party the amount of all costs and expenses (including the
costs and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL
INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced
provision.

In particular the Pledges
shall not be affected and shall in any event extend to any and all Shares in
the Company even if the number or nominal value of the Existing Shares or the
aggregate liable capital of the Company as stated in Clause 2.1(b) are
inaccurate and deviate from the actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No
failure to exercise, nor any delay in exercising, on the part of the Security
Agent or the Pledgees (or any of them), any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy prevent any further or other exercise thereof or the exercise
of any other right or remedy. The rights and remedies provided hereunder are
cumulative and not exclusive of any rights or remedies provided by law.

(b)                                 The Pledgor hereby irrevocably waives any rights
which may pass to the Pledgor by subrogation or otherwise, including but not
limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it may obtain (i) in
the event that the Pledgor repays any debt of any other Obligor under any of
the Finance Documents, or (ii) in the event of enforcement of any of the
Pledges created hereunder.

15.                               AMENDMENTS

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.                               NOTICES
AND THEIR LANGUAGE

16.1                        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Agent and/or the Pledgees shall be in writing and shall be delivered
personally, by post or facsimile and shall be sent to the address or facsimile
number of the party, and for the attention of

 

the individual, set forth in Schedule 1 hereto or
such other address or facsimile number as is notified by that party for this
purpose to the Security Agent from time to time.

16.2                        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,
accompanied by a translation into English. 
In the event of any conflict between the English text and the text in
any other language, the English text shall prevail.

17.                               APPLICABLE
LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Agent and/or any of the other
Finance Parties, however, shall also be entitled to take legal action against
the Pledgor before any other competent court of law having jurisdiction over
the Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the Pledgees
hereby instruct and authorise the undersigned Notary Public to notify the
Company of the Pledges pursuant to, and in accordance with, § 1280 of the
German Civil Code and § 16 of the German Limited Liabilities Companies Act by
means of forwarding a certified copy of this Agreement to the Company by
registered mail (return receipt requested).

 

SCHEDULE 1

ADDRESSES
OF NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel
  Deutschland GmbH

  
	
   

  	
   

  	
  Betastraße 6-8

  
	
   

  	
   

  	
  85774
  Unterföhring

  
	
   

  	
   

  	
  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  
	
   

  	
   

  	
   

  
	
  To the Security
  Agent

  	
   

  	
  The Royal Bank
  of Scotland plc

  
	
  and all other
  Pledgees:

  	
   

  	
  Level 7

  
	
   

  	
   

  	
  135 Bishopsgate

  
	
   

  	
   

  	
  London EC2M 3UR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison,
  Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7085
  4564

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel
  Deutschland Verwaltungs GmbH

  
	
   

  	
   

  	
  Betastraße 6-8

  
	
   

  	
   

  	
  85774
  Unterföhring

  
	
   

  	
   

  	
  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  

 

 

APPENDIX
3 - GMBH

 

SHARE
PLEDGE AGREEMENT

RELATING TO THE SHARES IN 

KABEL DEUTSCHLAND VERMÖGEN BETEILIGUNGS VERWALTUNGS GMBH

12 May 2006

between

KABEL DEUTSCHLAND VERTRIEB
UND SERVICE GMBH & CO. KG

as
Pledgor

THE ROYAL BANK OF SCOTLAND
PLC

as
Security Agent

and

THE FINANCE PARTIES

 

Allen & Overy LLP

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
   

  	
  Independent Pledges

  	
   

  	
  8

  
	
  4.

  	
   

  	
  Security Purposes

  	
   

  	
  9

  
	
  5.

  	
   

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  10

  
	
  7.

  	
   

  	
  Enforcement of Pledges

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
   

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
   

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
   

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
   

  	
  Costs and Expenses

  	
   

  	
  14

  
	
  14.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  14

  
	
  15.

  	
   

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
   

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
   

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

THIS
SHARE PLEDGE AGREEMENT (the Agreement) is
made on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of the Federal Republic of Germany, having its corporate
seat in Unterföhring (Landkreis München), Federal Republic of Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902 (the Pledgor);

on one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a
public limited company, having its registered office at: 36 St. Andrew Square,
EH2 2YB Edinburgh, Scotland, incorporated under the laws of Scotland and being
registered with the Companies House under registration number SC 090312

(the Security Agent);
and

(3)                                  the FINANCE PARTIES as defined in
Clause 1.1 below

(the Security Agent and each Original Finance Party
(as defined below) are hereinafter referred to individually as an Original Pledgee and together as the Original Pledgees)

on the other side.

The Pledgor and the Pledgees (as defined below) are
hereinafter collectively referred to as the Parties.

WHEREAS:

(A)                              The Lenders (as defined below) have agreed to make available to each of
the Borrowers (as defined below) certain credit facilities on the terms of and
subject to the Credit Agreement (as defined below).

(B)                                It is a condition to the Lenders making the credit facilities available
pursuant to the Credit Agreement that the Pledgor enters into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In this Agreement:

Accounting Principles
means accounting principles, policies, standards, bases and practices which, as
at the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze ordnungsgemäßer
Buchführung und Bilanzierung).

Additional Borrower
means a member of the Group which becomes a borrower under the Credit Agreement
after the date of its execution.

Additional Facility
means an Add-On Facility or an External Facility.

 

Add-On
Facility Accession Agreement
means an accession deed pursuant to which any person or entity accedes to the
Credit Agreement as provider of an Add-On Facility.

Add-On Facility means any additional
loan facility provided under the Credit Agreement which has Eligible Terms.

Add-On Facility Lender
means:

(a)                                  an Original Add-On Facility Lender; or

(b)                                 any person which has become a lender under an Add-On Facility.

Administrative Party
means a Mandated Lead Arranger, the Facility Agent or the Security Agent.

Agreed Priority Agreement Principles means
the principles pursuant to which the Existing Priority Agreement shall be
amended.

Ancillary Facility
means any facility or financial accommodation (including any overdraft, foreign
exchange, guarantee, bonding, documentary or standby letter of credit, credit
card or automated payments facility) established by a Lender in place of all or
parts of its respective facility commitment.

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

Ancillary Outstandings
means, at any time and with respect to any Ancillary Facility of any Ancillary
Lender, the aggregate of all of the following amounts (as calculated by that
Ancillary Lender) outstanding at that time under that Ancillary Facility:

(a)                                  all amounts of principal then outstanding under any overdraft, cheque
drawing or other account facilities determined on a gross basis unless such
facilities are made available on the basis of netting arrangements satisfactory
to the Ancillary Lender in which case, such outstanding principal amounts shall
be determined on the net debt basis used by that Ancillary Lender;

(b)                                 the maximum potential liability (excluding amounts stated to be in
respect of interest and fees) under all guarantees, bonds and letters of credit
then outstanding under that Ancillary Facility; and

(c)                                  in respect of any other facility or financial accommodation, such other
amount (excluding interest and similar charges) as fairly represents the
aggregate exposure of that Ancillary Lender under that facility or
accommodation, as reasonably determined by that Ancillary Lender from time to
time in accordance with its usual banking practice for facilities or
accommodation of the relevant type.

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

Business Day means a day (other than a
Saturday or a Sunday) on which banks are open for general business in London
and Frankfurt am Main and which is also a TARGET Day.

Company means Kabel Deutschland
Vermögen Beteiligungs Verwaltungs GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) incorporated under
the laws of Germany, having 

 

its
corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRB 153401.

Commitment Letter means the commitment
letter dated on or about the date of the Credit Agreement between the Arranger,
the Original Lender, KDG and KDVS.

Compliance Certificate
means any compliance certificate issued or to be issued by any Obligor in
connection with the Credit Agreement setting out the compliance with certain
financial ratios and/or covenants.

Credit Agreement means the
EUR 1,350,000,000 senior credit agreement dated on or about 13 March 2006
between, amongst others, the Mandated Lead Arranger, the Facility Agent, the
Security Agent, KDVS, KDG and the Original Lender providing for EUR
1,350,000,000 senior credit facilities and up to EUR 650,000,000 Add-On
Facilities.

Eligible Terms means, in respect of
any Additional Facility:

(a)                                  the final maturity date of that Additional Facility must be a date
falling at least six months after 31 March 2012;

(b)                                 there must be no amortisation required in respect of that Additional
Facility;

(c)                                  that Additional Facility must be a term facility (which, in the case of
an External Facility, may include notes, bonds or any other term credit
arrangement which is not capable, by its terms, of being repaid or prepaid and
redrawn before the date falling at least six months after 31 March 2012 (it
being acknowledged that such arrangement may have customary change of control,
voluntary prepayment, asset sale and similar prepayment provisions)); and

(d)                                 the purpose must be to fund a Permitted Acquisition;

(e)                                  the principal amount of that Additional Facility (together with the
principal amount of all other Additional Facilities) may not exceed the lower
of:

(i)                                     €650,000,000; and

(ii)                                  the amount which, if fully utilised on the date of completion of the
relevant Permitted Acquisition, would not result in any breach of certain
financial covenant ratios;

and

(f)                                    the liabilities of the obligors thereunder are to be treated and rank as
a senior debt under the Existing Priority Agreement and/or the Priority
Agreement and to have the benefit of all relevant Security Documents (whether
through execution of new documents or amendment to existing documents) or (in
each case) to have such lower ranking as is agreed by all the lenders of that
Additional Facility.  For these purposes relevant Security Documents means Security Documents
comprising the same assets and shares comprised in Security Documents executed
prior to the establishment of that Additional Facility, it being acknowledged
that prior-ranking Security Documents will remain in place (with the proceeds
of enforcement of all Security Documents subject to the sharing provisions of
the Priority Agreement).

Euro, euro, EUR
or € means the single European currency
introduced 1 January 1999.

 

Existing
Priority Agreement means the priority agreement
dated 29 March 2004, as amended and restated prior to the date of the Credit
Agreement and in force on the date of the Credit Agreement to which, amongst
others, KDG and KDVS are parties (disregarding the amendments implemented to
create an amended priority agreement in connection with the Credit Agreement).

Existing Share means the share set
forth in Clause 2.1.

External Facility means any term
credit agreement which has Eligible Terms.

Event of Default means an event of
default under any of the Finance Documents, which entitles the Facility Agent
to declare that all or part of any amounts outstanding under the Finance
Documents or any of them are immediately due and payable, or payable on demand.

Facility Agent means The Royal Bank
of Scotland plc, a public limited company, having its registered office at: 36
St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated under the laws of the
United Kingdom and being registered with the Companies House under registration
number SC 090312.

Fee Letter means any letter entered
into by reference to the Credit Agreement between one or more Administrative
Parties and an Obligor setting out the amount of certain fees which are
payable, inter alia, in relation to the Credit Agreement.

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement;

(l)                                     a Compliance Certificate;

(m)                               a Request; and

(n)                                 any other document designated as such by the Facility Agent and KDG.

Finance Party means an
Administrative Party, an Underwriter, a Lender or a Hedging Bank.

Future Pledgee means a Finance
Party (other than an Original Finance Party).

 

Future
Shares means any and all shares in the Company issued
in addition to the Existing Share which the Pledgor may acquire in future
(including shares newly issued by way of capital increase (Kapitalerhöhung)
or otherwise).

Germany means the Federal Republic
of Germany.

Group means KDG and its
Subsidiaries (but excluding any Unrestricted Subsidiary).

Hedging Letter means a letter dated
on or about the date of the Credit Agreement between KDG, the Mandated Lead
Arranger and the Facility Agent relating to the interest and currency hedging
to be effected by the Group and any other letter designated as such by KDG and
the Facility Agent which amends or supplements the terms of that letter.

Hedging means any interest rate or
currency swap, derivative transaction or hedging facility.

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

(b)                                 each party (other than an Obligor) which shall at any relevant time be
or become a party to any Hedging Document.

Hedging Document means

(a)                                  each master agreement, confirmation or other document evidencing any
Hedging provided by a Hedging Bank to an Obligor; or

(b)                                 otherwise entered into on the basis that under the terms of the Finance
Documents any party to such document (other than an Obligor) in such regard
becomes entitled to the benefit of, among other things, any security interest
created under this Agreement.

KDG means Kabel Deutschland
GmbH, a limited liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRB 145837.

KDVS means Kabel Deutschland
Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902.

Lender means:

(a)                                  the Original Lender;

(b)                                 an Original Add-On Facility Lender; or

(c)                                  any person which becomes a lender after the date of, and in accordance
with the terms of, this Agreement,

but only for so long as it has any outstanding
commitment or participation in any loan provided under the Credit Agreement or
Ancillary Outstanding or any amount is owed to it (whether actually or
contingently) in its capacity as Lender.

Mandated Lead Arranger
means each of:

 

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

Obligor Accession Deed
means a deed of accession pursuant to which any person or entity accedes, inter
alia, to the Credit Agreement as Additional Borrower.

Original Add-On Facility Lender
means any lender providing for an additional facility under the Credit
Agreement by way of executing an Add-On Facility Accession Agreement.

Original Finance Party
means an Administrative Party, an Original Lender or an Original Hedging Bank.

Original Hedging Bank
means each of:.

(a)                                  Goldman Sachs International;

(b)                                 Morgan Stanley Capital Services Inc.;

(c)                                  Société Générale;

(d)                                 Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.;

(e)                                  The Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche Bank AG, London;

(h)                                 HSBC Bank plc; and

(i)                                     Calyon Corporate and Investment Bank.

Original Lender means each of:

(a)                                  The Royal Bank of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank AG London;

(c)                                  JPMorgan Chase Bank, N.A.; and

(d)                                 Goldman Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

Pledgee means an Original Pledgee
or a Future Pledgee (together the Pledgees).

Priority Agreement
means the Existing Priority Agreement amended on a basis consistent with the
Agreed Priority Agreement Principles after the date of the Credit Agreement.

 

Request means any request for the draw down of any credit facility under the
Credit Agreement by any Obligor.

Secured Claims means all present
and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of any of the Finance Parties against any of the
Obligors under the Finance Documents, each as amended, restated, varied,
supplemented, novated or extended from time to time, including, without
limitation, any increase of principal or interest, in each case together with
all costs, charges and expenses incurred by the Finance Parties (or any of
them) in connection with the protection, preservation or enforcement of their
respective rights under the Finance Documents.

Security means any and all security
granted to secure the Secured Claims.

Security Document means any document
evidencing or creating security over any asset of any Obligor to secure any
obligation of any Obligor to a Finance Party under any Finance Document
referred to under (a) to (i) and (k) to (n) of the definition of “Finance
Document”.

Security Trust Agreement means
the agreement dated on or about the date hereof between, amongst others, KDG,
KDVS, the Security Agent and the other Finance Parties under which the Security
Agent has been granted certain rights and has assumed certain obligations.

Shares means the Existing Share
and the Future Shares.

Subsidiary means any of:

(a)                                  an entity of which a person has direct or indirect control or owns
directly or indirectly more than 50% of the voting capital or similar right of
ownership, and control for this purpose means the power to direct the management
and the policies of the entity whether through the ownership of voting capital,
by contract or otherwise; or

(b)                                 an entity consolidated for the purpose of the financial statements of
any person pursuant to the Accounting Principles.

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs Credit Partners L.P.; and

(d)                                 JPMorgan Chase Bank, N.A.

Unrestricted Subsidiary
means any Subsidiary of KDVS or KDG (which is not an Obligor) nominated by KDVS
to the Facility Agent at any time when no Event of Default is outstanding.

TARGET Day means a day on which the
Trans-European Automated Real-Time Gross Settlement Express Transfer System is
open for the settlement of payments in Euro.

Transfer Certificate
means any transfer certificate pursuant to which any rights under the Credit
Agreement shall be transferred by novation or otherwise to any New Lender.

1.2                               Construction

(a)                                  In this Agreement, unless the contrary intention appears, a reference
to:

 

(i)                                     the Security Agent means the Security Agent acting as agent for and on
behalf of the Pledgees unless otherwise provided herein; and

(ii)                                  promptly means promptly (unverzüglich)
as contemplated in § 121 (1) BGB.

(b)                                 Where the context so admits, the singular includes the plural and vice
versa.

(c)                                  The headings in this Agreement are for convenience only and are to be
ignored in construing this Agreement.

(d)                                 Any reference in this Agreement to a defined document is a reference to
that defined document as amended, restated, novated or supplemented from time
to time.

(e)                                  References to parties herein shall also be deemed to include references
to their respective successors, transferees and assignees.

2.                                      PLEDGES

2.1                               Pledged Shares

(a)                                  The Pledgor is the sole shareholder of the Company.

(b)                                 The total registered share capital (Stammkapital)
of the Company amounts to EUR 25,000 (in words: Euro twenty five
thousand).  At present, the Pledgor holds
the only share in the Company in an amount of EUR 25,000 (in words: Euro twenty
five thousand) (the Existing Share).  There are no other shares in the Company.

(c)                                  The Existing Share is fully paid up. 
There is no obligation for the Pledgor to make additional contributions.

2.2                               Constitution of Pledges

(a)                                  The Pledgor hereby pledges the Shares to each of the Original Pledgees
and to each Future Pledgee for their rateable interest.

(b)                                 Each of the Original Pledgees hereby accepts the Pledge.  In addition, the Security Agent accepts each
of the Pledges for and on behalf of each Future Pledgee hereunder as proxy
without power of attorney (Vertreter ohne
Vertretungsmacht).  Each
Future Pledgee will ratify such acceptance for itself by executing an accession
agreement to the Security Trust Agreement thereby becoming a Pledgee.  All Parties hereto confirm that the validity
of any of the Pledges constituted hereunder shall not be affected by the
Security Agent acting as proxy without power of attorney for each Future
Pledgee.

3.                                      INDEPENDENT PLEDGES

The validity and effect of each of the Pledges shall
be independent from the validity and the effect of any of the other Pledges
created hereunder and is in addition, and without any prejudice, to any other
security which any and all of the Pledgees may now or hereafter hold in respect
of the Secured Claims.  Each of the
Pledges to each of the Pledgees shall be separate and individual pledges. Each
of the Pledges shall rank pari passu to each other Pledge created hereunder.

4.                                      SECURITY PURPOSES

The Pledges are constituted in order to secure the
prompt and complete satisfaction of any and all Secured Claims.

 

5.             DIVIDENDS

 

5.1          Extent
of the Pledge

The Pledge constituted by this Agreement includes the
present and future rights to receive

(a)                                  dividends, if any, payable on the Shares;

(b)                                 liquidation proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of a shareholder of the Company, the surplus in
case of surrender (Preisgabe) and
all other pecuniary claims associated with the Shares; and

(c)                                  the right to subscribe for newly issued shares.

