Document:

Exhibit 4.2

 

EXECUTION VERSION

 

Virgin
Media Inc.

 

6.50%
Convertible Senior Notes due 2016

 

Registration
Rights Agreement

 

	
   

  	
  April 16, 2008

  

Goldman, Sachs &
Co.,

Deutsche Bank Securities
Inc.

J.P. Morgan Securities
Inc.

 

c/o Goldman, Sachs &
Co.

85 Broad Street

New York, New York 10004

 

Ladies and
Gentlemen:

 

Virgin
Media Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the Purchasers (as defined
herein) upon the terms set forth in the Purchase Agreement (as defined herein)
its 6.50% Convertible Senior Notes due 2016 (the “Securities”).  As an inducement
to the Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the obligations of the Purchasers thereunder, the Company agrees
with the Purchasers for the benefit of Holders (as defined herein) from time to
time of the Registrable Securities (as defined herein) as follows:

 

1.             Definitions.

 

(a)           Capitalized
terms used herein without definition shall have the meanings ascribed to them
in the Purchase Agreement.  As used in
this Agreement, the following defined terms shall have the following meanings:

 

“Additional
Interest” has the meaning
assigned thereto in Section 6(a) hereof.

 

“Affiliate”
of any specified person means any other person which, directly or indirectly,
is in control of, is controlled by, or is under common control with such
specified person.  For purposes of this
definition, control of a person means the power, direct or indirect, to direct
or cause the direction of the management and policies of such person whether by
contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Business
day” means any day, other than a Saturday
or a Sunday, that is neither a legal holiday nor a day on which banking
institutions are authorized or required by law, regulation or executive order
to close in The City of New York.

 

“Closing
Date” means the Closing Date
as defined in the Purchase Agreement.

 

 

“Commission”
means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

“Common
Stock” means the Company’s common stock, par
value $0.01 per share.

 

“Company”
has the meaning assigned thereto in the introductory paragraph hereof.

 

“DTC”
means The Depository Trust Company.

 

“Effective
Date” has the meaning
assigned thereto in Section 2(a)(i) hereof.

 

“Effective
Failure” has the meaning
assigned thereto in Section 6(b) hereof.

 

“Effectiveness
Period” has the meaning
assigned thereto in Section 2(a)(i) hereof.

 

“Effective
Time” means the time at which
the Commission declares the Shelf Registration Statement required by Section 2(a)(i) effective
or at which the Shelf Registration Statement otherwise becomes effective.

 

“Electing
Holder” has the meaning
assigned thereto in Section 3(a)(iii) hereof.

 

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

 

“Holder”
means any person that is the record owner of Registrable Securities (and
includes any person that has a beneficial interest in any Registrable Security
in book-entry form).

 

“Indenture”
means the Indenture, dated as of April 16,
2008, between the Company and The Bank of New York,
as amended and supplemented from time to time in accordance with its terms.

 

“NASD
Rules” means the Rules of
the National Association of Securities Dealers, Inc., as amended from time
to time.

 

“Notice
and Questionnaire” means a Notice of
Registration Statement and Selling Securityholder Questionnaire substantially
in the form of Appendix A hereto.

 

The
term “person” means an individual,
partnership, corporation, trust or unincorporated organization, or a government
or agency or political subdivision thereof.

 

“Prospectus”
means the prospectus (including, without limitation, any preliminary
prospectus, any final prospectus and any prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A, 430B or 430C under the Securities
Act) included in the Shelf Registration Statement, as amended or supplemented
by any prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by the Shelf Registration
Statement and by all other amendments and supplements to such prospectus,
including all

 

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material incorporated by
reference in such prospectus and all documents filed after the date of such
prospectus by the Company under the Exchange Act and incorporated by reference
therein.

 

“Purchase
Agreement” means the purchase
agreement, dated as of April 10, 2008, among the Purchasers and the
Company relating to the Securities.

 

“Purchasers”
means the Purchasers named in
Schedule I to the Purchase Agreement.

 

“Option
Closing Date” means the last Additional Closing Date
as defined in the Purchase Agreement.

 

“Registrable
Securities” means all or any
portion of the Securities issued from time to time under the Indenture in
registered form and the shares of Common Stock issuable upon conversion of such
Securities; provided, however, that a security ceases to be a Registrable Security
for such period as it is no longer a Restricted Security pursuant to clause (i) or
(ii) of the definition of Restricted Security (or pursuant to clause (iii) of
such definition after the day that is one year following the later of the
Closing Date and the Option Closing Date).

 

“Registration
Default” has the meaning
assigned thereto in Section 6(a) hereof.

 

“Restricted
Security” means any Security or
share of Common Stock issuable upon conversion of such Securities except any
such Security or share of Common Stock that (i) ceases to be outstanding, (ii) has
been effectively registered under the Securities Act and sold in a manner
contemplated by the Shelf Registration Statement or (iii) has been
transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto) or is transferable by a person who is not an
affiliate of the Company pursuant to Rule 144 (or any successor provision
thereto) without any volume or manner of sale restrictions thereunder.

 

“Rules and
Regulations” means the published rules and
regulations of the Commission promulgated under the Securities Act or the
Exchange Act, as in effect at any relevant time.

 

“Securities”
has the meaning assigned hereto in the introductory paragraph hereof.

 

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

 

“Shelf
Registration” means a registration
effected pursuant to Section 2 hereof.

 

“Shelf
Registration Statement” means a “shelf” registration
statement filed under the Securities Act providing for the registration of, and
the sale on a continuous or delayed basis by the Holders of, all of the
Registrable Securities pursuant to Rule 415 under the Securities Act
and/or any similar rule that may be adopted by the Commission, filed by
the Company pursuant to the requirements of Section 2(a)(i) of this
Agreement, including the Prospectus contained therein, any amendments and
supplements to such registration statement, including post-effective
amendments, and all exhibits and all material incorporated by reference in such
registration statement.

 

“Suspension
Period” has the meaning
assigned thereto in Section 2(b).

 

3

 

“Trust
Indenture Act” means the Trust
Indenture Act of 1939, or any successor thereto, and the rules, regulations and
forms promulgated thereunder, as the same shall be amended from time to time.

 

The
term “underwriter” means any underwriter of
Registrable Securities in connection with an offering thereof under a Shelf
Registration Statement.

 

(b)           Wherever
there is a reference in this Agreement to a percentage of the “principal amount” of
Registrable Securities or to a percentage of Registrable Securities, Common
Stock shall be treated as representing the principal amount of Securities that
was surrendered for conversion in order to receive such number of shares of
Common Stock.

