Document:

Exhibit 4.15

 

EXECUTION
COPY

 

Dated
15 April 2010

 

 

VIRGIN
MEDIA FINANCE PLC

 

 

and

 

 

DEUTSCHE
BANK AG, LONDON BRANCH

as Security Trustee

 

 

ASSIGNMENT
OF LOANS

 

 

TABLE
OF CONTENTS

 

	
  1.

  	
  INTERPRETATION

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.

  	
  COVENANT TO PAY

  	
  9

  
	
   

  	
   

  	
   

  
	
  3.

  	
  ASSIGNMENT

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.

  	
  UNDERTAKINGS

  	
  13

  
	
   

  	
   

  	
   

  
	
  5.

  	
  FURTHER
  ASSURANCE

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CERTAIN
  POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

  	
  14

  
	
   

  	
   

  	
   

  
	
  7.

  	
  APPOINTMENT
  AND POWERS OF A RECEIVER

  	
  14

  
	
   

  	
   

  	
   

  
	
  8.

  	
  INDEMNITIES;
  COSTS AND EXPENSES

  	
  16

  
	
   

  	
   

  	
   

  
	
  9.

  	
  ENFORCEMENT

  	
  17

  
	
   

  	
   

  	
   

  
	
  10.

  	
  POWER
  OF ATTORNEY

  	
  17

  
	
   

  	
   

  	
   

  
	
  11.

  	
  CONTINUING
  SECURITY AND OTHER MATTERS

  	
  18

  
	
   

  	
   

  	
   

  
	
  12.

  	
  CURRENCIES

  	
  20

  
	
   

  	
   

  	
   

  
	
  13.

  	
  THE
  SECURITY TRUST AGREEMENT

  	
  21

  
	
   

  	
   

  	
   

  
	
  14.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  21

  
	
   

  	
   

  	
   

  
	
  15.

  	
  MISCELLANEOUS

  	
  23

  
	
   

  	
   

  	
   

  
	
  16.

  	
  NOTICES
  AND OTHER MATTERS

  	
  25

  
	
   

  	
   

  	
   

  
	
  17.

  	
  GOVERNING
  LAW

  	
  25

  
	
   

  	
   

  	
   

  
	
  18.

  	
  JURISDICTION

  	
  25

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1
  FORM OF NOTICE OF ASSIGNMENT

  	
  27

  
	
   

  	
   

  
	
  SCHEDULE 2
  FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

  	
  29

  

 

2

 

THIS ASSIGNMENT dated 15 April 2010
and made BETWEEN:

 

(1)                                 VIRGIN MEDIA FINANCE PLC a company incorporated in
England and Wales with registered number 5061787 and having its registered
office at 160 Great Portland Street, London W1W 5QA (the “Company”);
and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH
of Winchester House, 1 Great Winchester Street, London EC2N 1DB, as security
trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

(A)                              The Senior Lenders have agreed to make
available to the Borrowers (as defined in the Senior Facilities Agreement (as
defined below)) certain credit facilities pursuant to the terms and subject to
the conditions of the Senior Facilities Agreement and the Group Intercreditor
Agreement.

 

(B)                               Virgin Media
Secured Finance PLC has issued and sold the Senior Secured Notes under the
Senior Secured Notes Indenture.

 

(C)                               By
an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006,
10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009
and 8 January 2010 (the “Group
Intercreditor Deed”) the Security Trustee, the Facility Agent, the
Original Senior Borrowers. the Original Senior Guarantors, the Senior Lenders,
the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors
(as each of those terms are defined therein) and certain other members of the
Group have agreed to regulate their relationship as creditors on the terms set
out therein.

 

(D)                              This Assignment is given by
the Company in favour of the Security Trustee as a condition precedent to the
making available of the facilities under the Senior Facilities Agreement.

 

(E)                                The board of directors of
the Company is satisfied that the Company is entering into this Assignment for
the purposes of carrying on its business and that its doing so benefits the
Company.

 

(F)                                The Security Trustee holds
the benefit of this Assignment on trust for itself and the other Beneficiaries
on the terms and subject to the conditions of the Security Trust Agreement and
the Group Intercreditor Deed.

 

NOW THIS DEED  WITNESSES
as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

In this Assignment
(including its recitals), unless the context otherwise requires:

 

“2014 High Yield Notes” means the sterling denominated 9.75%
senior notes due 2014, the U.S. dollar denominated 8.75% senior notes due 2014
and the euro denominated 8.75% senior notes due 2014, in each case, issued by
the Company;

 

3

 

“2014 Redemption Date” means the date upon which all amounts
outstanding in respect of or in connection with the 2014 High Yield Notes have
been repaid in full;

 

“Acknowledgement of Assignment” means an acknowledgement of
assignment in the form set out in Schedule 3 or in such other form as may be
approved by the Security Trustee.

 

“Assigned Rights” means all of the Company’s rights under and
in respect of the Intercompany Indebtedness;

 

“Beneficiaries” means the First Beneficiary and the Second
Beneficiaries;

 

“Collateral Rights” means all rights, powers and remedies of
the Security Trustee provided by this Assignment or by law;

 

“Default Rate” means
the rate specified in Clause 28.2 (Default Rate)
of the Senior Facilities Agreement or, upon its repayment in full and
cancellation of all undrawn commitments thereunder such equivalent provision in
the Relevant Facilities Agreement;

 

“Designated Secured Obligations” means Financial Indebtedness
in the form of notes or other such similar instruments of any member of the
Group that is designated as “Designated Secured Obligations” by written notice
from Virgin Media Investment Holdings Limited to the Security Trustee which
notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16
of Regulation S-X under the Securities Act (“Rule 3-16”)
is applicable or will become applicable upon registration of such instrument or
an instrument exchangeable for such instrument pursuant to a contractual
requirement;

 

“disposal” includes any sale, assignment or transfer, the
grant of an option or similar right, the grant of any right or privilege, the
creation of a trust or other equitable interest in favour of a third party and “dispose” and “disposition”
shall be construed accordingly;

 

“Enforcement Date” means the date on which, following the
occurrence of an Event of Default that is continuing, either the Facility Agent
or the Security Trustee notifies the Company of the occurrence of that Event of
Default, or takes, under anyone or more of the Senior Finance Documents, any of
the steps it is entitled to take by reason of the occurrence of such Event of
Default;

 

“Event of Default”
means each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any
Hedging Agreement;

 

“Excluded Charged Assets” has the meaning given to such term
in Clause 3.8(b) (Rule 3-16 Limitation)
of this Assignment;

 

4

 

“Incapacity” means, in relation to any person, the
insolvency, bankruptcy, liquidation, dissolution, winding-up, administration,
receivership, amalgamation, reconstruction or other incapacity of that person
whatsoever;

 

“Indemnified
Party”
has the meaning set out in Clause 8.3 (Indemnity from Assigned
Rights);

 

“Intercompany Debtor” means any member of the Group which is
a debtor in respect of any Intercompany Indebtedness.

 

“Intercompany Indebtedness” means all indebtedness from time
to time outstanding owed by any member of the Group to the Company;

 

“Notice of Assignment” means a notice of assignment in the
form set out in Schedule 1 or in such other form as may be approved by the
Security Trustee.

 

“Receiver” means anyone or more receivers and/or managers
(whether appointed pursuant to this Assignment or pursuant to any statute, by a
court or otherwise) of all or any of the Assigned Rights and shall, where permitted by law, include an administrative receiver;

 

“Relevant Facilities
Agreement” means the Senior Facilities Agreement, or, upon its
repayment in full and cancellation of all undrawn commitments thereunder, the
Designated Refinancing Facilities Agreement, provided that if upon the
repayment in full and cancellation of all undrawn commitments under the Senior
Facilities Agreement there is no Designated Refinancing Facilities Agreement,
until such time that a Refinancing Facilities Agreement has been designated as
a Designated Refinancing Facilities Agreement, the “Relevant Facilities
Agreement” shall be the Senior Facilities Agreement immediately prior to such
termination, and provided further that upon the repayment in full and
cancellation of all undrawn commitments under the Designated Refinancing
Facilities, until such time that a Refinancing Facilities Agreement has been
designated as a Designated Refinancing Facilities Agreement, the “Relevant
Facilities Agreement” shall be the Designated Refinancing Facilities Agreement
immediately prior to such termination;

 

“Rule 3-16” has the meaning given to
such term in “Designated Secured Obligations”.

 

“SEC” means the United States Securities and Exchange
Commission;

 

“Secured Obligations”
means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities,
provided that:

 

(a)                                  any liabilities that have been designated as “New Senior Liabilities”
under the Group Intercreditor Deed or are incurred after 31 December 2009
under any Refinancing Facilities Agreement entered into after such date,

 

(i)                                    in breach of the provisions of the Senior Facilities Agreement, or upon
its repayment in full and cancellation of all undrawn commitments thereunder
(unless there is no Designated Refinancing Facilities Agreement), the
Designated Refinancing Facilities Agreement, or any 

 

5

 

Refinancing
Facilities Agreement on the date of such designation (excluding any applicable
cure period), or

 

(ii)                                that the Security Trustee, acting reasonably, has not agreed to act as
security trustee for; and

 

(b)                                 prior to the 2014 Redemption Date, any liabilities incurred under the
Senior Secured Notes, any Additional Senior Secured Notes or any Senior Secured
Notes Refinancing,

 

shall not, in each case constitute “Secured
Obligations” for the purpose of this Assignment;

 

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

 

“Security Provider” means any person who has granted or may
at any time hereafter grant any security interest as security for the Secured
Obligations;

 

“Security Trust Agreement”
means the security trust agreement dated 3 March 2006 and amended and
restated on 19 January 2010 between, Deutsche Bank AG, London Branch as
Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited
and the companies named therein as Original Obligors;

 

“Senior Facilities
Agreement”  means the senior facilities agreement dated 16 March 2010
(as amended, restated, supplemented or novated from time to time) and made
between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance
PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited,
Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance
Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG,
London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas
London Branch, Deutsche Bank AG, London Branch, Crèdit Agricole Corporate and
Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P.
Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The
Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead
Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG,
London Branch as Security Trustee and the financial and other institutions
named in it as Lenders;

 

“Senior Secured Notes”
has the meaning given to the term “Notes” in the Senior Secured Notes
Indenture;

 

“Senior Secured Notes
Documents” means the Senior Secured Notes Indenture including the
guarantees set out therein, and the Senior Secured Notes; and

 

“Senior Secured Notes
lndenture”  means the indenture dated 19 January 2010
governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the
£875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc.,
Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin
Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of
New York Mellon, as trustee, registrar and paying agent and The Bank of New
York 

 

6

 

Mellon (Luxembourg),
S.A., as Luxembourg paying agent, as amended, restated, supplemented or
otherwise modified from to time.

 

1.2                               Successors
and Assigns

 

The expressions “Facility Agent”, “Senior
Lenders”,  “Beneficiaries”,
“Company”, “Senior
Finance Party”, “Security Provider”
and “Security Trustee” include, where the
context admits, their respective successors, permitted assigns and transferees
and, in the case of the Lenders, their Transferees and, in the case of the
Security Trustee, such other person as may from time to time be appointed as
Security Trustee for the Beneficiaries pursuant to the provisions of the
Security Trust Agreement and, in the case of the Facility Agent, such other
person as may be appointed as Facility Agent pursuant to the provisions of the
Senior Facilities Agreement.

 

1.3                               Agreement
Definitions

 

Unless the context otherwise requires or unless
otherwise defined in this Assignment, words and expressions defined in the
Group Intercreditor Deed and (unless otherwise defined in the Group lntercreditor Deed) the
Relevant Facilities Agreement shall have the same meaning when used in this
Deed (including its recitals).

 

1.4                               Headings

 

Clause headings and
the contents page are inserted for convenience of reference only and shall
be ignored in the interpretation of this Assignment.

 

1.5                               Construction
of Certain Terms

 

In this Assignment,
unless the context otherwise requires:

 

(a)                                  references to
clauses and the schedules are to be construed as references to the
clauses of, and the schedules to, this Assignment and references to this
Assignment include its schedules;

 

(b)                                 references to (or to any
specified provision of) this Assignment or any other agreement or document
shall be construed as references to this Assignment, that provision, that
agreement or that document as in force for the time being and as from time to
time amended, supplemented, varied, extended, restated, replaced or novated in
accordance with the terms thereof, or, as the case may be, with the agreement
of the relevant parties and (where such consent is, by the terms of any
Security Document or the relevant document, required to be obtained as a
condition to such amendment being permitted) the prior written consent of an
Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule,
directive, requirement, request or guideline (whether or not having the force
of law) of any agency, authority, central bank or government department or any
self-regulatory or other national or supra-national authority;

 

(d)                                 words importing the plural
shall include the singular and vice versa;

 

7

 

(e)                                  references to a time of day
are to London time;

 

(f)                                    references to a “person” shall be construed as including references to an
individual, firm, company, corporation, unincorporated body of persons or any
state or any agency thereof and that person’s successors in title;

 

(g)                                 references to a “guarantee” include references to an indemnity or other
assurance against financial loss including, without limitation, an obligation
to purchase assets or services as a consequence of a default by any other
person to pay any Indebtedness and “guaranteed” shall
be construed accordingly;

 

(h)                                 references to any enactment
shall be deemed to include references to such enactment as re-enacted, amended
or extended; and

 

(i)                                     references to “business” in relation to the Company means any business
referred to in the definition of Group Business in the Relevant Facilities
Agreement which the Company engages in, and references to “ordinary
course of business” in relation to the Company shall be similarly
construed.

 

1.6                               Implied
Covenants

 

The following
provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not
apply to Clause 3.1 (Assignment) or
Clause 3.2 (Non-Assignable Rights):

 

(a)                                  the words “other than any
charges, encumbrances or rights which that person does not and could not
reasonably be expected to know about” in section 3(1);

 

(b)                                 the words “except to the
extent that” and all the words thereafter in section 3(2); and

 

(c)                                  section 6(2).

 

1.7                               Third
Party Rights

 

A person which is
not a party to this Assignment (a “third party”)
shall have no rights to enforce the provisions of this Assignment save for:

 

(a)                                  those rights it would have
had if the Contracts (Rights of Third Parties) Act 1999 had not come into
effect; and

 

(b)                                 a person who is a
co-trustee (with the Security Trustee) for the Beneficiaries under the Security
Trust Agreement whether or not it is a party to the Security Trust Agreement,

 

provided also that
this Assignment may be rescinded or altered without the consent of any third
party referred to in Clause 1.7(b).

 

1.8                               Effect
as a Deed

 

This Assignment is
intended to take effect as a deed notwithstanding that the Security Trustee may
have executed it under hand only.

 

8

 

1.9                               Certificates

 

A certificate of any
Beneficiary as to the amount of the Secured Obligation owed to it shall be prima facie evidence of the existence and amount of such
Secured Obligation.

 

1.10                        Statutes

 

Any reference in
this Deed to a statute or statutory provision shall, unless the contrary is
indicated, be construed as a reference to such statute or statutory provision
as the same shall have been amended or re-enacted.

 

1.11                        Group Intercreditor Deed

 

This Assignment should be read and construed subject
to the terms of the Group Intercreditor Deed. In the event of any inconsistency
between the terms of this Assignment and the Group Intercreditor Deed, the
terms of the Group Intercreditor Deed shall prevail.

 

1.12                        Secured Obligations

 

It is acknowledged and agreed that (without
prejudice to the extension of the Secured Obligations to any other Indebtedness
from time to lime included within the definition thereof):

 

(a)                                  as at the date hereof, the Secured Obligations shall include all
Liabilities under the Senior Facilities Agreement; and

 

(b)                                 as from the 2014 Redemption Date, the Secured Obligations shall include
all Liabilities under the Senior Facilities Agreement and all Liabilities under
the Senior Secured Notes Documents.

 

2.                                      COVENANT TO PAY

 

2.1                               Covenant to Pay

 

The Company agrees as primary obligor and not only
as surety that it will pay and discharge the Secured Obligations promptly on
demand of the Security Trustee.

 

2.2                               Payments

 

All payments to be made by the Company under this
Assignment shall be made in full, without any set-off or counterclaim
whatsoever and free and clear of any deductions or withholdings in the relevant
currency on the due date to such account as the Security Trustee may from time
to time specify.

 

3.                                      ASSIGNMENT

 

3.1                               Assignment

 

The Company (save as provided in Clause 11.4 (Settlements
Conditional)), subject to reassignment upon payment and discharge of
the Secured Obligations and there no longer being any obligation on any
Beneficiary to make any of the Secured 

 

9

 

Obligations available and subject to the Group Intercreditor Deed,
hereby assigns with full title guarantee the Assigned Rights to the Security
Trustee as a continuing security for the payment and discharge of the Secured
Obligations to hold same on trust for the Beneficiaries in each case on the
terms set out in the Group Intercreditor Deed and the Security Trust Agreement.

 

3.2                               Non-Assignable
Rights

 

The Company declares
that to the extent that any right, title, interest or benefit described in
Clause 3.1 (Assignment) is for any reason not
effectively assigned pursuant to Clause 3.1 (Assignment)
for whatever reason, the Company shall:

 

(a)                                  hold the benefit of the
same on trust for the Security Trustee as security for the payment and
discharge of the Secured Obligations; and

 

(b)                                 promptly notify the
Security Trustee of the same and the reasons therefor and thereafter take such
steps as the Security Trustee may reasonably require to remove any relevant
prohibition or other reason for such failure.

 

3.3                               Notice
of Assignment

 

As soon as
practicable after the execution of this Assignment, the Company shall deliver a
Notice of Assignment to each Intercompany Debtor.

 

3.4                               Acknowledgement
of Assignment

 

The Company shall
procure that as soon as practicable after it receives a Notice of Assignment,
the relevant Intercompany Debtor shall deliver to the Security Trustee an
Acknowledgement of Assignment.

