Document:

Form of Warrant

    NEITHER
      THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
      HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
      SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
      BY SUCH SECURITIES.

     

    BIOSANTE
      PHARMACEUTICALS, INC.

     

    WARRANT

     

    Warrant
      No. «Number»Date
      of
      Original Issuance: [Closing Date], 2006

     

    BioSante
      Pharmaceuticals, Inc.,
      a
      Delaware corporation (the “Company”),
      hereby certifies that, for value received, «Name»
      or its
      registered assigns (the “Holder”),
      is
      entitled to purchase from the Company up to a total of «Shares»
      shares
      of common stock, par value $0.0001 per share (the “Common
      Stock”),
      of
      the Company (each such share, a “Warrant
      Share”
and
      all
      such shares, the “Warrant
      Shares”)
      at an
      exercise price equal to $2.75 per share (as adjusted from time to time as
      provided in Section 9, the “Exercise
      Price”),
      at
      any time and from time to time from and after [six
      months and one day following closing]
      and
      through and including [four
      years and nine months after initial exercise date]
      (the
“Expiration
      Date”),
      and
      subject to the following terms and conditions:

     

    1.  Definitions.
      In
      addition to the terms defined elsewhere in this Warrant, capitalized terms
      that
      are not otherwise defined herein shall have the meanings given to such terms
      in
      the Subscription Agreement of even date herewith to which the Company and the
      original Holder are parties (the “Purchase
      Agreement”).

     

    2.  Registration
      of Warrant.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    3.  Registration
      of Transfers.
      Except
      as otherwise provided below, the Company shall register the transfer of any
      portion of this Warrant in the Warrant Register, upon surrender of this Warrant,
      with the Form of Assignment attached hereto duly completed and signed, to the
      Company at its address specified herein. Upon any such registration or transfer,
      a new Warrant to purchase Common Stock, in substantially the form of this
      Warrant (any such new Warrant, a “New
      Warrant”),
      evidencing the portion of this Warrant so transferred shall be issued to the
      transferee and a New Warrant evidencing the remaining portion of this Warrant
      not so transferred, if any, shall be issued to the transferring Holder. The
      acceptance of the New Warrant by the transferee thereof shall be deemed the
      acceptance by such transferee of all of the rights and obligations of a holder
      of a Warrant.

     

    4.  Exercise
      of Warrants.

     

    (a)  This
      Warrant shall be exercisable by the registered Holder at any time and from
      time
      to time on or after _________, 2007 [six
      months and one day following closing] to
      and
      including the Expiration Date. At 6:30 p.m., New York City time on the
      Expiration Date, the portion of this Warrant not exercised prior thereto shall
      be and become void and of no value. The Company may not call or redeem all
      or
      any portion of this Warrant without the prior written consent of the
      Holder.

     