 

2.             Shelf
Registration.

 

(a)           The
Company shall use its commercially reasonable efforts:

 

(i)            to
cause the Shelf Registration Statement to be declared effective under the
Securities Act no later than the 181st calendar day following the
later of the Closing Date and the Additional Closing Date;

 

(ii)           to
keep the Shelf Registration Statement continuously effective under the
Securities Act in order to permit the Prospectus forming a part thereof to be
usable by Holders until the earliest of (1) the sale of all Registrable
Securities registered under the Shelf Registration Statement; and (2) one
year from the date (the “Effective Date”) such Shelf Registration Statement is declared effective
(such period being referred to herein as the “Effectiveness
Period”);

 

(iii)          after
the Effective Time, within 10 Business Days after receipt of the completed
Notice and Questionnaire from any Holder that is not then an Electing Holder,
the Company shall file such amendments to the Shelf Registration Statement or
supplements to the related Prospectus as are reasonably necessary to permit the
Holder to deliver the Prospectus to purchasers of Registrable Securities
(subject to the Company’s right to suspend the use of the Prospectus as set forth
in Section 2(b)); provided, however, that nothing in this subparagraph shall relieve
such Holder of the obligation to return a completed and signed Notice and
Questionnaire to the Company in accordance with Section 3(a)(ii) hereof;
and

 

(iv)          if
at any time the Securities are convertible into securities other than Common
Stock, to cause, or to cause any successor under the Indenture to cause, such
securities to be included in the Shelf Registration Statement no later than the
date on which the Securities may then be convertible into such securities;

 

provided,
however, that the
Company’s obligation to file, have declared effective or maintain effectiveness
of the Shelf Registration Statement required by clause (i) above shall be
suspended to the extent and during the periods that the Registrable Securities
are eligible to be sold by Persons that are not Affiliates of the Company
pursuant to Rule 144 of the Securities Act without any volume or manner of
sale restrictions.

 

4

 

The Company shall be
deemed not to have used its commercially reasonable efforts to keep the Shelf
Registration Statement effective during the requisite period if the Company
voluntarily takes any action that would result in Holders of Registrable
Securities covered thereby not being able to offer and sell any of such
Registrable Securities during that period, unless such action is (A) required
by applicable law and the Company thereafter promptly complies with the
requirements of Section 3(j) below or (B) permitted pursuant to Section 2(b) below.

 

(b)           The
Company may suspend the use of the Prospectus for a period not to exceed 30
days in any 90-day period or an aggregate of 90 days in any 12-month period (a “Suspension Period”) if the Board
of Directors of the Company shall have determined in good faith that because of
valid business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or divestiture of assets, pending
corporate developments and similar events, it is in the best interests of the
Company to suspend such use, and prior to suspending such use the Company
provides the Holders with written notice of such suspension, which notice need
not specify the nature of the event giving rise to such suspension.

 

(c)           The
Company agrees that the Company will:

 

(i)  Cooperate with Holders of
Securities to facilitate the delivery of Securities to be sold pursuant to Rule 144(b)(1)(i) free
of any restrictive legends and in such denominations and registered in such
names as the Holders thereof may request in writing as promptly as practicable
but in any event within three Business Days of receipt of a written request and
in any event, on the day that is one year following the later of the Closing Date and the
Option Closing Date, facilitate the removal
of any restrictive legends (if any) and cause the Securities to be represented
by a CUSIP that represents that a person who is not an affiliate of the Company
pursuant to Rule 144 (or any successor provision thereto) can resell such
Securities without any volume or manner of sale restrictions thereunder; and

 

(ii)  Represent and agree with the
Holders that the Company and its Affiliates have not since the Closing Date
resold any Securities that have been acquired or reacquired by any of them
except pursuant to an effective registration statement under the Securities Act
and will not resell any Securities acquired by them except pursuant to an
effective Registration Statement under the Securities Act until such time as
none of the Securities are Registrable Securities.

 

3.             Registration
Procedures.  In connection with the Shelf Registration
Statement, the following provisions shall apply:

 

(a) (i)       Not
less than 30 calendar days prior to the Effective Time of the Shelf
Registration Statement, the Company shall mail the Notice and Questionnaire to
the Holders of Registrable Securities. 
No Holder shall be entitled to be named as a selling securityholder in
the Shelf Registration Statement as of the Effective Time, and no Holder shall
be entitled to use the Prospectus forming a part thereof for resales of
Registrable Securities at any time, unless such Holder has returned a completed
and signed Notice and Questionnaire to the Company

 

5

 

by the deadline for
response set forth therein; provided, however,
Holders of Registrable Securities shall have at least 28 calendar days from the
date on which the Notice and Questionnaire is first mailed to such Holders to
return a completed and signed Notice and Questionnaire to the Company;

 

(ii)           After
the Effective Time of the Shelf Registration Statement, the Company shall, upon
the request of any Holder of Registrable Securities that is not then an
Electing Holder, promptly send a Notice and Questionnaire to such Holder.  The Company shall not be required to take any
action to name such Holder as a selling securityholder in the Shelf
Registration Statement or to enable such Holder to use the Prospectus forming a
part thereof for resales of Registrable Securities until such Holder has
returned a completed and signed Notice and Questionnaire to the Company, in
which case the Company’s obligations shall be as set forth in Section 2(a)(iii) above;
and

 

(iii)          The
term “Electing Holder”
shall mean any Holder of Registrable Securities that has returned a completed
and signed Notice and Questionnaire to the Company in accordance with Section 3(a)(i) or
3(a)(ii) hereof.

 

(b)           The
Company shall furnish to each Electing Holder, prior to the Effective Time, a
copy of the Shelf Registration Statement initially filed with the Commission,
and shall furnish to such Holders, prior to the filing thereof with the
Commission, copies of each amendment thereto and each amendment or supplement,
if any, to the Prospectus included therein, and shall use its commercially
reasonable efforts to reflect in each such document, at the Effective Time or
when so filed with the Commission, as the case may be, such  comments as such Holders and their respective
counsel reasonably may propose.

 

(c)           The
Company shall promptly take such action as may be necessary so that (i) each
of the Shelf Registration Statement and any amendment thereto and the
Prospectus forming a part thereof and any amendment or supplement thereto (and
each report or other document incorporated therein by reference in each case)
complies in all material respects with the Securities Act and the Exchange Act
and the respective rules and regulations thereunder, (ii) each of the
Shelf Registration Statement and any amendment thereto does not, when it
becomes effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading and (iii) each of the Prospectus forming
a part of the Shelf Registration Statement, and any amendment or supplement to
such Prospectus, does not at any time during the Effectiveness Period include
an untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, however,
that the Company shall not be required to take such action in respect of the
Shelf Registration Statement or any amendment thereto or of the Prospectus or
any amendment or supplement to the Prospectus during any Suspension Period.