 

3.5                               Restrictions
on dealing with Assigned Rights

 

The Company hereby
covenants that it will not without the prior consent in writing of the Security
Trustee (save as permitted by the Senior Finance Documents):

 

(a)                                  create or attempt to create
or permit to subsist in favour of any person other than the Security Trustee
any Encumbrance on or affecting the Assigned Rights or any part thereof;

 

(b)                                 sell, transfer, assign or
otherwise dispose of the Assigned Rights (other than to the Security Trustee or
to any member of the Bank Group provided that (i) the relevant sale,
transfer, assignment or disposal is made expressly subject to the Encumbrance
granted by the Company under this Assignment; and (ii) the relevant
purchaser, transferee or assignee, (A) is a company incorporated in
England and Wales, (B) becomes a party to the Group Intercreditor Deed as
an Intergroup Creditor (as defined therein) on or prior to the relevant sale,
transfer, assignment or disposal, and (C) provides such evidence as the
Security Trustee may require as to the legality, validity and enforceability of
(x) the relevant sale, transfer, assignment or disposal, (y) the
Encumbrance granted by the Company under this Assignment subject to which the
relevant sale, transfer, assignment or disposal is made; and (z) the Group
Intercreditor Deed entered into by the relevant purchaser, transferee or
assignee;

 

10

 

(c)                                  save as permitted pursuant
to this Clause 3.5, receive, retain or deal with the principal of, or any
interest on, the Assigned Rights.

 

3.6                               Suspense
Accounts

 

Any money received
by the Security Trustee pursuant to this Assignment (whether before or after
any Incapacity of any Intercompany Debtor or the Company) may be placed to the
credit of an interest bearing suspense account with a view to preserving the
rights of the Beneficiaries to prove for the whole of their respective claims
against any Intercompany Debtor, any Obligor or any other person liable or may
be applied in or towards satisfaction of such of the Secured Obligations as the
Security Trustee may from time to time conclusively determine in accordance
with the terms of the Group Intercreditor Deed and the Security Trust Agreement
notwithstanding any appropriation (or purported appropriation) by the Company.

 

3.7                               Interest
and Principal

 

Subject always to the
terms of the Group Intercreditor Deed and the other Senior Finance Documents,
notwithstanding Clause 3.1 (Assignment) of
this Assignment, the Company may in its absolute discretion receive, retain and
deal with free from this Assignment all interest paid and received by it in
respect of the Assigned Rights.

 

3.8          Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Assignment) and Clause 3.2 (Non-Assignable
Rights) of this Assignment notwithstanding, the Excluded Charged
Assets are not charged, assigned or held on trust for the Security Trustee (as
the case may be) under this Assignment to secure the Designated Secured
Obligations.  For the avoidance of doubt,

 

(i)                                    all other Charged Assets
remain charged or assigned (as the case may be) under this Assignment to secure
all Secured Obligations, including without limitation the Designated Secured
Obligations; and

 

(ii)                                such Excluded Charged
Assets remain charged, assigned or held on trust for the Security Trustee (as
the case may be) under Clause 3.1 (Assignment) and
Clause 3.2 (Non-Assignable Rights) of this
Assignment to secure any Secured Obligations that are not Designated Secured
Obligations.

 

(b)                                 “Excluded
Charged Assets” in relation to any Designated Secured Obligations
means any shares or other securities of a Subsidiary of Virgin Media Inc.
(excluding the shares or other securities issued by Virgin Media Investments
Limited and Virgin Media Investment Holdings Limited or, in each case, any
successor entity upon any merger, reorganisation or other restructuring effecting
it) that are owned by the Company to the extent that charging or pledging such
shares or other securities under this Assignment to secure such Designated
Secured Obligations would result in Rule 3-16 requiring separate financial
statements of such Subsidiary to be filed with the SEC, but (i) only to
the extent necessary to not be subject to such requirement, (ii) only for
so long as such requirement is in existence and (iii) only if no 

 

11

 

member of the Group files or is otherwise required to file separate
financial statements of such Subsidiary with the SEC under a separate rule or
regulation; provided that no shares or securities
will constitute Excluded Charged Assets if any member of the Group takes any
action in the form of a reorganisation, merger or other restructuring, a
principal purpose of which is to provide for the limitation of the charge on
any shares or other securities pursuant to paragraph (a) above.

 

(c)                                  In the event that Rule 3-16
is amended, modified or interpreted by the SEC to require (or is replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would require) the filing with the SEC (or any other United
States federal or state governmental agency) of separate financial statements
of any such Subsidiary due to the fact that such Subsidiary’s Shares or other
securities secure any Designated Secured Obligations, then such Shares or other
securities (as applicable) of such Subsidiary shall automatically be deemed to
be Excluded Charged Assets for such Designated Secured Obligations but (i) only
to the extent necessary to not be subject to any such financial statement
requirement, (ii) only for so long as such financial statement requirement
would otherwise have been applicable to such Subsidiary and (iii) only if
no member of the Group files or is otherwise required to file separate
financial statements of such Subsidiary with the SEC or such other governmental
agency under a separate rule or regulation. If the circumstances described
in this paragraph (c) apply, this Assignment may be amended or modified,
without the consent of any Senior Finance Party, to the extent necessary to
release the assignment (but only to the extent securing such Designated Secured
Obligations and without prejudice to the assignment securing Secured
Obligations referred to in paragraph (a)(ii) of this Clause 3.8) in favour
of the Security Trustee on the relevant Shares and/or other securities that are
so deemed to constitute Excluded Charged Assets.

 

(d)                                 In the event that Rule 3-16
is amended, modified or interpreted by the SEC to permit (or is replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would permit) such Subsidiary’s Shares and/or other securities
to secure any Designated Secured Obligations in excess of the amount then
pledged without the filing with the SEC (or any other United States federal or
state governmental agency) of separate financial statements of such Subsidiary,
then the Shares or other securities (as applicable) of such Subsidiary will
automatically be deemed not to be Excluded Charged Assets for such Designated
Secured Obligations, but limited to the extent necessary to not be subject to
any such financial statement requirement. If the circumstances described in
this paragraph (d) apply, this Assignment may be amended or modified,
without the consent of any Senior Finance Party, to the extent necessary to
create security in favour of the Security Trustee over such additional Shares
or other securities that were deemed to constitute Excluded Charged Assets.

 

12

 

4.                                      UNDERTAKINGS

 

4.1                               Undertakings

 

The Company hereby
undertakes with the Security Trustee that during the continuance of this
security the Company will:

 

(1)           Information

 

supply to the
Security Trustee such documents relating to the Assigned Rights as the Security
Trustee may from time to time reasonably require;

 

(2)           Claims

 

forthwith inform the
Security Trustee of any material claims or notices relating to any of the
Assigned Rights received from any other party and of all other matters relevant
or in any way material thereto;

 

(3)           Variation, amendment, etc

 

save with the
consent of the Security Trustee or as otherwise permitted pursuant to the
Senior Finance Documents, not vary, extend, release, determine or rescind any
agreement, deed or other arrangement relating to any of the Assigned Rights or
grant time for payment or indulgence or compound with, discharge, waive,
release, set off or vary the liability of any other person thereunder or
consent to any act or omission as would otherwise constitute a breach or concur
in accepting or varying any compromise, arrangement or settlement relating
thereto or do or suffer any act or thing or permit any set off whereby the
recovery of any moneys payable may be delayed or impeded which, in the case of
any of the actions or events referred to above, would have or would be
reasonably likely, in the opinion of the Security Trustee, to have a Material
Adverse Effect.

 

5.                                      FURTHER
ASSURANCE

 

5.1                               Further
Assurance

 

The Company shall if
and when at any time required by the Security Trustee execute such further
Encumbrances and assurances in favour of the Security Trustee and/or any
Beneficiary and do all such acts and things as the Security Trustee shall from
time to time reasonably require over or in relation to all or any of the
Assigned Rights to secure the Secured Obligations or to perfect or protect the
security intended to be created by this Assignment over the Assigned Rights or
any part thereof or to facilitate the realisation of the same.

 

5.2                               Certain
Documentary Requirements

 

Such further
Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee
at the expense of the Company (such expense to be reasonably and properly
incurred) and shall contain (a) an immediate power of sale without notice,
(b) a clause excluding section 93 of the Law of Property Act 1925 and the
restrictions 

 

13

 

contained in section
103 of the Law of Property Act 1925 and (c) such other clauses for the
benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

6.                                      CERTAIN
POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

6.1                               Enforcement
Powers

 

If the Enforcement
Date has occurred then the charges created by this Assignment shall become
immediately enforceable and the Security Trustee shall be entitled, without
prior notice to the Company or prior authorisation from any court, to sell or
otherwise dispose of all or any part of the Assigned Rights at the times, in
the manner and on the terms it thinks fit. No purchaser or other person shall
be bound or concerned to see or enquire whether the right of the Security
Trustee to exercise any of the powers conferred by this Assignment has arisen
or not or be concerned with notice to the contrary or with the propriety of the
exercise or purported exercise of such powers.

 

6.2                               Statutory
Powers

 

For the purposes of
all powers implied by statute, the Secured Obligations shall be deemed to have
become due and payable on the date of this Assignment.

 

6.3                               Law of
Property Act

 

The restrictions
contained in sections 93 and 103 of the Law of Property Act 1925 shall not
apply to this Assignment or to any exercise by the Security Trustee of its
right to consolidate mortgages or its power of sale.

 

6.4                               Subsequent
Encumbrances

 

(a)                                  If the Security Trustee at
any time receives notice of any subsequent mortgage, assignment, charge or
other interest affecting all or any part of the Assigned Rights, all payments
thereafter made by the Company to the Security Trustee or any of the
Beneficiaries shall be treated as having been credited to a new account of the
Company and not as having been applied in reduction of the Secured Obligations
as at the time when the Security Trustee received notice.

 

(b)                                 All monies received,
recovered or realised by the Security Trustee under this Assignment (including
the proceeds of any conversion of currency) may in its discretion be credited
to and held in any interest-bearing suspense account pending their application
from time to time in or towards the discharge of any of the Secured
Obligations.

 

7.                                      APPOINTMENT
AND POWERS OF A RECEIVER

 

7.1                               Appointment

 

The Security Trustee
may at any time on or after the Enforcement Date or if the Company requests it
to do so, by written instrument and without notice to the Company, appoint any
one or more persons as Receiver of such part of the Assigned 

 

14

 

Rights as may be
permitted by law, each such person being entitled to act individually as well
as jointly and being for all purposes deemed to be the agent of the Company and
shall as such agent be deemed to be in the same position as a Receiver duly
appointed by a mortgagee under the Law of Property Act 1925. The Security
Trustee may from time to time by writing under its hand remove any Receiver
appointed by it and may, whenever it may deem expedient, appoint a new Receiver
in the place of any Receiver whose appointment may for any reason have
terminated.

 

7.2                               Receiver
as Agent

 

A Receiver shall be
the agent of the Company and (subject to the provisions of this Assignment) the
Company shall be solely responsible for his acts or defaults and for his
remuneration.

 

7.3                               Powers
of Receiver

 

A Receiver shall
have, in relation to the part of the Assigned Rights in respect of which he was
appointed:

 

(a)                                  all the powers conferred by
the Law of Property Act 1925 on a receiver appointed under that Act;

 

(b)                                 all the powers of an
administrative receiver set out in Schedules 1 and 2 to the Insolvency Act 1986
(whether or not such person is an administrative receiver);

 

(c)                                  all the powers and rights
of an absolute owner and power to do or omit to do anything which the Company
could do or omit to do; and

 

(d)                                 the power to do all things
(including bringing or defending proceedings in the name or on behalf of the
Company) which seem to such a person to be incidental or conducive to (i) any
of the functions, powers, authorities or discretions conferred on or vested in
him, or (ii) the exercise of the Collateral Rights (including realisation
of all or any part of the Assigned Rights), or (iii) bringing to his hands
any assets of the Company forming part of, or which when got in would be a part
of, the Assigned Rights.

 

7.4                               Remuneration

 

The Security Trustee
may from time to time determine the remuneration of any Receiver appointed by
it without the limitations imposed by section 109 of the Law of Property Act
1925. A Receiver shall be entitled to remuneration appropriate to the work and
responsibilities involved upon the basis of charging from time to time adopted
by the Receiver in accordance with the current practice of his firm.

 

7.5                               Application
of proceeds

 

All moneys received
by the Security Trustee under this Assignment shall be applied by the Security
Trustee in accordance with the terms of the Group Intercreditor Deed and the
Security Trust Agreement.

 

15

 

8.                                      INDEMNITIES;
COSTS AND EXPENSES

 

8.1                               Enforcement
costs

 

The Company hereby
undertakes with the Security Trustee to pay on demand all costs, charges and
expenses which the Security Trustee or any Receiver shall certify as sustained
or incurred by it as a consequence of the enforcement, preservation or
attempted preservation of any of the security created by or pursuant to this
Assignment or any of the Assigned Rights on a full indemnity basis, together
with interest at the Default Rate from the date falling 30 days after the date
of demand for payment of such expenses to the date of payment by the Company
(both before and after judgment).

 

8.2                               No
liability as Mortgagee in Possession

 

None of the
Beneficiaries, the Security Trustee or any Receiver shall be liable to account
as mortgagee or heritable creditor in possession in respect of all or any of
the Assigned Rights or be liable for any loss upon realisation or for any
neglect or default of any nature whatsoever for which a mortgagee in possession
may be liable as such except in the case of fraud, wilful misconduct or gross
negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as
the case may be).

 

8.3                               Indemnity
from Assigned Rights

 

The Beneficiaries,
the Security Trustee and any Receiver, attorney, agent or other person
appointed by the Security Trustee under this Assignment and the officers and
employees of each of the aforementioned (each an “Indemnified
Party”) shall be entitled to be indemnified out of the Assigned
Rights in respect of all costs, losses, actions, claims, expenses, demands or
liabilities whether in contract, tort, delict or otherwise and whether arising
at common law, in equity or by statute which may be incurred by, or made against,
any of them (or by or against any manager, agent, officer or employee for whose
liability, act or omission any of them may be answerable) at any time relating
to or arising directly or indirectly out of or as a consequence of:

 

(a)                                  anything done or omitted in
the exercise or purported exercise of the powers contained in this Assignment;
or

 

(b)                                 any breach by the Company
of any of its obligations under this Assignment;

 

in each case, except
in the case of fraud, wilful misconduct or gross negligence on the part of an
Indemnified Party.

 

8.4                               Powers
of the Security Trustee

 

To the fullest
extent permitted by law, all or any of the powers, authorities and discretions
of a Receiver in respect of the Assigned Rights may, if a Receiver has been or
could have been appointed, be exercised by the Security Trustee in relation to
the whole or any part of the Assigned Rights whether or not a Receiver is or
has been appointed.

 

16

 

9.                                      ENFORCEMENT

 

9.1                               When
Enforceable

 

If (and only if) the
Enforcement Date has occurred then this Assignment shall become enforceable.
Sections 93 and 103 of the Law of Property Act 1925 shall not apply in respect
of any Assigned Rights.

 

9.2                               Authority

 

No purchaser or
other person shall be bound or concerned to see or enquire whether the right of
the Security Trustee or any Receiver to exercise any of the powers conferred by
this Assignment has arisen or not or be concerned with notice to the contrary
or with the propriety of the exercise or purported exercise of such powers.

 

10.                               POWER
OF ATTORNEY

 

10.1                        Power
of Attorney

 

The Company, by way
of security for the performance of its obligations under this Assignment,
hereby irrevocably appoints each of the Security Trustee and any Receiver of
all or any part of the Assigned Rights and their respective delegates and
sub-delegates each to be its attorney acting severally (or jointly with any
other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on
or after the Enforcement Date, any documents or instruments which the Security
Trustee or such Receiver may require for perfecting the title of the Security
Trustee to the Assigned Rights or for vesting the same in the Security Trustee,
its nominees or any purchaser;

 

(b)                                 to sign, execute, seal and
deliver and otherwise perfect any further security document or notice referred
to in Clause 5 (Further Assurance);
and

 

(c)                                  otherwise generally on or
after the Enforcement Date, to sign, seal, execute and deliver all deeds, assurances,
agreements and documents and to do all acts and things which may be required
for the full exercise of all or any of the powers conferred on the Security
Trustee or a Receiver under this Assignment or which may be deemed expedient by
the Security Trustee or a Receiver in connection with any disposition,
realisation or getting in by the Security Trustee or such Receiver of the
Assigned Rights or any part thereof or in connection with any other exercise of
any power under this Assignment.

 

10.2                        Ratification

 

The Company ratifies
and confirms and agrees to ratify and confirm all acts and things which any
attorney as is mentioned in Clause 10.1 (Power of
Attorney) shall do or purport to do in the exercise of his powers
under such Clause.

 

10.3                        General
Power

 

This appointment
shall operate as a general power of attorney under section 10 of the Powers of
Attorney Act 1971 and the Company hereby covenants with the Security 

 

17

 

Trustee and
separately with any such Receiver to ratify and confirm any document, act or
thing and all transactions which any such attorney may lawfully execute or do.

 

11.                               CONTINUING
SECURITY AND OTHER MATTERS

 

11.1                        Continuing
Security

 

This Assignment and
the obligations of the Company under this Assignment shall:

 

(a)                                  secure the ultimate balance
of the Secured Obligations from time to time owing notwithstanding the
dissolution, bankruptcy, liquidation or other Incapacity or any change in the
constitution of any person liable in respect thereof or in the name or style
thereof and shall be a continuing security notwithstanding any settlement of
account or other matter whatsoever;

 

(b)                                 be in addition to, and not
merge with or otherwise prejudice or affect, any present or future Security Document,
Encumbrance, right or remedy held by or available to the Beneficiaries or any
of them and/or the Security Trustee and may be enforced notwithstanding the
same; and

 

(c)                                  not merge with or be in any
way prejudiced or affected by the existence of any such Security Documents,
Encumbrance, rights or remedies or by the same being or becoming wholly or in
part void, voidable or unenforceable on any ground whatsoever or by the
Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging,
releasing, varying or failing to perfect or enforce any of the same, or giving
time for payment or indulgence or compounding with any other person liable.

 

11.2                        Security
Documents

 

Neither the Security
Trustee nor any of the Beneficiaries shall be obliged to resort to any other
Security Document or other means of payment now or hereafter held by or
available to it before enforcing this Assignment and no action taken or omitted
by the Security Trustee or any of the Beneficiaries in connection with any such
Security Document or other means of payment shall discharge, reduce, prejudice
or affect the liability of the Company nor shall the Security Trustee or any of
the Beneficiaries be obliged to account for any money or other property
received or recovered in consequence of any enforcement or realisation of any
such Security Document or other means of payment.