    (b)  The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      4 or
      otherwise, to the extent that after giving effect to such issuance after
      exercise as set forth on the applicable Notice of Exercise, such Holder
      (together with such Holder’s Affiliates (as defined in the Purchase Agreement),
      and any other person or entity acting as a group together with such Holder
      or
      any of such Holder’s Affiliates), as set forth on the applicable Notice of
      Exercise, would beneficially own in excess of the Beneficial Ownership
      Limitation (as hereinafter defined). For purposes of the foregoing sentence,
      the
      number of shares of Common Stock beneficially owned by such Holder and its
      Affiliates shall include the number of shares of Common Stock issuable upon
      exercise of this Warrant with respect to which such determination is being
      made,
      but shall exclude the number of shares of Common Stock which would be issuable
      upon (A) exercise of the remaining, nonexercised portion of this Warrant
      beneficially owned by such Holder or any of its Affiliates and (B) exercise
      or
      conversion of the unexercised or nonconverted portion of any other securities
      of
      the Company (including, without limitation, any other Warrants) subject to
      a
      limitation on conversion or exercise analogous to the limitation contained
      herein beneficially owned by such Holder or any of its affiliates.  Except
      as set forth in the preceding sentence, for purposes of this Section 4(b),
      beneficial ownership shall be calculated in accordance with Section 13(d) of
      the
      Exchange Act and the rules and regulations promulgated thereunder, it being
      acknowledged by a Holder that the Company is not representing to such Holder
      that such calculation is in compliance with Section 13(d) of the Exchange Act
      and such Holder is solely responsible for any schedules required to be filed
      in
      accordance therewith. To the extent that the limitation contained in this
      Section 4(b) applies, the determination of whether this Warrant is exercisable
      (in relation to other securities owned by such Holder together with any
      Affiliates) and of which a portion of this Warrant is exercisable shall be
      in
      the sole discretion of a Holder, and the submission of an Exercise shall be
      deemed to be each Holder’s determination of whether this Warrant is exercisable
      (in relation to other securities owned by such Holder together with any
      Affiliates) and of which portion of this Warrant is exercisable, in each case
      subject to such aggregate percentage limitation, and the Company shall have
      no
      obligation to verify or confirm the accuracy of such determination. In addition,
      a determination as to any group status as contemplated above shall be determined
      in accordance with Section 13(d) of the Exchange Act and the rules and
      regulations promulgated thereunder. For purposes of this Section 2(d), in
      determining the number of outstanding shares of Common Stock, a Holder may
      rely
      on the number of outstanding shares of Common Stock as reflected in (x) the
      Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more
      recent public announcement by the Company or (z) any other notice by the Company
      or the Company’s transfer agent setting forth the number of shares of Common
      Stock outstanding.  Upon the written or oral request of a Holder, the
      Company shall within two trading days confirm orally and in writing to such
      Holder the number of shares of Common Stock then outstanding.  In any case,
      the number of outstanding shares of Common Stock shall be determined after
      giving effect to the conversion or exercise of securities of the Company,
      including this Warrant, by such Holder or its Affiliates since the date as
      of
      which such number of outstanding shares of Common Stock was reported. The
“Beneficial
      Ownership Limitation”
      shall be
      4.99% of the number of shares of the Common Stock outstanding immediately after
      giving effect to the issuance of shares of Common Stock issuable upon exercise
      of this Warrant. The Beneficial Ownership Limitation provisions of this Section
      4(b) may be waived by such Holder, at the election of such Holder, upon not
      less
      than 61 days’ prior notice to the Company to change the Beneficial Ownership
      Limitation to 9.99% of the number of shares of the Common Stock outstanding
      immediately after giving effect to the issuance of shares of Common Stock upon
      exercise of this Warrant, and the provisions of this Section 4(b) shall continue
      to apply. Upon such a change by a Holder of the Beneficial Ownership Limitation
      from such 4.99% limitation to such 9.99% limitation, the Beneficial Ownership
      Limitation may not be further waived by such Holder. The provisions of this
      paragraph shall be construed and implemented in a manner otherwise than in
      strict conformity with the terms of this Section 4(b) to correct this paragraph
      (or any portion hereof) which may be defective or inconsistent with the intended
      Beneficial Ownership Limitation herein contained or to make changes or
      supplements necessary or desirable to properly give effect to such limitation.
      The limitations contained in this paragraph shall apply to a successor holder
      of
      this Warrant.

     

    5.  Delivery
      of Warrant Shares.

     

    (a)  To
      effect
      exercises hereunder, the Holder shall not be required to physically surrender
      this Warrant unless the aggregate Warrant Shares represented by this Warrant
      is
      being exercised. Upon delivery of the Exercise Notice to the Company (with
      the
      attached Warrant Shares Exercise Log) at its address for notice set forth herein
      and upon payment of the Exercise Price multiplied by the number of Warrant
      Shares that the Holder intends to purchase hereunder, the Company shall promptly
      (but in no event later than five business days after the Date of Exercise (as
      defined herein)) issue and deliver to the Holder, a certificate for the Warrant
      Shares issuable upon such exercise, which, unless otherwise required by the
      Purchase Agreement, shall be free of restrictive legends. Certificates for
      Warrant Shares purchased hereunder shall be transmitted by the transfer agent
      of
      the Company to the Holder by crediting the account of the Holder’s prime broker
      with the Depository Trust Company through its Deposit Withdrawal Agent
      Commission (“DWAC”)
      system
      if the Company or its transfer agent is a participant in such system, and
      otherwise by physical delivery to the address specified by the Holder in the
      Exercise Notice within 3 trading days from the delivery to the Company of the
      Exercise Date (as hereinafter defined) and surrender of this Warrant (if
      required) (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise). A “Date
      of Exercise”
means
      the date on which the Holder shall have delivered to Company: (i) the Exercise
      Notice (with the Warrant Exercise Log attached to it), appropriately completed
      and duly signed and (ii) if such Holder is not utilizing the cashless exercise
      provisions set forth in this Warrant, payment of the Exercise Price for the
      number of Warrant Shares so indicated by the Holder to be
      purchased.

     

    (b)  If
      by the
      third business day after a Date of Exercise the Company fails to deliver the
      required number of Warrant Shares in the manner required pursuant to Section
      5(a), then the Holder will have the right to rescind such exercise.

     

    (c)  In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the Warrant
      Share Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market transaction or otherwise) shares of Common Stock
      to deliver in satisfaction of a sale by the Holder of the Warrant Shares which
      the Holder anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion
      of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In and, upon request of
      the
      Company, evidence of the amount of such loss. Nothing herein shall limit a
      Holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the Warrant
      as
      required pursuant to the terms hereof.