 

(d)           The
Company shall promptly advise each Electing Holder, and shall confirm such
advice in writing if so requested by any such Electing Holder:

 

(i)            when
a Shelf Registration Statement and any amendment thereto has been filed with
the Commission and when a Shelf Registration Statement or any post-effective

 

6

 

amendment thereto has become effective;

 

(ii)           of
any request by the Commission for amendments or supplements to the Shelf
Registration Statement or the Prospectus included therein or for additional
information;

 

(iii)          of
the issuance by the Commission of any stop order suspending the effectiveness
of the Shelf Registration Statement or the initiation of any proceedings for
such purpose;

 

(iv)          of
the receipt by the Company of any notification with respect to the suspension
of the qualification of the securities included in the Shelf Registration
Statement for sale in any jurisdiction or the initiation of any proceeding for
such purpose; and

 

(v)           of
the occurrence of any event or the existence of any state of facts that
requires the making of any changes in the Shelf Registration Statement or the
Prospectus included therein so that, as of such date, such Shelf Registration
Statement and Prospectus do not contain an untrue statement of a material fact
and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in
light of the circumstances under which they were made) not misleading (which
advice shall be accompanied by an instruction to such Holders to suspend the
use of the Prospectus until the requisite changes have been made).

 

(e)           The
Company shall use its commercially reasonable efforts to prevent the issuance,
and if issued to obtain the withdrawal at the earliest possible time, of any
order suspending the effectiveness of the Shelf Registration Statement or, if
any such order of suspension is made effective during or results in any
Suspension Period, promptly following the end of such Suspension Period.

 

(f)            The
Company shall furnish to each Electing Holder, without charge, at least one
copy of the Shelf Registration Statement and all post-effective amendments
thereto, including financial statements and schedules, and, if such Electing
Holder so requests in writing, all reports, other documents and exhibits that
are filed with or incorporated by reference in the Shelf Registration
Statement.

 

(g)           The
Company shall, during the Effectiveness Period, deliver to each Electing
Holder, without charge, as many copies of the Prospectus (including each
preliminary Prospectus) included in the Shelf Registration Statement and any
amendment or supplement thereto as such Electing Holder may reasonably request;
and the Company consents (except during the periods specified in Section 2(b) above
or during the continuance of any event or the existence of any state of facts
described in Section 3(d)(iii), (iv) or (v) above) to the use of
the Prospectus and any amendment or supplement thereto by each of the Electing
Holders in connection with the offering and sale of the Registrable Securities
covered by the Prospectus and any amendment or supplement thereto during the
Effectiveness Period.

 

7

 

(h)           Prior
to any offering of Registrable Securities pursuant to the Shelf Registration
Statement, the Company shall use its commercially reasonable efforts to (i) register
or qualify or cooperate with the Electing Holders and their respective counsel
in connection with the registration or qualification of such Registrable
Securities for offer and sale under the securities or “blue
sky” laws of such jurisdictions within the
United States as any Electing Holder may reasonably request, (ii) keep
such registrations or qualifications in effect and comply with such laws so as
to permit the continuance of offers and sales in such jurisdictions for so long
as may be necessary to enable any Electing Holder or underwriter, if any, to
complete its distribution of Registrable Securities pursuant to the Shelf
Registration Statement, and (iii) take any and all other actions necessary
or advisable to enable the disposition in such jurisdictions of such
Registrable Securities; provided, however, that in no event shall the Company be obligated to (A) qualify
as a foreign corporation or as a dealer in securities in any jurisdiction where
it would not otherwise be required to so qualify but for this Section 3(h) or
(B) file any general consent to service of process or become subject to
taxation in any jurisdiction where it is not as of the date hereof so subject.

 

(i)            Unless
any Registrable Securities shall be in book-entry only form, the Company shall
cooperate with the Electing Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold
pursuant to the Shelf Registration Statement, which certificates, if so
required by any securities exchange upon which any Registrable Securities are
listed, shall be penned, lithographed or engraved, or produced by any
combination of such methods, on steel engraved borders, and which certificates
shall be free of any restrictive legends and in such permitted denominations
and registered in such names as Electing Holders may request in connection with
the sale of Registrable Securities pursuant to the Shelf Registration
Statement.

 

(j)            Upon
the occurrence of any event or the existence of any state of facts contemplated
by Section 3(d)(v) above, the Company shall prepare a post-effective
amendment to any Shelf Registration Statement or an amendment or supplement to
the related Prospectus or file any other required document so that, as
thereafter delivered to purchasers of the Registrable Securities included
therein, the Prospectus will not include an untrue statement of a material fact
or omit to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided, however, that the Company shall not be required to
take such action in respect of the Shelf Registration Statement or any
amendment thereto or of the Prospectus or any amendment or supplement to the
Prospectus during any Suspension Period. 
If the Company notifies the Electing Holders of the occurrence of any
event or the existence of any state of facts contemplated by Section 2(b) or
Section 3(d)(v) above, the Electing Holder shall suspend the use of
the Prospectus until the requisite changes to the Prospectus have been made.

 

(k)           Not
later than the Effective Time of the Shelf Registration Statement, the Company
shall provide a CUSIP number for the Registrable Securities that are debt securities.

 

(l)            To
the extent that the Company is required to file a Shelf Registration Statement,
the Company shall use its commercially reasonable efforts to comply with all
applicable Rules and Regulations, and to make generally available to its
securityholders as soon as practicable, but in any event not later than
eighteen months after (i) the effective date (as defined in Rule

 

8

 

158(c) under the
Securities Act) of the Shelf Registration Statement, (ii) the effective
date of each post-effective amendment to the Shelf Registration Statement, and (iii) the
date of each filing by the Company with the Commission of an Annual Report on Form 10-K
that is incorporated by reference in the Shelf Registration Statement, an
earnings statement of the Company and its subsidiaries complying with Section 11(a) of
the Securities Act and the rules and regulations of the Commission
thereunder (including, at the option of the Company, Rule 158).

 

(m)          Prior
to any Effective Time of the Shelf Registration Statement, the Company shall
cause the Indenture to be qualified under the Trust Indenture Act; in
connection with such qualification, the Company shall cooperate with the
Trustee under the Indenture and the Holders (as defined in the Indenture) to
effect such changes to the Indenture as may be required for such Indenture to
be so qualified in accordance with the terms of the Trust Indenture Act; and
the Company shall execute, and shall use all reasonable efforts to cause the Trustee
to execute, all documents that may be required to effect such changes and all
other forms and documents required to be filed with the Commission to enable
such Indenture to be so qualified in a timely manner.  In the event that any such amendment or
modification referred to in this Section 3(m) involves the
appointment of a new trustee under the Indenture, the Company shall appoint a
new trustee thereunder pursuant to the applicable provisions of the Indenture.