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding that the dividends are pledged
hereunder, the Pledgor shall be entitled to receive and retain all dividend
payments in respect of the Shares until the requirements for enforcement
referred to under Clause 7 below are met and unless the Facility Agent has
notified the Pledgor that according to the Facilities Agreement any dividend
payments in respect of the Shares are no longer permitted to be made to the
Pledgor, in which case the payments are to be made to the Security Agent.

5.3                               Pledgees’ Rights

Notwithstanding Clause 5.2 above:

(a)                                  dividends paid or payable to the Pledgor other than in cash and other
property received (Sachdividenden),
receivable or otherwise distributed in respect of or in exchange for the
Shares;

(b)                                 dividends or other distributions paid or payable to the Pledgor in cash
in respect of the Shares in connection with the partial or total liquidation or
dissolution or in connection with the reduction of capital, capital surplus or
paid-in surplus; and

(c)                                  cash paid, payable or otherwise distributed to the Pledgor in respect of
principal of, or in redemption of, or in exchange for the Shares;

(d)                                 dividends paid to the Security Agent in accordance with Clause 5.2
above,

shall be and shall forthwith be delivered to the
Security Agent for itself and for the other Pledgees to be held as security and
shall, if received by the Pledgor, be received as holder for the Pledgees and
segregated from the other property or funds of the Pledgor and be forthwith
delivered to the Security Agent for itself and for the Pledgees as security in
the same form as so received (with any necessary endorsement).  Any further reaching obligations of the
Company and/or the Pledgor in respect of the use of profits and/or dividends
shall not be affected by this Clause 5.3.

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The voting rights resulting from the Shares remain
with the Pledgor.  This shall, however,
not affect the obligations of the Pledgor under Clause 7.1 below.  The Pledgor, however, shall at all times
until 

 

the
full and complete satisfaction of all Secured Claims or the release of the
Pledges be required, in exercising its voting rights, to act in good faith to
ensure that the Pledges are not in any way adversely affected.

6.2                               Impairment

The Pledgor shall not take, or participate in, any
action which impairs, or which would for any other reason be inconsistent with,
the security interest of the Pledgees or the security purpose as described in
Clause 4 hereof or which would defeat, impair or circumvent the rights of the
Pledgees hereunder in each case in any respect.

6.3                               Information by the Pledgor

The Pledgor shall inform the Security Agent promptly
of all other actions concerning the Company which might adversely affect the
security interest of the Pledgees. In particular, the Pledgor shall notify the
Security Agent forthwith of any shareholders’ meeting at which a resolution is
intended to be adopted which could be expected to have an adverse effect upon
the Pledges.  In any event the Security
Agent shall promptly receive, as soon as they are available, a copy of the
convocation notice for such ordinary or extraordinary shareholders’ meeting
setting forth the agenda (to the extent it relates to such resolution) and all
applications and decisions to be taken and the minutes of any such shareholders’
meeting (in each case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF PLEDGES

7.1                               Pledgees’ Rights

(a)                                  If (i) an Event of Default has occurred, (ii) the requirements set forth
in §§ 1204 et seq. of the German Civil Code (Bürgerliches
Gesetzbuch) with regard to the enforcement of pledges are met (Pfandreife), and (iii) the Event of Default has not been
remedied within 5 (five) Business Days following the receipt of a notification
in accordance with Clause 7.1(b), the Pledgees may enforce any of the Pledges
(or any part thereof) through the Security Agent by way of public auction (öffentliche Versteigerung) or in any other way permitted
under German law, in all cases notwithstanding § 1277 of the German Civil Code
without any enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security Agent shall notify the Pledgor of the intention to realise
any of the Pledges over the Shares not less than 5 (five) Business Days before
the date on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient. The public auction may be held at any place in Germany which will
be determined by the Security Agent.

(c)                                  If the Security Agent should seek to enforce any of the Pledges pursuant
to, and in accordance with Clause 7.1(a) above, the Pledgor shall, at his own
expense, render forthwith all assistance necessary in order to facilitate the
prompt sale of the Shares or any part thereof and/or the exercise by the
Security Agent of any other right the Pledgees may have under German law.

(d)                                 The Pledges will be realised to the extent necessary to discharge in
full the Secured Claims.  The Pledgees
shall at all times until the full and complete satisfaction of all the Secured
Claims in exercising their rights under this Agreement take into consideration
the legitimate interests of the Pledgor.

 

(e)                                  In derogation of § 1225 of the German Civil Code, in the event of
enforcement of the Pledges, no rights of the Pledgees shall pass to the Pledgor
by subrogation or otherwise unless and until all of the Secured Claims have
been satisfied and discharged in full. Until then, the Security Agent shall be
entitled to treat all enforcement proceeds as additional collateral for the
Secured Claims, notwithstanding its right to seek satisfaction from such
proceeds at any time.

(f)                                    After the complete unconditional, irrevocable and full payment and
discharge of all Secured Claims any remaining proceeds resulting from the
enforcement of any of the Pledges (or part thereof) shall be transferred to the
Pledgor at the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided that the requirements for enforcement
referred to under Clause 7.1(a) above are met, all payments based on ancillary
rights attributed to the Shares may be applied by the Security Agent in
satisfaction in whole or in part of the Secured Claims notwithstanding the
Pledgees’ right to treat such payments as additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds resulting from the enforcement of the Pledge must be
applied by the Security Agent in the following order of priority:

(i)                                     first, in or towards payment of, or
provision for, all costs and expenses incurred by the Security Agent in
connection with the enforcement of the Pledge; and

(ii)                                  second, in or towards payment of
the Secured Claims by transferring the proceeds to the Facility Agent for
distribution.

(b)                                 The Security Agent may determine which part of the Security, if
applicable, shall be used to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon the full and complete satisfaction of all Secured
Claims the Security Agent shall confirm to the Pledgor upon its request that
the Shares are released from the Pledges and retransfer to the Pledgor any
documents received by the Security Agent or any designee pursuant to Clause
7.1(f) hereof.

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes:

(a)                                  to notify the Security Agent promptly of any change in the shareholding
in, or the capital contributions to, the Company or of any change in the
articles of association (Satzung) or the
registration of the Company in the commercial register other than with respect
to holders of a statutory power of attorney (Prokura);

(b)                                 to notify the Security Agent promptly of any event or circumstance other
than interpretation of laws which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

(c)                                  to effect promptly any payments to be made to the Company in respect of
the Shares;

 

(d)                                 at its own expense, to execute and do all such assurances, acts and
things as the Security Agent may reasonably require:

(i)                                     for perfecting or protecting the security intended to be afforded by
this Agreement; and

(ii)                                  if the Pledges have become enforceable pursuant to Clause 7.1, for
facilitating the realisation of all or any part of the Shares which are subject
to this Agreement and the exercise of all powers, authorities and discretions
vested in the Security Agent,

and in particular to execute all transfers,
conveyances, assignments and releases of that property whether to the Security
Agent or to its nominees and give all notices, orders and directions which the
Security Agent may reasonably think expedient;

(e)                                  at the Security Agent’s reasonable request, to furnish to the Security
Agent such information concerning the Shares as is available to the Pledgor, to
permit the Security Agent and its designees to inspect, audit and make copies
of and extracts from all records and all other papers in the possession of the
Pledgor which pertain to the Shares on reasonable notice and during normal
business hours, and, upon the reasonable request of the Security Agent, to
deliver to the Security Agent copies of all such records and papers;

(f)                                    to refrain from any acts or omissions which might have an adverse effect
on the validity or enforceability of the Pledges or the effect of which results
in the Shares ceasing to exist; and

(g)                                 that all Future Shares will be fully paid and that there will be no
obligation for a Shareholder to make additional contributions.

8.2                               Pledges over all Shares

The Security Agent may at all times for itself and for
the Pledgees request to hold a pledge over all Shares held by the Pledgor (and
in the case of a merger an equivalent security interest over the shares in the
surviving or, as the case may be, the new company) in accordance with all terms
of this Agreement.

9.                                      REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  the Existing Share pledged hereunder is the only share in the Company in
existence at the date hereof;

(b)                                 the Pledgor is not subject to any restriction of any kind with regard to
the transfer of, or the granting of a pledge in, or any other disposal of, the
Existing Share;

(c)                                  all necessary corporate action has been taken to authorise the entry
into and delivery of this Agreement;

(d)                                 the Existing Share is fully paid and there is no obligation for a
shareholder to make additional contributions; and

(e)                                  the Existing Share is free from any rights of third parties;

(f)                                    no third party has any pre-emption rights for shares in the Company; and

 

(g)                                 there is no party (other than the Pledgor) which is entitled to
participate in the profits or revenues of the Company.

10.                               RELEASE OF SECURITY

Even prior to the full and complete satisfaction of
all Secured Claims, the Security Agent is obliged to release upon the Pledgor’s
request all or part of the Security insofar as the realisable value of the
Security and any other security given to the Security Agent or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10%.  The Security Agent may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Agent nor the Pledgees shall be
liable for any loss or damage suffered by the Pledgor save in respect of such
loss or damage which is suffered as a result of the gross negligence (grobe Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Agent.

11.2                        Indemnification

The Pledgor will indemnify the Security Agent and each
of the Pledgees and keep the Security Agent and each of the Pledgees
indemnified against any losses, actions, claims, expenses, demands and
liabilities which may be incurred by or made against the Security Agent and/or
each of the Pledgees as a result of any breach of the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of the
Pledgees or the Security Agent.

11.3                        This Clause 11 shall survive the termination of this Agreement under
Clause 12 or otherwise.

12.                               DURATION AND INDEPENDANCE

12.1                        Duration

This Agreement shall remain in full force and effect
until the full and complete satisfaction of the Secured Claims.  None of the Pledges shall cease to exist if
any payments made in satisfaction of the Secured Claims have only temporarily
discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create a continuing security
which means that no change or amendment whatsoever in any Finance Document or
in any document or agreement related to it shall affect the validity of this
Agreement.

12.3                        Independence

This Agreement is independent from any other security
or guarantee which may have been or will be given to the Security Agent and/or
any of the other Pledgees with respect to any obligation of any of the Obligors
under the Finance Documents. None of such other securities or guarantees shall
prejudice, or shall be prejudiced by, or shall be merged in any way with, this
Agreement.

 

13.   COSTS
AND EXPENSES

Any notarial fees
and expenses incurred in connection with the execution of this Agreement shall
be borne by the Pledgor.  The Pledgor
must pay to each Finance Party the amount of all costs and expenses (including
the costs and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.   PARTIAL
INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this Agreement or any part thereof
should be or become invalid or unenforceable, this shall not affect the
validity of the remaining provisions hereof. 
The invalid or unenforceable provision shall be replaced by that
provision which best meets the intent of the replaced provision.

In particular the Pledges shall not be affected and
shall in any event extend to any and all Shares in the Company even if the
number or nominal value of the Existing Share or the aggregate liable capital
of the Company as stated in Clause 2.1(b) are inaccurate and deviate from the
actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of revocation (Anfechtbarkeit)
and set-off (Aufrechenbarkeit) it may have
pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No failure to
exercise, nor any delay in exercising, on the part of the Security Agent or the
Pledgees (or any of them), any right or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any right or remedy
prevent any further or other exercise thereof or the exercise of any other
right or remedy. The rights and remedies provided hereunder are cumulative and
not exclusive of any rights or remedies provided by law.

(b)                                 The Pledgor hereby irrevocably waives any rights which may pass to the
Pledgor by subrogation or otherwise, including but not limited to, any recourse
claim against any Obligor (Verzicht auf
Rückgriffsansprüche) which it may obtain (i) in the event that the
Pledgor repays any debt of any other Obligor under any of the Finance
Documents, or (ii) in the event of enforcement of any of the Pledges created
hereunder.

15.                               AMENDMENTS

Changes and amendments of this Agreement including
this Clause 15 shall be made in writing.

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

Any notice or other communication under or in
connection with this Agreement to the Pledgor or the Security Agent and/or the
Pledgees shall be in writing and shall be delivered personally, by post or
facsimile and shall be sent to the address or facsimile number of the party, and
for the attention of the individual, set forth in Schedule 1 hereto or such
other address or facsimile number as is notified by that party for this purpose
to the Security Agent from time to time.

16.2                        Language

Unless otherwise agreed from time to time, any notice
or other communication under or in connection with this Agreement shall be in
the English language or, if in any other language, 

 

accompanied
by a translation into English.  In the
event of any conflict between the English text and the text in any other
language, the English text shall prevail.

17.                               APPLICABLE LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be governed by and construed in
accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction for all Parties shall be
Frankfurt am Main, Germany.  The Security
Agent and/or any of the other Finance Parties, however, shall also be entitled
to take legal action against the Pledgor before any other competent court of
law having jurisdiction over the Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the Pledgees hereby instruct and
authorise the undersigned Notary Public to notify the Company of the Pledges
pursuant to, and in accordance with, § 1280 of the German Civil Code and § 16
of the German Limited Liabilities Companies Act by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +49 89 96010 198

  
	
   

  	
   

  	
   

  
	
  To the Security
  Agent 

  and all other Pledgees:

  	
  The Royal Bank of Scotland plc 

  Level 7 

  135 Bishopsgate 

  London EC2M 3UR 

  

  United Kingdom

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  
	
  To the Company:

  	
  Kabel Deutschland Vermögen Beteiligungs Verwaltungs 

  GmbH 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +49 89 96010 198

  
				

 

 

APPENDIX 4 - GMBH

 

SHARE
PLEDGE AGREEMENT

RELATING
TO THE SHARES IN 

TKS TELEPOST KABEL-SERVICE KAISERSLAUTERN BETEILIGUNGS-GMBH

 

 

12 May 2006

 

 

Between

 

 

KABEL DEUTSCHLAND
VERTRIEB UND SERVICE GMBH & CO. KG

as Pledgor

 

 

THE ROYAL BANK OF SCOTLAND
PLC

as Security Agent

 

 

and

 

 

THE FINANCE PARTIES

 

 

Allen & Overy LLP

 

CONTENTS

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  1

  
	
  2.

  	
  Pledges

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
  8

  
	
  4.

  	
  Security Purposes

  	
  9

  
	
  5.

  	
  Dividends

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
  10

  
	
  7.

  	
  Enforcement of Pledges

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
  12

  
	
  10.

  	
  Release of Security

  	
  13

  
	
  11.

  	
  Indemnity

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
  13

  
	
  13.

  	
  Costs and Expenses

  	
  14

  
	
  14.

  	
  Partial Invalidity; Waiver

  	
  14

  
	
  15.

  	
  Amendments

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
  14

  
	
  17.

  	
  Applicable Law; Jurisdiction

  	
  15

  
	
  18.

  	
  Notification

  	
  15

  
	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  
	
   

  	
   

  
	
  1

  	
  Addresses of Notices

  	
  16

  
				

 

 

THIS
SHARE PLEDGE AGREEMENT (the Agreement) is
made on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of the Federal Republic of Germany, having its corporate
seat in Unterföhring (Landkreis München), Federal Republic of Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902 (the Pledgor);

on one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a
public limited company, having its registered office at: 36 St. Andrew Square,
EH2 2YB Edinburgh, Scotland, incorporated under the laws of Scotland and being
registered with the Companies House under registration number SC 090312

(the Security Agent);
and

(3)                                  the FINANCE PARTIES as defined in
Clause 1.1 below

(the Security Agent and each Original Finance Party
(as defined below) are hereinafter referred to individually as an Original Pledgee and together as the Original Pledgees)

on the other side.

The Pledgor and the Pledgees (as defined below) are
hereinafter collectively referred to as the Parties.

WHEREAS:

(A)                              The Lenders (as defined below) have agreed to make available to each of
the Borrowers (as defined below) certain credit facilities on the terms of and
subject to the Credit Agreement (as defined below).

(B)                                It is a condition to the Lenders making the credit facilities available
pursuant to the Credit Agreement that the Pledgor enters into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In this Agreement:

Accounting Principles
means accounting principles, policies, standards, bases and practices which, as
at the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze ordnungsgemäßer
Buchführung und Bilanzierung).

Additional Borrower
means a member of the Group which becomes a borrower under the Credit Agreement
after the date of its execution.

Additional Facility
means an Add-On Facility or an External Facility.

 1
 

 

Add-On
Facility Accession Agreement
means an accession deed pursuant to which any person or entity accedes to the
Credit Agreement as provider of an Add-On Facility.

Add-On Facility means any additional
loan facility provided under the Credit Agreement which has Eligible Terms.

Add-On Facility Lender
means:

(a)                                  an Original Add-On Facility Lender; or

(b)                                 any person which has become a lender under an Add-On Facility.

Administrative Party
means a Mandated Lead Arranger, the Facility Agent or the Security Agent.

Agreed Priority Agreement Principles means
the principles pursuant to which the Existing Priority Agreement shall be
amended.

Ancillary Facility
means any facility or financial accommodation (including any overdraft, foreign
exchange, guarantee, bonding, documentary or standby letter of credit, credit
card or automated payments facility) established by a Lender in place of all or
parts of its respective facility commitment.

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

Ancillary Outstandings
means, at any time and with respect to any Ancillary Facility of any Ancillary
Lender, the aggregate of all of the following amounts (as calculated by that
Ancillary Lender) outstanding at that time under that Ancillary Facility:

(a)                                  all amounts of principal then outstanding under any overdraft, cheque
drawing or other account facilities determined on a gross basis unless such
facilities are made available on the basis of netting arrangements satisfactory
to the Ancillary Lender in which case, such outstanding principal amounts shall
be determined on the net debt basis used by that Ancillary Lender;

(b)                                 the maximum potential liability (excluding amounts stated to be in
respect of interest and fees) under all guarantees, bonds and letters of credit
then outstanding under that Ancillary Facility; and

(c)                                  in respect of any other facility or financial accommodation, such other
amount (excluding interest and similar charges) as fairly represents the
aggregate exposure of that Ancillary Lender under that facility or
accommodation, as reasonably determined by that Ancillary Lender from time to
time in accordance with its usual banking practice for facilities or
accommodation of the relevant type.

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

Business Day means a day (other than a
Saturday or a Sunday) on which banks are open for general business in London
and Frankfurt am Main and which is also a TARGET Day.