     

    (d)  The
      Company’s obligations to issue and deliver Warrant Shares in accordance with the
      terms hereof are absolute and unconditional, irrespective of any action or
      inaction by the Holder to enforce the same, any waiver or consent with respect
      to any provision hereof, the recovery of any judgment against any Person or
      any
      action to enforce the same, or any setoff, counterclaim, recoupment, limitation
      or termination, or any breach or alleged breach by the Holder or any other
      Person of any obligation to the Company or any violation or alleged violation
      of
      law by the Holder or any other Person, and irrespective of any other
      circumstance which might otherwise limit such obligation of the Company to
      the
      Holder in connection with the issuance of Warrant Shares. Nothing herein shall
      limit a Holder’s right to pursue any other remedies available to it hereunder,
      at law or in equity including, without limitation, a decree of specific
      performance and/or injunctive relief with respect to the Company’s failure to
      timely deliver certificates representing shares of Common Stock upon exercise
      of
      the Warrant as required pursuant to the terms hereof.

     

    6.  Charges,
      Taxes and Expenses.
      Issuance and delivery of certificates for shares of Common Stock upon exercise
      of this Warrant shall be made without charge to the Holder for any issue or
      transfer tax, withholding tax, transfer agent fee or other incidental tax or
      expense in respect of the issuance of such certificates, all of which taxes
      and
      expenses shall be paid by the Company; provided, however, that the Company
      shall
      not be required to pay any tax which may be payable in respect of any transfer
      involved in the registration of any certificates for Warrant Shares or Warrants
      in a name other than that of the Holder. The Holder shall be responsible for
      all
      other tax liability that may arise as a result of holding or transferring this
      Warrant or receiving Warrant Shares upon exercise hereof.

     

    7.  Replacement
      of Warrant.
      If this
      Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or
      cause to be issued in exchange and substitution for and upon cancellation
      hereof, or in lieu of and substitution for this Warrant, a New Warrant, but
      only
      upon receipt of evidence reasonably satisfactory to the Company of such loss,
      theft or destruction and customary and reasonable indemnity (which shall not
      include a surety bond), if requested. Applicants for a New Warrant under such
      circumstances shall also comply with such other reasonable regulations and
      procedures and pay such other reasonable third-party costs as the Company may
      prescribe. If a New Warrant is requested as a result of a mutilation of this
      Warrant, then the Holder shall deliver such mutilated Warrant to the Company
      as
      a condition precedent to the Company’s obligation to issue the New
      Warrant.

     

    8.  Reservation
      of Warrant Shares.
      The
      Company covenants that it will at all times reserve and keep available out
      of
      the aggregate of its authorized but unissued and otherwise unreserved Common
      Stock, solely for the purpose of enabling it to issue Warrant Shares upon
      exercise of this Warrant as herein provided, the number of Warrant Shares which
      are then issuable and deliverable upon the exercise of this entire Warrant,
      free
      from preemptive rights or any other contingent purchase rights of persons other
      than the Holder (taking into account the adjustments and restrictions of
Section
      9).
      The
      Company covenants that all Warrant Shares so issuable and deliverable shall,
      upon issuance and the payment of the applicable Exercise Price in accordance
      with the terms hereof, be duly and validly authorized, issued and fully paid
      and
      nonassessable.

     

    9.  Certain
      Adjustments.
      The
      Exercise Price and number of Warrant Shares issuable upon exercise of this
      Warrant are subject to adjustment from time to time as set forth in this
Section
      9.

     

    (a)  Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding, (i) pays a stock
      dividend on its Common Stock or otherwise makes a distribution on any class
      of
      capital stock that is payable in shares of Common Stock, (ii) subdivides
      outstanding shares of Common Stock into a larger number of shares, or (iii)
      combines outstanding shares of Common Stock into a smaller number of shares,
      then in each such case the Exercise Price shall be multiplied by a fraction
      of
      which the numerator shall be the number of shares of Common Stock outstanding
      immediately before such event and of which the denominator shall be the number
      of shares of Common Stock outstanding immediately after such event. Any
      adjustment made pursuant to clause (i) of this paragraph shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution, and any adjustment pursuant to clause
      (ii) or (iii) of this paragraph shall become effective immediately after the
      effective date of such subdivision or combination. If any event requiring an
      adjustment under this paragraph occurs during the period that an Exercise Price
      is calculated hereunder, then the calculation of such Exercise Price shall
      be
      adjusted appropriately to reflect such event.