 

(n)           The
Company shall enter into such customary agreements and take all other
appropriate action in order to expedite and facilitate the registration and
disposition of the Registrable Securities, and in connection therewith, if an
underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures substantially identical to those set
forth in Section 5 hereof with respect to all parties to be indemnified
pursuant to Section 5 hereof.

 

(o)           The
Company shall:

 

(i)(A)  make reasonably available
for inspection by the Electing Holders, any underwriter participating in any
disposition pursuant to the Shelf Registration Statement, and any attorney,
accountant or other agent retained by such Electing Holders or any such
underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries, and (B) cause
the Company’s officers, directors and employees to supply all information
reasonably requested by such Electing Holders or any such underwriter, attorney,
accountant or agent in connection with the Shelf Registration Statement, in
each case, as is customary for similar due diligence examinations; provided, however, that
all records, information and documents that are designated in writing by the
Company, in good faith, as confidential shall be kept confidential by such
Electing Holders and any such underwriter, attorney, accountant or agent,
unless such disclosure is made in connection with a court proceeding or
required by law, or such records, information or documents become available to
the public generally or through a third party without an accompanying
obligation of confidentiality; and provided further
that, if the foregoing inspection and information gathering would otherwise
disrupt the Company’s conduct of its business, such inspection and information
gathering shall, to the greatest extent possible, be coordinated on behalf of
the Electing

 

9

 

Holders
and the other parties entitled thereto by one counsel designated by and on
behalf of the Electing Holders and other parties.

 

(p)           The
Company will use its commercially reasonable efforts to cause the Common Stock
issuable upon conversion of the Securities to be listed on the Nasdaq Global
Select Market or other stock exchange or trading system on which the Common
Stock primarily trades on or prior to the Effective Time of the Shelf
Registration Statement hereunder.

 

(q)           The
Company shall use its commercially reasonable efforts to take all other steps necessary
to effect the registration, offering and sale of the Registrable Securities
covered by the Shelf Registration Statement contemplated hereby.

 

4.             Registration Expenses.  Except as otherwise provided in Section 3,
the Company shall bear all fees and expenses incurred in connection with the
performance of its obligations under Sections 2 and 3 hereof and shall bear or
reimburse the Electing Holders for the reasonable fees and disbursements of a
single counsel selected by a plurality of all Electing Holders who own an
aggregate of not less than 25% of the Registrable Securities covered by the
Shelf Registration Statement to act as counsel therefore in connection
therewith.  Each Electing Holder shall
pay all underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Electing Holder’s Registrable
Securities pursuant to the Shelf Registration Statement.

 

5.             Indemnification and Contribution.

 

(a)           Indemnification by the Company.
Upon the registration of the Registrable Securities pursuant to Section 2
hereof, the Company shall indemnify and hold harmless each Electing Holder and
each underwriter, selling agent or other securities professional, if any, which
facilitates the disposition of Registrable Securities, and each of their
respective officers and directors and each person who controls such Electing
Holder, underwriter, selling agent or other securities professional within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act (each such person being sometimes referred to as an “Indemnified Person”) against any
losses, claims, damages or liabilities, joint or several, to which such
Indemnified Person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in any Shelf Registration Statement
under which such Registrable Securities are to be registered under the
Securities Act, or any Prospectus contained therein or furnished by the Company
to any Indemnified Person, or any amendment or supplement thereto, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and the Company hereby agrees to reimburse such
Indemnified Person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however, that the Company shall not be liable to any such
Indemnified Person in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such Shelf
Registration Statement or Prospectus, or amendment or supplement, in reliance
upon and in conformity with written information furnished to the

 

10

 

Company by such
Indemnified Person expressly for use therein.

 

(b)           Indemnification by the Electing Holders and any
Agents and Underwriters.  Each Electing Holder agrees, as a consequence
of the inclusion of any of such Electing Holder’s Registrable Securities in
such Shelf Registration Statement, and each underwriter, selling agent or other
securities professional, if any, which facilitates the disposition of
Registrable Securities shall agree, as a consequence of facilitating such
disposition of Registrable Securities, severally and not jointly, to (i) indemnify
and hold harmless the Company, its directors, officers who sign any Shelf
Registration Statement and each person, if any, who controls the Company within
the meaning of either Section 15 of the Securities Act or Section 20
of the Exchange Act, against any losses, claims, damages or liabilities to
which the Company or such other persons may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
such Shelf Registration Statement or Prospectus, or any amendment or
supplement, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company by or on behalf of such Electing
Holder, underwriter, selling agent or other securities professional expressly
for use therein, and (ii) reimburse the Company and such other persons for
any legal or other expenses reasonably incurred by the Company in connection
with investigating or defending any such action or claim as such expenses are
incurred.

 

(c)           Notices of Claims, Etc.  Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement
of any action, such indemnified party shall, if a claim in respect thereof is
to be made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under the indemnification
provisions of or contemplated by subsection (a) or (b) above.  In case any such action shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and,
after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, such indemnifying party shall not be
liable to such indemnified party under this Section 5 for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation. No indemnifying party shall,
without the written consent of the indemnified party, effect the settlement or
compromise of, or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified party is
an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the
indemnified party from all liability arising out of such action or

 

11

 

claim and (ii) does
not include a statement as to, or an admission of, fault, culpability or a
failure to act, by or on behalf of any indemnified party.

 

(d)           Contribution.  If the indemnification provided for in this Section 5
is unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims,
damages or liabilities (or actions in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the indemnifying party and the indemnified
party in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities (or actions in respect thereof), as well
as any other relevant equitable considerations. 
The relative fault of such indemnifying party and indemnified party
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to state
a material fact relates to information supplied by such indemnifying party or
by such indemnified party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission.  The parties hereto agree that
it would not be just and equitable if contribution pursuant to this Section 5(d) were
determined by pro rata allocation (even if the Electing Holders or any
underwriters, selling agents or other securities professionals or all of them
were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to in this Section 5(d).  The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above shall
be deemed to include any legal or other fees or expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.  The obligations of the Electing Holders and
any underwriters, selling agents or other securities professionals in this Section 5(d) to
contribute shall be several in proportion to the percentage of principal amount
of Registrable Securities registered or underwritten, as the case may be, by
them and not joint.

 

(e)           Notwithstanding
any other provision of this Section 5, in no event will any (i) Electing
Holder be required to undertake liability to any person under this Section 5
for any amounts in excess of the dollar amount of the proceeds to be received
by such Holder from the sale of such Holder’s Registrable Securities (after
deducting any fees, discounts and commissions applicable thereto) pursuant to
any Shelf Registration Statement under which such Registrable Securities are to
be registered under the Securities Act and (ii) underwriter, selling agent
or other securities professional be required to undertake liability to any
person hereunder for any amounts in excess of the discount, commission or other
compensation payable to such underwriter, selling agent or other securities
professional with respect to the Registrable Securities underwritten by it and
distributed to the public.