 

11.3                        New
Accounts

 

Notwithstanding that
any charge hereby created ceases to be continuing for any reason whatsoever the
Security Trustee or any of the Beneficiaries may continue any account of the
Company or other Security Provider or open one or more new accounts and the
liability of the Company hereunder shall not in any manner be reduced or
affected by any subsequent transaction or receipts or payments into or out of
any such account.

 

18

 

11.4                        Settlements
Conditional

 

Any release,
discharge or settlement between the Company and the Security Trustee shall be
conditional upon no security, disposition or payment to the Security Trustee or
any of the Beneficiaries by the Company or any other person being void, set
aside or ordered to be refunded pursuant to any enactment or law relating to
bankruptcy, liquidation, administration or insolvency or for any other reason
whatsoever and if such condition shall not be fulfilled the Security Trustee shall
be entitled to enforce this Assignment subsequently as if such release,
discharge or settlement had not occurred and any such payment had not been
made.

 

11.5                        No
Release

 

The liability of the
Company shall not be affected nor shall the assignment hereby created be
discharged or diminished by reason of:

 

(a)                                  the Incapacity or any
change in the name, style or constitution of any other Obligor or any other
person liable; or

 

(b)                                 the Security Trustee or any
of the Beneficiaries compounding with, discharging, releasing or varying the
liability of or granting any time indulgence or concession to any other Obligor
or any other person or renewing, determining, varying or increasing any
accommodation, facility or transaction in any manner whatsoever or concurring
in accepting or varying any compromise, arrangement or settlement or omitting
to claim or enforce payment from any other Obligor or any other person; or

 

(c)                                  any act or omission which
would not have discharged or affected the liability of the Company had it been
principal debtor in respect of the Secured Obligations or by anything done or
omitted which but for this provision might operate to exonerate the Company.

 

11.6                        Restriction
of the Company’s Rights

 

Until all the
Secured Obligations have been paid, discharged or satisfied in full (and
notwithstanding payment of a dividend in any liquidation or under any
compromise or arrangement or the discharge by any person of its liability) the
Company agrees that without the prior written consent of the Security Trustee
(such consent not to be unreasonably withheld) it will not (save as otherwise
permitted by the Group Intercreditor Deed):

 

(a)                                  exercise its rights of
subrogation, reimbursement and indemnity against any Obligor or any other
person;

 

(b)                                 demand or accept repayment
in whole or in part of any obligations or liabilities now or hereafter due to
the Company from any Obligor or any Security Provider demand or accept any
guarantee or any other document or instrument (including, without limitation,
any other document or instrument creating or evidencing a mortgage, charge
(whether fixed or floating), pledge, lien, hypothecation, assignment, trust
arrangement or security interest of any kind) in respect of such obligations or
liabilities or dispose of the same;

 

19

 

(c)                                   take any step to enforce
any right against any Obligor or any Security Provider in respect of any such
obligations or liabilities; or

 

(d)                                 claim any set-off or
counter-claim in respect of any such obligations or liabilities against any
Obligor or Security Provider or claim or prove in competition with the Security
Trustee or any of the Beneficiaries in the bankruptcy, liquidation or
administration of any Obligor or Security Provider or have the benefit of, or
share in, any payment from or composition with any Obligor or Security Provider
or Collateral Instrument now or hereafter held by the Security Trustee or any
of the Beneficiaries for any obligations or liabilities of any Obligor or
Security Provider but so that, if so directed by the Security Trustee, it will
prove for the whole or any part of its claim in the liquidation of any Obligor
or Security Provider on terms that the benefit of such proof and of all money
received by it in respect thereof shall be held on trust for the Security
Trustee and applied in or towards discharge of the Secured Obligations in
accordance with the provisions of the Group Intercreditor Deed and the Security
Trust Agreement.

 

11.7                        No
Security

 

The Company warrants
that it has not taken or received, and undertakes that until all the Secured
Obligations have been paid or discharged in full it will not, without the
consent in writing of the Security Trustee, take or receive any security from
any Obligor or any other person in respect of its obligations under this
Assignment.

 

11.8                        Recoveries
by the Company

 

If contrary to
Clauses 11.6 (Restriction on the Company’s Rights)
or 11.7 (No Security) the Company takes or
receives the benefit of any security or receives or recovers any money or other
property, such security, money or other property shall be held on trust for the
Security Trustee and shall be delivered to the Security Trustee on demand.

 

11.9                        Statements
of Account

 

Any statement of
account of the Company, signed as correct by an officer of the Security
Trustee, showing the amount of any Secured Obligations of the Company shall be
prima facie evidence as to the amount of the Secured Obligations of the Company
from time to time.

 

12.                               CURRENCIES

 

12.1                        Conversion
of Currencies

 

All moneys received
or held by the Security Trustee or by a Receiver under this Assignment at any
time on or after the Enforcement Date in a currency other than a currency in
which the Secured Obligations are denominated may from time to time be sold for
such one or more of the currencies in which the Secured Obligations are
denominated as the Security Trustee or Receiver considers necessary or
desirable and the Company shall indemnify the Security Trustee against the full
Sterling cost (including all costs, charges and expenses) properly incurred in
relation to such sale.  

 

20

 

Neither the Security
Trustee nor any Receiver shall have any liability to the Company in respect of
any loss resulting from any fluctuation in exchange rates after any such sale.

 

12.2                        Currency
Indemnity

 

No payment to the
Security Trustee (whether under any judgment or court order or otherwise) shall
discharge the obligation or liability of the Company in respect of which it was
made unless and until the Security Trustee shall have received payment in full
in the currency in which such obligation or liability was incurred. To the
extent that the amount of any such payment shall on actual conversion into such
currency fall short of such obligation or liability expressed in that currency
the Security Trustee shall have a further separate cause of action against the
Company to recover such shortfall out of the Assigned Rights and shall be
entitled to enforce the assignment hereby created to recover the amount of the
shortfall.

 

13.                               THE
SECURITY TRUST AGREEMENT

 

The Company and the
Security Trustee hereby acknowledge that the covenants of the Company contained
in this Assignment and the security and other rights, titles and interests
constituted by this Assignment and the Assigned Rights and all other moneys,
property and assets paid to the Security Trustee or held by the Security
Trustee or received or recovered by the Security Trustee pursuant to or in
connection with this Assignment are held by the Security Trustee subject to and
on the terms of the trusts declared in the Security Trust Agreement.

 

14.                               REPRESENTATIONS
AND WARRANTIES

 

14.1                        Representations

 

The Company hereby
represents and warrants to the Security Trustee as trustee for the
Beneficiaries that:

 

(a)                                  Due
incorporation

 

It is duly
incorporated, validly existing as a limited liability company and has all
requisite corporate power and authority to own its property and other assets
and to carryon its business as it is now being conducted and is authorised to
do business in each jurisdiction where such qualification or authorisation is
required, except where the failure to so qualify, to be so authorised or to be
in good standing would not have a material adverse effect on the ability of the
Company to perform any of its obligations under this Assignment;

 

(b)                                 Power
of the Company

 

The Company has all
requisite power to execute, deliver and perform its obligations under this
Assignment and compliance has been made with all necessary requirements and all
necessary action has been taken to authorise the execution, delivery and
performance of the same;

 

21

 

(c)                                  Binding
obligations

 

This Assignment
constitutes valid and legally binding obligations of the Company enforceable in
accordance with its terms subject, to the extent applicable, to the
Reservations which relate to Security Documents governed by English law;

 

(d)                                 No
conflict with other obligations

 

The execution and
delivery of, the performance of its obligations under, and compliance with the
provisions of, this Assignment by the Company, will not:

 

(i)                                     contravene any existing
applicable law, statute, rule or regulation or any judgement, decree or
permit to which the Company is subject except where such contravention would
not or would not be likely to have a material adverse effect on the ability of
the Company to perform any of its obligations under or otherwise to comply with
the terms of this Assignment;

 

(ii)                                  contravene or conflict with
any provision of the Memorandum and Articles of Association of the Company;

 

(iii)                               conflict with, or result in
any breach of any of the terms of, or constitute a default under, any agreement
constituting or evidencing Financial Indebtedness of the Company to which the
Company is a party or is subject or by which it or any of its property is bound
except where such breach or default would not or would not be likely to have a
material adverse effect on the ability of the Company to perform any of its
obligations under or otherwise to comply with the terms of this Assignment; or

 

(iv)                              result in the creation or
imposition of or oblige the Company to create any Encumbrance (other than those
created by the Security Documents) on any of the Company’s material
undertakings, assets, rights or revenues;

 

(e)                                  No
litigation

 

No litigation,
arbitration or administrative proceeding is taking place, or, to the knowledge
of the officers of the Company, pending or threatened against the Company,
which is reasonably likely to be adversely determined and, if so determined,
would have or would be reasonably likely to have a material adverse- effect on
the ability of the Company to fulfil its obligations under this Assignment;

 

(f)                                    No
filing required

 

It is not necessary
to ensure the legality, validity, enforceability or admissibility in evidence
of this Assignment that this Assignment or any other instrument be notarised,
filed, recorded, registered or enrolled in any court or public office in the
United Kingdom (save for registration pursuant to section 

 

22

 

860 of the Companies
Act 2006) or that any stamp, registration or similar tax or charge be paid in
the United Kingdom on or in relation to this Assignment;

 

(g)                                 Choice
of law

 

The choice by the
Company of English law to govern this Assignment is valid and binding;

 

(h)                                 Consents
obtained

 

Every consent,
authorisation, licence or approval of, or registration with or declaration to,
governmental or public bodies or authorities or courts required by the Company (i) to
authorise the execution and delivery of this Assignment or the performance by
the Company of its obligations under this Assignment or (ii) to ensure the
validity, enforceability or admissibility in evidence of this Assignment has
been obtained or made and is in full force and effect and there has been no
material default in the observance of the conditions or restrictions (if any)
imposed in, or in connection with, any of the same which would, in any such
case, adversely affect the execution, delivery, validity, enforceability or
admissibility in evidence of this Assignment or the performance by the Company
of its obligations under this Assignment; and

 

(i)                                     Title
to Assigned Assets

 

It is the beneficial
owner of and has good and marketable title to the Assigned Assets (except in
the event of a sale, transfer or assignment permitted by Clause 3.5(b)).

 

14.2                        Repetition

 

The representations
and warranties contained in Clause 14.1 (Representations)
(excluding that representation contained in Clause 14.1(h) shall be deemed
to be repeated by the Company on the first day of each Interest Period.

 

15.                               MISCELLANEOUS

 

15.1                        Exchange
of Information

 

The Company hereby
authorises the Security Trustee and the Beneficiaries to exchange between
themselves any information concerning the Assigned Rights unless such
information is the subject of a duty of confidentiality on the part of any
Beneficiary not to disclose such information.

 

15.2                        Remedies
Cumulative

 

No failure or delay
on the part of the Security Trustee or any of the Beneficiaries to exercise any
power, right or remedy shall operate as a waiver thereof nor shall any single
or any partial exercise or waiver of any power, right or remedy preclude its
further exercise or the exercise of any other power, right or remedy.

 

23

 

15.3                        Successors
and Assigns

 

Any appointment or
removal of a Receiver under Clause 7 (Appointment and Powers of
a Receiver) and any consents under this Assignment may be made or
given in writing signed or sealed by any successor Security Trustee appointed
pursuant to the Security Trust Agreement and their respective successors in
title and accordingly the Company hereby irrevocably appoints each successor
Security Trustee appointed pursuant to the Security Trust Agreement and their
respective successors in title to be its attorney in the terms and for the
purposes set out therein.

 

15.4                        Consolidation

 

Section 93 of
the Law of Property Act 1925 shall not apply to the security created by this
Assignment or to any security given to the Security Trustee or any of the
Beneficiaries pursuant to this Assignment.

 

15.5                        Reorganisation

 

This Assignment
shall remain binding on the Company notwithstanding any change in the
constitution of the Security Trustee or any Beneficiary or its absorption in,
or amalgamation with, or the acquisition of all or part of its undertaking by,
any other person, or any reconstruction or reorganisation of any kind. The
security granted by this Assignment shall remain valid and effective in all
respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

15.6                        Unfettered
Discretion

 

Save as otherwise
provided herein, any ability or power which may be exercised or any determination
which may be made under this Assignment by the Security Trustee may be
exercised or made in its absolute and unfettered discretion and it shall not be
obliged to give reasons therefor.

 

15.7                        Provisions
Severable

 

Each of the
provisions of this Assignment is severable and distinct from the others and if
any time one or more of such provisions is or becomes invalid, illegal or
unenforceable the validity, legality and enforceability of the remaining
provisions of this Assignment shall not in any way be affected or impaired
thereby.

 

15.8                        No
Assignment by the Company

 

The Company may not
assign or transfer any of its rights or obligations under this Assignment.

 

15.9                        Counterparts

 

This Assignment may
be executed in any number of counterparts and by the different parties hereto
in separate counterparts each of which, when executed and delivered, shall
constitute an original, but all counterparts together shall constitute one and
the same instrument.

 

24

 

15.10                 Release

 

Upon the
satisfaction in full of all of the Secured Obligations owed to the
Beneficiaries and there no longer being any obligation on any Beneficiary to
make any of the Secured Obligations available, the Security Trustee shall, at
the request and cost of the Company, execute and do all such deeds, acts and
things as may be necessary to release the Assigned Rights from the security
constituted, and to reassign the property and assets assigned to the Security
Trustee, hereby.

 

16.                               NOTICES
AND OTHER MATTERS

 

16.1                        Mode
of Service

 

Any notice or demand
for payment by the Security Trustee under this Assignment shall, without
prejudice to any other effective mode of making the same, be deemed to have
been properly served on the Company in the manner and at the address set out in
clause 20 of the Group Intercreditor Agreement.

 

16.2                        Notices
Conclusive

 

Any such notice or
demand or any certificate as to the amount at any time secured by this
Assignment shall, save for manifest error, be conclusive and binding upon the
Company if signed by an officer of the Security Trustee.

 

17.                               GOVERNING
LAW

 

This Assignment,
including all non-contractual obligations arising out of or in connection with
it, shall be governed by and shall be construed in accordance with English law.

 

18.                               JURISDICTION

 

18.1                        Courts
of England

 

The Company
irrevocably agrees for the benefit of the Security Trustee that the courts of
England shall have jurisdiction to hear and determine any suit, action or
proceedings, and to settle any disputes, which may arise out of or in
connection with this Deed (respectively “Proceedings”
and “Disputes”) and, for such purposes,
irrevocably submits to the jurisdiction of such courts.

 

18.2                        Appropriate
Forum

 

The Company
irrevocably waives any objection which it might now or hereafter have to
Proceedings being brought or Disputes settled in the courts of England and
agrees not to claim that any such court is not a convenient or appropriate
forum.

 

18.3                        Proceedings
in Other Jurisdictions

 

Nothing in Clause
18.1 (Courts of England) shall (and nor shall
it be construed so as to) limit the right of the Finance Parties to take
Proceedings against the Company in any other court of competent jurisdiction
nor shall the taking of Proceedings in anyone or more jurisdictions preclude
the taking of Proceedings in any other 

 

25

 

jurisdiction
(whether concurrently or not) if and to the extent permitted by applicable law.

 

18.4                        General
Consent

 

The Company consents
generally in respect of any Proceedings to the giving of any relief or the
issue of any process in connection with such Proceedings including the making,
enforcement or execution against any property whatsoever (irrespective of its
use or intended use) of any order or judgment which may be made or given in
such Proceedings.

 

18.5                        Waiver
of Immunity

 

To the extent that
the Company may in any jurisdiction claim for itself or its assets or revenues
immunity from suit, execution, attachment (whether in aid of execution, before
judgment or otherwise) or other legal process and to the extent that in any
such jurisdiction there may be attributed to itself, its assets or revenues
such immunity (whether or not claimed), the Company irrevocably agrees not to
claim, and irrevocably waives, such immunity to the full extent permitted by
the laws of such jurisdiction.

 

IN WITNESS WHEREOF this Assignment has been
executed and delivered by or on behalf of the parties on the date stated at the
beginning of this Assignment.

 

26

 

SCHEDULE 1

 

FORM OF NOTICE OF ASSIGNMENT

 

To: [specify relevant Intercompany Debtor]

 

Dear Sirs,

 

We hereby give you
notice that pursuant to an Assignment dated [                       ]
(the “Assignment”) and made between [name of Company] (the “Company”) and [name of Security Trustee] as security trustee (the “Security Trustee”), the Company has assigned to the Security
Trustee all of its rights, title, interests and benefits under or in respect of
the Intercompany Indebtedness (the “Assigned Rights”)
including all monies which may be payable under or in respect thereof.

 

With effect from
your receipt of this notice we hereby give you notice that:

 

(a)                                  all payments to be made to
it under or arising from the Assigned Rights should be made to the Security Trustee
or to its order as it may specify in writing from time to time/to [specify bank account];

 

(b)                                 all remedies provided for
in the Assigned Rights or available at law or in equity shall be exercisable by
the Security Trustee;

 

(c)                                  all rights to compel performance
in respect of the Assigned Rights shall be exercisable by the Security Trustee
(although the Company shall remain liable to perform all the obligations
assumed by it in connection with the Assigned Rights);and

 

(d)                                 all rights, title,
interests and benefits whatsoever accruing to or for the benefit of the Company
arising in respect of the Assigned Rights belong to the Security Trustee and no
changes may be made to their terms nor may any of them be terminated, varied or
waived without the prior written consent of the Security Trustee.

 

You are hereby
authorised and instructed, without requiring further approval from the Company,
to provide the Security Trustee with such information relating to the Assigned
Rights as it may from time to time request and to send copies of all notices
issued by you in connection with the Assigned Rights to the Security Trustee as
well as to the Company.

 

These instructions
may not be revoked without the prior written consent of the Security Trustee.

 

Please acknowledge
receipt of this notice by signing and dating the acknowledgement set out on the
enclosed copy and returning it to the Security Trustee.