Company means TKS Telepost
Kabel-Service Kaiserslautern Beteiligungs-GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) incorporated under
the laws of Germany, 

 2
 

 

having
its corporate seat in Kaiserslautern, Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht) of
Kaiserslautern under registration number HRB 2682.

Commitment Letter means the commitment
letter dated on or about the date of the Credit Agreement between the Arranger,
the Original Lender, KDG and KDVS.

Compliance Certificate
means any compliance certificate issued or to be issued by any Obligor in
connection with the Credit Agreement setting out the compliance with certain
financial ratios and/or covenants.

Credit Agreement means the
EUR 1,350,000,000 senior credit agreement dated on or about 13 March 2006
between, amongst others, the Mandated Lead Arranger, the Facility Agent, the
Security Agent, KDVS, KDG and the Original Lender providing for EUR
1,350,000,000 senior credit facilities and up to EUR 650,000,000 Add-On
Facilities.

DEM or Deutsche Mark
means the former legal currency of Germany.

Eligible Terms means, in respect of
any Additional Facility:

(a)                                  the final maturity date of that Additional Facility must be a date
falling at least six months after 31 March 2012;

(b)                                 there must be no amortisation required in respect of that Additional
Facility;

(c)                                  that Additional Facility must be a term facility (which, in the case of
an External Facility, may include notes, bonds or any other term credit
arrangement which is not capable, by its terms, of being repaid or prepaid and
redrawn before the date falling at least six months after 31 March 2012 (it
being acknowledged that such arrangement may have customary change of control,
voluntary prepayment, asset sale and similar prepayment provisions)); and

(d)                                 the purpose must be to fund a Permitted Acquisition;

(e)                                  the principal amount of that Additional Facility (together with the
principal amount of all other Additional Facilities) may not exceed the lower
of:

(i)                                     €650,000,000; and

(ii)                                  the amount which, if fully utilised on the date of completion of the
relevant Permitted Acquisition, would not result in any breach of certain
financial covenant ratios;

and

(f)                                    the liabilities of the obligors thereunder are to be treated and rank as
a senior debt under the Existing Priority Agreement and/or the Priority
Agreement and to have the benefit of all relevant Security Documents (whether
through execution of new documents or amendment to existing documents) or (in
each case) to have such lower ranking as is agreed by all the lenders of that
Additional Facility.  For these purposes relevant Security Documents means Security Documents
comprising the same assets and shares comprised in Security Documents executed
prior to the establishment of that Additional Facility, it being acknowledged
that prior-ranking Security Documents will remain in place (with the proceeds
of enforcement of all Security Documents subject to the sharing provisions of
the Priority Agreement).

 3
 

 

Euro,
euro, EUR or € means the single European currency introduced 1 January
1999.

Existing Priority Agreement means
the priority agreement dated 29 March 2004, as amended and restated prior to
the date of the Credit Agreement and in force on the date of the Credit
Agreement to which, amongst others, KDG and KDVS are parties (disregarding the
amendments implemented to create an amended priority agreement in connection
with the Credit Agreement).

Existing Share means the share set
forth in Clause 2.1.

External Facility means any term
credit agreement which has Eligible Terms.

Event of Default means an event of
default under any of the Finance Documents, which entitles the Facility Agent
to declare that all or part of any amounts outstanding under the Finance
Documents or any of them are immediately due and payable, or payable on demand.

Facility Agent means The Royal Bank
of Scotland plc, a public limited company, having its registered office at: 36
St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated under the laws of
the United Kingdom and being registered with the Companies House under
registration number SC 090312.

Fee Letter means any letter entered
into by reference to the Credit Agreement between one or more Administrative
Parties and an Obligor setting out the amount of certain fees which are
payable, inter alia, in relation to the Credit Agreement.

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement;

(l)                                     a Compliance Certificate;

(m)                               a Request; and

(n)                                 any other document designated as such by the Facility Agent and KDG.

Finance Party means an
Administrative Party, an Underwriter, a Lender or a Hedging Bank.

 4
 

 

Future
Pledgee means a Finance Party (other than an Original
Finance Party).

Future Shares means any and all
shares in the Company issued in addition to the Existing Share which the
Pledgor may acquire in future (including shares newly issued by way of capital
increase (Kapitalerhöhung) or otherwise).

Germany means the Federal Republic
of Germany.

Group means KDG and its
Subsidiaries (but excluding any Unrestricted Subsidiary).

Hedging Letter means a letter dated
on or about the date of the Credit Agreement between KDG, the Mandated Lead
Arranger and the Facility Agent relating to the interest and currency hedging
to be effected by the Group and any other letter designated as such by KDG and
the Facility Agent which amends or supplements the terms of that letter.

Hedging means any interest rate or
currency swap, derivative transaction or hedging facility.

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

(b)                                 each party (other than an Obligor) which shall at any relevant time be
or become a party to any Hedging Document.

Hedging Document means

(a)                                  each master agreement, confirmation or other document evidencing any
Hedging provided by a Hedging Bank to an Obligor; or

(b)                                 otherwise entered into on the basis that under the terms of the Finance
Documents any party to such document (other than an Obligor) in such regard
becomes entitled to the benefit of, among other things, any security interest
created under this Agreement.

KDG means Kabel Deutschland
GmbH, a limited liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRB 145837.

KDVS means Kabel Deutschland
Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902.

Lender means:

(a)                                  the Original Lender;

(b)                                 an Original Add-On Facility Lender; or

(c)                                  any person which becomes a lender after the date of, and in accordance
with the terms of, this Agreement,

but only for so long as it has any outstanding
commitment or participation in any loan provided under the Credit Agreement or
Ancillary Outstanding or any amount is owed to it (whether actually or
contingently) in its capacity as Lender.

 5
 

 

Mandated
Lead Arranger means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

Obligor Accession Deed
means a deed of accession pursuant to which any person or entity accedes, inter
alia, to the Credit Agreement as Additional Borrower.

Original Add-On Facility Lender
means any lender providing for an additional facility under the Credit
Agreement by way of executing an Add-On Facility Accession Agreement.

Original Finance Party
means an Administrative Party, an Original Lender or an Original Hedging Bank.

Original Hedging Bank
means each of:.

(a)                                  Goldman Sachs International;

(b)                                 Morgan Stanley Capital Services Inc.;

(c)                                  Société Générale;

(d)                                 Coöperatieve Centraleraiffeisen-Boerenleenbank B.A.;

(e)                                  The Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche Bank AG, London;

(h)                                 HSBC Bank plc; and

(i)                                     Calyon Corporate and Investment Bank.

Original Lender means

(a)                                  The Royal Bank of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank AG London;

(c)                                  JPMorgan Chase Bank, N.A.; and

(d)                                 Goldman Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

Pledgee means an Original Pledgee
or a Future Pledgee (together the Pledgees).

 6
 

 

Priority
Agreement means the Existing Priority
Agreement amended on a basis consistent with the Agreed Priority Agreement
Principles after the date of the Credit Agreement.

Request means any request for the
draw down of any credit facility under the Credit Agreement by any Obligor.

Secured Claims means all present
and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of any of the Finance Parties against any of the
Obligors under the Finance Documents, each as amended, restated, varied,
supplemented, novated or extended from time to time, including, without
limitation, any increase of principal or interest, in each case together with
all costs, charges and expenses incurred by the Finance Parties (or any of
them) in connection with the protection, preservation or enforcement of their
respective rights under the Finance Documents.

Security means any and all security
granted to secure the Secured Claims.

Security Document means any document
evidencing or creating security over any asset of any Obligor to secure any
obligation of any Obligor to a Finance Party under any Finance Document
referred to under (a) to (i) and (k) to (n) of the definition of “Finance
Document”.

Security Trust Agreement means
the agreement dated on or about the date hereof between, amongst others, KDG,
KDVS, the Security Agent and the other Finance Parties under which the Security
Agent has been granted certain rights and has assumed certain obligations.

Shares means the Existing Share
and the Future Shares.

Subsidiary means any of:

(a)                                  an entity of which a person has direct or indirect control or owns
directly or indirectly more than 50% of the voting capital or similar right of
ownership, and control for this purpose means the power to direct the
management and the policies of the entity whether through the ownership of
voting capital, by contract or otherwise; or

(b)                                 an entity consolidated for the purpose of the financial statements of
any person pursuant to the Accounting Principles.

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs Credit Partners L.P.; and

(d)                                 JPMorgan Chase Bank, N.A.

Unrestricted Subsidiary
means any Subsidiary of KDVS or KDG (which is not an Obligor) nominated by KDVS
to the Facility Agent at any time when no Event of Default is outstanding.

TARGET Day means a day on which the
Trans-European Automated Real-Time Gross Settlement Express Transfer System is
open for the settlement of payments in Euro.

Transfer Certificate
means any transfer certificate pursuant to which any rights under the Credit
Agreement shall be transferred by novation or otherwise to any New Lender.

 7
 

 

1.2                               Construction

(a)                                  In this Agreement, unless the contrary intention appears, a reference
to:

(i)                                     the Security Agent means the Security Agent acting as agent for and on
behalf of the Pledgees unless otherwise provided herein; and

(ii)                                  promptly means promptly (unverzüglich)
as contemplated in § 121 (1) BGB.

(b)                                 Where the context so admits, the singular includes the plural and vice
versa.

(c)                                  The headings in this Agreement are for convenience only and are to be
ignored in construing this Agreement.

(d)                                 Any reference in this Agreement to a defined document is a reference to
that defined document as amended, restated, novated or supplemented from time
to time.

(e)                                  References to parties herein shall also be deemed to include references
to their respective successors, transferees and assignees.

2.                                      PLEDGES

2.1                               Pledged Shares

(a)                                  The Pledgor is the sole shareholder of the Company.

(b)                                 The total registered share capital (Stammkapital)
of the Company amounts to DEM 100,000 (in words: Deutsche Mark one hundred
thousand).  At present, the Pledgor holds
the only share in the Company in an amount of DEM 100,000 (in words: Deutsche Mark
one hundred thousand) (the Existing Share).  There are no other shares in the Company.

(c)                                  The Existing Share is fully paid up. 
There is no obligation for the Pledgor to make additional contributions.

2.2                               Constitution of Pledges

(a)                                  The Pledgor hereby pledges the Shares to each of the Original Pledgees
and to each Future Pledgee for their rateable interest.

(b)                                 Each of the Original Pledgees hereby accepts the Pledge.  In addition, the Security Agent accepts each
of the Pledges for and on behalf of each Future Pledgee hereunder as proxy
without power of attorney (Vertreter ohne
Vertretungsmacht).  Each
Future Pledgee will ratify such acceptance for itself by executing an accession
agreement to the Security Trust Agreement thereby becoming a Pledgee.  All Parties hereto confirm that the validity
of any of the Pledges constituted hereunder shall not be affected by the
Security Agent acting as proxy without power of attorney for each Future
Pledgee.

3.                                      INDEPENDENT PLEDGES

The validity and effect of each of the Pledges shall
be independent from the validity and the effect of any of the other Pledges
created hereunder and is in addition, and without any prejudice, to any other
security which any and all of the Pledgees may now or hereafter hold in respect
of the Secured Claims.  Each of the
Pledges to each of the Pledgees shall be separate and individual pledges. Each
of the Pledges shall rank pari passu to each other Pledge created hereunder.

 8
 

 

4.                                      SECURITY PURPOSES

The Pledges are constituted in order to secure the
prompt and complete satisfaction of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The Pledge constituted by this Agreement includes the
present and future rights to receive

(a)                                  dividends, if any, payable on the Shares;

(b)                                 liquidation proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of a shareholder of the Company, the surplus in
case of surrender (Preisgabe) and
all other pecuniary claims associated with the Shares; and

(c)                                  the right to subscribe for newly issued shares.

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding that the dividends are pledged
hereunder, the Pledgor shall be entitled to receive and retain all dividend
payments in respect of the Shares until the requirements for enforcement
referred to under Clause 7 below are met and unless the Facility Agent has
notified the Pledgor that according to the Facilities Agreement any dividend
payments in respect of the Shares are no longer permitted to be made to the
Pledgor, in which case the payments are to be made to the Security Agent.

5.3                               Pledgees’ Rights

Notwithstanding Clause 5.2 above:

(a)                                  dividends paid or payable to the Pledgor other than in cash and other
property received (Sachdividenden),
receivable or otherwise distributed in respect of or in exchange for the
Shares;

(b)                                 dividends or other distributions paid or payable to the Pledgor in cash
in respect of the Shares in connection with the partial or total liquidation or
dissolution or in connection with the reduction of capital, capital surplus or
paid-in surplus; and

(c)                                  cash paid, payable or otherwise distributed to the Pledgor in respect of
principal of, or in redemption of, or in exchange for the Shares;

(d)                                 dividends paid to the Security Agent in accordance with Clause 5.2
above,

shall be and shall forthwith be delivered to the
Security Agent for itself and for the other Pledgees to be held as security and
shall, if received by the Pledgor, be received as holder for the Pledgees and
segregated from the other property or funds of the Pledgor and be forthwith
delivered to the Security Agent for itself and for the Pledgees as security in
the same form as so received (with any necessary endorsement).  Any further reaching obligations of the
Company and/or the Pledgor in respect of the use of profits and/or dividends
shall not be affected by this Clause 5.3.

 9
 

 

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The voting rights resulting from the Shares remain
with the Pledgor.  This shall, however,
not affect the obligations of the Pledgor under Clause 7.1 below.  The Pledgor, however, shall at all times
until the full and complete satisfaction of all Secured Claims or the release
of the Pledges be required, in exercising its voting rights, to act in good
faith to ensure that the Pledges are not in any way adversely affected.

6.2                               Impairment

The Pledgor shall not take, or participate in, any
action which impairs, or which would for any other reason be inconsistent with,
the security interest of the Pledgees or the security purpose as described in
Clause 4 hereof or which would defeat, impair or circumvent the rights of the
Pledgees hereunder in each case in any respect.

6.3                               Information by the Pledgor

The Pledgor shall inform the Security Agent promptly
of all other actions concerning the Company which might adversely affect the
security interest of the Pledgees. In particular, the Pledgor shall notify the
Security Agent forthwith of any shareholders’ meeting at which a resolution is
intended to be adopted which could be expected to have an adverse effect upon
the Pledges.  In any event the Security
Agent shall promptly receive, as soon as they are available, a copy of the
convocation notice for such ordinary or extraordinary shareholders’ meeting
setting forth the agenda (to the extent it relates to such resolution) and all
applications and decisions to be taken and the minutes of any such shareholders’
meeting (in each case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF PLEDGES

7.1                               Pledgees’ Rights

(a)                                  If (i) an Event of Default has occurred, (ii) the requirements set forth
in §§ 1204 et seq. of the German Civil Code (Bürgerliches
Gesetzbuch) with regard to the enforcement of pledges are met (Pfandreife), and (iii) the Event of Default has not been
remedied within 5 (five) Business Days following the receipt of a notification
in accordance with Clause 7.1(b), the Pledgees may enforce any of the Pledges
(or any part thereof) through the Security Agent by way of public auction (öffentliche Versteigerung) or in any other way permitted
under German law, in all cases notwithstanding § 1277 of the German Civil Code
without any enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security Agent shall notify the Pledgor of the intention to realise
any of the Pledges over the Shares not less than 5 (five) Business Days before
the date on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient. The public auction may be held at any place in Germany which will
be determined by the Security Agent.

(c)                                  If the Security Agent should seek to enforce any of the Pledges pursuant
to, and in accordance with Clause 7.1(a) above, the Pledgor shall, at his own
expense, render forthwith all assistance necessary in order to facilitate the
prompt sale of the Shares or any part thereof and/or the exercise by the
Security Agent of any other right the Pledgees may have under German law.

 10
 

 

(d)                                 The Pledges will be realised to the extent necessary to discharge in full
the Secured Claims.  The Pledgees shall
at all times until the full and complete satisfaction of all the Secured Claims
in exercising their rights under this Agreement take into consideration the
legitimate interests of the Pledgor.

(e)                                  In derogation of § 1225 of the German Civil Code, in the event of
enforcement of the Pledges, no rights of the Pledgees shall pass to the Pledgor
by subrogation or otherwise unless and until all of the Secured Claims have
been satisfied and discharged in full. Until then, the Security Agent shall be
entitled to treat all enforcement proceeds as additional collateral for the
Secured Claims, notwithstanding its right to seek satisfaction from such
proceeds at any time.

(f)                                    After the complete unconditional, irrevocable and full payment and
discharge of all Secured Claims any remaining proceeds resulting from the
enforcement of any of the Pledges (or part thereof) shall be transferred to the
Pledgor at the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided that the requirements for enforcement
referred to under Clause 7.1(a) above are met, all payments based on ancillary
rights attributed to the Shares may be applied by the Security Agent in
satisfaction in whole or in part of the Secured Claims notwithstanding the Pledgees’
right to treat such payments as additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds resulting from the enforcement of the Pledge must be
applied by the Security Agent in the following order of priority:

(i)                                     first, in or towards payment of,
or provision for, all costs and expenses incurred by the Security Agent in
connection with the enforcement of the Pledge; and

(ii)                                  second, in or towards payment of
the Secured Claims by transferring the proceeds to the Facility Agent for
distribution.

(b)                                 The Security Agent may determine which part of the Security, if
applicable, shall be used to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon the full and complete satisfaction of all Secured
Claims the Security Agent shall confirm to the Pledgor upon its request that
the Shares are released from the Pledges and retransfer to the Pledgor any
documents received by the Security Agent or any designee pursuant to Clause
7.1(f) hereof.

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes:

(a)                                  to notify the Security Agent promptly of any change in the shareholding
in, or the capital contributions to, the Company or of any change in the
articles of association (Satzung) or the
registration of the Company in the commercial register other than with respect
to holders of a statutory power of attorney (Prokura);

 11

 

(b)                                 to notify the Security Agent promptly of any event or circumstance other
than interpretation of laws which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

(c)                                  to effect promptly any payments to be made to the Company in respect of
the Shares;

(d)                                 at its own expense, to execute and do all such assurances, acts and
things as the Security Agent may reasonably require:

(i)                                     for perfecting or protecting the security intended to be afforded by
this Agreement; and

(ii)                                  if the Pledges have become enforceable pursuant to Clause 7.1, for
facilitating the realisation of all or any part of the Shares which are subject
to this Agreement and the exercise of all powers, authorities and discretions
vested in the Security Agent,

and in particular to execute all transfers,
conveyances, assignments and releases of that property whether to the Security
Agent or to its nominees and give all notices, orders and directions which the
Security Agent may reasonably think expedient;

(e)                                  at the Security Agent’s reasonable request, to furnish to the Security
Agent such information concerning the Shares as is available to the Pledgor, to
permit the Security Agent and its designees to inspect, audit and make copies
of and extracts from all records and all other papers in the possession of the
Pledgor which pertain to the Shares on reasonable notice and during normal
business hours, and, upon the reasonable request of the Security Agent, to
deliver to the Security Agent copies of all such records and papers;

(f)                                    to refrain from any acts or omissions which might have an adverse effect
on the validity or enforceability of the Pledges or the effect of which results
in the Shares ceasing to exist; and

(g)                                 that all Future Shares will be fully paid and that there will be no
obligation for a Shareholder to make additional contributions.