 

(f)            The
obligations of the Company under this Section 5 shall be in addition to
any liability which the Company may otherwise have to any Indemnified Person
and the obligations of any Indemnified Person under this Section 5 shall
be in addition to any liability which such Indemnified Person may otherwise
have to the Company.  The remedies
provided in this

 

12

 

Section 5 are not
exclusive and shall not limit any rights or remedies which may otherwise be
available to an indemnified party at law or in equity.

 

6.             Additional Interest.

 

(a)           Subject
to the proviso contained in Section 2(a)(i), if (i) on or prior to
the 181st day following the Closing Date, a Shelf Registration
Statement is not declared effective by the Commission (each, a “Registration Default”), the Company
shall be required to pay additional interest (“Additional
Interest”), from and including the day following
such Registration Default until such Shelf Registration Statement is either so
filed or so filed and subsequently declared effective, as applicable, at a rate
per annum equal to an additional one-quarter of one percent (0.25%) of the
principal amount of Registrable Securities, to and including the 90th day
following such Registration Default and one-half of one percent (0.50%) thereof
from and after the 91st day following such Registration Default until the
earlier of (1) the time such Shelf Registration Statement is declared
effective or (2) the expiration of the Effectiveness Period.

 

(b)           In
the event that (i) the Shelf Registration Statement ceases to be effective
when it is required to be so effective, (ii) the Company suspends the use
of the Prospectus pursuant to Section 2(b) or 3(j) hereof, (iii) the
Holders are not authorized to use the Prospectus pursuant to Section 3(g) hereof,
(iv) the Holders are otherwise prevented or restricted by the Company from
effecting sales pursuant to the Shelf Registration Statement in violation of
this Agreement or (v) the Company shall fail to comply with its
obligations under Section 2(c) (any such event being referred to as a
“Effective Failure”)
for more than an aggregate of 45 days, whether or not consecutive, in any
six-month period, then the Company shall pay the Additional Interest at a rate
per annum equal to an additional one-quarter of one percent (0.25%) of the
principal amount of Registrable Securities, to and including the 90th day
following such Effective Failure and one-half of one percent (0.50%) thereof
from and after the 91st day following such Effective Failure until the earlier
of (1) the time the Holders of Registrable Securities are again able to
make sales under the Shelf Registration Statement or (2) the expiration of
the Effectiveness Period.

 

(c)           Any
amounts to be paid as the Additional Interest pursuant to paragraphs (a) or
(b) of this Section 6 shall be paid in cash semi-annually in arrears,
with the first semi-annual payment due on the first Interest Payment Date (as
defined in the Indenture), as applicable, following the date of such
Registration Default or Effective Failure, as applicable.  Such Additional Interest will accrue (1) in
respect of the Securities at the rates set forth in paragraphs (a) or (b) of
this Section 6, as applicable, on the principal amount of the Securities
and (2) in respect of the Common Stock issued upon conversion of the
Securities, at the rates set forth in paragraphs (a) or (b) of this Section 6,
as applicable, applied to the Conversion Price (as defined in the Indenture) at
that time.

 

(d)           Except
as provided in Section 7(b) hereof, the Additional Interest as set
forth in this Section 6 shall be the exclusive monetary remedy available
to the Holders of Registrable Securities for such Registration Default or
Effective Failure. In no event shall the Company be required to pay Additional
Interest in excess of the applicable maximum amount of one-half of one percent
(0.50%) set forth above, regardless of whether one or multiple Registration

 

13

 

Defaults
or Effective Failures exist.

 

7.             Miscellaneous.

 

(a)           Other Registration Rights.  The Company may grant registration rights
that would permit any person that is a third party the right to piggy-back on
any Shelf Registration  Statement.

 

(b)           Specific Performance.  The parties hereto acknowledge that there
would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Purchasers and the Holders from time to time
may be irreparably harmed by any such failure, and accordingly agree that the
Purchasers and such Holders, in addition to any other remedy to which they may
be entitled at law or in equity and without limiting the remedies available to
the Electing Holders under Section 6 hereof, shall be entitled to compel
specific performance of the obligations of the Company under this Registration
Rights Agreement in accordance with the terms and conditions of this
Registration Rights Agreement, in any court of the United States or any State
thereof having jurisdiction.

 

(c)           Amendments and Waivers.  This Agreement, including this Section 7(c),
may be amended, and waivers or consents to departures from the provisions
hereof may be given, only by a written instrument duly executed by the Company
and the holders of a majority in aggregate principal amount of Registrable
Securities then outstanding.  Each Holder
of Registrable Securities outstanding at the time of any such amendment, waiver
or consent or thereafter shall be bound by any amendment, waiver or consent
effected pursuant to this Section 7(c), whether or not any notice, writing
or marking indicating such amendment, waiver or consent appears on the
Registrable Securities or is delivered to such Holder.

 

(d)           Notices.  All notices and other communications provided
for or permitted hereunder shall be given as provided in the Indenture; provided, that the Company may deliver notices and other
communications provided for or permitted hereunder to any Electing Holder to
its address as set forth in its Notice and Questionnaire.

 

(e)           Parties in Interest.  The parties to this Agreement intend that all
Holders of Registrable Securities shall be entitled to receive the benefits of
this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration
Statement.  All the terms and provisions
of this Agreement shall be binding upon, shall inure to the benefit of and
shall be enforceable by the respective successors and assigns of the parties
hereto and any Holder from time to time of the Registrable Securities to the
aforesaid extent.  In the event that any
transferee of any Holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law
or otherwise, such transferee shall, without any further writing or action of
any kind, be entitled to receive the benefits of and, if an Electing Holder, be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement to the aforesaid extent.

 

(f)            Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be

 

14

 

deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

(g)           Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(h)           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

 

(i)            Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all of the rights and privileges of
the parties hereto shall be enforceable to the fullest extent permitted by law.

 

(j)            Survival.  The respective indemnities, agreements,
representations, warranties and other provisions set forth in this Agreement or
made pursuant hereto shall remain in full force and effect, regardless of any
investigation (or any statement as to the results thereof) made by or on behalf
of any Electing Holder, any director, officer or partner of such Holder, any
agent or underwriter, any director, officer or partner of such agent or
underwriter, or any controlling person of any of the foregoing, and shall
survive the transfer and registration of the Registrable Securities of such
Holder.

 

15

 

 

Please
confirm that the foregoing correctly sets forth the agreement between the
Company and you.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  Virgin Media
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James F.
  Mooney

  
	
   

  	
   

  	
  Name: James F.
  Mooney

  
	
   

  	
   

  	
  Title: Chairman
  of the Board

  

 

 

Accepted as of the
date hereof 

on behalf of each
of the Purchasers:

 

	
  Goldman,
  Sachs & Co.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Goldman,
  Sachs & Co.