 

27

 

	
  Yours faithfully,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  For and on behalf
  of

  	
   

  
	
  [COMPANY]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  for and on behalf
  of

  	
   

  
	
  [SECURITY TRUSTEE]

  	
   

  
	
  as security
  trustee]

  	
   

  

 

28

 

SCHEDULE 2

 

FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

 

[To be printed only
on copy of the Notice of Assignment given]

 

To:                              [                                     ]

 

as Security Trustee

[Address]

Attention:

 

We acknowledge
receipt of a notice in the terms set out above (the “Notice”).
We confirm that we have not received notice of any previous assignments or
charges of or over any of the rights, title, interests and benefits under or in
respect of respect of the Intercompany Indebtedness (“Assigned
Rights”) and that we will comply with the terms of the Notice.

 

We further agree and
confirm that:

 

(a)                                  we shall not agree to, or
otherwise permit, any amendment, waiver or release of any provision relating to
the Assigned Rights without the prior written consent of the Security Trustee;
and

 

(b)                                 we will not terminate any
document or arrangement relating to the Assigned Rights or otherwise allow the
such document or arrangement to be terminated and will not take any action in
relation to any breach thereof by the Company unless we have given the Security
Trustee 30 days’ prior written notice of our intention to do so specifying the
action necessary by the Company or the Security Trustee to avoid such
termination or action.

 

Yours faithfully,

 

For and on behalf of

[Intercompany Debtor]

 

By:

 

Date:

 

29

 

SIGNATORIES

 

	
  Executed
  as a deed by 

  	
   

  	
   

  
	
  VIRGIN MEDIA FINANCE PLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  acting
  by Robert Gale, a director,

  	
   

  	
  /s/
  ROBERT GALE

  
	
   

  	
   

  	
  Director

  
	
  in
  the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  JOY ONIKOYI

  	
   

  	
   

  
	
  Name:
  Joy Onikoyi

  	
   

  	
   

  
	
  Address:
  99 City Road, London, EC1Y 1AX

  	
   

  	
   

  
	
  Occupation:
  Solicitor

  	
   

  	
   

  

 

30

 

	
  THE
  SECURITY TRUSTEE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE
  BANK AG, LONDON BRANCH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ V ADAMS

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  V Adams

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
  Fax Number:

  	
   

  
	
   

  	
   

  
	
  Attention:

  	
   

  

 

31Exhibit
4.16

 

EXECUTION
VERSION

 

Dated
15 April 2010

 

COMPOSITE DEBENTURE

 

Between

 

VIRGIN MEDIA SFA FINANCE LIMITED 

as
Chargor

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as
Security Trustee

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  SECURED
  OBLIGATIONS

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  CHARGES

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  SET-OFF

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  UNDERTAKINGS

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  REAL
  PROPERTY: PERFECTION

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  FURTHER
  ASSURANCE

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  CERTAIN
  POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  APPOINTMENT
  AND POWERS OF RECEIVER OR ADMINISTRATOR

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  APPLICATION
  OF PROCEEDS; PURCHASERS

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  INDEMNITIES;
  COSTS AND EXPENSES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  ENFORCEMENT

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  POWER
  OF ATTORNEY

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  CONTINUING
  SECURITY AND OTHER MATTERS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  CURRENCIES

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  THE
  SECURITY TRUST AGREEMENT

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  MISCELLANEOUS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  NOTICES

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  LAW
  AND JURISDICTION

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  1 SHAREHOLDERS

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  2 NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Part 1
  Intercompany Indebtedness

  	
   

  	
  37

  
	
   

  	
  Part 1A Form of Notice of
  Assignment

  	
   

  	
  37

  
	
   

  	
  Part 1B Form of Acknowledgement
  of Assignment

  	
   

  	
  39

  
	
   

  	
  Part 2
  Insurances

  	
   

  	
  41

  
	
   

  	
  Part 2A Form of Notice of
  Assignment

  	
   

  	
  41

  
	
   

  	
  Part 2B Form of Acknowledgement
  of Assignment

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  3 DETAILS OF CHARGED LAND

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Part 1
  PART 1A Registered Land

  	
   

  	
  45

  
	
   

  	
  PART 1B
  Unregistered Land

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  4 REGISTERED, INTELLECTUAL PROPERTY RIGHTS

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  5 INTERCOMPANY LOANS

  	
   

  	
  48

  

 

i

 

THIS COMPOSITE DEBENTURE is dated 15 April 2010
and made

 

BETWEEN:

 

(1)                                 VIRGIN
MEDIA SFA FINANCE LIMITED a company incorporated and registered under the laws
of England and Wales with registered number 07176280 (the “Chargor”);
and

 

(2)                                 DEUTSCHE BANK
AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

(A)                              The Senior Lenders have agreed
to make available to the Borrowers (as defined in the Senior Facilities
Agreement (as defined below)) certain credit facilities pursuant to the terms
and subject to the conditions of the Senior Facilities Agreement and the Group
Intercreditor Agreement.

 

(B)                                Virgin Media Secured Finance
PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes
Indenture.

 

(C)                               By an intercreditor deed dated
3 March 2006, as amended and restated on 13 June 2006,
10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009
and 8 January 2010 (the “Group
Intercreditor Deed”) the Security Trustee, the Facility Agent, the
Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders,
the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors
(as each of those terms are defined therein) and certain other members of the
Group have agreed to regulate their relationship as creditors on the terms set
out therein.

 

(D)                              This Deed is given by the
Chargors in favour of the Security Trustee as a condition precedent to the
making available of the facilities under the Senior Facilities Agreement.

 

(E)                                The board of directors or the
partners (as the case may be) of the Chargor are satisfied that the Chargor is
entering into this Deed for the purposes of carrying on its business and that
its doing so benefits the Chargor.

 

(F)                                The Security Trustee holds the
benefit of this Deed on trust for itself and the other Beneficiaries on the
terms and subject to the conditions of the Security Trust Agreement and the
Group Intercreditor Deed.

 

 

NOW THIS DEED  WITNESSES
as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless
the context otherwise requires:

 

“Acknowledgement” means a duly completed
acknowledgement of assignment in the form set out in the relevant Part of
Schedule 2 (Notices of Assignment/Acknowledgements)
being:

 

(a)                                  Schedule 2Part 1B, in the
case of Intercompany Indebtedness; and

 

(b)                                 Schedule 2Part 2B, in the
case of Insurances.

 

“Assigned
Assets” means, in relation to the Chargor, all the assets of the
Chargor described in Clause 3.2 (Assignments);

 

“Beneficiaries” means the First Beneficiary
and the Second Beneficiaries;

 

“Charged
Assets” means all the undertaking, goodwill, property, assets and
rights of each Chargor described in Clauses 3.1 (Fixed Charge),
3.2 (Assignments) and 3.4 (Floating Charge);

 

“Charged Land” means in respect of the
Chargor the English Real Property specified in Schedule 3 (Details of
Charged Land);

 

“Default Rate”
means the rate specified in Clause 28.2 (Default Rate)
of the Senior Facilities Agreement or, upon its repayment in full and
cancellation of all undrawn commitments thereunder such equivalent provision in
the Relevant Facilities Agreement;

 

“Designated
Secured Obligations” means Financial Indebtedness in the form of
notes or other such similar instruments of any member of the Group that is
designated as “Designated Secured Obligations” by written notice from the
Company to the Security Trustee which notice will certify that the Financial
Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under
the Securities Act (“Rule 3-16”)
is applicable or will become applicable upon registration of such instrument or
an instrument exchangeable for such instrument pursuant to a contractual
requirement;

 

“disposal”
includes any sale, lease, sub-lease, assignment or transfer, the grant of an
option or similar right, the grant of any easement, right or privilege, the
creation of a trust or other equitable interest in favour of a third party, a
sharing or parting with possession or occupation whether by way of licence or
otherwise and the granting of access to any other person over any intellectual
property, and “dispose” and “disposition”
shall be construed accordingly;

 

“Enforcement Date” means the date on which,
following the occurrence of an Event of Default that is continuing, either the
Relevant Agent or the Security Trustee notifies the Chargors of the occurrence
of that Event of Default, or takes, under any 

 

2

 

one or more of the
Senior Finance Documents, any of the steps it is entitled to take by reason of
the occurrence of such Event of Default;

 

“English Real Property”
means, at any time and in respect of the Chargor, freehold or leasehold
property in England and Wales in which the Chargor has an interest, including
all rights, easements and privileges from time to time attached or appurtenant
thereto and all buildings, erections and Fixtures from time to time therein or
thereon;

 

“Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or
termination event (however described) under any Hedging Agreement;

 

“Excluded
Charged Assets” has the meaning given to such term in Clause 3.12(b) (Rule 3-16 Limitation) of this Deed;

 

“Fixtures” means, in relation to any Real
Property, all fixtures and fittings (including trade fixtures and fittings) and
fixed plant, machinery and equipment and other items attached to the relevant
Real Property whether or not constituting a fixture at law;

 

“Floating
Charge Assets” means the assets of the Chargor from time to time
expressed to be charged by this Deed by way of floating charge pursuant to
Clause 3.4 (Floating Charge);

 

“Incapacity”
means, in relation to any person, the insolvency, bankruptcy, liquidation,
dissolution, winding-up, administration, receivership, amalgamation,
reconstruction or other incapacity of that person whatsoever;

 

“Indemnified
Party” has the meaning set out in Clause 11.3 (Indemnity from Charged Assets);

 

“Insurances”
means, in relation to a Chargor, all present and future contracts or policies
of insurance (including life policies) in which that Chargor from time to time
has an interest;

 

“Intellectual Property Rights” means all
patents, trade marks, service marks, designs, design rights, utility models,
business names, topographical or similar rights, copyrights, moral rights,
database rights, rights in inventions, computer software, know-how, trade
secrets and confidential information and other intellectual property rights and
any interests (including by way of licence) subsisting anywhere in the world in
any of the foregoing (in each case whether registered or not and including all
applications for the same) owned by the Chargor;

 

“Intercompany Indebtedness” means
indebtedness owing by any member of the Group to the Chargor under each of the
loan agreements or other debt instruments listed in Schedule 5 (Intercompany Loans) and any other such indebtedness from
time to time outstanding;

 

3

 

“Investments” means the Shares and any other
stocks, debentures, bonds, warrants and other securities of any kind whatsoever
and any units in Unit Trust Schemes;

 

“Lease” means any present or future lease,
sublease, licence, tenancy or other agreement or right to occupy whether on a
fixed term or periodic basis governing the use or occupation of any freehold,
heritable or leasehold property;

 

“Liability” means any obligation or
liability for the payment of money, whether in respect of principal, interest
or otherwise, whether actual or contingent, whether owed jointly or severally
and whether owed as principal or surety or in any other capacity;

 

“Notice of Assignment” means a duly
completed notice of assignment in the form set out in the relevant Part of
Schedule 2 (Notices of Assignment/Acknowledgements)
being:

 

(a)                                  Part 1, in the case of
Intercompany Indebtedness; and

 

(b)                                 Part 2, in the case of
Insurances;

 

“Permitted Borrowing” means any Financial
Indebtedness permitted under Clause 25.4 (Financial Indebtedness)
of the Senior Facilities Agreement or upon its repayment in full and cancellation
of all undrawn commitments thereunder such equivalent provision in the Relevant
Facilities Agreement;

 

“Permitted Disposal” means any disposal
permitted under Clause 25.6 (Disposals) of
the Senior Facilities Agreement or upon its repayment in full and cancellation
of all undrawn commitments thereunder such equivalent provision in the Relevant
Facilities Agreement;

 

“Permitted Encumbrance” means any
Encumbrance permitted under Clause 25.2 (Negative Pledge)
of the Senior Facilities Agreement or upon its repayment in full and
cancellation of all undrawn commitments thereunder such equivalent provision in
the Relevant Facilities Agreement;

 

“Real Property” means the English Real
Property and any other land, buildings or erections anywhere in the world and
any estate or interest therein and any reference to Real Property includes all
rights, easements and privileges from time to time attached or appurtenant
thereto and all buildings, erections and Fixtures from time to time therein or
thereon;

 

“Realisation Account” means each account
maintained from time to time by the Security Trustee for the purposes of
Clause 8.7 (Realisation Accounts).

 

“Receiver”
means a receiver and manager, or any other receiver (whether appointed pursuant
to this Deed or any statute, by a court or otherwise) of all or any of the
Charged Assets and shall, where permitted by law, include an administrative
receiver;

 

“Related Rights” means, in relation to any
Investment of the Chargor:

 

(a)                                  any proceeds of and any right
or option to receive any dividend, distribution, interest or other income paid
or payable in relation to any such Investment; and

 

4

 

(b)                                any right or option to
receive, call for delivery of or otherwise acquire any stocks, shares,
debentures, bonds, loan stocks, warrants, securities, monies or other property
of any kind, accruing or offered at any time or deriving therefrom, whether in
addition to or in substitution for such Investment.

 

“Relevant
Facilities Agreement” means the Senior Facilities Agreement, or,
upon its repayment in full and cancellation of all undrawn commitments
thereunder, the Designated Refinancing Facilities Agreement, provided that if
upon the repayment in full and cancellation of all undrawn commitments under
the Senior Facilities Agreement there is no Designated Refinancing Facilities
Agreement, until such time that a Refinancing Facilities Agreement has been
designated as a Designated Refinancing Facilities Agreement, the “Relevant
Facilities Agreement” shall be the Senior Facilities Agreement immediately
prior to such termination, and provided further that upon the repayment in full
and cancellation of all undrawn commitments under the Designated Refinancing
Facilities, until such time that a Refinancing Facilities Agreement has been
designated as a Designated Refinancing Facilities Agreement, the “Relevant
Facilities Agreement” shall be the Designated Refinancing Facilities Agreement
immediately prior to such termination.

 

“Restricted
Lease” means any lease to which the Chargor is a party which would
be breached, if the consent of the relevant landlord and any other relevant
party was not obtained prior to such lease becoming subject to any security
interest created pursuant to this Deed;

 

“Rule 3-16” has the meaning given to
such term in “Designated Secured Obligations”.

 

“SEC”
means the United States Securities and Exchange Commission;

 

“Secured Obligations” means the Security
Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided
that any liabilities that have been designated as “New Senior Liabilities”
under the Group Intercreditor Deed or are incurred after 31 December 2009
under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of
the Senior Facilities Agreement, or upon its repayment in full and cancellation
of all undrawn commitments thereunder (unless there is no Designated
Refinancing Facilities Agreement), the Designated Refinancing Facilities
Agreement, or any Refinancing Facilities Agreement on the date of such
designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee,
acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such
case constitute “Secured Obligations” for the purpose of this Deed;

 

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

 

5

 

“Security Provider” means any person who has
granted or may at any time hereafter grant any security interest as security
for the Secured Obligations;

 

“Security
Trust Agreement” means the security trust agreement dated 3 March 2006
and amended and restated on 19 January 2010 between, Deutsche Bank AG,
London Branch as Security Trustee and as Facility Agent, Virgin Media
Investment Holdings Limited and the companies named therein as Original
Obligors;

 

“Senior
Facilities Agreement” means the senior facilities agreement dated 16
March 2010 (as amended, restated, supplemented or novated from time to
time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent,
Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited,
Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and
Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London
Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical
Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit
Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs
International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch
International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners
and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent,
Deutsche Bank AG, London Branch as Security Trustee and the financial and other
institutions named in it as Lenders;

 

“Senior
Secured Notes” has the meaning given to the term “Notes” in the
Senior Secured Notes Indenture;

 

“Senior
Secured Notes Documents” means the Senior Secured Notes Indenture
including the guarantees set out therein, and the Senior Secured Notes;

 

“Senior
Secured Notes Indenture” means the indenture dated 19 January 2010
governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the
£875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc.,
Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin
Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of
New York Mellon, as trustee, registrar and paying agent and The Bank of New
York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended,
restated, supplemented or otherwise modified from to time;

 

“Shares” means all shares in the capital of
any member of the Group, any Joint Venture or any other person now or in the
future legally or beneficially owned by the Chargor and/or any nominee on
behalf of the Chargor;

 

“Unit Trust Scheme” has the meaning set out
in Section 237(2) of the Financial Services and Markets Act 2000; and

 

1.2                                 Successors
and Assigns

 

The expressions “Senior
Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Original
Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security
Provider” and “Security Trustee” include, where the context admits, their
respective successors, permitted assigns and transferees and, in the case 

 

6

 

of the Beneficiaries,
their Transferees and, in the case of the Security Trustee, such other person
as may from time to time be appointed as Security Trustee for the Beneficiaries
pursuant to the provisions of the Security Trust Agreement.

 

1.3                                 Agreement
Definitions

 

Unless the context
otherwise requires or unless otherwise defined in this Deed, words and
expressions defined in the Group Intercreditor Deed and (unless otherwise
defined in the Group Intercreditor Deed) the Relevant Facilities Agreement
shall have the same meaning when used in this Deed (including its recitals).

 

1.4                                 Headings

 

Clause and
schedule headings and the contents page are inserted for convenience of
reference only and shall be ignored in the interpretation of this Deed.

 

1.5                                 Construction
of Certain Terms

 

In this Deed, unless
the context otherwise requires:

 

(a)                                  references to clauses and
the schedules are to be construed as references to the clauses of, and the
schedules to, this Deed and references to this Deed include its schedules;

 

(b)                                 references to (or to any
specified provision of) this Deed or any other agreement or document shall be
construed as references to this Deed, that provision, that agreement or that
document as in force for the time being and as from time to time amended,
supplemented, varied, extended, restated, replaced or novated in accordance with
the terms thereof, or, as the case may be, with the agreement of the relevant
parties and (where such consent is, by the terms of any Security Document or
the relevant document, required to be obtained as a condition to such amendment
being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule,
directive, requirement, request or guideline (whether or not having the force
of law) of any agency, authority, central bank or government department or any
self-regulatory or other national or supra-national authority;

 

(d)                                 words importing the plural
shall include the singular and vice versa;

 

(e)                                  references to a time of day
are to London time;

 

(f)                                    references to a “person” shall be construed as including references to an
individual, firm, company, corporation, unincorporated body of persons or any
state or any agency thereof and that person’s successors in title;

 

(g)                                 references to a “guarantee” include references to an indemnity or other
assurance against financial loss including, without limitation, an obligation
to purchase assets or services as a consequence of a default by any other
person to pay any Indebtedness and “guaranteed”
shall be construed accordingly;

 

7

 

(h)                                 references to any enactment
shall be deemed to include references to such enactment as re-enacted, amended
or extended;

 

(i)                                     references to “business” in relation to the Chargor means any business
referred to in the definition of Group Business in the Relevant Facilities
Agreement which the Chargor engages in, and references to “ordinary
course of business” in relation to the Chargor shall be similarly
construed.