     

    (b)  Fundamental
      Transactions.
      If, at
      any time while this Warrant is outstanding, (1) the Company effects any merger
      or consolidation of the Company with or into another Person, (2) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (3) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (4) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then
      the Holder shall have the right thereafter to receive, upon exercise of this
      Warrant, the same amount and kind of securities, cash or property as it would
      have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of the number of Warrant Shares then issuable upon exercise in full
      of this Warrant (the “Alternate
      Consideration”).
      For
      purposes of any such exercise, the determination of the Exercise Price shall
      be
      appropriately adjusted to apply to such Alternate Consideration based on the
      amount of Alternate Consideration issuable in respect of one share of Common
      Stock in such Fundamental Transaction, and the Company shall apportion the
      Exercise Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration. If holders of Common Stock are given any choice as to the
      securities, cash or property to be received in a Fundamental Transaction, then
      the Holder shall be given the same choice as to the Alternate Consideration
      it
      receives upon any exercise of this Warrant following such Fundamental
      Transaction. Any successor to the Company or surviving entity in such
      Fundamental Transaction shall issue to the Holder a new warrant substantially
      in
      the form of this Warrant and consistent with the foregoing provisions and
      evidencing the Holder’s right to purchase the Alternate Consideration for the
      aggregate Exercise Price upon exercise thereof. The terms of any agreement
      pursuant to which a Fundamental Transaction is effected shall include terms
      requiring any such successor or surviving entity to comply with the provisions
      of this paragraph (b) and insuring that the Warrant (or any such replacement
      security) will be similarly adjusted upon any subsequent transaction analogous
      to a Fundamental Transaction.

     

    (c)  Number
      of Warrant Shares.
      Simultaneously with any adjustment to the Exercise Price pursuant to paragraph
      (a) of this Section, the number of Warrant Shares that may be purchased upon
      exercise of this Warrant shall be increased or decreased proportionately, so
      that after such adjustment the aggregate Exercise Price payable hereunder for
      the adjusted number of Warrant Shares shall be the same as the aggregate
      Exercise Price in effect immediately prior to such adjustment.

     

    (d)  Calculations.
      All
      calculations under this Section
      9
      shall be
      made to the nearest cent or the nearest 1/100th
      of a
      share, as applicable. The number of shares of Common Stock outstanding at any
      given time shall not include shares owned or held by or for the account of
      the
      Company, and the disposition of any such shares shall be considered an issue
      or
      sale of Common Stock.

     

    (e)  Notice
      of Adjustments.
      Upon
      the occurrence of each adjustment pursuant to this Section
      9,
      the
      Company at its expense will promptly compute such adjustment in accordance
      with
      the terms of this Warrant and prepare a certificate setting forth such
      adjustment, including a statement of the adjusted Exercise Price and adjusted
      number or type of Warrant Shares or other securities issuable upon exercise
      of
      this Warrant (as applicable), describing the transactions giving rise to such
      adjustments and showing in detail the facts upon which such adjustment is based.
      Upon written request, the Company will promptly deliver a copy of each such
      certificate to the Holder and to the Company’s transfer agent.

     

    (f)  Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the warrant register of the Company, at least 10 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. 

     

    10.  Payment
      of Exercise Price.
      The
      Holder may pay the Exercise Price in one of the following manners:

     

    (a)  Cash
      Exercise.
      The
      Holder may deliver immediately available funds; or

     

    (b)  Cashless
      Exercise.
      The
      Holder may notify the Company in an Exercise Notice of its election to utilize
      cashless exercise, in which event the Company shall issue to the Holder the
      number of Warrant Shares determined as follows:

     

    X
      = Y
      [(A-B)/A]

     

    where:

     

    X
      = the
      number of Warrant Shares to be issued to the Holder.

     

    Y
      = the
      number of Warrant Shares with respect to which this Warrant is being
      exercised.

     

    A
      = the
      VWAP on the trading day immediately prior to the Exercise Date.

     

    B
      = the
      Exercise Price.

     

    For
      purposes of Rule 144 promulgated under the Securities Act, it is intended,
      understood and acknowledged that the Warrant Shares issued in a cashless
      exercise transaction shall be deemed to have been acquired by the Holder, and
      the holding period for the Warrant Shares shall be deemed to have commenced,
      on
      the date this Warrant was originally issued.

     

    “VWAP”
      means, for any date, the price determined by the first of the following clauses
      that applies: (a) if the Common Stock is then listed or quoted on the American
      Stock Exchange (“AMEX”), Nasdaq or another national securities exchange, the
      daily volume weighted average price of the Common Stock for such date (or the
      nearest preceding date) on AMEX, Nasdaq or another national securities exchange
      on which the Common Stock is then listed or quoted for trading as reported
      by
      Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. (New York City
      time) to 4:02 p.m. (New York City time); (b)  if the Common Stock is not so
      listed or quoted for trading, the volume weighted average price of the Common
      Stock for such date (or the nearest preceding date) on the OTC Bulletin Board;
      (c) if the Common Stock is not then quoted for trading on the OTC Bulletin
      Board
      and if prices for the Common Stock are then reported in the “Pink Sheets”
published by Pink Sheets, LLC (or a similar organization or agency succeeding
      to
      its functions of reporting prices), the most recent bid price per share of
      the
      Common Stock so reported; or (d) in all other cases, the fair market value
      of a share of Common Stock as determined by an independent appraiser selected
      in
      good faith by the Holder and reasonably acceptable to the Company.