  	
   

  
	
   

  	
  (Goldman,
  Sachs & Co.)

  	
   

  
	
   

  	
   

  
	
  Deutsche Bank
  Securities Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Donald Sung

  	
   

  
	
   

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ W. Brooks
  Harris

  	
   

  
	
   

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gautam
  Sareen

  	
   

  
	
   

  	
  Vice President

  	
   

  
				

 

 

[Signature Page to
the Registration Rights Agreement]

 

 

Appendix A

 

Virgin Media Inc.

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE]

 

The
Depository Trust Company (“DTC”) has identified you as a DTC Participant
through which beneficial interests in the Virgin Media Inc. (the “Company”)
6.50% Convertible Senior Notes 2016 (the “Securities”) are held.

 

The
Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof.  In order to have their Securities included in
the registration statement, beneficial owners must complete and return the
enclosed Notice of Registration Statement and Selling Securityholder
Questionnaire.

 

It
is important that beneficial owners of the Securities receive a copy of the
enclosed materials as soon as possible
as their rights to have the Securities included in the registration statement
depend upon their returning the Notice and Questionnaire by [Deadline for response]. 
Please forward a copy of the enclosed documents to each beneficial owner
that holds interests in the Securities through you.  If you require more copies of the enclosed
materials or have any questions pertaining to this matter, please contact

 

Virgin Media Inc. 

909 Third Avenue, Suite 2863

New York, New York  10012

Attention: General Counsel

 

1

 

Virgin Media Inc.

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

[Date]

 

Virgin
Media Inc. (the “Company”) has filed with the
Securities and Exchange Commission (the “Commission”) a registration statement
on Form S-3 (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of
the Securities Act of 1933, as amended (the “Securities
Act”), of the Company’s 6.50% Convertible Senior Notes due 2016 (the
“Securities”) and the shares of Common
Stock, par value $0.01
per share (the “Common Stock”),
issuable upon conversion, in accordance with the Registration Rights Agreement,
dated as of April 16, 2008 (the “Registration Rights
Agreement”), between the Company and the purchasers named
therein.  A copy of the Registration
Rights Agreement is attached hereto.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

 

In
order to have Registrable Securities included in the Shelf Registration
Statement (or a supplement or amendment thereto), this Notice of Registration
Statement and Selling Securityholder Questionnaire (“Notice and
Questionnaire”) must be completed, executed and delivered to the Company
at the address set forth herein for receipt ON OR BEFORE [DEADLINE FOR  RESPONSE].  Beneficial owners of Registrable Securities
who do not complete, execute and return this Notice and Questionnaire by such
date (i) will not be named as selling securityholders in the Shelf
Registration Statement and (ii) may not use the Prospectus forming a part
thereof for resales of Registrable Securities.

 

Certain
legal consequences arise from being named as a selling securityholder in the
Shelf Registration Statement and related Prospectus.  Accordingly, holders and beneficial owners of
Registrable Securities are advised to consult their own securities law counsel
regarding the consequences of being named or not being named as a selling
securityholder in the Shelf Registration Statement and related Prospectus.

 

2

 

The
term “Registrable Securities” is defined
in the Registration Rights Agreement to mean all or any portion of the
Securities issued from time to time under the Indenture in registered form and
the shares of Common Stock issuable upon conversion of such Securities; provided, however, that a security ceases to be a
Registrable Security for such period as it is no longer a Restricted Security
pursuant to clause (i) or (ii) of the definition of Restricted
Security (or pursuant to clause (iii) of such definition after the day
that is one year following the later of the closing date for the original
issuance and any closing date for the purchase by the Initial Purchasers of
additional Securities.

 

The
term “Restricted Security” is defined in the Registration Rights
Agreement to mean any Security or share of Common Stock issuable upon
conversion of such Securities except any such Security or share of Common Stock
that (i) ceases to be outstanding, (ii) has been effectively
registered under the Securities Act and sold in a manner contemplated by the
Shelf Registration Statement or (iii) has been transferred in compliance
with Rule 144 under the Securities Act (or any successor provision
thereto) or is transferable by a person who is not an affiliate of the Company
pursuant to Rule 144 (or any successor provision thereto) without any
volume or manner of sale restrictions thereunder.

 

ELECTION

 

The
undersigned holder (the “Selling Securityholder”) of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3).  The undersigned, by signing and returning
this Notice and Questionnaire, agrees to be bound with respect to such
Registrable Securities by the terms and conditions of this Notice and
Questionnaire and the Registration Rights Agreement, including, without
limitation, Section 5 of the Registration Rights Agreement, as if the
undersigned Selling Securityholder were an original party thereto.

 

Upon
any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the
Company and the Trustee the Notice of Transfer (completed and signed) set forth
in Exhibit 1 to this Notice and Questionnaire.

 

The
Selling Securityholder hereby provides the following information to the Company
and represents and warrants that such information is true, accurate and complete:

 

3

 

QUESTIONNAIRE

 

(1)   (a)   Full
Legal Name of Selling Securityholder:

 

 

(b)   Full
Legal Name of Registered Holder (if not the same as in (a) above) of
Registrable Securities Listed in Item (3) below:                                                                                                                                                                                                   

 

(c)   Full
Legal Name of DTC Participant (if applicable and if not the same as (b) above)
Through Which Registrable Securities Listed in Item (3) below are Held:

 

 

(2)           Address
for Notices to Selling Securityholder:

                                                        

                                                        

                                                        

Telephone:                                                                    

Fax:                                                                 

Contact Person:                                                        

 

(3)           Beneficial
Ownership of Securities:

 

Except as set forth below in this Item (3),
the undersigned Selling Securityholder does not beneficially own any Securities
or shares of Common Stock issued upon conversion, repurchase or redemption of
any Securities.

 

(a)   Principal
amount of Registrable Securities (as defined in the Registration Rights
Agreement) beneficially owned:                  

CUSIP No(s). of such Registrable Securities:                                   

 

Number
of shares of Common Stock (if any) issued upon conversion, repurchase or
redemption of Registrable Securities:
                                    

 

(b)   Principal
amount of Securities other than Registrable Securities beneficially owned:                                                                 

 

CUSIP No(s). of such other Securities:                                                                                                                                   

 

Number of shares of Common Stock (if any)
issued upon conversion of such other Securities:                                             

 

(c)   Principal
amount of Registrable Securities which the undersigned wishes to be included in
the Shelf Registration Statement:      

CUSIP No(s). of such Registrable Securities
to be included in the Shelf Registration Statement:                                     
\

 

Number of shares of Common Stock (if any)
issued upon conversion of Registrable 

 

4

 

Securities
which are to be included in the Shelf Registration Statement:

 

(4)           Beneficial
Ownership of Other Securities of the Company:

 

Except as set forth below in this Item (4),
the undersigned Selling Securityholder is not the beneficial or registered
owner of any shares of Common Stock or any other securities of the Company,
other than the Securities and shares of Common Stock listed above in
Item (3).