 

1.6                                 Implied
Covenants

 

In accordance with Rule 68
of the Land Registration Rules 2003:

 

(a)                                  the covenants set out in
section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994
shall extend to Clauses 3.1 (Fixed Charge),
3.2 (Assignments) and 3.4 (Floating Charge) save for the words “other than any charges,
encumbrances or rights which that person does not and could not reasonably be
expected to know about”; and

 

(b)                                 the covenants set out in
section 3(2) of the Law of Property (Miscellaneous Provisions) Act 1994
shall extend to Clauses 3.1 (Fixed Charge),
3.2 (Assignments) and 3.4 (Floating Charge) save for the words “except to the extent
that such liabilities and rights are, by reason of (a) being, at the time
of the disposition, only potential liabilities and rights in relation to the
property or (b) being liabilities and rights imposed or conferred in
relation to property generally, not such as to constitute defects in title”;
and

 

(c)                                  the covenants set out in
section 6(2) of the Law of Property (Miscellaneous Provisions) Act 1994,

 

shall not extend to
Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge).

 

1.7                                 Nominees

 

If the Security Trustee
requires shares or any other asset to be registered in the name of a nominee
for the Security Trustee, any reference in this Deed to the Security Trustee
shall, if the context so permits or requires, be construed as a reference to
each of the Security Trustee and such nominee.

 

1.8                                 Third
Party Rights

 

A person which is not a
party to this Deed (a “third party”)
shall have no rights to enforce the provisions of this Deed save for:

 

(a)                                  those rights it would have had
if the Contracts (Rights of Third Parties) Act 1999 had not come into effect;
and

 

(b)                                 a person who is a co-trustee
(with the Security Trustee) for the Beneficiaries under the Security Trust Agreement  whether or not it is a party to the Security Trust Agreement.

 

8

 

provided also that this
Deed may be rescinded or altered without the consent of any third party
referred to in paragraph (b) of this Clause 1.8.

 

1.9                                 Effect as
a Deed

 

This Deed is intended
to take effect as a deed notwithstanding that the Security Trustee or any other
party hereto may have executed it under hand only.

 

1.10                           Group
Intercreditor Deed

 

This Debenture should
be read and construed subject to the terms of the Group Intercreditor
Deed.  In the event of any inconsistency
between the terms of this Deed and the Group Intercreditor Deed, the terms of
the Group Intercreditor Deed shall prevail.

 

1.11                           Secured
Obligations

 

It is acknowledged and
agreed that (without prejudice to the extension of the Secured Obligations to
any other Indebtedness from time to time included within the definition
thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)                                  all Liabilities under the
Senior Facilities Agreement; and

 

(b)                                 all Liabilities under the
Senior Secured Notes Documents.

 

2.                                      SECURED
OBLIGATIONS

 

2.1                                 Covenant
to Pay

 

The Chargor hereby
covenants that it will on demand made on it by the Security Trustee pay to the
Security Trustee for the account of the relevant Beneficiaries any Secured
Obligation which is due and payable but unpaid provided
that before any such demand is made on a Restricted Guarantor,
demand for payment of the relevant Secured Obligation shall first have been
made on the Borrower from which such unpaid Secured Obligation is due.

 

2.2                                 Statements
of Account

 

Any statement of
account of a Chargor, signed as correct by an officer of the Security Trustee,
showing the amount of any Secured Obligations of the Chargor shall be prima
facie evidence as to the amount of the Secured Obligations of the Chargor from
time to time.

 

2.3                                 No
Security

 

The Chargor warrants
that it has not taken or received, and undertakes that until all the Secured
Obligations have been paid or discharged in full it will not, without the
consent in writing of the Security Trustee, take or receive any security from
any other person in respect of its obligations under this Deed.

 

9

 

2.4                                 Payments
by the Chargors

 

All payments to be made
by the Chargor under this Deed shall be made in full, without any set-off or
counterclaim whatsoever and free and clear of any deductions or withholdings in
the relevant currency on the due date to such account as the Security Trustee may
from time to time specify.

 

3.                                      CHARGES

 

3.1                                 Fixed
Charge

 

Each Chargor, with full
title guarantee and as continuing security for the payment, discharge and
performance of the Secured Obligations, hereby charges in favour of the
Security Trustee to hold the same on trust for the Beneficiaries on the terms
set out in the Group Intercreditor Deed
and the Security Trust Agreement:

 

(a)                                  by way of first legal
mortgage, all of the Charged Land and all other Real Property now vested in the
Chargor and the proceeds of sale of all or any part thereof;

 

(b)                                 by way of first fixed charge
(but in the case of paragraphs (iii) and (iv) only if and to the
extent the rights in question have not been effectively assigned pursuant to
Clause 3.2 (Assignments) or such rights have
been effectively assigned but such assignment has not been perfected by the
service of the appropriate Notice of Assignment):

 

(i)                                     to the extent not effectively
charged pursuant to Clause 3.1(a) (Fixed Charge),
all estates or interests in any Real Property (whether such interests are
freehold, leasehold or licenses) vested in, or acquired by, it now or after the
date of this Deed and the proceeds of sale of all or any part thereof;

 

(ii)                                 to the extent not effectively
charged pursuant to Clauses 3.1(a) (Fixed Charge)
or 3.1(b)(i) (Fixed Charge),
all plant and machinery, equipment, computers, vehicles and other chattels
(excluding any for the time being forming part of the Chargor’s stock-in-trade
or work in progress) now or in the future owned by the Chargor or (to the
extent of such interest) in which the Chargor has an interest and the benefit
of all contracts and warranties relating to the same;

 

(iii)                              all Investments and all
Related Rights now or in the future beneficially and/or legally owned by the Chargor;

 

(iv)                             all of its rights, title,
interests and benefits in, to or in respect of the Insurances and all claims
(and proceeds) and returns of premiums to which the Chargor is now or may at
any future time become entitled;

 

(v)                                 any interest, claim or entitlement
of the Chargor in, to or in respect of any pension fund;

 

10

 

(vi)                             all the present and future
goodwill of the Chargor (including all brand names not otherwise subject to a
fixed charge or assignment under this Deed);

 

(vii)                          all of its rights, title,
interests and benefits in, to or in respect of all present and future licences,
consents and authorisations (statutory or otherwise) held in connection with
the business of the Chargor or the use of any asset of the Chargor and the
right to recover and receive all compensation which may at any time become
payable to it in respect of any such licence;

 

(viii)                       all its present and future
uncalled capital; and

 

(ix)                               all its present and future
patents, registered trade marks and registered designs (if any) including
applications for any of the same in any part of the world and including,
without limitation, the patents, registered designs and trade marks specified
in Schedule 4 (Registered, Intellectual Property
Rights).

 

3.2                                 Assignments

 

Subject to
Clause 3.3 (Non-Assignable Rights), the
Chargor with full title guarantee hereby assigns absolutely by way of
continuing security for the payment and discharge of the Secured Obligations to
the Security Trustee:

 

(a)                                  all its present and future
rights, title, benefit and interests under and in respect of the Intercompany
Indebtedness and any other amounts payable in respect thereof, including under
any other loan agreements from time to time entered into by the Chargor;

 

(b)                                 all of its rights, title,
interests and benefits in, to or in respect of the Insurances (including all
proceeds) and all claims and returns of premiums in respect thereof to which
the Chargor is now or may at any future time become entitled; and

 

(c)                                  to the extent not charged
under the provisions of Clause 3.1(b) (Fixed Charge)
all of its present and future Intellectual Property Rights.

 

3.3                                 Non-Assignable
Rights

 

The Chargor declares
that to the extent that any right, title, interest or benefit described in
Clause 3.2 (Assignments) is for any reason
not effectively assigned pursuant to Clause 3.2 (Assignments)
for whatever reason, the Chargor shall:

 

(a)                                  hold the benefit of the same
on trust for the Security Trustee as security for the payment and discharge of
the Secured Obligations; and

 

(b)                                 promptly notify the Security
Trustee of the same and the reasons therefor and thereafter take such steps as
the Security Trustee may reasonably require to attempt to remove any relevant
prohibition or other reason for such failure.

 

11

 

3.4                                 Floating
Charge

 

The Chargor with full
title guarantee hereby charges to the Security Trustee by way of first floating
charge and as a continuing security for the payment and discharge of the
Secured Obligations its undertaking and all its property, assets and rights
whatsoever and wheresoever both present and future, other than any property or
assets from time to time effectively charged by way of fixed charge or
assignment pursuant to Clauses 3.1 (Fixed Charge)
and 3.2 (Assignments) and including (without
limitation and whether or not so effectively charged) any of its property and
assets situated in Scotland, provided that, for the avoidance of doubt, the
floating charge shall not attach to any plant or machinery, or any interest
therein, which is the subject of a lease where the title thereto vests in the
relevant lessor and not the Chargor.  The
parties to this Deed agree that the floating charge created by this
Clause 3.4 is a qualifying floating charge for the purposes of paragraph
14 of schedule B1 to the Insolvency Act 1986.

 

3.5                                 Automatic
Conversion of Floating Charge

 

Notwithstanding
anything expressed or implied in this Deed, if:

 

(a)                                  the Chargor creates or
attempts to create any other Encumbrance over all or any of the Floating Charge
Assets without the prior consent in writing of the Security Trustee or
otherwise as permitted by the Senior Finance Documents;

 

(b)                                 any person levies or attempts
to levy any distress, execution, sequestration or other process against any of
the Charged Assets or takes any steps to enforce any rights against any of the
Floating Charge Assets; or

 

(c)                                  any meeting of the members of
the Chargor is convened to consider a resolution to wind up the Chargor or a
petition is presented or application made to wind up the Chargor,

 

the floating charge
created by Clause 3.4 (Floating Charge)
over the property or asset concerned shall thereupon automatically without
notice be converted into a fixed charge.  Nothing in this Clause 3.5 shall cause
the floating charge created by Clause 3.4 (Floating
Charge) to crystallise solely because a moratorium has been obtained
by any person in relation to the Chargor or any person has taken any steps with
a view to obtaining a moratorium in relation to the Chargor under Section 1A
and Schedule A1 of the Insolvency Act 1986.

 

3.6                                 Conversion
of Floating Charge by Notice

 

Notwithstanding
anything expressed or implied in this Deed, the Security Trustee shall be
entitled at any time by giving notice in writing to that effect to the Chargor
to convert the floating charge over all or any part of the Floating Charge
Assets into a fixed charge if and to the extent that the Security Trustee
reasonably considers the assets specified in such notice may be in danger of
being seized or sold under or pursuant to any form of distress or execution, or
may otherwise be in jeopardy or the Security Trustee otherwise considers
(acting reasonably) such conversion to be necessary or desirable to protect the
priority of the Security.

 

12

 

3.7                                 Subsequent
Encumbrances

 

If any Beneficiary
receives notice of any subsequent Encumbrance affecting the Charged Assets or
any part thereof, such Beneficiary may open a new account for the Chargor
concerned but if it does not do so then unless such Beneficiary gives express
written notice to the contrary to the Chargor it shall nevertheless be treated
as if it had opened a new account at the time when it received such notice and
as from that time all payments made by or on behalf of the Chargor to such
Beneficiary shall be credited or be treated as having been credited to the new
account and shall not operate to reduce the amount due from that Chargor to
such Beneficiary at the time when it received such notice.

 

3.8                                 Section 94(1)(c) Law
of Property Act 1925

 

The obligation on the
part of the Senior Lenders to make further advances to the Borrowers under the
Senior Facilities Agreement or on the part of any creditors under any other
Senior Finance Document, as the case may be, shall be deemed to be incorporated
in this Deed for the purposes of section 94(1)(c) Law of Property Act
1925.

 

3.9                                 Blocking
of Accounts

 

The Chargor irrevocably
and unconditionally agrees that at any time after the Enforcement Date if there
shall from time to time be any credit balance on any of its accounts with any
of the Beneficiaries, such Beneficiary shall have the absolute right to refuse
to permit such credit balance to be utilised or withdrawn by the Chargor
whether in whole or in part if and to the extent that at that time there are
outstanding any of the Secured Obligations.

 

3.10                           Dividends
and Voting Rights

 

Subject to
Clause 8.1 (The Investments), the Chargor
may, prior to the occurrence of an Event of Default which is continuing (a) exercise
all voting and other rights and powers attached to the Investments and (b) receive,
retain and deal with free from this Deed all dividends, distributions, interest
and other moneys paid on and received by it in respect of the Investments.

 

3.11                           Consents
of Third Parties

 

Notwithstanding
Clause 3.1 (Fixed Charge) or 3.4 (Floating Charge):

 

(a)                                  unless and until the Chargor
has obtained the consent of the relevant landlord and any other relevant party
(each being a “Consent”) the fixed and floating
charges granted pursuant to Clause 3.1 (Fixed Charge)
and 3.4 (Floating Charge) respectively shall not
extend to the Chargor’s rights over any Restricted Lease; and

 

13

 

(b)                                 unless the Chargor has
received written confirmation from the Security Trustee that a particular
Consent is not required, the Chargor hereby undertakes to use their reasonable
endeavours to obtain the Consents.  On obtaining
each Consent:

 

(i)                                    the relevant Restricted Lease
shall thereupon automatically become subject to the fixed charge created
pursuant to Clause 3.1 (Fixed Charge)
and the floating charge created pursuant to Clause 3.4 (Floating Charge); and

 

(ii)                                  the Chargor shall immediately
produce the Certificate or evidence of such Consent to the Security Trustee.

 

3.12                           Rule 3-16
Limitation

 

(a)                                  Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating
Charge) of this Deed notwithstanding, the Excluded Charged Assets
are not charged under this Deed to secure the Designated Secured
Obligations.  For the avoidance of doubt,

 

(i)                                    all other Charged Assets
remain charged or assigned (as the case may be) under this Deed to secure all
Secured Obligations, including without limitation the Designated Secured
Obligations; and

 

(ii)                                 such Excluded Charged Assets
remain charged under Clause 3.1 (Fixed Charge)
and Clause 3.4 (Floating Charge) of this Deed to
secure any Secured Obligations that are not Designated Secured Obligations.

 

(b)                                 “Excluded
Charged Assets” in relation to any Designated Secured Obligations
means any Shares or other securities of a Subsidiary of Virgin Media Inc.
(excluding the Shares or other securities issued by Virgin Media Investments
Limited and Virgin Media Investment Holdings Limited or, in each case, any
successor entity upon any merger, reorganisation or other restructuring
effecting it) that are owned by the Chargor to the extent that charging or
pledging such Shares or other securities under this Deed to secure such
Designated Secured Obligations would result in Rule 3-16 requiring
separate financial statements of such Subsidiary to be filed with the SEC, but (i) only
to the extent necessary to not be subject to such requirement, (ii) only
for so long as such requirement is in existence and (iii) only if no
member of the Group files or is otherwise required to file separate financial
statements of such Subsidiary with the SEC under a separate rule or
regulation; provided that no shares or securities
will constitute Excluded Charged Assets if any member of the Group takes any
action in the form of a reorganisation, merger or other restructuring, a
principal purpose of which is to provide for the limitation of the charge on
any Shares or other securities pursuant to paragraph (a) above.

 

(c)                                  In the event that Rule 3-16
is amended, modified or interpreted by the SEC to require (or is replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would require) the filing with the SEC (or any 

 

14

 

other United States federal or state governmental agency) of separate
financial statements of any such Subsidiary due to the fact that such
Subsidiary’s Shares or other securities secure any Designated Secured Obligations,
then such Shares or other securities (as applicable) of such Subsidiary shall
automatically be deemed to be Excluded Charged Assets for such Designated
Secured Obligations but (i) only to the extent necessary to not be subject
to any such financial statement requirement, (ii) only for so long as such
financial statement requirement would otherwise have been applicable to such
Subsidiary and (iii) only if no member of the Group files or is otherwise
required to file separate financial statements of such Subsidiary with the SEC
or such other governmental agency under a separate rule or regulation. If
the circumstances described in this paragraph (c) apply, this Deed may be
amended or modified, without the consent of any Senior Finance Party, to the extent
necessary to release the charge (but only to the extent securing such
Designated Secured Obligations and without prejudice to the charge securing
Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.12)
in favour of the Security Trustee on the relevant Shares and/or other
securities that are so deemed to constitute Excluded Charged Assets.

 

(d)                                 In the event that Rule 3-16
is amended, modified or interpreted by the SEC to permit (or is replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would permit) such Subsidiary’s Shares and/or other securities
to secure any Designated Secured Obligations in excess of the amount then
pledged without the filing with the SEC (or any other United States federal or
state governmental agency) of separate financial statements of such Subsidiary,
then the Shares or other securities (as applicable) of such Subsidiary will
automatically be deemed not to be Excluded Charged Assets for such Designated
Secured Obligations, but limited to the extent necessary to not be subject to
any such financial statement requirement. If the circumstances described in
this paragraph (d) apply, this Deed may be amended or modified, without
the consent of any Senior Finance Party, to the extent necessary to charge in
favour of the Security Trustee such additional Shares or other securities that
were deemed to constitute Excluded Charged Assets.

 

4.                                      SET-OFF

 

4.1                                 Set-off

 

The Chargor hereby
agrees that after the Enforcement Date the Security Trustee and/or each other
Beneficiary may at any time without notice, notwithstanding any settlement of
account or other matter whatsoever, combine or consolidate all or any of its
then existing accounts wheresoever situate (including accounts in the name of
the Security Trustee, such other Beneficiary or of the Chargor jointly with
others), whether such accounts are current, deposit, loan or of any other
nature whatsoever, whether they are subject to notice or not and whether they
are denominated in Sterling or in any other currency, and set-off or transfer
any sum standing to the credit of any one or more such accounts in or towards
satisfaction of the Secured Obligations owed to the Security Trustee and/or
such other Beneficiary which, to the extent not then payable, shall
automatically become payable to the extent necessary to effect such set-off.