8.2                               Pledges over all Shares

The Security Agent may at all times for itself and for
the Pledgees request to hold a pledge over all Shares held by the Pledgor (and
in the case of a merger an equivalent security interest over the shares in the
surviving or, as the case may be, the new company) in accordance with all terms
of this Agreement.

9.                                      REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  the Existing Share pledged hereunder is the only share in the Company in
existence at the date hereof;

(b)                                 the Pledgor is not subject to any restriction of any kind with regard to
the transfer of, or the granting of a pledge in, or any other disposal of, the
Existing Share;

(c)                                  all necessary corporate action has been taken to authorise the entry
into and delivery of this Agreement;

 12
 

 

(d)                                 the Existing Share is fully paid and there is no obligation for a
shareholder to make additional contributions; and

(e)                                  the Existing Share is free from any rights of third parties;

(f)                                    no third party has any pre-emption rights for shares in the Company; and

(g)                                 there is no party (other than the Pledgor) which is entitled to
participate in the profits or revenues of the Company.

10.                               RELEASE OF SECURITY

Even prior to the full and complete satisfaction of
all Secured Claims, the Security Agent is obliged to release upon the Pledgor’s
request all or part of the Security insofar as the realisable value of the
Security and any other security given to the Security Agent or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10%. The Security Agent may, at
its discretion, determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Agent nor the Pledgees shall be
liable for any loss or damage suffered by the Pledgor save in respect of such
loss or damage which is suffered as a result of the gross negligence (grobe Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Agent.

11.2                        Indemnification

The Pledgor will indemnify the Security Agent and each
of the Pledgees and keep the Security Agent and each of the Pledgees
indemnified against any losses, actions, claims, expenses, demands and
liabilities which may be incurred by or made against the Security Agent and/or
each of the Pledgees as a result of any breach of the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of the
Pledgees or the Security Agent.

11.3                        This Clause 11 shall survive the termination of this Agreement under
Clause 12 or otherwise.

12.                               DURATION AND INDEPENDANCE

12.1                        Duration

This Agreement shall remain in full force and effect
until the full and complete satisfaction of the Secured Claims. None of the
Pledges shall cease to exist if any payments made in satisfaction of the
Secured Claims have only temporarily discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create a continuing security
which means that no change or amendment whatsoever in any Finance Document or
in any document or agreement related to it shall affect the validity of this
Agreement.

 13
 

 

12.3                        Independence

This Agreement is independent from any other security
or guarantee which may have been or will be given to the Security Agent and/or
any of the other Pledgees with respect to any obligation of any of the Obligors
under the Finance Documents. None of such other securities or guarantees shall
prejudice, or shall be prejudiced by, or shall be merged in any way with, this
Agreement.

13.                               COSTS AND EXPENSES

Any notarial fees and expenses incurred in connection
with the execution of this Agreement shall be borne by the Pledgor. The Pledgor
must pay to each Finance Party the amount of all costs and expenses (including
the costs and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this Agreement or any part thereof
should be or become invalid or unenforceable, this shall not affect the
validity of the remaining provisions hereof. The invalid or unenforceable
provision shall be replaced by that provision which best meets the intent of
the replaced provision.

In particular the Pledges shall not be affected and
shall in any event extend to any and all Shares in the Company even if the
number or nominal value of the Existing Share or the aggregate liable capital
of the Company as stated in Clause 2.1(b) are inaccurate and deviate from the
actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of revocation (Anfechtbarkeit)
and set-off (Aufrechenbarkeit) it may have
pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No failure to
exercise, nor any delay in exercising, on the part of the Security Agent or the
Pledgees (or any of them), any right or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any right or remedy
prevent any further or other exercise thereof or the exercise of any other
right or remedy. The rights and remedies provided hereunder are cumulative and
not exclusive of any rights or remedies provided by law.

(b)                                 The Pledgor hereby irrevocably waives any rights which may pass to the
Pledgor by subrogation or otherwise, including but not limited to, any recourse
claim against any Obligor (Verzicht auf
Rückgriffsansprüche) which it may obtain (i) in the event that the
Pledgor repays any debt of any other Obligor under any of the Finance
Documents, or (ii) in the event of enforcement of any of the Pledges created
hereunder.

15.                               AMENDMENTS

Changes and amendments of this Agreement including
this Clause 15 shall be made in writing.

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

Any notice or other communication under or in
connection with this Agreement to the Pledgor or the Security Agent and/or the
Pledgees shall be in writing and shall be delivered personally, by post or
facsimile and shall be sent to the address or facsimile number of the party,
and for the attention of 

 14
 

 

the
individual, set forth in Schedule 1 hereto or such other address or facsimile
number as is notified by that party for this purpose to the Security Agent from
time to time.

16.2                        Language

Unless otherwise agreed from time to time, any notice
or other communication under or in connection with this Agreement shall be in
the English language or, if in any other language, accompanied by a translation
into English. In the event of any conflict between the English text and the
text in any other language, the English text shall prevail.

17.                               APPLICABLE LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be governed by and construed in
accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction for all Parties shall be
Frankfurt am Main, Germany. The Security Agent and/or any of the other Finance
Parties, however, shall also be entitled to take legal action against the
Pledgor before any other competent court of law having jurisdiction over the
Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the Pledgees hereby instruct and
authorise the undersigned Notary Public to notify the Company of the Pledges
pursuant to, and in accordance with, § 1280 of the German Civil Code and § 16
of the German Limited Liabilities Companies Act by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 15
 

 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +49 89 96010 198

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Security
  Agent 

  and all other Pledgees:

  	
  The Royal Bank of Scotland plc 

  Level 7 

  135 Bishopsgate 

  London EC2M 3UR 

  

  United Kingdom

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
  TKS Telepost Kabel-Service Kaiserslautern
  Beteiligungs-

  GmbH 

  Altes Forsthaus 2 

  67661 Kaiserslautern 

  Germany

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Hartmut Dismon / Karl-Heinz Stahl

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +49-631 35 22 110

  

 

 16EXHIBIT 10.24

APPENDIX 1 - GMBH

 

SECONDARY SHARE PLEDGE AGREEMENT

RELATING TO THE SHARES IN

KABEL
DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS VERWALTUNGS GMBH

DATED 12 MAY 2006

 

between

 

KABEL DEUTSCHLAND GMBH

as Pledgor

 

and

 

THE ROYAL BANK OF SCOTLAND PLC

as Security Trustee

 

and

LAW DEBENTURE TRUST COMPANY OF
NEW YORK

as High Yield Notes Trustee

 

and

THE FINANCE PARTIES

ALLEN & OVERY LLP

Frankfurt am Main

 

CONTENTS

 

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  2

  
	
  2.

  	
  Secondary Pledges

  	
  6

  
	
  3.

  	
  Independent Secondary Pledges

  	
  7

  
	
  4.

  	
  Security Purpose

  	
  7

  
	
  5.

  	
  Exercise of Voting Rights

  	
  8

  
	
  6.

  	
  Enforcement of Secondary Pledges

  	
  8

  
	
  7.

  	
  Undertakings of the Pledgor

  	
  10

  
	
  8.

  	
  Representations and Warranties

  	
  11

  
	
  9.

  	
  Release of Security

  	
  11

  
	
  10.

  	
  Indemnity

  	
  11

  
	
  11.

  	
  Duration and Independence

  	
  12

  
	
  12.

  	
  Costs and Expenses

  	
  12

  
	
  13.

  	
  Partial Invalidity; Waiver

  	
  12

  
	
  14.

  	
  Amendments

  	
  13

  
	
  15.

  	
  Notices and their Language

  	
  13

  
	
  16.

  	
  Applicable Law; Jurisdiction

  	
  13

  
	
  17.

  	
  Notification

  	
  14

  
	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Addresses for notices

  	
  15

  

 

THIS SECONDARY SHARE PLEDGE
AGREEMENT (the Agreement) is
made on 12 May 2006

BETWEEN:

(1)           KABEL
DEUTSCHLAND GMBH, a limited liability company (Gesellschaft
mit beschränkter Haftung) organised under the laws of Germany,
having its corporate seat in Unterföhring, Germany, which is registered in the
Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRB 145837,

(the
Pledgor);

on
one side;

(2)           THE ROYAL BANK OF SCOTLAND PLC, a public limited company,
having its registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh,
Scotland, incorporated under the laws of Scotland and being registered with the
Companies House under registration number SC 090312

(the
Security Trustee);

(3)           LAW
DEBENTURE TRUST COMPANY OF NEW YORK, a limited purpose trust
company organised under the laws of the State of New York, 767 Third Avenue, 31st Floor, New York, NY 10017,

(the
High Yield Notes Trustee); and

(4)           THE
FINANCE PARTIES as defined below in Clause 1.1 (Definitions).

on
the other side.

The
Security Trustee and the High Yield Notes Trustee are hereinafter referred to
individually as an Original Secondary Pledgee
and together as the Original Secondary
Pledgees.

The
Pledgor and the Secondary Pledgees (as defined below) are hereinafter
collectively referred to as the Parties.

WHEREAS:

(A)          The Pledgor
issued the High Yield Notes (as defined below) pursuant to the High Yield
Indenture (as defined below) on the Issue Dates (as defined below).

(B)           The security interests given on 1 July 2004 and on 27 July
2004 by, amongst others, the Pledgor to Deutsche Bank AG London as security
trustee and Law Debenture Trust Company of New York as high yield notes trustee
on a second ranking basis have been released as of the date hereof and shall
now be re-taken subject to and in accordance with the terms of the Priority
Agreement (as defined below).

(C)           According to the terms of an
amendment agreement to the Priority Agreement (as defined below) Deutsche Bank
AG London as former security trustee has resigned and the new Security Trustee
has assumed this position.

(D)          Under the
Priority Agreement (as defined below), the Security Trustee is the joint and
several creditor of each and every payment obligation of the Obligors towards
the High Yield 

 

Noteholders
and/or the High Yield Notes Trustee under the Finance Documents (each as
defined below).  The High Yield Notes
Trustee has acceded to the Priority Agreement by means of an accession
agreement entered into on or about 2 July 2004 by, amongst others, the Security
Trustee and the High Yield Notes Trustee, acting for itself and on behalf of
the High Yield Noteholders (as defined below).

(E)           In connection
with the issue of the High Yield Notes under the High Yield Indenture the
Pledgor is entering into this Agreement.

IT IS AGREED as follows:

1.             INTERPRETATION

1.1          Definitions

In
this Agreement:

Accounting Principles means accounting principles,
policies, standards, bases and practices which, as at the date of the Credit
Agreement, are in accordance with the German generally accepted accounting
principles (Grundsätze ordnungsgemäßer
Buchführung und Bilanzierung).

Additional High Yield Guarantor means a member of
the Group which becomes a high yield guarantor under the Finance Documents
after the date of their execution.

Approved Additional High Yield Guarantor means any
Additional High Yield Guarantor whose obligations under the Finance Documents
have after the date of their execution been specified by the relevant Finance
Party to be secured by this Agreement.

Business Day means each day that is not (i) a Saturday or a Sunday or
(ii) any other day on which banking institutions in Luxembourg City,
Luxembourg, London, United Kingdom, Frankfurt am Main, Germany or New York, New
York are authorised or required by law to close.

Company means Kabel
Deutschland Vertrieb und Service Beteiligungs Verwaltungs GmbH, a limited
liability company (Gesellschaft mit beschränkter Haftung)
incorporated under the laws of Germany, having its corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRB 153081.

Credit Agreement means the EUR 1,350,000,000 credit
agreement dated on
or about 13 March 2006 between, amongst others, the Mandated Lead Arrangers,
the Facility Agent, the Royal Bank of Scotland plc as security agent, KDVS, KDG
and the Original Lenders providing for EUR 1,350,000,000 senior credit
facilities and up to EUR 650,000,000 add-on facilities.

Dollar, dollar or $ means the currency of the
United States of America.

Dollar Notes means $ 610,000,000 aggregate
principal amount of 10.625 % dollar-denominated senior notes due 2014 or any
other dollar-denominated notes issued pursuant to and in compliance with the
High Yield Indenture (including but not limited to any dollar-denominated
Exchange Securities).

Euro, euro or € means the single European currency introduced 1st January,
1999.

 

Euro Notes means Euro
250,000,000 aggregate principal amount of 10.750 % euro-denominated senior
notes due 2014 or any other euro-denominated notes issued pursuant to and in
compliance with the High Yield Indenture (including but not limited to any
euro-denominated Exchange Securities).

Exchange Securities means the dollar and/or euro
denominated debt securities issued and delivered by KDG in exchange for the
Initial Securities to the holders of transfer restricted securities pursuant to
the High Yield Indenture as contemplated by the High Yield Registration Rights
Agreement.

Event of Default means an event of default
under any of the Finance Documents, which entitles the relevant Finance Parties
to declare that all or part of any amounts outstanding under the relevant
Finance Documents or any of them are immediately due and payable, or payable on
demand.

Existing
Share means the share set forth in Clause 2.1.

Facility
Agent
means The Royal Bank of Scotland plc, a public limited company, having its
registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of the United Kingdom and being registered with the
Companies House under registration number SC 090312.

Finance Document means:

(a)        the High Yield
Notes;

(b)        the Exchange
Securities;

(c)        the High Yield
Indenture;

(d)        each Security
Document;

(e)        the Priority
Agreement; or

(f)         any other
document designated as such by the Security Trustee and KDG.

Finance Party means each of the Security
Trustee, the High Yield Notes Trustee and any other person becoming a security
trustee or a high yield notes trustee under the High Yield Indenture (together
the Finance Parties).

Future
Shares means any and all shares in the Company, other than the Existing Share,
which KDG may acquire in future.

Future Secondary Pledgee means a Finance Party (other
than the Security Trustee and the High Yield Notes Trustee).

Germany means the Federal Republic of
Germany.

Group means KDG and its Subsidiaries.

High Yield Guarantor means (i) KDVS or (ii) an Approved
Additional High Yield Guarantor (together the High
Yield Guarantors).

High Yield Indenture means the indenture dated on
or about 2nd  July, 2004, made between, amongst others, KDG, KDVS as
High Yield Guarantor, the High Yield Notes Trustee, the 

 

Security Trustee and any other
High Yield Guarantor relating to the issue of the High Yield Notes by KDG, and
including any supplemental indenture entered into, amongst others, by KDG with
respect to the High Yield Indenture.

High Yield Notes means the Euro Notes and the
Dollar Notes issued pursuant to the High Yield Indenture.

High Yield Noteholders means each of the holders of
the High Yield Notes.

High Yield Registration Rights Agreement means the
registration rights agreement dated on or about 2nd July, 2004, made between,
amongst others, KDVS,
KDG,
the High Yield Guarantors and Deutsche Bank AG London, Morgan Stanley & Co.
International Limited, Citigroup Global Markets Limited, Goldman Sachs
International and ABN Amro Bank N.V. relating to the offer to exchange transfer
restricted Initial Securities into a like aggregate amount of the Exchange
Securities or the shelf registration of such Initial Securities.

Initial Securities means each of the Euro Notes
and Dollar Notes.

Issue Date means each of the date on or
about 2nd July, 2004 and any date thereafter on which High Yield Notes are
issued under the High Yield Indenture (together the Issue Dates).

KDG means Kabel Deutschland GmbH
a limited liability company (Gesellschaft
mit beschränkter Haftung) incorporated under the laws of Germany, having its corporate seat in Unterföhring (Landkreis München),
Germany, which is registered in the commercial register (Handelsregister) at
the local court (Amtsgericht) of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland
Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) incorporated under
the laws of Germany, having its corporate seat in Unterföhring (Landkreis
München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902.

Mandated Lead
Arranger
means each of:

(a)        The Royal Bank of Scotland
plc;

(b)        Deutsche Bank AG London;

(c)        Goldman Sachs International;
and

(d)        J.P. Morgan plc.

Obligor means KDG or a High Yield Guarantor
(together the Obligors).

Original
Lender
means each of:

(a)        The Royal Bank of Scotland
plc, Niederlassung Frankfurt;

(b)        Deutsche Bank AG London;

(c)        JPMorgan Chase Bank, N.A.; and

(d)        Goldman Sachs Credit Partners
L.P.

 

Party means each of
the Pledgor and the Secondary Pledgees (together the Parties).

Priority Agreement means the priority agreement
dated 29 March 2004 as amended and restated pursuant to a supplemental agreement dated
27 May 2004 and as further
amended and restated pursuant to a supplemental agreement dated 1 July 2004 and
as further amended and restated pursuant to a supplemental agreement dated the
date hereof made between, among others, KDG, KDVS, the Mandated Lead
Arrangers, the Original Lenders, the Facility Agent, the Security Trustee and
certain other creditors of the Group.

Priority Pledges has the meaning given to it
under Clause 2.2(c)(ii) below.

Secondary Pledge means a pledge constituted
under Clause 2.2.

Secondary Pledgee means an Original Secondary
Pledgee or a Future Secondary Pledgee (together the Secondary Pledgees).

Secured Claims means all present and future
rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties in connection with the
protection, preservation or enforcement of their respective rights under the
Finance Documents.

Security means any and all security
granted to secure the Secured Claims.

Security Documents means any mortgages, pledges,
assignments, transfers or other documents creating security for the obligations
of the Obligors under the Finance Documents.

Security Trust Agreement means the security trust
agreement dated on or about the date hereof between, amongst others, KDG and
KDVS as security agents and the Security Trustee.

Shares means the Existing Share and the Future Shares.