 

State
any exceptions here:

 

 

(5)           Relationships
with the Company:

 

Except as set forth below, neither the Selling
Securityholder nor any of its affiliates, officers, directors or principal
equity holders (5% or more) has held any position or office or has had any
other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

State
any exceptions here:

 

 

(6)           Plan
of Distribution:

 

Except as set forth below, the undersigned Selling
Securityholder intends to distribute the Registrable Securities listed above in
Item (3) only as follows (if at all): 
Such Registrable Securities may be sold from time to time directly by
the undersigned Selling Securityholder or, alternatively, through underwriters,
broker-dealers or agents.  Such
Registrable Securities may be sold in one or more transactions at fixed prices,
at prevailing market prices at the time of sale, at varying prices determined
at the time of sale, or at negotiated prices. 
Such sales may be effected in transactions (which may involve crosses or
block transactions) (i) on any national securities exchange or quotation
service on which the Registrable Securities may be listed or quoted at the time
of sale, (ii) in the over-the-counter market, (iii) in transactions
otherwise than on such exchanges or services or in the over-the-counter market,
or (iv) through the writing of options. 
In connection with sales of the Registrable Securities or otherwise, the
Selling Securityholder may enter into hedging transactions with broker-dealers,
which may in turn engage in short sales of the Registrable Securities in the
course of hedging the positions they assume. 
The Selling Securityholder may also sell Registrable Securities short
and deliver Registrable Securities to close out such short positions, or loan
or pledge Registrable Securities to broker-dealers that in turn may sell such
securities.

 

State
any exceptions here:

 

 

Note:  In no event may such method(s) of
distribution take the form of an underwritten offering of the Registrable
Securities without the prior agreement of the Company.

 

By
signing below, the Selling Securityholder acknowledges that it understands 

 

5

 

its obligation to
comply, and agrees that it will comply, with the prospectus delivery and other
provisions of the Securities Act and the Exchange Act and the rules and
regulations thereunder, particularly Regulation M.

 

In
the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on
which such information is provided to the Company, the Selling Securityholder
agrees to notify the transferee(s) at the time of the transfer of its
rights and obligations under this Notice and Questionnaire and the Registration
Rights Agreement.

 

By
signing below, the Selling Securityholder consents to the disclosure of the information
contained herein in its answers to Items (1) through (6) above
and the inclusion of such information in the Shelf Registration Statement and
related Prospectus.  The Selling
Securityholder understands that such information will be relied upon by the
Company in connection with the preparation of the Shelf Registration Statement
and related Prospectus.

 

In
accordance with the Selling Securityholder’s obligation under Section 3(a) of
the Registration Rights Agreement to provide such information as may be
required by law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Company of any inaccuracies or
changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect.  All notices hereunder and
pursuant to the Registration Rights Agreement shall be made in writing, by
hand-delivery, first-class mail, or air courier guaranteeing overnight delivery
as follows:

 

(i)    To the Company:

 

Virgin Media Inc. 

909 Third Avenue, Suite 2863

New York, New York  10012

Attention: General Counsel

 

(ii)   With a copy to:

                                     

                                     

                                     

                                     

                                     

 

Once
this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives, and assigns of the Company and the Selling
Securityholder (with respect to the Registrable Securities beneficially owned
by such Selling Securityholder and listed in Item (3) above).  This 

 

6

 

Agreement shall be
governed in all respects by the laws of the State of New York.

 

7

 

IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by
its duly authorized agent.

 

	
  Dated:

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Selling Securityholder

  
	
   

  	
  (Print/type full legal
  name of beneficial owner of Registrable Securities)

  

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

PLEASE RETURN THE
COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY AT:

 

Virgin Media Inc. 

909 Third Avenue, Suite 2863

New York, New York  10012

Attention: General Counsel

 

8

 

Exhibit 1

to Appendix A

 

NOTICE OF TRANSFER
PURSUANT TO REGISTRATION STATEMENT

 

Virgin Media Inc. 

909 Third Avenue, Suite 2863

New York, New York  10012

Attention: General Counsel

 

The Bank of New York

101 Barclay Street

New York, New York 10286

 

Attention:  Corporate Trust Services

 

Re:          Virgin
Media Inc. (the “Company”)

6.50% Convertible Senior Notes Due 2016
(the “Notes”)

 

Dear Sirs:

 

Please
be advised that
                                          
has transferred
$                      
aggregate principal amount of the above-referenced Notes or shares of the Company’s
Common Stock, issued upon conversion of Notes, pursuant to an effective
Registration Statement on Form S-3 (File No. 333-        )
filed by the Company.

 

We
hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied with respect to the
transfer described above and that the above-named beneficial owner of the Notes
or Common Stock is named as a selling securityholder in the Prospectus dated [date], or in amendments or supplements thereto, and that
the aggregate principal amount of the Notes or number of shares of Common Stock
transferred are [a portion of] the Notes or shares
of Common Stock listed in such Prospectus as amended or supplemented opposite
such owner’s name.

 

Dated:

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized Signature)

  

 

9Exhibit 4.1

Exhibit 4.1

AVENUE GROUP, INC.

CERTIFICATE OF DESIGNATION, POWERS,

PREFERENCES AND RIGHTS

OF SERIES A PREFERRED STOCK

Pursuant to Section 151 of the Delaware General Corporation Law

The undersigned, the Chief Executive Officer of Avenue Group, Inc., a Delaware corporation (the “Corporation”), DOES HEREBY CERTIFY that the following resolutions were duly adopted by the Board of Directors of the Corporation by unanimous written consent on March 23, 2008:

WHEREAS, the Board of Directors is authorized within the limitations and restrictions stated in the Certificate of Incorporation of the Corporation, as amended, to provide by resolution or resolutions for the issuance of 25,000,000 shares of Preferred Stock, par value $.001 per share, of the Corporation, in such series and with such designations, preferences and relative, participating, optional or other special rights and qualifications, limitations or restrictions as the Corporation's Board of Directors shall fix by resolution or resolutions providing for the issuance thereof duly adopted by the Board of Directors; and

WHEREAS, it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to authorize and fix the terms of a series of Preferred Stock and the number of shares constituting such series; and

NOW, THEREFORE, BE IT RESOLVED:

      

1. 

Designation and Authorized Shares. The Corporation shall be authorized to issue twenty five million (25,000,000) shares of Series A Preferred Stock, par value $.001 per share (the “Series A Preferred Stock”).

      

2. 