 

15

 

4.2                                 Purchase
of Currencies

 

For the purpose of
Clause 4.1 (Set-Off), the Chargor authorises
the Security Trustee and each other Beneficiary to purchase with the moneys
standing to the credit of such accounts such other currencies as may be
necessary to effect such applications at the spot rate of exchange (as, save in
the case of manifest error, conclusively determined by the Security Trustee or
the relevant other Beneficiary) prevailing in the London foreign exchange
market for purchasing Sterling with the currency in which the sum standing to
the credit of the relevant account is denominated.

 

5.                                      UNDERTAKINGS

 

5.1                                 Undertakings

 

The Chargor hereby
undertakes with the Security Trustee that during the continuance of this
security the Chargor will:

 

(a)                                  Deposit of
deeds

 

deposit with the
Security Trustee (to be held at the risk of the Chargor save where the Chargor
suffers any loss, costs or expenses as a result of the Security Trustee’s gross
negligence or wilful default):

 

(i)                                     all certificates and documents
of title relating to its Investments and such deeds of transfer in blank and
other documents as the Security Trustee may from time to time reasonably
require for perfecting the title of the Security Trustee to such Investments
(duly executed by or signed on behalf of the registered holder) or for vesting
or enabling it to vest the same in itself or its nominees or in any purchaser;
and

 

(ii)                                  all such other documents
relating to its Charged Assets as are in its possession or which it can
reasonably obtain as the Security Trustee may from time to time reasonably
require,

 

(b)                                 Calls, etc

 

duly and promptly pay
all calls, instalments or other moneys which may from time to time become due
in respect of any of its Investments it being acknowledged by the Chargor that
neither the Security Trustee nor any of the Beneficiaries shall in any
circumstances incur any liability whatsoever in respect of any such calls,
instalments or other moneys;

 

(c)                                  Provision of
information

 

forthwith inform the
Security Trustee of any claim or notice relating to the Investments received
from any other party and likely to materially prejudice the value of the
Investments and of all matters relevant thereto;

 

(d)                                 Purchase of
shares

 

not, save as otherwise
permitted or not restricted under each of the Senior Finance Documents,
(without the prior consent in writing of the Security 

 

16

 

Trustee) redeem or
purchase any of its own shares or pay any dividend, other than a dividend
permitted or not restricted to be paid under each of the Senior Finance
Documents;

 

(e)                                  Options

 

save to the extent
expressly permitted or not restricted under each of the Senior Finance
Documents not, without the prior consent of the Security Trustee, grant any
option with respect to any of the Investments;

 

(f)                                    Notification

 

forthwith inform the
Security Trustee of any material claims or notice relating to any Assigned
Assets received from any other party and all other matters relevant or in any
way material thereto;

 

(g)                                 Reports

 

ensure that the Chargor
reports to the Security Trustee on a monthly basis as to whether the Consents
referred to in Clause 3.11 (Consents of Third Parties)
have been obtained, such reports to be provided until the earlier of (i) all
of the Consents having been obtained, or (ii) the Chargor confirming that
the same will not be provided;

 

(h)                                 Notice of
assignment

 

deliver to the Security
Trustee, or procure the delivery to the Security Trustee of, a duly executed
Notice of Assignment to each relevant party in relation to the Assigned Assets,
and will use reasonable endeavours to procure delivery to the Security Trustee
of duly executed Acknowledgments thereof until (in each case) requested to do
so by the Security Trustee upon or following the occurrence of an Event of
Default which is continuing whereupon it shall do so forthwith;

 

(i)                                     Insurances

 

(i)                                     procure that a note of the
interest of the Security Trustee is endorsed, and the Security Trustee is
endorsed as loss payee, upon all Insurances (other than those referred to in
Clause 10.2(c) (Insurance Proceeds))
which shall at any time during the subsistence of this Security be effected,
maintained or held by the Chargor or any person; and

 

(ii)                                  not do or omit to do, or
permit or suffer to be done or omitted to be done, anything which might render
any of the Insurances void, voidable or unenforceable;

 

(j)                                     Intellectual
Property

 

if requested by the
Security Trustee, execute all such documents and do all acts that the Security
Trustee may reasonably require to record the interest of the Security Trustee
in any registers relating to any registered Intellectual Property owned by the
Chargor.

 

17

 

5.2                                 Power to
Remedy

 

If the Chargor at any
time defaults in complying with any of its obligations contained in this Deed,
the Security Trustee shall, without prejudice to any other rights of the
Security Trustee arising as a consequence of such default, be entitled (but not
bound) to make good such default and the Chargor hereby irrevocably authorises
the Security Trustee and its employees and agents by way of security to do all
such things (including, without limitation, entering the Chargor’s property having
given such notice as is reasonable in the circumstances) necessary or
reasonably desirable in connection therewith. 
Any moneys so expended by the Security Trustee shall be repayable by the
Chargor to the Security Trustee within 30 days of demand together with interest
at the Default Rate from the date being 30 days after the date of demand until
such repayment, both before and after judgment. 
No exercise by the Security Trustee of its powers under this Clause 5.2
shall make it or any of the Beneficiaries liable to account as a mortgagee in
possession.

 

6.                                      REAL
PROPERTY: PERFECTION

 

6.1                                 Modification
of Law of Property (Miscellaneous Provisions) Act 1994

 

Section 3(1) of
the Law of Property (Miscellaneous Provisions) Act 1994 will be amended as
follows (in so far as it applies to Clause 3 (Charges)):

 

(a)                                  after “from all charges and
encumbrances (whether monetary or not)” add “other than Permitted Encumbrances”
and after the words “other than any charges, encumbrances or rights which that
person does not and would not reasonably be expected to know about” add “but
not so as to include any such charges, encumbrances or rights affecting the
Charged Land disclosed by the following searches:

 

(i)                                    in the case of registered
Charged Land listed in Part 1A of Schedule 3 (Details of
Charged Land), OS1/2 Land Registry searches; and

 

(ii)                                 in relation to the
unregistered Charged Land listed in Part 1B of Schedule 3 (Details of Charged Land), land charges searches made against
all relevant estate owners since the date of the grant of the relevant lease or
as the case may be the date of the root conveyance.”

 

6.2                                 Notices
of Charge in respect of Charged Land

 

The Chargor which owns
or leases Charged Land shall (unless an alternative course of action is agreed
between the Chargor and the Security Trustee) deliver to the Security Trustee
(or procure delivery of) notices of charge duly executed by, or on behalf of,
the Chargor, together with all relevant fees and addresses, in relation to all
landlords from which the Chargor leases any Charged Land owned or leased by the
Chargor in respect of each Lease under which the Chargor leases such Charged
Land in existence on the date hereof, as soon as reasonably practicable
following execution of this Deed and in each case shall use all reasonable
endeavours to procure that each notice is acknowledged by the relevant
landlord.  The Chargor shall have no
liability in the event that, having used such reasonable endeavours, the
relevant landlord refuses to give such acknowledgement.

 

18

 

6.3                                 Real
Property: Delivery of Documents of Title

 

(a)                                 The Chargor shall (unless an
alternative course of action is agreed between the Chargor and the Security
Trustee) in respect of all Charged Land set out in 1B of Schedule 3 (Details of Charged Land) (if any), as soon as reasonably
practicable after the execution of this Deed, deliver (or procure delivery) to
the Security Trustee of, and the Security Trustee shall be entitled to hold and
retain, all deeds, certificates and other documents of title relating to such
property.

 

(b)                                The Chargor shall not be in
breach of this Clause 6.3 if it does not deliver any such documents on
account of its not having possession of the same provided that it uses all reasonable endeavours to obtain any such
document and delivers such document promptly to the Security Trustee upon
receipt.

 

6.4                                 Land
Registration

 

In respect of the
Charged Land the title to which is registered at the Land Registry and Real
Property which is acquired by or on behalf of the Chargor, the title to which
is required to be registered at the Land Registry under the Land Registration
Act 2002 the parties hereto agree to make or procure that there is made a due
and proper application to the Land Registry (with the Security Trustee’s
consent as proprietor of the relevant registered charge):

 

(a)                                  for a restriction in the
following terms to be entered on the Proprietorship Register relating thereto:

 

“No disposition of the
registered estate by the proprietor of the registered estate or by the
proprietor of any registered charge is to be registered without a written
consent signed by the proprietor for the time being of the charge dated [insert date] in favour of [insert name of Security Trustee] referred to in the Charges Register or
signed on such proprietor’s behalf by its secretary or conveyancer”;

 

(b)                                 to enter a note of the
obligation to make further advances by the Beneficiaries on the Charges
Register of any registered land forming part of the Charged Assets; and

 

(c)                                  to note this Deed on the
Charges Register.

 

7.                                      FURTHER
ASSURANCE

 

7.1                                 Further
Assurance

 

The Chargor shall at
any time if and when required by the Security Trustee execute such further
Encumbrances and assurances in favour of the Security Trustee and/or the
Beneficiaries and do all such acts and things as the Security Trustee shall
from time to time reasonably require over or in relation to all or any of the
Charged Assets to secure the Secured Obligations or to perfect or protect the security
intended to be created by this Deed over the Charged Assets or any part thereof
or, on or after the Enforcement Date, to facilitate the realisation of the
same.

 

19

 

7.2                                 Certain
Documentary Requirements

 

Such further
Encumbrances and assurances shall be prepared by or on behalf of the Security
Trustee at the expense of the Chargor (such expense to be reasonable and
properly incurred) and shall contain (a) an immediate power of sale
without notice, (b) a clause excluding section 93 Law of
Property Act 1925 and the restrictions contained in section 103 Law of
Property Act 1925 and (c) such other clauses for the benefit of the
Beneficiaries as the Security Trustee may reasonably require.

 

7.3                                 Specific
Security Documents Required

 

The Chargor covenants
with the Security Trustee that after the Enforcement Date if and when required
by the Security Trustee (acting reasonably) it will to give notice in a form
acceptable to the Security Trustee to such persons as the Security Trustee may
require of the security over all or any part of the Charged Assets constituted
by this Deed or granted pursuant to it.

 

8.                                      CERTAIN
POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

8.1                                 The
Investments

 

The Chargor further
covenants and agrees with the Security Trustee that:

 

(a)                                  the Security Trustee and its
nominees at the discretion of the Security Trustee may after an Event of
Default has occurred and so long as the same is continuing, exercise in the
name of the Chargor or otherwise at any time whether before or after demand for
payment and without any further consent or authority on the part of the Chargor
(but subject to Clause 8.1(d) in respect of the Investments), any
voting rights and/or powers given to trustees by section 10(3) and (4) Trustee
Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect
of securities or property subject to a trust and any powers or rights which may
be exercisable by the person in whose name any of the Investments are
registered or by the bearer thereof;

 

(b)                                 the Chargor will if so
requested by the Security Trustee after an Event of Default has occurred and so
long as the same is continuing transfer all or any of the Investments to the
Security Trustee or such nominees or agents as the Security Trustee may select,
provided that, for the avoidance of doubt, the Security Trustee may not request
any such transfer prior to the occurrence of an Event of Default;

 

(c)                                  until the Enforcement Date,
the Security Trustee will hold all dividends, distributions, interest and other
moneys paid on and received by it in respect of any Investments which are
transferred to it pursuant to Clause 8.1(b) for the account of the
Chargor; and

 

(d)                                 until the Enforcement Date the
Security Trustee will exercise all voting and other rights and powers attached
to the Investments which are given to it pursuant to the Trustee Act 1925 (as
referred to in Clause 8.1(a) of this Deed) or which relate to the
Investments which are transferred to it pursuant to 

 

20

 

Clause 8.1(b) as the Chargor may from time to time in writing
direct provided that the Security Trustee shall be under no obligation to
comply with any such direction where compliance would, in the Security Trustee’s
reasonable opinion, be prejudicial to the security created by this Deed or to
the interests of the Beneficiaries in relation to the relevant assets.

 

8.2                                 Power of
Sale

 

At any time on or after
the Enforcement Date, the Security Trustee may (without notice to the Chargor)
sell or otherwise dispose of the Charged Assets or any of them and shall be
entitled to apply the proceeds of such sale or other disposal in paying the
costs of such sale or disposal and thereafter in or towards the discharge of
the Secured Obligations or otherwise as provided for in this Deed.

 

8.3                                 Statutory
Powers

 

For the purposes of all
powers implied by statute, the Secured Obligations shall be deemed to have
become due and payable on the date of this Deed.

 

8.4                                 Law of
Property Act

 

At any time on or after
the Enforcement Date or if requested by the Chargor, the Security Trustee may,
without further notice, without the restrictions contained in sections 93 and
103 of the Law of Property Act 1925 and whether or not a Receiver shall have
been appointed, exercise all the powers conferred upon mortgagees by the Law of
Property Act 1925 as varied or extended by this Deed and all the powers and
discretions conferred by this Deed on a Receiver either expressly or by reference
and also, in the case of the Investments, all rights or powers which may be
exercisable by the registered holder or beneficial owner of the same.

 

8.5                                 Statutory
Power of Leasing

 

The statutory powers of
leasing conferred on the Security Trustee shall be extended so as to authorise
the Security Trustee to lease and make agreements for leases at a premium or
otherwise, to accept surrenders of leases and to grant options on such terms as
the Security Trustee shall consider expedient and without the need to observe
any of the provisions of sections 99 and 100 Law of Property Act 1925, and
Clause 8.2 (Power of Sale) shall operate as a
variation and extension of section 101 of such Act.

 

8.6                                 Distributions

 

On or after the
Enforcement Date all dividends, interest and other distributions relating to
the Investments may be applied by the Security Trustee as though they were
proceeds of sale under this Deed.

 

21

 

8.7                                 Realisation
Accounts

 

If the Security Trustee
(whether by the appointment of a Receiver or otherwise) enforces the Security
the Security Trustee (or such Receiver) may:

 

(a)                                  open and maintain with such
bank or banks (or other financial institutions) as it thinks fit one or more
Realisation Accounts;

 

(b)                                 pay the proceeds of any
recoveries effected by it into any such number of Realisation Accounts as it
considers appropriate; and

 

(c)                                  subject to the payment of any
claims having priority to this Security, withdraw amounts standing to the
credit of the Realisation Accounts to:

 

(i)                                     discharge all costs, charges
and expenses incurred and payments made by the Security Trustee (or such
Receiver) in the course of such enforcement;

 

(ii)                                  pay remuneration to the
Receiver as and when the same becomes due and payable; and

 

(iii)                               discharge the Secured
Obligations as and when the same become due and payable.

 

8.8                                 Right of
Appropriation

 

To the extent the
Charged Assets constitute “financial collateral” and this Deed constitutes a “security
financial collateral arrangement” (as defined in the Financial Collateral
Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) the Security
Trustee may appropriate all or any part of the Charged Assets in or towards
satisfaction of the Secured Obligations, the value of the assets so appropriated
being such amount as the Security Trustee shall determine in a commercially
reasonable manner.

 

9.                                      APPOINTMENT
AND POWERS OF RECEIVER OR ADMINISTRATOR

 

9.1                                 Appointment
of Administrator

 

At any time on or after
the Enforcement Date the Security Trustee may appoint an administrator pursuant
to the power contained in paragraph 14 of Schedule B1 to the Insolvency Act
1986.

 

9.2                                 Appointment
of Receivers

 

The Security Trustee
may at any time on or after the Enforcement Date or if the Chargor requests it
to do so, by written instrument and without notice to the Chargor, appoint any
one or more persons as Receiver of such part of the Charged Assets as may be
permitted by law, each such person being entitled to act individually as well
as jointly and being for all purposes deemed to be the agent of the Chargor and
shall as such agent be deemed to be in the same position as a Receiver duly
appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by
writing under its hand remove any Receiver appointed by it and may, 

 

22

 

whenever it may deem
expedient, appoint a new Receiver in the place of any Receiver whose
appointment may for any reason have terminated.

 

9.3                                 Receiver
as Agent

 

A Receiver shall be the
agent of the Chargor and (subject to the provisions of this Deed) the Chargor
shall be solely responsible for his acts or defaults and for his remuneration.