Subsidiary means any of:

(a)        an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control for this purpose means the power to
direct the management and the policies of the entity whether through the
ownership of voting capital, by contract or otherwise; or

(b)        an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

1.2          Construction

(a)        In this Agreement, unless the
contrary intention appears, a reference to:

(i)            the Security Trustee means the
Security Trustee acting as agent for and on behalf of the Pledgees unless
otherwise provided herein; and

(ii)           promptly means promptly (unverzüglich)
as contemplated in § 121 (1) BGB.

 

(b)        Where the context so admits,
the singular includes the plural and vice versa.

(c)        The headings in this Agreement
are for convenience only and are to be ignored in construing this Agreement.

(d)        Any reference in this Agreement
to a defined document is a reference to that defined document as amended,
restated, novated or supplemented from time to time.

(e)        Whenever in this Agreement
reference is made to the Security Trustee such reference shall be deemed to be
a reference to the Security Trustee acting as trustee for and on behalf of the
Secondary Pledgees, unless otherwise provided herein.

(f)         References to parties herein
shall also be deemed to include references to their respective successors,
transferees and assignees.

2.             SECONDARY
PLEDGES

2.1          Pledged Shares

(a)           The Pledgor is
the sole shareholder of the Company.

(b)           The total
registered share capital (Stammkapital)
of the Company amounts to 25,000 Euro (in words: twenty five thousand
Euro).  At present, the Pledgor holds the
only share in the Company in an amount of EUR 25,000 (in words: Euro twenty
five thousand) (the Existing Share).  There are no other shares in the Company.

(c)           The Existing
Share is fully paid up.  There is no
obligation for the Pledgor to make any additional contributions.

2.2          Constitution of Secondary
Pledges

(a)           The Pledgor
hereby pledges the Shares to each Original Secondary Pledgee and to each Future
Secondary Pledgee for their rateable interest as Security.

(b)           Each of the
Original Secondary Pledgees hereby accepts the Secondary Pledge.  In addition, the Security Trustee accepts
each of the Secondary Pledges for and on behalf of each Future Secondary
Pledgee hereunder as proxy without power of attorney (Vertreter
ohne Vertretungsmacht).  Each
Future Secondary Pledgee will ratify such acceptance for itself by executing an
accession agreement to the Security Trust Agreement, thereby becoming a
Secondary Pledgee.  All Parties hereto
confirm that the validity of any of the Secondary Pledges constituted hereunder
shall not be affected by the Security Trustee acting as proxy without power of
attorney for each Future Secondary Pledgee.

(c)           The Parties
herewith acknowledge that

(i)            the Secondary
Pledge under this Agreement constitutes a second ranking pledge over the Shares
in the Company;

(ii)           the pledges
constituted between, amongst others, the Pledgor and Royal Bank of Scotland plc
as security agent relating to the Shares in the Company pursuant to an share
pledge agreement as of the date hereof but prior to the execution of this
Agreement (the Priority Pledges) have priority
over the Secondary Pledges created under this Agreement;

 

(iii)          the enforcement
of this Secondary Pledge shall be made in accordance with the provisions of the
Priority Agreement.

3.             INDEPENDENT
SECONDARY PLEDGES

The
validity and effect of each of the Secondary Pledges shall be independent from
the validity and the effect of any of (i) the other Secondary Pledges created
hereunder and (ii) the Priority Pledges and is in addition, and without any
prejudice, to any other Security which any and all of the Secondary Pledgees
may now or hereafter hold in respect of the Secured Claims.  Each of the Secondary Pledges to each of the
Secondary Pledgees shall be separate and individual second ranking
pledges.  Each of the Secondary Pledges
shall rank pari passu to each other Secondary Pledge created hereunder.

4.             SECURITY
PURPOSE

The
Secondary Pledges are constituted in order to secure the prompt and complete
satisfaction of any and all Secured Claims.

5.             DIVIDENDS

5.1          Extent of the Pledge

The
Pledge constituted by this Agreement includes the present and future rights to
receive

(a)           dividends, if
any, payable on the Shares;

(b)           liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of a shareholder of the Company, the surplus in
case of surrender (Preisgabe) and
all other pecuniary claims associated with the Shares; and

(c)           the right to
subscribe for newly issued shares.

5.2          Entitlement to Receive
Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in cash in respect of the Shares until
the requirements for enforcement referred to under Clause 7 below are met and
unless the Facility Agent has notified the Pledgor that according to the Credit
Agreement any dividend payments in respect of the Shares are no longer permitted
to be made to the Pledgor, in which case the payments are to be made to the
Security Agent.

5.3          Pledgees’ Rights

Notwithstanding
Clause 5.2 above:

(a)           dividends paid or
payable to the Pledgor other than in cash and other property received (Sachdividenden), receivable or otherwise distributed in
respect of or in exchange for the Shares;

(b)           dividends or
other distributions paid or payable to the Pledgor in cash in respect of the
Shares in connection with the partial or total liquidation or dissolution or in
connection with the reduction of capital, capital surplus or paid-in surplus;
and

 

(c)           cash paid, payable or otherwise distributed
to the Pledgor in respect of principal of, or in redemption of, or in exchange
for the Shares;

(d)           dividends paid to the Security Agent in
accordance with Clause 5.2 above,

shall be and shall forthwith
be delivered to the Security Agent for itself and for the other Pledgees to be
held as security and shall, if received by the Pledgor, be received as holder
for the Pledgees and segregated from the other property or funds of the Pledgor
and be forthwith delivered to the Security Agent for itself and for the
Pledgees as security in the same form as so received (with any necessary
endorsement).  Any further reaching
obligations of the Company and/or the Pledgor in respect of the use of profits
and/or dividends shall not be affected by this Clause 5.3.

6.             EXERCISE
OF VOTING RIGHTS

6.1          Voting Rights

The voting rights resulting
from the Shares remain with the Pledgor. 
This shall, however, not affect the obligations of the Pledgor under
Clause 8.1 below.  The Pledgor shall
at all times until the full and complete satisfaction of all Secured Claims or
the release of the Secondary Pledges be required, in exercising its voting
rights, to act in good faith to ensure that the Secondary Pledges are not in
any way adversely affected.

6.2          Impairment

The Pledgor shall not take,
or participate in, any action which impairs, or which would for any other
reason be inconsistent with, the security interest of the Secondary Pledgees or
the security purpose as described in Clause 4 hereof or defeat, impair or
circumvent the rights of the Secondary Pledgees hereunder in each case in any
respect.

6.3          Information by the Pledgor

The Pledgor shall inform the
Secondary Pledgees promptly of all other actions concerning the Company which
might adversely affect the security interest of the Secondary Pledgees.  In particular, the Pledgor shall notify the
Secondary Pledgees forthwith of any shareholders’ meeting at which a resolution
is intended to be adopted which could be expected to have an adverse effect
upon the Secondary Pledges.  In any event
the Secondary Pledgees shall promptly receive, as soon as they are available, a
copy of the convocation notice for such ordinary or extraordinary shareholders’
meeting setting forth the agenda (to the extent it relates to such resolution)
and all applications and decisions to be taken and the minutes of any such
shareholders’ meeting (in each case to the extent they relate to such
resolution).

7.             ENFORCEMENT
OF SECONDARY PLEDGES

7.1          Secondary Pledgees’ Rights

(a)           If (i) an Event of Default has occurred, (ii)
the requirements set forth in §§ 1204 et seq. of the German Civil Code (Bürgerliches Gesetzbuch) with regard to
the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in accordance with Clause 7.1(b),
the Secondary Pledgees may enforce any of the Secondary Pledges (or any part
thereof), through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other
way permitted under 

 

German law, in all cases
notwithstanding § 1277 of the German Civil Code without any enforceable
judgement or other instrument (vollstreckbarer
Titel).

(b)           The Security Trustee shall notify the Pledgor
of the intention to realise any of the Secondary Pledges over the Shares not
less than 5 (five) Business Days before the date on which the respective Pledge
is intended to be realised.  The Pledgor
expressly agrees that in the event of a realisation by way of public auction 5
(five) Business Days prior written notice of the place and time of any such
public auction shall be sufficient.  The
public auction may be held at any place in Germany which will be determined by
the Security Trustee.

(c)           If the Security Trustee should seek to
enforce any of the Secondary Pledges pursuant to, and in accordance with Clause
7.1(a) above, the Pledgor shall, at its own expense, render forthwith all
assistance necessary in order to facilitate the prompt sale of the Shares or
any part thereof and/or the exercise by the Security Trustee of any other right
the Secondary Pledgees may have under German law.

(d)           The Secondary Pledges will be realised to the
extent necessary to discharge in full the Secured Claims.  The Secondary Pledgees shall at all times
until the full and complete satisfaction of all the Secured Claims in
exercising their rights under this Agreement take into consideration the
legitimate interests of the Pledgor.

(e)           In derogation of § 1225 of the German Civil
Code, in the event of enforcement of any of the Secondary Pledges, no rights of
the Secondary Pledgees shall pass to the Pledgor by subrogation or otherwise
unless and until all of the Secured Claims have been satisfied and discharged
in full.  Until then, the Security
Trustee shall be entitled to treat all enforcement proceeds as additional
collateral for the Secured Claims, notwithstanding its right to seek
satisfaction from such proceeds at any time.

(f)            After the complete unconditional, irrevocable
and full payment and discharge of all Secured Claims any remaining proceeds
resulting from the enforcement of any of the Secondary Pledges (or part
thereof) shall be transferred to the Pledgor at the cost and expense of the
Pledgor.

7.2          Ancillary Rights

Provided that the
requirements for enforcement referred to under Clause 7.1(a) above are met, all
payments based on ancillary rights attributed to the Shares may be applied by
the Security Trustee in satisfaction in whole or in part of the Secured Claims
notwithstanding the Secondary Pledgees’ right to treat such payments as
additional collateral.

7.3          Application of Proceeds

(a)           The proceeds resulting from the enforcement
of any of the Secondary Pledges shall be applied by the Security Trustee
towards the satisfaction of the Secured Claims, subject to, and in accordance
with, the relevant provisions of the Priority Agreement.

(b)           The Security Trustee may determine which part
of the Security, if applicable, shall be used to satisfy the Secured Claims.

7.4          Release of Pledged Rights

Upon the full and complete
satisfaction of all Secured Claims the Security Trustee shall confirm to the
Pledgor upon request that the Shares are released from the Secondary Pledges 

 

and retransfer to the Pledgor any documents received
by the Security Trustee or any designee pursuant to Clause 8.1(e) hereof.

8.             UNDERTAKINGS
OF THE PLEDGOR

8.1          Undertakings

The Pledgor undertakes

(a)           to notify the Security Trustee promptly of
any change in the shareholding in, or the capital contributions to, the Company
or of any change in the shareholders’ agreement (Gesellschaftsvertrag) or the registration of the Company in
the Commercial Register other than with respect to holders of a statutory power
of attorney (Prokura);

(b)           to notify the Security Trustee promptly of
any event or circumstance other than interpretation of law which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)           to effect promptly any payments to be made to
the Company in respect of the Shares;

(d)           at its own expense, to execute and do all
such assurances, acts and things as the Security Trustee may reasonably
require:

(i)            for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)           if the Secondary Pledges have become
enforceable pursuant to Clause 7.1, for facilitating the realisation of
all or any part of the Shares which are subject to this Agreement and the
exercise of all powers, authorities and discretions vested in the Security
Trustee,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Trustee or to its nominees and give all notices, orders and
directions which the Security Trustee may reasonably think expedient;

(e)           at the Security Trustee’s reasonable request,
to furnish to the Security Trustee such information concerning the Shares as is
available to the Pledgor, to permit the Security Trustee and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Shares on
reasonable notice and during normal business hours, and, upon the reasonable
request of the Security Trustee, to deliver to the Security Trustee copies of
all such records and papers;

(f)            to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Secondary
Pledges or the effect of which results in the Shares ceasing to exist; and

(g)           that all Future Shares will be fully paid and
that there will be no obligation for a shareholder to make additional
contributions.

 

8.2          Secondary Pledges over all
Shares

The Security Trustee may at
all times for itself and for the Secondary Pledgees request to hold a pledge
over all Shares held by the Pledgor (and in the case of a merger an equivalent
security interest over the shares in the surviving or, as the case may be, the
new company) in accordance with all terms of this Agreement.

9.             REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and
warrants to the Secondary Pledgees that:

(a)           the Existing Share pledged hereunder is the
only share in the Company in existence at the date hereof;

(b)           the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Existing Share;

(c)           all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

(d)           the Existing Share is fully paid and there is
no obligation for the Pledgor to make additional contributions; and

(e)           (i)            the Existing Share is, except for the
Priority Pledges securing any payment obligations of the obligors under the
Credit Agreement and the Bridge Facility Agreement, free from any rights of
third parties;

(ii)           no third party has any pre-emption rights for
shares in the Company; and

(iii)          there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.          RELEASE
OF SECURITY

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Trustee is obliged to
release upon the Pledgor’s request all or part of the Security insofar as the
realisable value of the Security given to the Security Trustee or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10 %.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released.

11.          INDEMNITY

11.1        Liability for Damages

Neither the Security Trustee
nor the Secondary Pledgees shall be liable for any loss or damage suffered by
the Pledgor save in respect of such loss or damage which is suffered as a
result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Trustee or of any of the Secondary
Pledgees.

11.2        Indemnification

The Pledgor will indemnify
the Security Trustee and each of the Secondary Pledgees and keep the Security
Trustee and each of the Secondary Pledgees indemnified against any losses, 

 

actions, claims, expenses, demands and liabilities
which may be incurred by or made against the Security Trustee and/or each of
the Secondary Pledgees as a result of any breach by the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of
any of the Secondary Pledgees or the Security Trustee.

11.3         This Clause 11 (Indemnity) shall survive the termination of this
Agreement under Clause 12.1 or otherwise.

12.          DURATION
AND INDEPENDENCE

12.1        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Secondary
Pledges shall cease to exist if any payments made in satisfaction of the
Secured Claims have only temporarily discharged the Secured Claims.

12.2        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it or the
replacement of the Security Trustee or of the High Yield Notes Trustee or any
transfer of the Notes shall affect the validity of this Agreement.

12.3        Independence

This Agreement is
independent from any other security or guarantee which may have been or will be
given to the Security Trustee and/or any of the other Secondary Pledgees with
respect to any obligation of any of the Obligors under the Finance
Documents.  None of such other securities
or guarantees shall prejudice, or shall be prejudiced by, or shall be merged in
any way with, this Agreement.

13.          COSTS
AND EXPENSES

Any notarial fees and expenses incurred in connection
with the execution of this Agreement shall be borne by the Pledgor.  The Pledgor must pay to each Finance Party
the amount of all costs and expenses (including the costs and expenses of legal
advisers) incurred by it in connection with the enforcement of, or the
preservation of any rights under, any Finance Document.

14.          PARTIAL
INVALIDITY; WAIVER

14.1        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced
provision.

In particular, the Secondary
Pledges shall not be affected and shall in any event extend to any and all
Shares in the Company even if the number or nominal value of the Existing Share
or 

 

the liable capital of the Company as stated in
Clause 2.1 are inaccurate and deviate from the actual facts.

14.2        Waiver

(a)           The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of the Security Trustee or the Secondary Pledgees (or
any of them), any right or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided hereunder
are cumulative and not exclusive of any rights or remedies provided by law.

(b)           The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Secondary Pledges created hereunder.

15.          AMENDMENTS

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.          NOTICES
AND THEIR LANGUAGE

16.1        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Trustee and/or the Secondary Pledgees shall be in writing and shall be
delivered personally, by post or facsimile and shall be sent to the address or
facsimile number of the party, and for the attention of the individual, set forth
in Schedule 1 hereto or such other address or facsimile number as is
notified by that party for this purpose to the Security Trustee from time to
time.

16.2        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,
accompanied by a translation into English. 
In the event of any conflict between the English text and the text in
any other language, the English text shall prevail.

17.          APPLICABLE
LAW; JURISDICTION

17.1        Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of Germany.

 

17.2        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

18.          NOTIFICATION

The Pledgor and the
Secondary Pledgees hereby instruct and authorise the undersigned notary public
to notify the Company of the Secondary Pledges pursuant to, and in accordance
with, § 1280 of the German Civil Code and § 16 of the German Limited
Liability Companies Act by means of forwarding a certified copy of this
Agreement to the Company by registered mail (return receipt requested) and by
fax.

 

SCHEDULE 1

ADDRESSES
FOR NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland GmbH 

  Betastraße 6-

  8 85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Security
  Trustee and all other Secondary Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc 

  Level 7 

  135 Bishopsgate 

  London EC2M 3UR 

  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vertrieb und 

  Service Beteiligungs Verwaltungs 

  GmbH 

  Betastraße 6-8 

  85774 Unterföhring

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  

 

 

APPENDIX 2 – GMBH

SECONDARY
SHARE PLEDGE AGREEMENT

RELATING TO
THE SHARES IN

KABEL DEUTSCHLAND VERWALTUNGS GMBH

 

DATED 12 MAY 2006

 

between

 

KABEL DEUTSCHLAND GMBH

 

as Pledgor

 

and

 

THE ROYAL BANK OF SCOTLAND PLC

as Security Trustee

 

and

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK

as High Yield Notes Trustee

 

and

 

THE FINANCE PARTIES

ALLEN & OVERY LLP

Frankfurt am Main

 

CONTENTS

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  2

  
	
  2.

  	
  Secondary
  Pledges

  	
  6

  
	
  3.

  	
  Independent
  Secondary Pledges

  	
  7

  
	
  4.

  	
  Security Purpose

  	
  7

  
	
  5.

  	
  Exercise of
  Voting Rights

  	
  8

  
	
  6.

  	
  Enforcement of
  Secondary Pledges

  	
  9

  
	
  7.

  	
  Undertakings of
  the Pledgor

  	
  10

  
	
  8.

  	
  Representations
  and Warranties

  	
  11

  
	
  9.

  	
  Release of
  Security

  	
  11

  
	
  10.

  	
  Indemnity

  	
  12

  
	
  11.

  	
  Duration and
  Independence

  	
  12

  
	
  12.

  	
  Costs and Expenses

  	
  12

  
	
  13.

  	
  Partial
  Invalidity; Waiver

  	
  13

  
	
  14.

  	
  Amendments

  	
  13

  
	
  15.

  	
  Notices and
  their Language

  	
  13

  
	
  16.

  	
  Applicable Law;
  Jurisdiction

  	
  14

  
	
  17.