     

    11.  No
      Fractional Shares.
      No
      fractional shares of Warrant Shares will be issued in connection with any
      exercise of this Warrant. In lieu of any fractional shares which would,
      otherwise be issuable, the Company shall pay cash equal to the product of such
      fraction multiplied by the closing price of one Warrant Share as reported by
      the
      American Stock Exchange or such other national exchange on which the Common
      Stock is then traded on the date of exercise.

     

    12.  Notices.
      Any and
      all notices or other communications or deliveries hereunder (including, without
      limitation, any Exercise Notice) shall be in writing and shall be deemed given
      and effective on the earliest of (i) the date of transmission, if such notice
      or
      communication is delivered via facsimile at the facsimile number specified
      in
      this Section prior to 6:30 p.m. (New York City time) on a business day, (ii)
      the
      next business day after the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number specified
      in
      this Section on a day that is not a business day or later than 6:30 p.m. (New
      York City time) on any business day, (iii) the business day following the date
      of mailing, if sent by nationally recognized overnight courier service, or
      (iv)
      upon actual receipt by the party to whom such notice is required to be given.
      The addresses for such communications shall be: (i) if to the Company, to
      BioSante Pharmaceuticals, Inc., Attn: Chief Financial Officer, Facsimile No.:
      (847) 478-9263, or (ii) if to the Holder, to the address or facsimile number
      appearing on the Warrant Register or such other address or facsimile number
      as
      the Holder may provide to the Company in accordance with this
      Section.

     

    13.  Warrant
      Agent.
      The
      Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to
      the Holder, the Company may appoint a new warrant agent. Any corporation into
      which the Company or any new warrant agent may be merged or any corporation
      resulting from any consolidation to which the Company or any new warrant agent
      shall be a party or any corporation to which the Company or any new warrant
      agent transfers substantially all of its corporate trust or shareholders
      services business shall be a successor warrant agent under this Warrant without
      any further act. Any such successor warrant agent shall promptly cause notice
      of
      its succession as warrant agent to be mailed (by first class mail, postage
      prepaid) to the Holder at the Holder’s last address as shown on the Warrant
      Register.

     

    14.  Miscellaneous.

     

    (a)  This
      Warrant does not entitle the Holder to any voting or other rights as a
      stockholder of the Company prior to exercise and payment for the Warrant Price
      in accordance with the terms hereof.

     

    (b)  Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    (c)  No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    (d)  The
      Holder, in addition to being entitled to exercise all rights granted by law,
      including recovery of damages, will be entitled to specific performance of
      its
      rights under this Warrant. The Company agrees that monetary damages would not
      be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    (e)  This
      Warrant shall be binding on and inure to the benefit of the parties hereto
      and
      their respective successors and assigns. Subject to the preceding sentence,
      nothing in this Warrant shall be construed to give to any Person other than
      the
      Company and the Holder any legal or equitable right, remedy or cause of action
      under this Warrant. This Warrant may be amended only in writing signed by the
      Company and the Holder and their successors and assigns.

     

    (f)  All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party hereto hereby irrevocably
      waives, to the fullest extent permitted by applicable law, any and all right
      to
      trial by jury in any legal proceeding arising out of or relating to this Warrant
      or the transactions contemplated hereby. If either party shall commence a
      proceeding to enforce any provisions of this Warrant, then the prevailing party
      in such proceeding shall be reimbursed by the other party for its attorney’s
      fees and other costs and expenses incurred with the investigation, preparation
      and prosecution of such Proceeding.

     

    (g)  The
      headings herein are for convenience only, do not constitute a part of this
      Warrant and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    (h)  In
      case
      any one or more of the provisions of this Warrant shall be invalid or
      unenforceable in any respect, the validity and enforceability of the remaining
      terms and provisions of this Warrant shall not in any way be affected or
      impaired thereby and the parties will attempt in good faith to agree upon a
      valid and enforceable provision which shall be a commercially reasonable
      substitute therefor, and upon so agreeing, shall incorporate such substitute
      provision in this Warrant.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK,

     

    SIGNATURE
      PAGE FOLLOWS]

     

    
      
        11

        OPPENHEIMER:
          2439012 v02 07/06/2006

         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
      its
      authorized officer as of the date first indicated above.

     

     

    BIOSANTE
      PHARMACEUTICALS, INC.

     

    By:     

    

    Name: Phillip
      B. Donenberg

    Title: Chief
      Financial Officer

    

    

    
      
        
          

          OPPENHEIMER:
            2439012 v02 07/06/2006

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    BIOSANTE
      PHARMACEUTICALS, INC.