 

9.4                                 Powers of
Receiver

 

A Receiver shall have
all the powers conferred from time to time on receivers and administrative
receivers by statute (in the case of powers conferred by the Law of Property
Act 1925, without the restrictions contained in section 103 of that Act) and
power on behalf and at the expense of the Chargor (notwithstanding liquidation
of the Chargor) to do or omit to do anything which the Chargor could do or omit
to do in relation to the Charged Assets or any part thereof.  In particular (but without limitation) a
Receiver shall have power to do all or any of the following acts and things:

 

(a)                                  Take
possession

 

take possession of,
collect and get in all or any of the Charged Assets and exercise in respect of
the Investments, all voting or other powers or rights available to a registered
holder thereof in such manner as he may think fit;

 

(b)                                 Carry on
business

 

carry on, manage,
develop, reconstruct, amalgamate or diversify the business of the Chargor or
any part thereof or concur in so doing; lease or otherwise acquire and develop
or improve properties or other assets without being responsible for loss or
damage subject to the terms of this Deed;

 

(c)                                  Borrow money

 

raise or borrow any
money from or incur any other Liability to the Security Trustee or the
Beneficiaries or others on such terms with or without security as he may think
fit and so that any such security may be or include a charge on the whole or
any part of the Charged Assets ranking in priority to this security or
otherwise;

 

(d)                                 Dispose of
assets

 

without the
restrictions imposed by section 103 Law of Property Act 1925 or the need
to observe any of the provisions of sections 99 and 100 of such Act, sell by
public auction or private contract, let, surrender or accept surrenders, grant
licences or otherwise dispose of or deal with all or any of the Charged Assets
or concur in so doing in such manner for such consideration and generally on
such terms and conditions as he may think fit with full power to convey, let,
surrender, accept surrenders or otherwise transfer or deal with such Charged
Assets in the name and on behalf of the Chargor or otherwise and so that
covenants and contractual obligations may be granted and assumed 

 

23

 

in the name of and so
as to bind the Chargor (or other estate owner) if he shall consider it
necessary or expedient so to do; any such sale, lease or disposition may be for
cash, debentures or other obligations, shares, stock, securities or other
valuable consideration and be payable immediately or by instalments spread over
such period as he shall think fit and so that any consideration received or
receivable shall ipso facto forthwith be and become charged with the payment of
all the Secured Obligations; plant, machinery and other fixtures may be severed
and sold separately from the premises containing them and the Receiver may
apportion any rent and the performance of any obligations affecting the
premises sold without the consent of the Chargor;

 

(e)                                  Form Subsidiaries

 

promote the formation
of companies with a view to the same becoming a Subsidiary of the Chargor and
purchasing, leasing, licensing or otherwise acquiring interests in all or any
of the Charged Assets or otherwise, arrange for such companies to trade or
cease to trade and to purchase, lease, license or otherwise acquire all or any
of the Charged Assets on such terms and conditions whether or not including
payment by instalments secured or unsecured as he may think fit;

 

(f)                                    Compromise
contracts

 

make any arrangement or
compromise or enter into or cancel any contracts which he shall think
expedient;

 

(g)                                 Repair and
maintain assets

 

make and effect such
repairs, renewals and improvements to the Charged Assets or any part thereof as
he may think fit and maintain, renew, take out or increase insurances;

 

(h)                                 Appoint
employees

 

appoint managers,
agents, officers and employees for any of the purposes referred to in this
Clause 9 or to guard or protect the Charged Assets at such salaries and
commissions and for such periods and on such terms as he may determine and may
dismiss the same;

 

(i)                                     Exercise
statutory leasehold powers

 

without any further
consent by or notice to the Chargor exercise for and on behalf of the such
Chargor all the powers and provisions conferred on a landlord or a tenant by
the Landlord and Tenant Acts, the Rent Acts, the Housing Acts or the
Agricultural Holdings Act or any other legislation from time to time in force
in any relevant jurisdiction relating to rents or agriculture in respect of any
part of the Charged Assets but without any obligation to exercise any of such
powers and without any liability in respect of powers so exercised or omitted
to be exercised;

 

24

 

(j)                                     Make calls
and legal proceedings

 

make calls
conditionally or unconditionally on the members of the Chargor in respect of
uncalled capital and institute, continue, enforce, defend, settle or
discontinue any actions, suits or proceedings in relation to the Charged Assets
or any part thereof or submit to arbitration as he may think fit;

 

(k)                                  Execute
documents

 

sign any document,
execute any deed and do all such other acts and things as may be considered by
him to be incidental or conducive to any of the matters or powers aforesaid or
to the realisation of the security of the Security Trustee and the
Beneficiaries and to use the name of the Chargor for all the purposes
aforesaid;

 

(l)                                     Insolvency
Act powers

 

do all the acts and
things described in schedules 1 or 2 to the Insolvency Act 1986 as if the words
“he” and “him” referred to the Receiver and “company” referred to the Chargor;
and

 

(m)                               General
Powers

 

do all such other acts
and things as it may consider desirable or necessary for realising all or any
part of the Charged Assets over which he is appointed or incidental or conducive
to any of the matters, powers or authorities conferred on a Receiver under or
by virtue of this Deed; to exercise in relation to all or any part of the
Charged Assets over which he is appointed all such powers, authorities and
things as he would be capable of exercising if he were the absolute beneficial
owner of the same; and to use the name of the Chargor for all or any of such
purposes.

 

9.5                                 Remuneration
of Receiver

 

The Security Trustee
may from time to time determine the remuneration of any Receiver appointed by
it without the limitations imposed by section 109 of the Law of Property Act
1925.  A Receiver shall be entitled to
remuneration appropriate to the work and responsibilities involved upon the
basis of charging from time to time adopted by the Receiver in accordance with
the current practice of his firm.

 

10.                               APPLICATION
OF PROCEEDS; PURCHASERS

 

10.1                           Application
of Proceeds

 

All moneys received by
the Security Trustee or by any Receiver shall be applied, after the discharge
of the remuneration and expenses of the Receiver and all liabilities having
priority to the Secured Obligations, in or towards satisfaction of the Secured
Obligations in accordance with the terms of the Group Intercreditor Deed and
the Security Trust Agreement,
except that the Security Trustee may credit the same to a suspense account for
so long and in such manner as the Security Trustee may from time to time
determine and the Receiver may retain the same for such period as he and the
Security Trustee consider expedient.

 

25

 

10.2                           Insurance
Proceeds

 

With the exception of
those moneys:

 

(a)                                  which relate to a particular
claim and do not exceed £2,500,000;

 

(b)                                 are paid under third party
liability insurance to the relevant third party; or

 

(c)                                  which relate to (a) Insurances
of leasehold property or leasehold equipment in cases where the relevant lessor
is named as loss payee, and (b) Insurances in favour of lenders to any
member of the Group where the relevant borrowing is (A) a Permitted
Borrowing and (B) either a Finance Lease or secured by a Permitted
Encumbrance and (C) either the relevant lender is named as loss payee or
naming the Security Trustee would be contrary to the terms of the relevant
borrowing;

 

all moneys receivable
by virtue of any of the Insurances on or after the Enforcement Date shall be
paid to the Security Trustee (or if not paid by the insurers directly to the
Security Trustee shall be held on trust for the Security Trustee) and shall, at
the option of the Security Trustee, be (i) applied in replacing, restoring
or reinstating the property or assets destroyed, damaged or lost (any
deficiency being made good by the Chargor) or (ii) (except where the
Chargor is obligated (as landlord or tenant) to lay out such moneys under any
lease of any of the Charged Assets) credited (for a period not exceeding 30
days at the end of which period such moneys shall, at the option of the
Security Trustee, be applied in accordance with either (i) above or (iii) below)
to an account charged to the Security Trustee (on behalf of the Beneficiaries)
in a manner acceptable to the Security Trustee and at the cost of the Chargor
as a continuing security for the payment and discharge of the Secured
Obligations or (iii) (except where the Chargor is obliged (as landlord,
tenant, lessor or lessee) to lay out such insurance moneys under the provisions
of any lease of any of the Charged Assets) applied in reduction of the Secured
Obligations.  Without prejudice to the
foregoing provisions of this Clause 10 the Security Trustee agrees to
negotiate with the Chargor in good faith as to the application of any insurance
proceeds paid to or held on trust for the Security Trustee.

 

11.                               INDEMNITIES;
COSTS AND EXPENSES

 

11.1                           Enforcement
Costs

 

The Chargor hereby
undertakes with the Security Trustee to pay on demand all costs, charges and
expenses which the Security Trustee or any Receiver shall certify as sustained
or incurred by it as a consequence of the enforcement, preservation or
attempted preservation of any of the security created by or pursuant to this
Deed or any of the Charged Assets on a full indemnity basis, together with
interest at the Default Rate from the date falling 30 days after the date of
demand for payment of such expenses to the date of payment by the relevant
Chargor (both before and after judgment) provided that
before any such demand is made on a Restricted Guarantor, demand for payment of
such expenses shall first have been made on the Chargor which is not a
Restricted Guarantor.

 

26

 

11.2                           No
liability as Mortgagee in Possession

 

None of the
Beneficiaries, the Security Trustee or any Receiver shall be liable to account
as mortgagee or heritable creditor in possession in respect of all or any of
the Charged Assets or be liable for any loss upon realisation or for any
neglect or default of any nature whatsoever for which a mortgagee in possession
may be liable as such except in the case of fraud, wilful misconduct or gross
negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as
the case may be).

 

11.3                           Indemnity
from Charged Assets

 

The Beneficiaries, the
Security Trustee and any Receiver, attorney, agent or other person appointed by
the Security Trustee under this Deed and the directors, officers and employees
of each of the aforementioned (each an “Indemnified Party”)
shall be entitled to be indemnified out of the Charged Assets in respect of all
costs, losses, actions, claims, demands or liabilities whether in contract,
tort, delict or otherwise and whether arising at common law, in equity or by
statute which may be incurred by, or made against, any of them (or by or
against any manager, agent, officer or employee for whose liability, act or
omission any of them may be answerable) at any time relating to or arising
directly or indirectly out of or as a consequence of:

 

(a)                                  anything done or omitted in
the exercise or purported exercise of the powers contained in this Deed; or

 

(b)                                 any breach by the Chargor of
any of its obligations under this Deed; or

 

(c)                                  an Environmental Claim made or
asserted against an Indemnified Party which would not have arisen if this Deed
had not been executed and which was not caused by the negligence or wilful
default of the relevant Indemnified Party,

 

in each case, except in
the case of fraud, wilful misconduct or gross negligence on the part of an
Indemnified Party.

 

11.4                           Powers of
the Security Trustee

 

To the fullest extent
permitted by law, all or any of the powers, authorities and discretions of a
Receiver in respect of the Charged Assets may, if a Receiver has been or could
have been appointed, be exercised by the Security Trustee in relation to the
whole or any part of the Charged Assets whether or not a Receiver is or has
been appointed.

 

12.                               ENFORCEMENT

 

12.1                           When
Enforceable

 

If (and only if) the
Enforcement Date has occurred then the charges created pursuant to this Deed
shall become enforceable.  Section 103
Law of Property Act 1925 shall not apply in respect of any Charged Assets.

 

27

 

12.2                           Authority

 

No purchaser or other
person shall be bound or concerned to see or enquire whether the right of the
Security Trustee or any Receiver to exercise any of the powers conferred by
this Deed has arisen or not or be concerned with notice to the contrary or with
the propriety of the exercise or purported exercise of such powers.

 

13.                               POWER OF
ATTORNEY

 

13.1                           Power of
Attorney

 

The Chargor, by way of
security for the performance of its obligations under this Deed, hereby
irrevocably appoints each of the Security Trustee and any Receiver of all or
any part of the Charged Assets and their respective delegates and sub-delegates
each to be its attorney acting severally (or jointly with any other such
attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or
after the Enforcement Date any documents or instruments which the Security
Trustee or such Receiver may require for perfecting the title of the Security
Trustee to the Charged Assets or for vesting the same in the Security Trustee,
its nominees or any purchaser;

 

(b)                                 to sign, execute, seal and
deliver and otherwise perfect any further security document or notice referred
to in Clause 6 (Real Property: Perfection)
in accordance with the terms thereof; and

 

(c)                                  otherwise generally on or
after the Enforcement Date to sign, seal, execute and deliver all deeds,
assurances, agreements and documents and to do all acts and things which may be
required for the full exercise of all or any of the powers conferred on the
Security Trustee or a Receiver under this Deed or which may be deemed expedient
by the Security Trustee or a Receiver in connection with any disposition,
realisation or getting in by the Security Trustee or such Receiver of the
Charged Assets or any part thereof or in connection with any other exercise of
any power under this Deed.

 

13.2                           Ratification

 

The Chargor ratifies
and confirms and agrees to ratify and confirm all acts and things which any
attorney as is mentioned in Clause 13.1 (Power of
Attorney) shall do or purport to do in the exercise of his powers
under such clause.

 

13.3                           General
Power

 

This appointment shall
operate as a general power of attorney under section 10 of the Powers of
Attorney Act 1971 and the Chargor hereby covenants with the Security Trustee and
separately with any such Receiver to ratify and confirm any document, act or
thing and all transactions which any such attorney may lawfully execute or do.

 

28

 

14.                               CONTINUING
SECURITY AND OTHER MATTERS

 

14.1                           Continuing
Security

 

This Deed and the
obligations of the Chargor under this Deed shall:

 

(a)                                  secure the ultimate balance of
the Secured Obligations from time to time owing notwithstanding the
dissolution, bankruptcy, liquidation or other Incapacity or any change in the
constitution of the Chargor or in the name or style thereof and shall be a
continuing security notwithstanding any settlement of account or other matter
whatsoever;

 

(b)                                 be in addition to, and shall
not merge with or otherwise prejudice or affect, any present or future Security
Document, Encumbrance, right or remedy held by or available to the
Beneficiaries or any of them and/or the Security Trustee and may be enforced
notwithstanding the same; and

 

(c)                                  not merge with or be in any
way prejudiced or affected by the existence of any such Security Documents,
Encumbrance, rights or remedies or by the same being or becoming wholly or in
part void, voidable or unenforceable on any ground whatsoever or by the
Beneficiaries or any of them and/or the Security Trustee dealing with,
exchanging, releasing, varying or failing to perfect or enforce any of the
same, or giving time for payment or indulgence or compounding with any other
person liable.

 

14.2                           Security
Documents

 

Neither the Security
Trustee nor any of the Beneficiaries shall be obliged to resort to any other
Security Documents or other means of payment now or hereafter held by or
available to it before enforcing this Deed and no action taken or omitted by
the Security Trustee or any of the Beneficiaries in connection with any such
Security Document or other means of payment shall discharge, reduce, prejudice
or affect the liability of the Chargor nor shall the Security Trustee or any of
the Beneficiaries be obliged to account for any money or other property
received or recovered in consequence of any enforcement or realisation of any
such Security Document or other means of payment.

 

14.3                           New
Accounts

 

Notwithstanding that
any charge hereby created ceases to be continuing for any reason whatsoever the
Security Trustee or any of the Beneficiaries may continue any account of any
Chargor or other Security Provider or open one or more new accounts and the
liability of each Chargor hereunder shall not in any manner be reduced or
affected by any subsequent transaction or receipts or payments into or out of
any such account.

 

14.4                           Settlements
Conditional

 

Any release, discharge
or settlement between the Chargor and the Security Trustee shall be conditional
upon no security, disposition or payment to the Security Trustee or any of the
Beneficiaries by the Chargor or any other person being void, set aside or
ordered to be refunded pursuant to any enactment or law relating to bankruptcy,

 

29

 

liquidation, administration
or insolvency or for any other reason whatsoever and if such condition shall
not be fulfilled the Security Trustee shall be entitled to enforce this Deed
subsequently as if such release, discharge or settlement had not occurred and
any such payment had not been made.

 

14.5                           No
Release

 

The liability of the
Chargor shall not be affected nor shall the charge hereby created be discharged
or diminished by reason of:

 

(a)                                  the Incapacity or any change
in the name, style or constitution of the Chargor or any other person liable;
or

 

(b)                                 the Security Trustee or any of
the Beneficiaries compounding with, discharging, releasing or varying the
liability of or granting any time indulgence or concession to the Chargor or
any other person or renewing, determining, varying or increasing any
accommodation, facility or transaction in any manner whatsoever or concurring
in accepting or varying any compromise, arrangement or settlement or omitting
to claim or enforce payment from the Chargor or any other person; or

 

(c)                                  any act or omission which
would not have discharged or affected the liability of the Chargor had it been
principal debtor instead of guarantor or by anything done or omitted which but
for this provision might operate to exonerate the Chargor.

 

14.6                           Restriction
of the Chargor’s Rights

 

Until all the Secured
Obligations have been paid, discharged or satisfied in full (and
notwithstanding payment of a dividend in any liquidation or under any
compromise or arrangement or the discharge by any person of its liability) the
Chargor agrees that without the prior written consent of the Security Trustee
it will not:

 

(a)                                  exercise its rights of
subrogation, reimbursement and indemnity against the Chargor or any other
person;

 

(b)                                 save as otherwise permitted or
not restricted in each of the Senior Finance Documents, the Refinancing
Facilities Agreements and the Group Intercreditor Deed, demand or accept
repayment in whole or in part of any obligations or liabilities now or
hereafter due to the Chargor from any other Security Provider demand or accept
any guarantee or any other document or instrument (including, without
limitation, any other document or instrument creating or evidencing a mortgage,
charge (whether fixed or floating), pledge, lien, hypothecation, assignment,
trust arrangement or security interest of any kind) in respect of such
obligations or liabilities or dispose of the same;

 

(c)                                  take any step to enforce any
right against any other Security Provider in respect of any such obligations or
liabilities; or

 

(d)                                 claim any set-off or
counter-claim in respect of any such obligations or liabilities against any
other Security Provider or claim or prove in competition with the Security
Trustee or any of the Beneficiaries in the bankruptcy, 

 

30

 

liquidation or administration of any other Security Provider or have the
benefit of, or share in, any payment from or composition with any Security
Provider or other Security Document now or hereafter held by the Security Trustee
or any of the Beneficiaries for any obligations or liabilities of any Security
Provider but so that, if so directed by the Security Trustee, it will prove for
the whole or any part of its claim in the liquidation of any other Security
Provider on terms that the benefit of such proof and of all money received by
it in respect thereof shall be held on trust for the Security Trustee and
applied in or towards discharge of the Secured Obligations in accordance with
the provisions of the Group Intercreditor Deed and the Security Trust Agreement.

 

14.7                           Recoveries
by the Chargor

 

If contrary to
Clause 2.3 (No Security) or 14.6 (Restriction of the Chargor’s Rights) the Chargor takes or
receives the benefit of any security or receives or recovers any money or other
property, such security, money or other property shall be held on trust for the
Security Trustee and shall be delivered to the Security Trustee on demand.

 

14.8                           Treatment
of “claims”

 

The Chargor hereby
agrees not to assert or enforce (whether by or in a legal or equitable
proceeding or otherwise) any, “claims” (as defined in section 101(4) of
the United States Bankruptcy Code) against the Chargor, whether arising under
any applicable law or otherwise, to which the Chargor is or would be
entitled.  It is hereby acknowledged by
the Security Trustee that this Clause 14.8 does not restrict the right of the
Chargor to assert or enforce any “claims” against any other Security Provider
to the extent that such “claims” arise after all the Security Providers have
been released from all their respective obligations and liabilities hereunder.

 

15.                               CURRENCIES

 

15.1                           Conversion
of Currencies

 

All moneys received or
held by the Security Trustee or by a Receiver under this Deed at any time on or
after the Enforcement Date in a currency other than a currency in which the
Secured Obligations are denominated may from time to time be sold for such one
or more of the currencies in which the Secured Obligations are denominated as
the Security Trustee or Receiver considers necessary or desirable the Chargor
shall indemnify the Security Trustee against the full Sterling cost (including
all costs, charges and expenses) properly incurred in relation to such
sale.  Neither the Security Trustee nor
any Receiver shall have any liability to the Chargor in respect of any loss
resulting from any fluctuation in exchange rates after any such sale.

 

15.2                           Currency
Indemnity

 

No payment to the
Security Trustee (whether under any judgment or court order or otherwise) shall
discharge the obligation or liability of the Chargor in respect of which it was
made unless and until the Security Trustee shall have received payment in full
in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such
payment shall on actual conversion into such currency fall short of such
obligation or liability expressed in that currency the 

 

31

 

Security Trustee shall
have a further separate cause of action against the Chargor and shall be
entitled to enforce the charges hereby created to recover the amount of the
shortfall.