  	
  Notification

  	
  14

  
	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Addresses for notices

  	
  15

  

 

THIS
SECONDARY SHARE PLEDGE AGREEMENT (the Agreement) is made
on 12 May 2006

BETWEEN:

(1)           KABEL DEUTSCHLAND GMBH, a limited liability company (Gesellschaft mit beschränkter Haftung)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht) of Munich under registration
number HRB 145837,

(the Pledgor);

on one side;

(2)           THE ROYAL BANK OF SCOTLAND
PLC, a public limited
company, having its registered office at: 36 St. Andrew Square, EH2 2YB
Edinburgh, Scotland, incorporated under the laws of Scotland and being
registered with the Companies House under registration number SC 090312

(the Security Trustee);

(3)           LAW DEBENTURE TRUST COMPANY
OF NEW YORK, a limited
purpose trust company organised under the laws of the State of New York, 767
Third Avenue, 31st Floor,
New York, NY 10017,

(the High Yield Notes Trustee); and

(4)           THE FINANCE PARTIES as defined below in Clause 1.1
(Definitions).

on the other side.

The Security Trustee and the
High Yield Notes Trustee are hereinafter referred to individually as an Original Secondary Pledgee and together as
the Original Secondary Pledgees.

The Pledgor and the
Secondary Pledgees (as defined below) are hereinafter collectively referred to
as the Parties.

WHEREAS:

(A)          The Pledgor issued the High Yield Notes (as
defined below) pursuant to the High Yield Indenture (as defined below) on the
Issue Dates (as defined below).

(B)           The security interests given on 1 July 2004
and on 27 July 2004 by, amongst others, the Pledgor to Deutsche Bank AG London
as security trustee and Law Debenture Trust Company of New York as high yield
notes trustee on a second ranking basis have been released as of the date
hereof and shall now be re-taken subject to and in accordance with the terms of
the Priority Agreement (as defined below).

(C)           According to the terms of an amendment
agreement to the Priority Agreement (as defined below) Deutsche Bank AG London
as former security trustee has resigned and the new Security Trustee has
assumed this position.

(D)          Under the Priority Agreement (as defined
below), the Security Trustee is the joint and several creditor of each and
every payment obligation of the Obligors towards the High Yield 

 

Noteholders and/or the High
Yield Notes Trustee under the Finance Documents (each as defined below).  The High Yield Notes Trustee has acceded to
the Priority Agreement by means of an accession agreement entered into on or
about 2 July 2004 by, amongst others, the Security Trustee and the High Yield
Notes Trustee, acting for itself and on behalf of the High Yield Noteholders
(as defined below).

(E)           In connection with the issue of the High
Yield Notes under the High Yield Indenture the Pledgor is entering into this
Agreement.

IT IS
AGREED as follows:

1.             INTERPRETATION

1.1          Definitions

In this Agreement:

Accounting
Principles means
accounting principles, policies, standards, bases and practices which, as at
the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze
ordnungsgemäßer Buchführung und Bilanzierung).

Additional
High Yield Guarantor means
a member of the Group which becomes a high yield guarantor under the Finance
Documents after the date of their execution.

Approved
Additional High Yield Guarantor means any Additional High Yield Guarantor whose obligations under the
Finance Documents have after the date of their execution been specified by the
relevant Finance Party to be secured by this Agreement.

Business Day means
each day that is not (i) a Saturday or a Sunday or (ii) any other day on which
banking institutions in Luxembourg City, Luxembourg, London, United Kingdom,
Frankfurt am Main, Germany or New York, New York are authorised or required by
law to close.

Company means Kabel Deutschland Verwaltungs GmbH, a
limited liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRB 145835.

Credit
Agreement means the
EUR 1,350,000,000 credit agreement dated on or about 13 March 2006 between, amongst
others, the Mandated Lead Arrangers, the Facility Agent, the Royal Bank of
Scotland plc as security agent, KDVS, KDG and the Original Lenders providing
for EUR 1,350,000,000 senior credit facilities and up to EUR 650,000,000 add-on
facilities.

Dollar,
dollar or $ means the
currency of the United States of America.

Dollar
Notes means $
610,000,000 aggregate principal amount of 10.625 % dollar-denominated senior
notes due 2014 or any other dollar-denominated notes issued pursuant to and in
compliance with the High Yield Indenture (including but not limited to any
dollar-denominated Exchange Securities).

Euro, euro or € means
the single European currency introduced 1st January, 1999.

 

Euro Notes means Euro 250,000,000 aggregate principal
amount of 10.750 % euro-denominated senior notes due 2014 or any other
euro-denominated notes issued pursuant to and in compliance with the High Yield
Indenture (including but not limited to any euro-denominated Exchange
Securities).

Exchange
Securities means the
dollar and/or euro denominated debt securities issued and delivered by KDG in
exchange for the Initial Securities to the holders of transfer restricted
securities pursuant to the High Yield Indenture as contemplated by the High
Yield Registration Rights Agreement.

Event of
Default means an
event of default under any of the Finance Documents, which entitles the
relevant Finance Parties to declare that all or part of any amounts outstanding
under the relevant Finance Documents or any of them are immediately due and
payable, or payable on demand.

Existing
Shares means each of
the shares set forth in Clause 2.1 (together the Existing Shares).

Facility
Agent means The Royal
Bank of Scotland plc, a public limited company, having its registered office
at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated under the
laws of the United Kingdom and being registered with the Companies House under
registration number SC 090312.

Finance
Document means:

(a)        the High Yield Notes;

(b)        the Exchange Securities;

(c)        the High Yield Indenture;

(d)        each Security Document;

(e)        the Priority Agreement; or

(f)         any other document designated as such by the
Security Trustee and KDG.

Finance
Party means each of
the Security Trustee, the High Yield Notes Trustee and any other person
becoming a security trustee or a high yield notes trustee under the High Yield
Indenture (together the Finance Parties).

Future
Shares means any and
all shares in the Company, other than the Existing Shares, which KDG may
acquire in future.

Future
Secondary Pledgee
means a Finance Party (other than the Security Trustee and the High Yield Notes
Trustee).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries.

High Yield
Guarantor means (i)
KDVS or (ii) an Approved Additional High Yield Guarantor (together the High Yield Guarantors).

 

High Yield Indenture means the indenture dated on or about
2nd  July, 2004, made between, amongst others, KDG, KDVS as High Yield
Guarantor, the High Yield Notes Trustee, the Security Trustee and any other
High Yield Guarantor relating to the issue of the High Yield Notes by KDG, and
including any supplemental indenture entered into, amongst others, by KDG with
respect to the High Yield Indenture.

High Yield
Notes means the Euro
Notes and the Dollar Notes issued pursuant to the High Yield Indenture.

High Yield
Noteholders means
each of the holders of the High Yield Notes.

High Yield
Registration Rights Agreement means the registration rights agreement dated on or about 2nd July,
2004, made between, amongst others, KDVS, KDG, the High Yield Guarantors and
Deutsche Bank AG London, Morgan Stanley & Co. International Limited,
Citigroup Global Markets Limited, Goldman Sachs International and ABN Amro Bank
N.V. relating to the offer to exchange transfer restricted Initial Securities
into a like aggregate amount of the Exchange Securities or the shelf
registration of such Initial Securities.

Initial
Securities means each
of the Euro Notes and Dollar Notes.

Issue Date means each of the date on or about 2nd July,
2004 and any date thereafter on which High Yield Notes are issued under the
High Yield Indenture (together the Issue
Dates).

KDG means Kabel Deutschland GmbH a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister) at the local court
(Amtsgericht) of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service
GmbH & Co. KG, a limited partnership (Kommanditgesellschaft)
incorporated under the laws of Germany, having its corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902.

Mandated
Lead Arranger means each
of:

(a)        The Royal Bank of Scotland plc;

(b)        Deutsche Bank AG London;

(c)        Goldman Sachs International; and

(d)        J.P. Morgan plc.

Obligor means KDG or a High Yield Guarantor (together
the Obligors).

Original
Lender means each of:

(a)        The Royal Bank of Scotland plc, Niederlassung
Frankfurt;

(b)        Deutsche Bank AG London;

(c)        JPMorgan Chase Bank, N.A.; and

 

(d)        Goldman Sachs Credit Partners L.P.

Party means each of the Pledgor and the Secondary
Pledgees (together the Parties).

Priority
Agreement means the
priority agreement dated 29 March 2004 as amended and restated pursuant to a
supplemental agreement dated 27 May 2004 and as further amended and restated
pursuant to a supplemental agreement dated 1 July 2004 and as further amended
and restated pursuant to a supplemental agreement dated the date hereof made
between, among others, KDG, KDVS, the Mandated Lead Arrangers, the Original
Lenders, the Facility Agent, the Security Trustee and certain other creditors
of the Group.

Priority
Pledges has the
meaning given to it under Clause 2.2(c)(ii) below.

Secondary
Pledge means a pledge
constituted under Clause 2.2.

Secondary
Pledgee means an
Original Secondary Pledgee or a Future Secondary Pledgee (together the Secondary Pledgees).

Secured
Claims means all
present and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties in connection with the
protection, preservation or enforcement of their respective rights under the
Finance Documents.

Security means any and all security granted to secure
the Secured Claims.

Security
Documents means any
mortgages, pledges, assignments, transfers or other documents creating security
for the obligations of the Obligors under the Finance Documents.

Security
Trust Agreement means
the security trust agreement dated on or about the date hereof between, amongst
others, KDG and KDVS as security agents and the Security Trustee.

Shares means the Existing Shares and the Future
Shares.

Subsidiary means any of:

(a)        an entity of which a person has direct or
indirect control or owns directly or indirectly more than 50% of the voting
capital or similar right of ownership, and control
for this purpose means the power to direct the management and the policies of
the entity whether through the ownership of voting capital, by contract or
otherwise; or

(b)        an entity consolidated for the purpose of the
financial statements of any person pursuant to the Accounting Principles.

1.2          Construction

(a)        In this Agreement, unless the contrary
intention appears, a reference to:

(i)            the Security Trustee means the Security
Trustee acting as agent for and on behalf of the Pledgees unless otherwise
provided herein; and

 

(ii)           promptly means promptly (unverzüglich) as contemplated in § 121 (1)
BGB.

(b)        Where the context so admits, the singular
includes the plural and vice versa.

(c)        The headings in this Agreement are for
convenience only and are to be ignored in construing this Agreement.

(d)        Any reference in this Agreement to a defined
document is a reference to that defined document as amended, restated, novated
or supplemented from time to time.

(e)        Whenever in this Agreement reference is made
to the Security Trustee such reference shall be deemed to be a reference to the
Security Trustee acting as trustee for and on behalf of the Secondary Pledgees,
unless otherwise provided herein.

(f)         References to parties herein shall also be
deemed to include references to their respective successors, transferees and
assignees.

2.             SECONDARY
PLEDGES

2.1          Pledged Shares

(a)           The Pledgor is the sole shareholder of the
Company.

(b)           The total registered share capital (Stammkapital) of the Company amounts to
25,000 Euro (in words: twenty five thousand Euro).  At present, the Pledgor holds one share in
the Company in an amount of 24,750 Euro (in words: twenty five thousand seven
hundred and fifty Euro) and one share in an amount of 250 Euro (in words:
two hundred and fifty Euro) (the Existing
Shares).  There are no other
shares in the Company.

(c)           The Existing Shares are fully paid up.  There is no obligation for the Pledgor to
make any additional contributions.

2.2          Constitution of Secondary
Pledges

(a)           The Pledgor hereby pledges the Shares to each
Original Secondary Pledgee and to each Future Secondary Pledgee for their
rateable interest as Security.

(b)           Each of the Original Secondary Pledgees
hereby accepts each of the Secondary Pledges. 
In addition, the Security Trustee accepts each of the Secondary Pledges
for and on behalf of each Future Secondary Pledgee hereunder as proxy without
power of attorney (Vertreter ohne
Vertretungsmacht).  Each
Future Secondary Pledgee will ratify such acceptance for itself by executing an
accession agreement to the Security Trust Agreement, thereby becoming a
Secondary Pledgee.  All Parties hereto
confirm that the validity of any of the Secondary Pledges constituted hereunder
shall not be affected by the Security Trustee acting as proxy without power of
attorney for each Future Secondary Pledgee.

(c)           The Parties herewith acknowledge that

(i)            the Secondary Pledge under this Agreement
constitutes a second ranking pledge over the Shares in the Company;

 

(ii)           the pledges constituted between, amongst
others, the Pledgor and Royal Bank of Scotland plc as security agent relating
to the Shares in the Company pursuant to an share pledge agreement as of the
date hereof but prior to the execution of this Agreement (the Priority Pledges) have priority over the
Secondary Pledges created under this Agreement;

(iii)          the enforcement of this Secondary Pledge
shall be made in accordance with the provisions of the Priority Agreement.

3.             INDEPENDENT
SECONDARY PLEDGES

The validity and effect of
each of the Secondary Pledges shall be independent from the validity and the
effect of any of (i) the other Secondary Pledges created hereunder and (ii) the
Priority Pledges and is in addition, and without any prejudice, to any other
Security which any and all of the Secondary Pledgees may now or hereafter hold
in respect of the Secured Claims.  Each
of the Secondary Pledges to each of the Secondary Pledgees shall be separate
and individual second ranking pledges. 
Each of the Secondary Pledges shall rank pari passu to each other
Secondary Pledge created hereunder.

4.             SECURITY
PURPOSE

The Secondary Pledges are
constituted in order to secure the prompt and complete satisfaction of any and
all Secured Claims.

5.             DIVIDENDS

5.1          Extent of the Pledge

The Pledge constituted by
this Agreement includes the present and future rights to receive

(a)           dividends, if any, payable on the Shares;

(b)           liquidation proceeds, consideration for
redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or
withdrawal (Austritt) of a
shareholder of the Company, the surplus in case of surrender (Preisgabe) and all other pecuniary claims
associated with the Shares; and

(c)           the right to subscribe for newly issued
shares.

5.2          Entitlement to Receive
Dividend Payments

Notwithstanding that the
dividends are pledged hereunder, the Pledgor shall be entitled to receive and
retain all dividend payments in cash in respect of the Shares until the
requirements for enforcement referred to under Clause 7 below are met and
unless the Facility Agent has notified the Pledgor that according to the Credit
Agreement any dividend payments in respect of the Shares are no longer
permitted to be made to the Pledgor, in which case the payments are to be made
to the Security Agent.

5.3          Pledgees’ Rights

Notwithstanding Clause 5.2
above:

 

(a)           dividends paid or payable to the Pledgor
other than in cash and other property received (Sachdividenden), receivable or otherwise distributed in
respect of or in exchange for the Shares;

(b)           dividends or other distributions paid or
payable to the Pledgor in cash in respect of the Shares in connection with the
partial or total liquidation or dissolution or in connection with the reduction
of capital, capital surplus or paid-in surplus; and

(c)           cash paid, payable or otherwise distributed
to the Pledgor in respect of principal of, or in redemption of, or in exchange
for the Shares;

(d)           dividends paid to the Security Agent in
accordance with Clause 5.2 above,

shall be and shall forthwith
be delivered to the Security Agent for itself and for the other Pledgees to be
held as security and shall, if received by the Pledgor, be received as holder
for the Pledgees and segregated from the other property or funds of the Pledgor
and be forthwith delivered to the Security Agent for itself and for the
Pledgees as security in the same form as so received (with any necessary
endorsement).  Any further reaching
obligations of the Company and/or the Pledgor in respect of the use of profits
and/or dividends shall not be affected by this Clause 5.3.

6.             EXERCISE
OF VOTING RIGHTS

6.1          Voting Rights

The voting rights resulting
from the Shares remain with the Pledgor. 
This shall, however, not affect the obligations of the Pledgor under
Clause 8.1 below.  The Pledgor shall
at all times until the full and complete satisfaction of all Secured Claims or
the release of the Secondary Pledges be required, in exercising its voting
rights, to act in good faith to ensure that the Secondary Pledges are not in
any way adversely affected.

6.2          Impairment

The Pledgor shall not take,
or participate in, any action which impairs, or which would for any other
reason be inconsistent with, the security interest of the Secondary Pledgees or
the security purpose as described in Clause 4 hereof or defeat, impair or
circumvent the rights of the Secondary Pledgees hereunder in each case in any
respect.

6.3          Information by the Pledgor

The Pledgor shall inform the
Secondary Pledgees promptly of all other actions concerning the Company which
might adversely affect the security interest of the Secondary Pledgees.  In particular, the Pledgor shall notify the
Secondary Pledgees forthwith of any shareholders’ meeting at which a resolution
is intended to be adopted which could be expected to have an adverse effect
upon the Secondary Pledges.  In any event
the Secondary Pledgees shall promptly receive, as soon as they are available, a
copy of the convocation notice for such ordinary or extraordinary shareholders’
meeting setting forth the agenda (to the extent it relates to such resolution)
and all applications and decisions to be taken and the minutes of any such
shareholders’ meeting (in each case to the extent they relate to such
resolution).

 

7.             ENFORCEMENT
OF SECONDARY PLEDGES

7.1          Secondary Pledgees’ Rights

(a)           If (i) an Event of Default has occurred, (ii)
the requirements set forth in §§ 1204 et seq. of the German Civil Code (Bürgerliches Gesetzbuch) with regard to
the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in accordance with Clause 7.1(b),
the Secondary Pledgees may enforce any of the Secondary Pledges (or any part
thereof), through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other
way permitted under German law, in all cases notwithstanding § 1277 of the
German Civil Code without any enforceable judgement or other instrument (vollstreckbarer Titel).

(b)           The Security Trustee shall notify the Pledgor
of the intention to realise any of the Secondary Pledges over the Shares not
less than 5 (five) Business Days before the date on which the respective Pledge
is intended to be realised.  The Pledgor
expressly agrees that in the event of a realisation by way of public auction 5
(five) Business Days prior written notice of the place and time of any such
public auction shall be sufficient.  The
public auction may be held at any place in Germany which will be determined by
the Security Trustee.

(c)           If the Security Trustee should seek to
enforce any of the Secondary Pledges pursuant to, and in accordance with Clause
7.1(a) above, the Pledgor shall, at its own expense, render forthwith all
assistance necessary in order to facilitate the prompt sale of the Shares or
any part thereof and/or the exercise by the Security Trustee of any other right
the Secondary Pledgees may have under German law.

(d)           The Secondary Pledges will be realised to the
extent necessary to discharge in full the Secured Claims.  The Secondary Pledgees shall at all times
until the full and complete satisfaction of all the Secured Claims in
exercising their rights under this Agreement take into consideration the legitimate
interests of the Pledgor.