     

    WARRANT
      ORIGINALLY ISSUED [ ], 2006

     

    WARRANT
      NO. [ ]

     

    EXERCISE
      NOTICE

     

    To BIOSANTE
      PHARMACEUTICALS, INC.:

     

    (1)  The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2)  Payment
      shall take the form of (check applicable box):

     

    [
      ] in
      lawful money of the United States; or

     

    [
      ] [if
      permitted] the cancellation of such number of Warrant Shares as is necessary,
      in
      accordance with the formula set forth in subsection 2(c), to exercise this
      Warrant with respect to the maximum number of Warrant Shares purchasable
      pursuant to the cashless exercise procedure set forth in subsection
      2(c).

     

    (3)  Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    _______________________________

     

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

     

    _______________________________

     

    _______________________________

     

    _______________________________

     

    (4)  Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

     

    [SIGNATURE
      OF HOLDER]

    

    Name
      of
      Investing Entity:          

    Signature
      of Authorized Signatory of Investing Entity:      

    Name
      of
      Authorized Signatory:         

    Title
      of
      Authorized Signatory:         

    Date:             

    
      
        

        OPPENHEIMER:
          2439012 v02 07/06/2006

         

      

      
         

        
          

        

      

      
         

      

    

    Warrant
      Shares Exercise Log

     

    
      	
              Date

               

            	
              Number
                of Warrant Shares Available to be Exercised

               

            	
              Number
                of Warrant Shares Exercised

               

            	
              Number
                of Warrant Shares Remaining to be Exercised

               

            
	 	 	 	 

    

    

     

    
      
        

        OPPENHEIMER:
          2439012 v02 07/06/2006

         

      

      
         

        
          

        

      

      
         

      

    

    BIOSANTE
      PHARMACEUTICALS, INC.

     

    WARRANT
      ORIGINALLY ISSUED [        ],
      2006

     

    WARRANT
      NO. [ ]

     

    FORM
      OF ASSIGNMENT

     

    [To
      be
      completed and signed only upon transfer of Warrant]

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      ________________________________ the right represented by the above-captioned
      Warrant to purchase ____________ shares of Common Stock to which such Warrant
      relates and appoints ________________ attorney to transfer said right on the
      books of the Company with full power of substitution in the
      premises.

     

    Dated: _______________,
      ____

     

     

    _______________________________________

     

     

    (Signature
      must conform in all respects to name of holder as specified on the face of
      the
      Warrant)

     

     

    _______________________________________

     

     

    Address
      of Transferee

     

     

    _______________________________________

     

     

    

     

     

    _______________________________________

     

    In
      the
      presence of:

     

     

    __________________________Exhibit
4(i)(a)

 

 

NTL CABLE PLC,

as Issuer

 

NTL INCORPORATED,

as Parent

 

NTL: TELEWEST LLC,

 

NTL HOLDINGS INC.,

 

NTL (UK) GROUP, INC.,

 

NTL COMMUNICATIONS
LIMITED,

as Intermediate Guarantors

 

NTL INVESTMENT HOLDINGS
LIMITED,

as Senior Subordinated Subsidiary Guarantor

 

£       % Senior Notes due 2016

U.S.$      % Senior Notes due 2016

INDENTURE

Dated as of July    , 2006

 

THE BANK OF NEW YORK

as Trustee and Paying
Agent

 

THE BANK OF NEW YORK (LUXEMBOURG) S.A.

as Luxembourg Paying Agent

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture
  Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.03

  
	
  (b)

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  13.03

  
	
  (c)

  	
   

  	
  13.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)(1)

  	
   

  	
  N.A.

  
	
  (b)(2)

  	
   

  	
  7.06;
  7.07

  
	
  (c)

  	
   

  	
  7.06;
  13.02

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  4.03;
  13.02; 13.05

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  13.04

  
	
  (c)(2)

  	
   

  	
  13.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  13.05

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05;
  13.02

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a) (last sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  2.12

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  13.01

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)

  	
   

  	
  13.01

  

 

N.A. means not applicable.

 

i

*  This Cross Reference Table is not part of
this Indenture.

TABLE OF CONTENTS

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  
	
  Section 1.01

  	
  Definitions.

  	
  1

  
	
  Section 1.02

  	
  Other Definitions.

  	
  30

  
	
  Section 1.03

  	
  Incorporation by Reference of Trust Indenture Act.

  	
  30

  
	
  Section 1.04

  	
  Rules of Construction.

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 THE
  NOTES 

  	
  31

  
	
   

  	
   

  
	
  Section 2.01

  	
  Form and Dating.

  	
  31

  
	
  Section 2.02

  	
  Execution and Authentication.

  	
  32

  
	
  Section 2.03

  	
  Registrar and Paying Agent.

  	
  32

  
	
  Section 2.04

  	
  Paying Agent to Hold Money in Trust.

  	
  33

  
	
  Section 2.05

  	
  Holder Lists.

  	
  33

  
	
  Section 2.06

  	
  Transfer and Exchange.