 

16.                               THE
SECURITY TRUST AGREEMENT

 

The Chargor and the
Security Trustee hereby acknowledges that the covenants of the Chargor
contained in this Deed and the security and other rights, titles and interests
constituted by this Deed and the Charged Assets and all other moneys, property
and assets paid to the Security Trustee or held by the Security Trustee or
received or recovered by the Security Trustee pursuant to or in connection with
this Deed are held by the Security Trustee subject to and on the terms of the
trusts declared in the Security Trust Agreement.

 

17.                               MISCELLANEOUS

 

17.1                           Exchange
of Information

 

The Chargor hereby
authorises the Security Trustee and the Beneficiaries to exchange between
themselves any information concerning the Charged Assets unless such
information is the subject of a duty of confidentiality on the part of the
Security Trustee or any Beneficiary not to disclose such information.

 

17.2                           Remedies
Cumulative

 

No failure or delay on
the part of the Security Trustee or any of the Beneficiaries to exercise any
power, right or remedy shall operate as a waiver thereof nor shall any single
or any partial exercise or waiver of any power, right or remedy preclude its
further exercise or the exercise of any other power, right or remedy.

 

17.3                           Representations
and Warranties

 

The Chargor represents
and warrants to the Security Trustee that:

 

(a)                                  Shareholders

 

that it has as its
shareholders those persons set out in Schedule 1 (Shareholders)
(with the percentage interest set out therein) and no others;

 

(b)                                 Assets
charged

 

it has charged all or
substantially all of the assets it owns pursuant to the provisions of this
Deed; and

 

(c)                                  Repetition

 

the representation and
warranty contained in this Clause 17.3(b) shall be deemed to be
repeated by the Chargor on the date on which all or any of the representations
and warranties contained in Clause 21 (Representations and
Warranties) of the Senior Facilities Agreement, or upon its
repayment in full and cancellation of all undrawn commitments thereunder such
equivalent 

 

32

 

provision in the
Relevant Facilities Agreement, are deemed to be repeated pursuant to the
relevant provisions thereof.

 

17.4                           No Breach
of Memorandum and Articles of Association

 

It is hereby certified
by the Chargor that neither the execution of this Deed nor the creation of the
charges contained in this Deed contravenes any of the provisions of the
Memorandum and Articles of Association of the Chargor.

 

17.5                           Statutory
Power of Leasing

 

During the continuance
of this security the statutory and any other powers of leasing, letting,
entering into agreements for leases or lettings and accepting or agreeing to
accept surrenders of leases or tenancies shall not be exercised by the Chargor
in relation to the Charged Assets or any part thereof.

 

17.6                           Successors

 

Any appointment or
removal of a Receiver under Clause 9 (Appointment and Powers of
Receiver or Administrator) and any consents under this Deed may be
made or given in writing signed or sealed by any successor Security Trustee
appointed pursuant to the terms of the Security
Trust Agreement and their respective successors in title and accordingly
the Chargor hereby irrevocably appoints each successor Security Trustee
appointed pursuant to the Security
Trust Agreement and their respective successors in title to be its
attorney in the terms and for the purposes set out therein.

 

17.7                           Consolidation

 

Section 93 Law of
Property Act 1925 shall not apply to the security created by this Deed or to
any security given to the Security Trustee or any of the Beneficiaries pursuant
to this Deed.

 

17.8                           Reorganisation

 

This Deed shall remain
binding on the Chargor notwithstanding any change in the constitution of the
Security Trustee or any Beneficiary or the absorption of the Security Trustee
or any Beneficiary in, or amalgamation with, or the acquisition of all or part
of its undertaking by, any other person, or any reconstruction or
reorganisation of any kind.  The security
granted by this Deed shall remain valid and effective in all respects in favour
of the Security Trustee as trustee for the Beneficiaries.

 

17.9                           Unfettered
Discretion

 

Save as otherwise provided
herein any ability or power which may be exercised or any determination which
may be made under this Deed by the Security Trustee or a Beneficiary may be
exercised or made in its absolute and unfettered discretion and it shall not be
obliged to give reasons therefor.

 

33

 

17.10                     Provisions
Severable

 

Each of the provisions
of this Deed is severable and distinct from the others and if any one or more
of such provisions is or becomes invalid, illegal or unenforceable the
validity, legality and enforceability of the remaining provisions of this Deed
shall not in any way be affected or impaired thereby.

 

17.11                     Law of
Property (Miscellaneous Provisions) Act 1989

 

For the purposes of the
Law of Property (Miscellaneous Provisions) Act 1989 any provisions of any
Senior Finance Document relating to any disposition of an interest in land
shall be deemed to be incorporated in this Deed.

 

17.12                     No
Assignment by the Chargors

 

The Chargor may not
assign or transfer any of its rights or obligations under this Deed.

 

17.13                     Joint and
Several Liabilities

 

The covenants,
agreements, obligations and liabilities of the Chargor contained in this Deed
or implied on their part are joint and several and shall be construed
accordingly.

 

17.14                     Liabilities
Survive Deficiencies and Releases

 

The Chargor agrees to
be bound by this Deed notwithstanding that any person intended to execute or to
be bound by this Deed may not do so or may not be effectually bound and
notwithstanding that any charges contained in this Deed may be terminated or
released or may be or become invalid or unenforceable against any other person
whether or not the deficiency is known to the Security Trustee or any of the
Beneficiaries.

 

17.15                     Letters
of Non-crystallisation

 

The Security Trustee
shall, at the request and cost of the Chargor, execute such letters of
non-crystallisation as may be reasonably necessary to permit any Permitted
Disposal of the Floating Charge Assets.

 

17.16                     Release

 

Upon the satisfaction
in full of all of the Secured Obligations and there no longer being any
obligation on any Beneficiary to make any of the Secured Obligations available,
then subject only to Clause 14.4 (Settlements Conditional),
the Security Trustee shall, at the request and cost of the Chargor, execute and
do all such deeds, acts and things as may be necessary to release the Charged
Assets from the security constituted, and to reassign the property and assets
assigned to the Security Trustee, hereby.

 

34

 

18.                               NOTICES

 

18.1                           Mode of
Service

 

Any notice or demand
for payment by the Security Trustee under this Deed shall, without prejudice to
any other effective mode of making the same, be deemed to have been properly
served on the Chargor in the manner and at the address set out in
Clause 20 (Notices) of the Group
Intercreditor Deed.

 

18.2                           Notices
Conclusive

 

Any such notice or
demand or any certificate as to the amount at any time secured by this Deed
shall, save for manifest error, be conclusive and binding upon the Chargor if
signed by an officer of the Security Trustee.

 

19.                               LAW AND
JURISDICTION

 

19.1                           Governing
Law

 

This Deed, including
all non-contractual obligations arising out of or in connection with it, shall
be governed by English law.

 

19.2                           Submission
to Jurisdiction

 

The Chargor agrees for
the benefit of the Security Trustee that any legal action or proceedings in
connection with this Deed against the Chargor or any of their respective assets
may be brought in the English courts. 
The Chargor irrevocably and unconditionally submits to the jurisdiction
of such courts.  The submission to such
jurisdiction shall not (and shall not be construed so as to) limit the right of
the Security Trustee or any of the Beneficiaries to enforce any judgment
obtained in any court referred to in this Clause 19.2 in any jurisdiction
in which any of the assets of the Chargor are situated, nor shall the taking of
proceedings in any one or more jurisdiction referred to in this
Clause 19.2 preclude the taking of proceedings in any other such
jurisdiction, whether concurrently or not.

 

19.3                           Inconvenient
Forum

 

The Chargor irrevocably
waives any objection it may have now or hereafter to the laying of venue of any
action or proceeding in any court or jurisdiction referred to in
Clause 19.2 (Submission to Jurisdiction) and
any claim it may have now or hereafter that any action or proceeding brought in
such courts or jurisdiction has been brought in an inconvenient forum.

 

IN WITNESS whereof this Deed has been
executed and delivered by or on behalf of the parties on the date stated at the
beginning of this Deed.

 

35

 

SCHEDULE 1

 

SHAREHOLDERS

 

	
  NAME
  OF

  SHAREHOLDER(S)

  	
   

  	
  NO. OF SHARES

  	
   

  	
  PERCENTAGE

  	
   

  
	
  Virgin Media Investment Holdings Limited

  	
   

  	
  2 ordinary

  	
   

  	
  100

  	
  %

  

 

36

 

SCHEDULE 2

 

NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

Part 1

 

Intercompany Indebtedness

 

Part 1A

 

Form of Notice of Assignment

 

To:          [specify relevant intercompany debtor]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor],
hereby give you notice that:

 

1.                                       pursuant to a debenture dated
[•] (the “Debenture”) (a copy of which is
appended hereto) entered into by (inter alios) us
in favour of [•] as security trustee for the Beneficiaries as therein
defined (the “Security Trustee”) we have
assigned the following assets to the Security Trustee:

 

(a)                                  all our present and future
rights, title, benefits and interests in and under the loan agreements dated [specify] (the “Intercompany Loan Agreement(s)”);

 

(b)                                 all our present and future
rights, title benefit and interest in and to all principal and interest payable
under the Intercompany Loan Agreement(s) and any other amounts payable in
respect thereof;

 

2.                                       the Security Trustee has
agreed that, until such time as the Security Trustee notifies you to the
contrary, we may continue to exercise all of our rights under the Intercompany
Loan Agreement(s);

 

3.                                       upon the security granted by
the Debenture becoming enforceable, we may not vary extend release determine or
rescind any of the Intercompany Loan Agreement(s) or grant time for
payment or indulgence or compound with discharge waive release set off or vary
the liability of any other person thereunder or consent to any act or omission
as would otherwise constitute a breach or concur in accepting or varying any
compromise arrangement or settlement relating thereto or do or suffer any act
or thing or permit any set off whereby the recovery of any moneys payable may
be delayed or impeded;

 

4.                                       the authority and instructions
herein contained cannot be revoked or varied by us without the prior written
consent of the Security Trustee.

 

37

 

Please acknowledge
receipt of this notice by signing the acknowledgement attached to the enclosed
copy letter and returning the same to the Security Trustee.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

	
   

  	
   

  
	
  Authorised
  Officer

  	
   

  

 

38

 

Part 1B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [•]

 

[Date]

 

Dear Sirs,

 

1.                                       We refer to the notice of
assignment issued to us by [specify Chargor].

 

2.                                       Unless the context otherwise
requires, terms defined in, or incorporated by reference into, the Debenture
(as defined below) shall bear the same meaning herein.

 

3.                                       We hereby:

 

(a)                                  acknowledge receipt of notice
from [specify Chargor] that, by a debenture dated [•] (the “Debenture”) and made between (inter alios)
[specify Chargor] and the Security Trustee, [specify Chargor] has assigned to
the Security Trustee all of its present and future rights, title, benefits and
interests in and under the Intercompany Loan Agreement(s), as therein defined;

 

(b)                                 agree to, and accept, the
making of such assignment;

 

(c)                                  undertake to the Security
Trustee to accept as valid, and act upon and observe where required, any
notices or demands given or made by the Security Trustee in respect of the
Intercompany Loan Agreement(s) in place of [specify Chargor];

 

(d)                                 agree to deliver to the
Security Trustee copies of all notices delivered by us to [specify Chargor];

 

(e)                                  acknowledge that the making of
the assignment referred to above shall not affect the liability of [specify
Chargor] to perform all the obligations assumed by it under the Intercompany
Loan Agreement(s) and that the Security Trustee shall have no obligations
(whether in place of [specify Chargor] or otherwise) in respect of the
Intercompany Loan Agreement(s) except insofar as such obligations may
arise as a result of the Security Trustee exercising any of those rights
conferred upon it under any agreement between (inter alios)
us and the Security Trustee relating to the Assigned Assets; and

 

(f)                                    confirm that we have not
received any prior notice of assignment, transfer or charge in respect of
[specify Chargor], rights, title, benefits and interests in and under the
Intercompany Loan Agreement(s).

 

39

 

4.                                       This Acknowledgement shall be
governed by, and construed in accordance with, English law.

 

Yours faithfully,

 

 

For and on behalf of

[•]

 

 

	
   

  	
   

  
	
  Authorised Officer

  	
   

  

 

40

 

Part 2

 

Insurances

 

Part 2A

 

Form of Notice of Assignment

 

To:          [insert name of insurer]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor],
hereby give you notice that:

 

(i)                                     pursuant to a debenture dated
[•] (the “Debenture”) we
have charged and assigned to [  ] (as
security trustee for the Beneficiaries referred to in the Debenture, the “Security Trustee”) all our rights, title,
interests and benefits in, to or in respect of the insurance policies with you
detailed in Part 1 of the Schedule attached hereto (the “Insurances”) including all claims and
returns of premiums in respect thereof to which we are, or may at any future
time become, entitled.

 

With effect from your
receipt of this notice we hereby request and instruct that:

 

1.                                       you immediately name the
Beneficiaries (details of whom are set out in Part 2 of the Schedule
attached hereto) and the Security Trustee (in its capacity as security trustee)
as loss payee in respect of each of the Insurances);

 

2.                                       upon the security granted by
the Debenture in respect of the Insurances becoming enforceable (as notified to
you by the Security Trustee):

 

(a)                                  all payments under or arising
from the Insurances are to be made to the Security Trustee or to its order;

 

(b)                                 all remedies provided for in
the Insurances or available at law or in equity are to be exercisable by the
Security Trustee;

 

(c)                                  all rights to compel the
performance of the Insurances are to be exercisable by the Security Trustee; and

 

(d)                                 all rights, title, interests
and benefits whatsoever accruing to or the benefit of ourselves arising from
the Insurances shall belong to the Security Trustee; and

 

3.                                       you give notice to the
Security Trustee promptly in writing:

 

(a)                                  if we propose to cancel or
give notice of cancellation of any Insurance, at least 30 days before such
cancellation is to take effect;

 

(b)                                 of any material alteration or
the termination or expiry of any such Insurance, at least 30 days before such
alteration, termination or expiry is to take effect; and

 

41

 

(c)                                  of any default in the payment
of any premium or failure to renew any such Insurance and shall give the
Security Trustee not less than 30 days in which to pay the defaulted premium
without cancelling the policy during such 30 days period.

 

Please confirm your
receipt of this notice and your acknowledgement of the matters and instructions
set out above by signing and dating the Acknowledgement of Assignment set out
on the enclosed copy of this notice, and returning the same to the Security
Trustee with a copy to ourselves.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

	
   

  	
   

  
	
  Authorised Officer

  	
   

  

 

42

 

SCHEDULE

 

Part 1

 

Relevant Insurance Policies

 

None

 

 

Part 2

 

Beneficiaries

 

None

 

43

 

Part 2B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:                              [•]

as Security Trustee

 

[Date]

 

Dear Sirs,

 

We hereby acknowledge
receipt of a notice in the terms set out above (the “Notice”).

 

We confirm that we
shall hereafter act in accordance with the Notice and that we have not received
any other notice of any other third party interests whether by way of
assignment or charge in respect of any of the Insurances.

 

We further confirm that
no amendment or termination of any of the Insurances shall be effective unless
we have given you [30] days’ prior written notice of our intention to so amend
or terminate the same.

 

Yours faithfully,

 

 

	
   

  	
   

  
	
  (Authorised
  Signatory)

  	
   

  

 

[INSURER]

 

Date:

 

44

 

SCHEDULE 3

 

DETAILS OF CHARGED LAND

 

Part 1

 

PART 1A

Registered Land

 

	
  NAME OF

  CHARGOR

  	
   

  	
  ADDRESS

  	
   

  	
  FREEHOLD
  /

  LEASEHOLD

  	
   

  	
  TITLE

  NUMBER

  	
   

  	
  TERM
  (IF

  LEASEHOLD)

  	
   

  	
  DATE
  OF

  LEASE (IF

  LEASEHOLD)

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

PART 1B

 

Unregistered Land

 

The freehold/leasehold
property known as and comprised in the following title deed(s) or other
document(s) of title:

 

	
  CHARGOR

  	
   

  	
  ADDRESS

  	
   

  	
  FREEHOLD/LEASEHOLD

  	
   

  	
  DATE OF LEASE

  (IF

  LEASEHOLD)

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

45

 

SCHEDULE 4

 

REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

A.            UNITED KINGDOM TRADE MARKS

 

	
  Mark

  	
   

  	
  App./Reg.

  No.

  	
   

  	
  App./Reg.

  Date

  	
   

  	
  Class(es)

  	
   

  	
  Proprietor

  	
   

  	
  Status

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

B.            COMMUNITY TRADE MARKS

 

	
  Mark

  	
   

  	
  App./Reg.

  No.

  	
   

  	
  App./Reg.

  Date

  	
   

  	
  Class(es)

  	
   

  	
  Proprietor

  	
   

  	
  Status

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

EP
PATENTS

 

	
  PATENT
  NUMBER

  	
   

  	
  TITLE

  	
   

  	
  DATE
  OF FILING

  	
   

  	
  STATUS

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

46

 

GB
PATENTS

 

	
  PATENT
  NUMBER

  	
   

  	
  TITLE

  	
   

  	
  DATE
  OF FILING

  	
   

  	
  STATUS

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

47

 

SCHEDULE 5

 

INTERCOMPANY LOANS

 

 

None

 

48

 

SIGNATORIES

 

 

	
  Executed as a deed by
  VIRGIN MEDIA SFA FINANCE LIMITED

  
	
  acting by Robert
  Gale, a director

  
	
   

  
	
  /s/ ROBERT GALE

  	
   

  
	
   

  
	
  in the presence of:

  
	
   

  
	
  /s/ M HANDFORTH

  	
   

  
	
  Name: M.Handforth

  
	
  Address:
  Communications House, Units 1-12, Mayfair Business Park, 

  
	
  Broad Lane, Bradford
  BO4 8PW

  
	
  Occupation: Head of
  Accounts Services

  

 

 

THE
SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON
BRANCH

 

 

	
  By:

  	
  /s/ V. ADAMS

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  V. Adams

  	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  Fax Number:

  
	
   

  
	
  Attention:

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