(e)           In derogation of § 1225 of the German Civil
Code, in the event of enforcement of any of the Secondary Pledges, no rights of
the Secondary Pledgees shall pass to the Pledgor by subrogation or otherwise
unless and until all of the Secured Claims have been satisfied and discharged
in full.  Until then, the Security
Trustee shall be entitled to treat all enforcement proceeds as additional
collateral for the Secured Claims, notwithstanding its right to seek
satisfaction from such proceeds at any time.

(f)            After the complete unconditional, irrevocable
and full payment and discharge of all Secured Claims any remaining proceeds
resulting from the enforcement of any of the Secondary Pledges (or part
thereof) shall be transferred to the Pledgor at the cost and expense of the
Pledgor.

7.2          Ancillary Rights

Provided that the
requirements for enforcement referred to under Clause 7.1(a) above are met, all
payments based on ancillary rights attributed to the Shares may be applied by
the Security Trustee in satisfaction in whole or in part of the Secured Claims
notwithstanding the Secondary Pledgees’ right to treat such payments as
additional collateral.

 

7.3          Application of Proceeds

(a)           The proceeds resulting from the enforcement
of any of the Secondary Pledges shall be applied by the Security Trustee
towards the satisfaction of the Secured Claims, subject to, and in accordance
with, the relevant provisions of the Priority Agreement. 

(b)           The Security Trustee may determine which part
of the Security, if applicable, shall be used to satisfy the Secured Claims.

7.4          Release of Pledged Rights

Upon the full and complete
satisfaction of all Secured Claims the Security Trustee shall confirm to the
Pledgor upon request that the Shares are released from the Secondary Pledges
and retransfer to the Pledgor any documents received by the Security Trustee or
any designee pursuant to Clause 8.1(e) hereof.

8.             Undertakings of the Pledgor

8.1          Undertakings

The Pledgor undertakes

(a)           to notify the Security Trustee promptly of
any change in the shareholding in, or the capital contributions to, the Company
or of any change in the shareholders’ agreement (Gesellschaftsvertrag) or the registration of the Company in
the Commercial Register other than with respect to holders of a statutory power
of attorney (Prokura);

(b)           to notify the Security Trustee promptly of
any event or circumstance other than interpretation of law which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)           to effect promptly any payments to be made to
the Company in respect of the Shares; 

(d)           at its own expense, to execute and do all
such assurances, acts and things as the Security Trustee may reasonably
require:

(i)            for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)           if the Secondary Pledges have become
enforceable pursuant to Clause 7.1, for facilitating the realisation of
all or any part of the Shares which are subject to this Agreement and the
exercise of all powers, authorities and discretions vested in the Security
Trustee,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Trustee or to its nominees and give all notices, orders and
directions which the Security Trustee may reasonably think expedient;

(e)           at the Security Trustee’s reasonable request,
to furnish to the Security Trustee such information concerning the Shares as is
available to the Pledgor, to permit the Security Trustee and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Shares on
reasonable notice and during normal business hours, and, upon the 

 

reasonable request of the Security Trustee, to
deliver to the Security Trustee copies of all such records and papers; 

(f)            to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Secondary
Pledges or the effect of which results in the Shares ceasing to exist; and

(g)           that all Future Shares will be fully paid and
that there will be no obligation for a shareholder to make additional
contributions. 

8.2          Secondary Pledges over all
Shares

The Security Trustee may at
all times for itself and for the Secondary Pledgees request to hold a pledge
over all Shares held by the Pledgor (and in the case of a merger an equivalent
security interest over the shares in the surviving or, as the case may be, the
new company) in accordance with all terms of this Agreement.

9.             Representations and Warranties

The Pledgor represents and
warrants to the Secondary Pledgees that:

(a)           the Existing Shares pledged hereunder are the
only shares in the Company in existence at the date hereof;

(b)           the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Existing Shares;

(c)           all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement; 

(d)           the Existing Shares are fully paid and there
is no obligation for the Pledgor to make additional contributions; and

(e)           (i)            the Existing Shares are, except for the
Priority Pledges securing any payment obligations of the obligors under the
Credit Agreement and the Bridge Facility Agreement, free from any rights of
third parties;

(ii)           no third party has any pre-emption rights for
shares in the Company; and

(iii)          there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.          Release of Security

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Trustee is obliged to
release upon the Pledgor’s request all or part of the Security insofar as the
realisable value of the Security given to the Security Trustee or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10 %.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released. 

 

11.          Indemnity

11.1        Liability for Damages

Neither the Security Trustee
nor the Secondary Pledgees shall be liable for any loss or damage suffered by
the Pledgor save in respect of such loss or damage which is suffered as a
result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Trustee or of any of the Secondary
Pledgees. 

11.2        Indemnification

The Pledgor will indemnify
the Security Trustee and each of the Secondary Pledgees and keep the Security
Trustee and each of the Secondary Pledgees indemnified against any losses,
actions, claims, expenses, demands and liabilities which may be incurred by or
made against the Security Trustee and/or each of the Secondary Pledgees as a
result of any breach by the Pledgor of any of its obligations or undertakings
contained herein except to the extent that such losses, actions, claims,
expenses, demands or liabilities have resulted from the gross negligence (grobe Fahrlässigkeit) or wilful
misconduct (Vorsatz) of any of
the Secondary Pledgees or the Security Trustee.

11.3        This Clause 11 (Indemnity) shall survive the
termination of this Agreement under Clause 12.1 or otherwise.  

12.          Duration and Independence

12.1        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Secondary
Pledges shall cease to exist if any payments made in satisfaction of the
Secured Claims have only temporarily discharged the Secured Claims.

12.2        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it or the
replacement of the Security Trustee or of the High Yield Notes Trustee or any
transfer of the Notes shall affect the validity of this Agreement. 

12.3        Independence

This Agreement is
independent from any other security or guarantee which may have been or will be
given to the Security Trustee and/or any of the other Secondary Pledgees with
respect to any obligation of any of the Obligors under the Finance Documents.  None of such other securities or guarantees
shall prejudice, or shall be prejudiced by, or shall be merged in any way with,
this Agreement.

13.          Costs and Expenses

Any notarial fees and expenses incurred in
connection with the execution of this Agreement shall be borne by the
Pledgor.  The Pledgor must pay to each
Finance Party the amount of all costs and expenses (including the costs and
expenses of legal advisers) incurred by it in connection with the enforcement
of, or the preservation of any rights under, any Finance Document.

 

14.          Partial Invalidity; Waiver

14.1        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced
provision.

In particular, the Secondary
Pledges shall not be affected and shall in any event extend to any and all
Shares in the Company even if the number or nominal value of any of the
Existing Shares or the liable capital of the Company as stated in
Clause 2.1 are inaccurate and deviate from the actual facts.

14.2        Waiver

(a)           The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of the Security Trustee or the Secondary Pledgees (or
any of them), any right or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or
remedy.  The rights and remedies provided
hereunder are cumulative and not exclusive of any rights or remedies provided
by law.

(b)           The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Secondary Pledges created hereunder.

15.          Amendments

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.          Notices and their Language

16.1        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Trustee and/or the Secondary Pledgees shall be in writing and shall be
delivered personally, by post or facsimile and shall be sent to the address or
facsimile number of the party, and for the attention of the individual, set
forth in Schedule 1 hereto or such other address or facsimile number as is
notified by that party for this purpose to the Security Trustee from time to
time.

16.2        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,
accompanied by a translation into English. 
In the event of any conflict between the English text and the text in
any other language, the English text shall prevail.

 

17.          Applicable Law; Jurisdiction

17.1        Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of Germany.

17.2        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

18.          Notification

The Pledgor and the
Secondary Pledgees hereby instruct and authorise the undersigned notary public
to notify the Company of the Secondary Pledges pursuant to, and in accordance
with, §  1280 of the German Civil Code and § 16 of the German Limited
Liability Companies Act by means of forwarding a certified copy of this Agreement
to the Company by registered mail (return receipt requested) and by fax.

 

Schedule 1

Addresses for notices

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland GmbH 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Security Trustee and all other Secondary
  Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc 

  Level 7 

  135 Bishopsgate 

  London EC2M 3UR 

  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Verwaltungs 

  GmbH 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  

 

 

APPENDIX 3 – GMBH

SECONDARY SHARE PLEDGE AGREEMENT

RELATING TO THE SHARES IN 

KABEL
DEUTSCHLAND VERMÖGEN BETEILIGUNGS VERWALTUNGS GMBH

DATED 12 MAY 2006

between

KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO.
KG 

as Pledgor

and

THE ROYAL BANK OF SCOTLAND PLC

as Security Trustee 

and

LAW DEBENTURE TRUST COMPANY OF
NEW YORK

as High Yield Notes Trustee

and

THE FINANCE PARTIES

ALLEN & OVERY LLP

Frankfurt am Main

 

CONTENTS

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  2

  
	
  2.

  	
  Secondary
  Pledges

  	
  6

  
	
  3.

  	
  Independent
  Secondary Pledges

  	
  7

  
	
  4.

  	
  Security Purpose

  	
  7

  
	
  5.

  	
  Exercise of
  Voting Rights

  	
  8

  
	
  6.

  	
  Enforcement of
  Secondary Pledges

  	
  8

  
	
  7.

  	
  Undertakings of
  the Pledgor

  	
  10

  
	
  8.

  	
  Representations
  and Warranties

  	
  11

  
	
  9.

  	
  Release of
  Security

  	
  11

  
	
  10.

  	
  Indemnity

  	
  11

  
	
  11.

  	
  Duration and
  Independence

  	
  12

  
	
  12.

  	
  Costs and
  Expenses

  	
  12

  
	
  13.

  	
  Partial
  Invalidity; Waiver

  	
  12

  
	
  14.

  	
  Amendments

  	
  13

  
	
  15.

  	
  Notices and
  their Language

  	
  13

  
	
  16.

  	
  Applicable Law;
  Jurisdiction

  	
  13

  
	
  17.

  	
  Notification

  	
  14

  
	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Addresses for notices

  	
  15

  

 

 

THIS
SECONDARY SHARE PLEDGE AGREEMENT (the Agreement) is made
on 12 May 2006

BETWEEN: 

(1)           KABEL DEUTSCHLAND VERTRIEB
UND SERVICE GMBH & CO. KG,
a limited partnership (Kommanditgesellschaft)
organised under the laws of the Federal Republic of Germany, having its
corporate seat in Unterföhring (Landkreis München), Federal Republic of
Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902 (the Pledgor);

(the Pledgor); 

on one side; 

(2)           THE ROYAL BANK OF SCOTLAND
PLC, a public limited
company, having its registered office at: 36 St. Andrew Square, EH2 2YB
Edinburgh, Scotland, incorporated under the laws of Scotland and being
registered with the Companies House under registration number SC 090312

(the Security Trustee);

(3)           LAW DEBENTURE TRUST COMPANY
OF NEW YORK, a limited
purpose trust company organised under the laws of the State of New York, 767
Third Avenue, 31st Floor,
New York, NY 10017, 

(the High Yield Notes Trustee); and

(4)           THE FINANCE PARTIES as defined below in Clause 1.1
(Definitions).

on the other side.

The Security Trustee and the
High Yield Notes Trustee are hereinafter referred to individually as an Original Secondary Pledgee and together as the
Original Secondary Pledgees.

The Pledgor and the
Secondary Pledgees (as defined below) are hereinafter collectively referred to
as the Parties.

WHEREAS:

(A)          The Pledgor issued the High Yield Notes (as
defined below) pursuant to the High Yield Indenture (as defined below) on the
Issue Dates (as defined below).

(B)           The security interests given on 1 July 2004
and on 27 July 2004 by, amongst others, the Pledgor to Deutsche Bank AG London
as security trustee and Law Debenture Trust Company of New York as high yield
notes trustee on a second ranking basis have been released as of the date
hereof and shall now be re-taken subject to and in accordance with the terms of
the Priority Agreement (as defined below).

(C)           According to the terms of an amendment agreement
to the Priority Agreement (as defined below) Deutsche Bank AG London as former
security trustee has resigned and the new Security Trustee has assumed this
position.

 1
 

 

(D)          Under the Priority Agreement (as defined
below), the Security Trustee is the joint and several creditor of each and
every payment obligation of the Obligors towards the High Yield Noteholders
and/or the High Yield Notes Trustee under the Finance Documents (each as
defined below).  The High Yield Notes
Trustee has acceded to the Priority Agreement by means of an accession
agreement entered into on or about 2 July 2004 by, amongst others, the Security
Trustee and the High Yield Notes Trustee, acting for itself and on behalf of
the High Yield Noteholders (as defined below).

(E)           In connection with the issue of the High
Yield Notes under the High Yield Indenture the Pledgor is entering into this
Agreement. 

IT IS
AGREED as follows:

1.             INTERPRETATION

1.1          Definitions

In this Agreement:

Accounting
Principles means
accounting principles, policies, standards, bases and practices which, as at
the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze
ordnungsgemäßer Buchführung und Bilanzierung). 

Additional
High Yield Guarantor means
a member of the Group which becomes a high yield guarantor under the Finance
Documents after the date of their execution.

Approved
Additional High Yield Guarantor means any Additional High Yield Guarantor whose obligations under the
Finance Documents have after the date of their execution been specified by the
relevant Finance Party to be secured by this Agreement. 

Business Day means
each day that is not (i) a Saturday or a Sunday or (ii) any other day on which
banking institutions in Luxembourg City, Luxembourg, London, United Kingdom,
Frankfurt am Main, Germany or New York, New York are authorised or required by
law to close.

Company means Kabel Deutschland Vermögen
Beteiligungs Verwaltungs GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung)
incorporated under the laws of Germany, having its corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRB 153401.

Credit
Agreement means the
EUR 1,350,000,000 credit agreement dated on or about 13 March 2006 between,
amongst others, the Mandated Lead Arrangers, the Facility Agent, the Royal Bank
of Scotland plc as security agent, KDVS, KDG and the Original Lenders providing
for EUR 1,350,000,000 senior credit facilities and up to EUR 650,000,000 add-on
facilities.

Dollar,
dollar or $ means the
currency of the United States of America.

Dollar
Notes means $
610,000,000 aggregate principal amount of 10.625 % dollar-denominated senior
notes due 2014 or any other dollar-denominated notes issued pursuant to and in
compliance with the High Yield Indenture (including but not limited to any
dollar-denominated Exchange Securities).

 2
 

 

Euro, euro or € means
the single European currency introduced 1st January, 1999.

Euro Notes means Euro 250,000,000 aggregate principal
amount of 10.750 % euro-denominated senior notes due 2014 or any other
euro-denominated notes issued pursuant to and in compliance with the High Yield
Indenture (including but not limited to any euro-denominated Exchange
Securities).

Exchange
Securities means the
dollar and/or euro denominated debt securities issued and delivered by KDG in
exchange for the Initial Securities to the holders of transfer restricted
securities pursuant to the High Yield Indenture as contemplated by the High
Yield Registration Rights Agreement.

Event of
Default means an
event of default under any of the Finance Documents, which entitles the
relevant Finance Parties to declare that all or part of any amounts outstanding
under the relevant Finance Documents or any of them are immediately due and
payable, or payable on demand.

Existing
Share means the share
set forth in Clause 2.1.

Facility
Agent means The Royal
Bank of Scotland plc, a public limited company, having its registered office
at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated under the
laws of the United Kingdom and being registered with the Companies House under
registration number SC 090312.

Finance
Document means:

(a)         the High Yield Notes;

(b)        the Exchange Securities;

(c)         the High Yield Indenture;

(d)        each Security Document; 

(e)         the Priority Agreement; or

(f)         any other document designated as such by the
Security Trustee and KDG.

Finance
Party means each of
the Security Trustee, the High Yield Notes Trustee and any other person
becoming a security trustee or a high yield notes trustee under the High Yield
Indenture (together the Finance Parties).

Future
Shares means any and
all shares in the Company, other than the Existing Share, which KDG may acquire
in future.

Future
Secondary Pledgee
means a Finance Party (other than the Security Trustee and the High Yield Notes
Trustee).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries.

High Yield
Guarantor means (i)
KDVS or (ii) an Approved Additional High Yield Guarantor (together the High Yield Guarantors).

 3
 

 

High Yield Indenture means the indenture dated on or about
2nd  July, 2004, made between, amongst others, KDG, KDVS as High Yield
Guarantor, the High Yield Notes Trustee, the Security Trustee and any other
High Yield Guarantor relating to the issue of the High Yield Notes by KDG, and
including any supplemental indenture entered into, amongst others, by KDG with
respect to the High Yield Indenture.

High Yield
Notes means the Euro
Notes and the Dollar Notes issued pursuant to the High Yield Indenture.

High Yield
Noteholders means
each of the holders of the High Yield Notes.

High Yield
Registration Rights Agreement means the registration rights agreement dated on or about 2nd July,
2004, made between, amongst others, KDVS, KDG, the High Yield Guarantors and
Deutsche Bank AG London, Morgan Stanley & Co. International Limited,
Citigroup Global Markets Limited, Goldman Sachs International and ABN Amro Bank
N.V. relating to the offer to exchange transfer restricted Initial Securities
into a like aggregate amount of the Exchange Securities or the shelf
registration of such Initial Securities.

Initial
Securities means each
of the Euro Notes and Dollar Notes.

Issue Date means each of the date on or about 2nd July,
2004 and any date thereafter on which High Yield Notes are issued under the
High Yield Indenture (together the Issue
Dates).

KDG means Kabel Deutschland GmbH a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister) at the local court
(Amtsgericht) of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service
GmbH & Co. KG, a limited partnership (Kommanditgesellschaft)
incorporated under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902.

Mandated
Lead Arranger means
each of:

(a)         The Royal Bank of Scotland plc;

(b)        Deutsche Bank AG London;

(c)         Goldman Sachs International; and

(d)        J.P. Morgan plc.

Obligor means KDG or a High Yield Guarantor (together
the Obligors).

Original
Lender means each of:

(a)         The Royal Bank of Scotland plc, Niederlassung
Frankfurt;

(b)        Deutsche Bank AG London;

(c)         JPMorgan Chase Bank, N.A.; and

 4
 

 

(d)        Goldman Sachs Credit Partners L.P.

Party means each of the Pledgor and the Secondary
Pledgees (together the Parties).