Stated Value. Each share of Series A Preferred Stock shall have a stated value of one quarter of a cent ($.0025) (the “Stated Value”).

3. 

Liquidation.

           3.1 

Upon the liquidation, dissolution or winding up of the business of the Corporation, whether voluntary or involuntary, each holder of Series A Preferred Stock shall be entitled to receive, for each share thereof, out of assets of the Corporation legally available therefor, a preferential amount in cash equal to (and not more than) the Stated Value. All preferential amounts to be paid to the holders of Series A Preferred Stock in connection with such liquidation, dissolution or winding up shall be paid before the payment or setting apart for payment of any amount for, or the distribution of any assets of the Corporation to the holders of (i) any other class or series of capital stock whose terms expressly provide that the holders of Series A Preferred Stock should receive preferential payment with respect to such distribution (to the extent of such preference) and (ii) the Corporation's Common Stock. If upon any such distribution the assets of the Corporation shall be insufficient to pay the holders of the 

outstanding shares of Series A Preferred Stock (or the holders of any class or series of capital stock ranking on a parity with the Series A Preferred Stock as to distributions in the event of a liquidation, dissolution or winding up of the Corporation) the full amounts to which they shall be entitled, such holders shall share ratably in any distribution of assets in accordance with the sums which would be payable on such distribution if all sums payable thereon were paid in full.

            

3.2 

Any distribution in connection with the liquidation, dissolution or winding up of the Corporation, or any bankruptcy or insolvency proceeding, shall be made in cash to the extent possible. Whenever any such distribution shall be paid in property other than cash, the value of such distribution shall be the fair market value of such property as determined in good faith by the Board of Directors of the Corporation.

      

4. 

Voting.

Except as otherwise expressly required by law, each holder of Series A Preferred Stock shall be entitled to vote on all matters submitted to shareholders of the Corporation and shall be entitled to ten (10) votes for each share of Series A Preferred Stock owned at the record date for the determination of shareholders entitled to vote on such matter or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited. Except as otherwise required by law, the holders of shares of Series A Preferred Stock shall vote together with the holders of Common Stock on all matters and shall not vote as a separate class.

      

5. 

Conversion.

5.1

Conversion Right.

(a) Beginning from the date of issuance of the Series A Preferred Stock each holder of Series A Preferred Stock may, from time to time, convert any or all of such holder's shares of Series A Preferred Stock into fully paid and nonassessable shares of Common Stock in an amount equal to two (2) shares of Common Stock for each one (1) share of Series A Preferred Stock surrendered. Notwithstanding the foregoing, a holder may not convert any share of Series A Preferred Stock if the market price of the Common Stock is below $.02 per share.

(b) If there is a sale, conveyance or disposition of all or substantially all of the assets of the Corporation, an effectuation by the Corporation of a transaction or series of related transactions in which more than 30% of the voting power of the Corporation is disposed of, or a consolidation, merger or other business combination of the Corporation with or into any other corporation, limited liability company, partnership, association, trust or other entity or organization where the Corporation is not the survivor, then immediately prior to the occurrence of any such event each holder of Series A Preferred Stock may convert any or all of such holder's shares of Series A Preferred Stock into fully paid and nonassessable shares of Common Stock in accordance with this Section 5.1; provided however, that if at the time of a conversion under this Section 5.1 the market price of the Common Stock is below $.02 per share, then each share of Series A Preferred Stock shall convert into one (1) share of Common Stock.

5.2 

Conversion Procedure.

In order to exercise the conversion privilege under Section 5.1, the holder of any shares of Series A Preferred Stock to be converted shall give written notice to the Corporation at its principal office that such holder elects to convert such 

shares of Series A Preferred Stock or a specified portion thereof into shares of Common Stock as set forth in such notice. At such time as the certificate or certificates representing the Series A Preferred Stock which has been converted are surrendered to the Corporation, the Corporation shall issue and deliver a certificate or certificates representing the number of shares of Common Stock determined pursuant to Section 5.1. In case of conversion under Section 5.1 of only a part of the shares of Series A Preferred Stock represented by a certificate surrendered to the Corporation, the Corporation shall issue and deliver a new certificate for the number of shares of Series A Preferred Stock which have not been converted. Beginning from the date of the holder’s written notice regarding his or her election to convert Series A Preferred Stock, pursuant to this Section 5.2, and until such time as the certificate or certificates representing Series A Preferred Stock which has been converted are surrendered to the Corporation and a certificate or certificates representing the Common Stock into which such Series A Preferred Stock has been converted have been issued and delivered, the certificate or certificates representing the Series A Preferred Stock which have been converted shall represent the shares of Common Stock into which such shares of Series A Preferred Stock have been converted. The Corporation shall pay all documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock issuable upon conversion of the Series A Preferred Stock.

6. 

Other Provisions.

6.1

Reservation of Common Stock. The Corporation shall at all times reserve from its authorized Common Stock a sufficient number of shares to provide for conversion of all Series A Preferred Stock from time to time outstanding.

6.2 

Record Holders. The Corporation and its transfer agent, if any, for the Series A Preferred Stock may deem and treat the record holder of any shares of Series A Preferred Stock as reflected on the books and records of the Corporation as the sole true and lawful owner thereof for all purposes, and neither the Corporation nor any such transfer agent shall be affected by any notice to the contrary.

      

7. 

Restriction and Limitations. Except as expressly provided herein or as required by law so long as any shares of Series A Preferred Stock remain outstanding, the Corporation shall not, without the vote or written consent of the holders of at least a majority of the then outstanding shares of the Series A Preferred Stock, take any action which would adversely and materially affect any of the preferences, limitations or relative rights of the Series A Preferred Stock, including without limitation:

            

(a) 

Reduce the amount payable to the holders of Series A Preferred Stock upon the voluntary or involuntary liquidation, dissolution or winding up of the Corporation, or change the relative seniority of the liquidation preferences of the holders of Series A Preferred Stock to the rights upon liquidation of the holders of any other capital stock in the Corporation;

           

(b) 

Cancel or modify adversely and materially the voting rights as provided in Section 4 herein; or     

         (c) 

Take any action which would result in the change of control of fifty percent (50%) or more of the ownership of the Corporation.

8.

Other Preferences. The shares of the Series A Preferred Stock shall have no other preferences, rights, restrictions, or qualifications, except as otherwise provided by law or the Certificate of Incorporation of the Corporation, as amended.

9.

Headings of Subdivisions.

The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

     

      IN WITNESS WHEREOF, the undersigned has executed this Certificate of Designation, Powers, Preferences and Rights of Series A Preferred Stock this 23rd day of March 2008.

                                                    AVENUE GROUP, INC.

                                              By: 

/s/ Levi Mochkin

                                                    

Name:

Levi Mochkin

Title:

Chief Executive Officer

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