  	
  33

  
	
  Section 2.07

  	
  Replacement Notes.

  	
  38

  
	
  Section 2.08

  	
  Outstanding Notes.

  	
  38

  
	
  Section 2.09

  	
  Treasury Notes.

  	
  39

  
	
  Section 2.10

  	
  Temporary Notes.

  	
  39

  
	
  Section 2.11

  	
  Cancellation.

  	
  39

  
	
  Section 2.12

  	
  Defaulted Interest.

  	
  39

  
	
  Section 2.13

  	
  Additional Amounts.

  	
  40

  
	
  Section 2.14

  	
  Currency Indemnity

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3
  REDEMPTION AND PREPAYMENT

  	
  43

  
	
   

  	
   

  
	
  Section 3.01

  	
  Notices to Trustee.

  	
  43

  
	
  Section 3.02

  	
  Selection of Notes to Be Redeemed or Purchased.

  	
  43

  
	
  Section 3.03

  	
  Notice of Redemption.

  	
  44

  
	
  Section 3.04

  	
  Effect of Notice of Redemption.

  	
  44

  
	
  Section 3.05

  	
  Deposit of Redemption or Purchase Price.

  	
  45

  
	
  Section 3.06

  	
  Notes Redeemed or Purchased in Part.

  	
  45

  
	
  Section 3.07

  	
  Optional Redemption.

  	
  45

  
	
  Section 3.08

  	
  Mandatory Redemption.

  	
  46

  
	
  Section 3.09

  	
  Offer to Purchase by Application of Excess Proceeds.

  	
  46

  
	
  Section 3.10

  	
  Redemption of Notes for Changes in Withholding Taxes.

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4
  COVENANTS

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Payment of Notes.

  	
  48

  
	
  Section 4.02

  	
  Maintenance of Office or Agency.

  	
  49

  
	
  Section 4.03

  	
  Ongoing Reporting.

  	
  49

  
	
  Section 4.04

  	
  Compliance Certificates.

  	
  50

  
	
  Section 4.05

  	
  Taxes.

  	
  50

  
	
  Section 4.06

  	
  [Intentionally Omitted]

  	
  50

  
	
  Section 4.07

  	
  Restricted Payments.

  	
  50

  
	
  Section 4.08

  	
  Restrictions on Distributions from Restricted Subsidiaries.

  	
  54

  
	
  Section 4.09

  	
  Incurrence of Indebtedness.

  	
  56

  
	
  Section 4.10

  	
  Sales of Assets and Subsidiary Stock.

  	
  60

  
				

 

ii

 

	
  Section 4.11

  	
  Transactions with Affiliates.

  	
  62

  
	
  Section 4.12

  	
  Liens.

  	
  64

  
	
  Section 4.13

  	
  Business Activities.

  	
  64

  
	
  Section 4.14

  	
  Corporate Existence.

  	
  64

  
	
  Section 4.15

  	
  Offer to Repurchase Upon Change of Control.

  	
  65

  
	
  Section 4.16

  	
  Sale/Leaseback Transactions.

  	
  67

  
	
  Section 4.17

  	
  Designation of Restricted and Unrestricted Subsidiaries.

  	
  67

  
	
  Section 4.18

  	
  [Intentionally omitted]

  	
  68

  
	
  Section 4.19

  	
  Guarantees of Indebtedness by Restricted Subsidiaries.

  	
  68

  
	
  Section 4.20

  	
  Anti-Layering

  	
  69

  
	
  Section 4.21

  	
  Further Instruments and Acts

  	
  70

  
	
  Section 4.22

  	
  Listing

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5
  SUCCESSORS

  	
  70

  
	
   

  	
   

  
	
  Section 5.01

  	
  Merger, Consolidation, or Sale of Assets.

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6
  DEFAULTS AND REMEDIES

  	
  72

  
	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default.

  	
  72

  
	
  Section 6.02

  	
  Acceleration.

  	
  73

  
	
  Section 6.03

  	
  Other Remedies.

  	
  74

  
	
  Section 6.04

  	
  Waiver of Past Defaults.

  	
  74

  
	
  Section 6.05

  	
  Control by Majority.

  	
  74

  
	
  Section 6.06

  	
  Limitation on Suits.

  	
  74

  
	
  Section 6.07

  	
  Rights of Holders to Receive Payment.

  	
  75

  
	
  Section 6.08

  	
  Collection Suit by Trustee.

  	
  75

  
	
  Section 6.09

  	
  Trustee May File Proofs of Claim.

  	
  75

  
	
  Section 6.10

  	
  Priorities.

  	
  76

  
	
  Section 6.11

  	
  Undertaking for Costs.

  	
  76

  
	
  Section 6.12

  	
  Stay, Extension and Usury Laws.

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7
  TRUSTEE

  	
  76

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Duties of Trustee.