Priority
Agreement means the
priority agreement dated 29 March 2004 as amended and restated pursuant to a
supplemental agreement dated 27 May 2004 and as further amended and restated
pursuant to a supplemental agreement dated 1 July 2004 and as further amended
and restated pursuant to a supplemental agreement dated the date hereof made
between, among others, KDG, KDVS, the Mandated Lead Arrangers, the Original
Lenders, the Facility Agent, the Security Trustee and certain other creditors
of the Group.

Priority
Pledges has the
meaning given to it under Clause 2.2(c)(ii) below.

Secondary
Pledge means a pledge
constituted under Clause 2.2.

Secondary
Pledgee means an
Original Secondary Pledgee or a Future Secondary Pledgee (together the Secondary Pledgees).

Secured
Claims means all
present and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties in connection with the
protection, preservation or enforcement of their respective rights under the
Finance Documents.

Security means any and all security granted to secure
the Secured Claims. 

Security
Documents means any
mortgages, pledges, assignments, transfers or other documents creating security
for the obligations of the Obligors under the Finance Documents.

Security
Trust Agreement means
the security trust agreement dated on or about the date hereof between, amongst
others, KDG and KDVS as security agents and the Security Trustee.

Shares means the Existing Share and the Future
Shares.

Subsidiary means any of:

(a)         an entity of which a person has direct or
indirect control or owns directly or indirectly more than 50% of the voting
capital or similar right of ownership, and control
for this purpose means the power to direct the management and the policies of
the entity whether through the ownership of voting capital, by contract or
otherwise; or

(b)        an entity consolidated for the purpose of the
financial statements of any person pursuant to the Accounting Principles.

1.2          Construction

(a)         In this Agreement, unless the contrary
intention appears, a reference to:

(i)            the Security Trustee means the Security
Trustee acting as agent for and on behalf of the Pledgees unless otherwise
provided herein; and

 5
 

 

(ii)           promptly means promptly (unverzüglich) as contemplated in § 121 (1)
BGB.

(b)        Where the context so admits, the singular
includes the plural and vice versa.

(c)         The headings in this Agreement are for
convenience only and are to be ignored in construing this Agreement.

(d)        Any reference in this Agreement to a defined
document is a reference to that defined document as amended, restated, novated
or supplemented from time to time.

(e)         Whenever in this Agreement reference is made
to the Security Trustee such reference shall be deemed to be a reference to the
Security Trustee acting as trustee for and on behalf of the Secondary Pledgees,
unless otherwise provided herein.

(f)         References to parties herein shall also be
deemed to include references to their respective successors, transferees and
assignees.

2.             SECONDARY
PLEDGES

2.1          Pledged Shares

(a)           The Pledgor is the sole shareholder of the
Company.

(b)           The total registered share capital (Stammkapital) of the Company amounts to
25,000 Euro (in words: twenty five thousand Euro).  At present, the Pledgor holds the only share
in the Company in an amount of EUR 25,000 (in words: Euro twenty five thousand)
(the Existing Share).  There are no other shares in the Company.

(c)           The Existing Share is fully paid up.  There is no obligation for the Pledgor to
make any additional contributions.

2.2          Constitution of Secondary
Pledges

(a)           The Pledgor hereby pledges the Shares to each
Original Secondary Pledgee and to each Future Secondary Pledgee for their
rateable interest as Security.

(b)           Each of the Original Secondary Pledgees
hereby accepts the Secondary Pledge.  In
addition, the Security Trustee accepts each of the Secondary Pledges for and on
behalf of each Future Secondary Pledgee hereunder as proxy without power of
attorney (Vertreter ohne Vertretungsmacht).  Each Future Secondary Pledgee will ratify
such acceptance for itself by executing an accession agreement to the Security
Trust Agreement, thereby becoming a Secondary Pledgee.  All Parties hereto confirm that the validity
of any of the Secondary Pledges constituted hereunder shall not be affected by
the Security Trustee acting as proxy without power of attorney for each Future
Secondary Pledgee.

(c)           The Parties herewith acknowledge that 

(i)            the Secondary Pledge under this Agreement constitutes
a second ranking pledge over the Shares in the Company; 

(ii)           the pledges constituted between, amongst
others, the Pledgor and Royal Bank of Scotland plc as security agent relating
to the Shares in the Company pursuant to an share pledge agreement as of the
date hereof but prior to the 

 6
 

 

execution of this Agreement (the Priority Pledges) have priority over the
Secondary Pledges created under this Agreement; 

(iii)          the enforcement of this Secondary Pledge
shall be made in accordance with the provisions of the Priority Agreement.

3.             INDEPENDENT
SECONDARY PLEDGES

The validity and effect of
each of the Secondary Pledges shall be independent from the validity and the
effect of any of (i) the other Secondary Pledges created hereunder and (ii) the
Priority Pledges and is in addition, and without any prejudice, to any other
Security which any and all of the Secondary Pledgees may now or hereafter hold
in respect of the Secured Claims.  Each
of the Secondary Pledges to each of the Secondary Pledgees shall be separate
and individual second ranking pledges. 
Each of the Secondary Pledges shall rank pari passu to each other
Secondary Pledge created hereunder.

4.             SECURITY
PURPOSE

The Secondary Pledges are
constituted in order to secure the prompt and complete satisfaction of any and
all Secured Claims.

5.             DIVIDENDS

5.1          Extent of the Pledge

The Pledge constituted by
this Agreement includes the present and future rights to receive

(a)           dividends, if any, payable on the Shares;

(b)           liquidation proceeds, consideration for
redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or
withdrawal (Austritt) of a
shareholder of the Company, the surplus in case of surrender (Preisgabe) and all other pecuniary claims
associated with the Shares; and

(c)           the right to subscribe for newly issued
shares.

5.2          Entitlement to Receive
Dividend Payments

Notwithstanding that the
dividends are pledged hereunder, the Pledgor shall be entitled to receive and
retain all dividend payments in cash in respect of the Shares until the
requirements for enforcement referred to under Clause 7 below are met and
unless the Facility Agent has notified the Pledgor that according to the Credit
Agreement any dividend payments in respect of the Shares are no longer
permitted to be made to the Pledgor, in which case the payments are to be made
to the Security Agent.

5.3          Pledgees’ Rights

Notwithstanding Clause 5.2
above:

(a)           dividends paid or payable to the Pledgor
other than in cash and other property received (Sachdividenden), receivable or otherwise distributed in
respect of or in exchange for the Shares;

 7
 

 

(b)           dividends or other distributions paid or
payable to the Pledgor in cash in respect of the Shares in connection with the
partial or total liquidation or dissolution or in connection with the reduction
of capital, capital surplus or paid-in surplus; and

(c)           cash paid, payable or otherwise distributed
to the Pledgor in respect of principal of, or in redemption of, or in exchange
for the Shares;

(d)           dividends paid to the Security Agent in
accordance with Clause 5.2 above,

shall be and shall forthwith
be delivered to the Security Agent for itself and for the other Pledgees to be
held as security and shall, if received by the Pledgor, be received as holder
for the Pledgees and segregated from the other property or funds of the Pledgor
and be forthwith delivered to the Security Agent for itself and for the
Pledgees as security in the same form as so received (with any necessary endorsement).  Any further reaching obligations of the
Company and/or the Pledgor in respect of the use of profits and/or dividends
shall not be affected by this Clause 5.3.

6.             EXERCISE
OF VOTING RIGHTS

6.1          Voting Rights

The voting rights resulting
from the Shares remain with the Pledgor. 
This shall, however, not affect the obligations of the Pledgor under
Clause 8.1 below.  The Pledgor shall
at all times until the full and complete satisfaction of all Secured Claims or
the release of the Secondary Pledges be required, in exercising its voting
rights, to act in good faith to ensure that the Secondary Pledges are not in
any way adversely affected.

6.2          Impairment

The Pledgor shall not take,
or participate in, any action which impairs, or which would for any other
reason be inconsistent with, the security interest of the Secondary Pledgees or
the security purpose as described in Clause 4 hereof or defeat, impair or
circumvent the rights of the Secondary Pledgees hereunder in each case in any
respect.

6.3          Information by the Pledgor

The Pledgor shall inform the
Secondary Pledgees promptly of all other actions concerning the Company which
might adversely affect the security interest of the Secondary Pledgees.  In particular, the Pledgor shall notify the
Secondary Pledgees forthwith of any shareholders’ meeting at which a resolution
is intended to be adopted which could be expected to have an adverse effect
upon the Secondary Pledges.  In any event
the Secondary Pledgees shall promptly receive, as soon as they are available, a
copy of the convocation notice for such ordinary or extraordinary shareholders’
meeting setting forth the agenda (to the extent it relates to such resolution)
and all applications and decisions to be taken and the minutes of any such
shareholders’ meeting (in each case to the extent they relate to such
resolution).

7.             ENFORCEMENT
OF SECONDARY PLEDGES

7.1          Secondary Pledgees’ Rights

(a)           If (i) an Event of Default has occurred, (ii)
the requirements set forth in §§ 1204 et seq. of the German Civil Code (Bürgerliches Gesetzbuch) with regard to
the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in 

 8
 

 

accordance with Clause 7.1(b), the Secondary
Pledgees may enforce any of the Secondary Pledges (or any part thereof),
through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other
way permitted under German law, in all cases notwithstanding § 1277 of the
German Civil Code without any enforceable judgement or other instrument (vollstreckbarer Titel).

(b)           The Security Trustee shall notify the Pledgor
of the intention to realise any of the Secondary Pledges over the Shares not
less than 5 (five) Business Days before the date on which the respective Pledge
is intended to be realised.  The Pledgor
expressly agrees that in the event of a realisation by way of public auction 5
(five) Business Days prior written notice of the place and time of any such public
auction shall be sufficient.  The public
auction may be held at any place in Germany which will be determined by the
Security Trustee. 

(c)           If the Security Trustee should seek to
enforce any of the Secondary Pledges pursuant to, and in accordance with Clause
7.1(a) above, the Pledgor shall, at its own expense, render forthwith all
assistance necessary in order to facilitate the prompt sale of the Shares or
any part thereof and/or the exercise by the Security Trustee of any other right
the Secondary Pledgees may have under German law. 

(d)           The Secondary Pledges will be realised to the
extent necessary to discharge in full the Secured Claims.  The Secondary Pledgees shall at all times
until the full and complete satisfaction of all the Secured Claims in exercising
their rights under this Agreement take into consideration the legitimate
interests of the Pledgor.

(e)           In derogation of § 1225 of the German Civil
Code, in the event of enforcement of any of the Secondary Pledges, no rights of
the Secondary Pledgees shall pass to the Pledgor by subrogation or otherwise
unless and until all of the Secured Claims have been satisfied and discharged
in full.  Until then, the Security
Trustee shall be entitled to treat all enforcement proceeds as additional
collateral for the Secured Claims, notwithstanding its right to seek
satisfaction from such proceeds at any time. 

(f)            After the complete unconditional, irrevocable
and full payment and discharge of all Secured Claims any remaining proceeds
resulting from the enforcement of any of the Secondary Pledges (or part
thereof) shall be transferred to the Pledgor at the cost and expense of the
Pledgor.

7.2          Ancillary Rights

Provided that the
requirements for enforcement referred to under Clause 7.1(a) above are met, all
payments based on ancillary rights attributed to the Shares may be applied by
the Security Trustee in satisfaction in whole or in part of the Secured Claims
notwithstanding the Secondary Pledgees’ right to treat such payments as
additional collateral.

7.3          Application of Proceeds

(a)           The proceeds resulting from the enforcement
of any of the Secondary Pledges shall be applied by the Security Trustee
towards the satisfaction of the Secured Claims, subject to, and in accordance
with, the relevant provisions of the Priority Agreement. 

(b)           The Security Trustee may determine which part
of the Security, if applicable, shall be used to satisfy the Secured Claims.

 9
 

 

7.4          Release of Pledged Rights

Upon the full and complete
satisfaction of all Secured Claims the Security Trustee shall confirm to the
Pledgor upon request that the Shares are released from the Secondary Pledges
and retransfer to the Pledgor any documents received by the Security Trustee or
any designee pursuant to Clause 8.1(e) hereof.

8.             UNDERTAKINGS
OF THE PLEDGOR

8.1          Undertakings

The Pledgor undertakes

(a)           to notify the Security Trustee promptly of
any change in the shareholding in, or the capital contributions to, the Company
or of any change in the shareholders’ agreement (Gesellschaftsvertrag) or the registration of the Company in
the Commercial Register other than with respect to holders of a statutory power
of attorney (Prokura);

(b)           to notify the Security Trustee promptly of
any event or circumstance other than interpretation of law which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)           to effect promptly any payments to be made to
the Company in respect of the Shares;

(d)           at its own expense, to execute and do all
such assurances, acts and things as the Security Trustee may reasonably
require:

(i)            for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)           if the Secondary Pledges have become
enforceable pursuant to Clause 7.1, for facilitating the realisation of
all or any part of the Shares which are subject to this Agreement and the
exercise of all powers, authorities and discretions vested in the Security
Trustee,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Trustee or to its nominees and give all notices, orders and
directions which the Security Trustee may reasonably think expedient;

(e)           at the Security Trustee’s reasonable request,
to furnish to the Security Trustee such information concerning the Shares as is
available to the Pledgor, to permit the Security Trustee and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Shares on
reasonable notice and during normal business hours, and, upon the reasonable
request of the Security Trustee, to deliver to the Security Trustee copies of
all such records and papers;

(f)            to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Secondary
Pledges or the effect of which results in the Shares ceasing to exist; and

(g)           that all Future Shares will be fully paid and
that there will be no obligation for a shareholder to make additional
contributions.

 10

 

8.2          Secondary Pledges over all
Shares

The Security Trustee may at
all times for itself and for the Secondary Pledgees request to hold a pledge
over all Shares held by the Pledgor (and in the case of a merger an equivalent
security interest over the shares in the surviving or, as the case may be, the
new company) in accordance with all terms of this Agreement.

9.             REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and
warrants to the Secondary Pledgees that:

(a)           the Existing Share pledged hereunder is the
only share in the Company in existence at the date hereof;

(b)           the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Existing Share;

(c)           all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

(d)           the Existing Share is fully paid and there is
no obligation for the Pledgor to make additional contributions; and

(e)           (i)            the Existing Share is, except for the Priority
Pledges securing any payment obligations of the obligors under the Credit
Agreement and the Bridge Facility Agreement, free from any rights of third
parties;

(ii)           no third party has any pre-emption rights for
shares in the Company; and

(iii)          there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.          RELEASE
OF SECURITY

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Trustee is obliged to
release upon the Pledgor’s request all or part of the Security insofar as the
realisable value of the Security given to the Security Trustee or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10 %.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released.

11.          INDEMNITY

11.1        Liability for Damages

Neither the Security Trustee
nor the Secondary Pledgees shall be liable for any loss or damage suffered by
the Pledgor save in respect of such loss or damage which is suffered as a
result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Trustee or of any of the Secondary
Pledgees.

11.2        Indemnification

The Pledgor will indemnify
the Security Trustee and each of the Secondary Pledgees and keep the Security
Trustee and each of the Secondary Pledgees indemnified against any losses, 

 11
 

 

actions, claims, expenses, demands and liabilities
which may be incurred by or made against the Security Trustee and/or each of
the Secondary Pledgees as a result of any breach by the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of
any of the Secondary Pledgees or the Security Trustee.

11.3        This Clause 11 (Indemnity) shall survive the
termination of this Agreement under Clause 12.1 or otherwise.

12.          DURATION
AND INDEPENDENCE

12.1        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Secondary
Pledges shall cease to exist if any payments made in satisfaction of the
Secured Claims have only temporarily discharged the Secured Claims.

12.2        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it or the
replacement of the Security Trustee or of the High Yield Notes Trustee or any
transfer of the Notes shall affect the validity of this Agreement.

12.3        Independence

This Agreement is
independent from any other security or guarantee which may have been or will be
given to the Security Trustee and/or any of the other Secondary Pledgees with
respect to any obligation of any of the Obligors under the Finance
Documents.  None of such other securities
or guarantees shall prejudice, or shall be prejudiced by, or shall be merged in
any way with, this Agreement.

13.          COSTS
AND EXPENSES

Any notarial fees and expenses incurred in
connection with the execution of this Agreement shall be borne by the
Pledgor.  The Pledgor must pay to each
Finance Party the amount of all costs and expenses (including the costs and
expenses of legal advisers) incurred by it in connection with the enforcement
of, or the preservation of any rights under, any Finance Document.

14.          PARTIAL
INVALIDITY; WAIVER

14.1        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced
provision.

In particular, the Secondary
Pledges shall not be affected and shall in any event extend to any and all
Shares in the Company even if the number or nominal value of the Existing Share
or 

 12
 

 

the liable capital of the Company as stated in
Clause 2.1 are inaccurate and deviate from the actual facts.

14.2        Waiver

(a)           The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of the Security Trustee or the Secondary Pledgees (or
any of them), any right or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or
remedy.  The rights and remedies provided
hereunder are cumulative and not exclusive of any rights or remedies provided by
law.

(b)           The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Secondary Pledges created hereunder.

15.          AMENDMENTS

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.          NOTICES
AND THEIR LANGUAGE

16.1        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Trustee and/or the Secondary Pledgees shall be in writing and shall be
delivered personally, by post or facsimile and shall be sent to the address or
facsimile number of the party, and for the attention of the individual, set
forth in Schedule 1 hereto or such other address or facsimile number as is
notified by that party for this purpose to the Security Trustee from time to
time.

16.2        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,
accompanied by a translation into English. 
In the event of any conflict between the English text and the text in
any other language, the English text shall prevail.

17.          APPLICABLE
LAW; JURISDICTION

17.1        Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of Germany.

 13
 

 

17.2        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

18.          NOTIFICATION

The Pledgor and the
Secondary Pledgees hereby instruct and authorise the undersigned notary public
to notify the Company of the Secondary Pledges pursuant to, and in accordance
with, §  1280 of the German Civil Code and § 16 of the German Limited
Liability Companies Act by means of forwarding a certified copy of this
Agreement to the Company by registered mail (return receipt requested) and by
fax.

 14
 

 

SCHEDULE 1

ADDRESSES
FOR NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland Vertrieb und 

  Service GmbH & Co. KG 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Security Trustee and all other Secondary
  Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc 

  Level 7 

  135 Bishopsgate 

  London EC2M 3UR 

  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vermögen 

  Beteiligungs Verwaltungs GmbH 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  

 

 15

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