  	
  76

  
	
  Section 7.02

  	
  Rights of Trustee.

  	
  77

  
	
  Section 7.03

  	
  Individual Rights of Trustee.

  	
  79

  
	
  Section 7.04

  	
  Trustee’s Disclaimer.

  	
  79

  
	
  Section 7.05

  	
  Notice of Defaults.

  	
  79

  
	
  Section 7.06

  	
  Reports by Trustee to Holders.

  	
  80

  
	
  Section 7.07

  	
  Compensation and Indemnity.

  	
  80

  
	
  Section 7.08

  	
  Replacement of Trustee.

  	
  81

  
	
  Section 7.09

  	
  Successor Trustee by Merger, etc.

  	
  82

  
	
  Section 7.10

  	
  Eligibility; Disqualification.

  	
  82

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against Issuer.

  	
  82

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  82

  
	
   

  	
   

  
	
  Section 8.01

  	
  Option to Effect Legal Defeasance or Covenant Defeasance.

  	
  82

  
	
  Section 8.02

  	
  Legal Defeasance and Discharge.

  	
  82

  
	
  Section 8.03

  	
  Covenant Defeasance.

  	
  83

  
	
  Section 8.04

  	
  Conditions to Legal Defeasance or Covenant Defeasance.

  	
  83

  
	
  Section 8.05

  	
  Deposited Money and Government Securities to be Held in Trust; Other
  Miscellaneous Provisions.

  	
  84

  
	
  Section 8.06

  	
  Repayment to Issuer.

  	
  85

  

 

iii

 

	
  Section 8.07

  	
  Reinstatement.

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9
  AMENDMENT, SUPPLEMENT AND WAIVER

  	
  86

  
	
   

  	
   

  
	
  Section 9.01

  	
  Without Consent of Holders.

  	
  86

  
	
  Section 9.02

  	
  With Consent of Holders.

  	
  87

  
	
  Section 9.03

  	
  Compliance with Trust Indenture Act.

  	
  88

  
	
  Section 9.04

  	
  Revocation and Effect of Consents.

  	
  88

  
	
  Section 9.05

  	
  Notation on or Exchange of Notes.

  	
  88

  
	
  Section 9.06

  	
  Trustee to Sign Amendments, etc.

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10
  SATISFACTION AND DISCHARGE

  	
  89

  
	
   

  	
   

  
	
  Section 10.01

  	
  Satisfaction and Discharge.

  	
  89

  
	
  Section 10.02

  	
  Application of Trust Money.

  	
  90

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11
  GUARANTEES

  	
  90

  
	
   

  	
   

  
	
  Section 11.01

  	
  Guarantees.

  	
  90

  
	
  Section 11.02

  	
  Limitation on Liability.

  	
  92

  
	
  Section 11.03

  	
  Successors and Assigns.

  	
  94

  
	
  Section 11.04

  	
  No Waiver.

  	
  94

  
	
  Section 11.05

  	
  Modification.

  	
  94

  
	
  Section 11.06

  	
  Execution of Supplemental Indenture for Future Guarantors.

  	
  95

  
	
  Section 11.07

  	
  Non-Impairment

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12
  SUBORDINATION OF THE SENIOR SUBORDINATED SUBSIDIARY GUARANTEE

  	
  95

  
	
   

  	
   

  
	
  Section 12.01

  	
  Agreement To Subordinate.

  	
  95

  
	
  Section 12.02

  	
  Rights of Trustee and Paying Agent.

  	
  96

  
	
  Section 12.03

  	
  Trustee Entitled To Rely.

  	
  96

  
	
  Section 12.04

  	
  Trustee To Effectuate Subordination.

  	
  96

  
	
  Section 12.05

  	
  Reliance by Holders of Senior Indebtedness of the Senior Subordinated
  Subsidiary Guarantor on Subordination Provisions.

  	
  97

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13
  MISCELLANEOUS

  	
  97

  
	
   

  	
   

  
	
  Section 13.01

  	
  Trust Indenture Act Controls.

  	
  97

  
	
  Section 13.02

  	
  Notices.

  	
  97

  
	
  Section 13.03

  	
  Communication by Holders with Other Holders.

  	
  98

  
	
  Section 13.04

  	
  Certificate and Opinion as to Conditions Precedent.

  	
  99

  
	
  Section 13.05

  	
  Statements Required in Certificate or Opinion.

  	
  99

  
	
  Section 13.06

  	
  Rules by Trustee and Agents.

  	
  99

  
	
  Section 13.07

  	
  No Personal Liability of Directors, Officers, Employees and
  Stockholders.

  	
  99

  
	
  Section 13.08

  	
  Governing Law.

  	
  100

  
	
  Section 13.09

  	
  No Adverse Interpretation of Other Agreements.

  	
  100

  
	
  Section 13.10

  	
  Successors.

  	
  100

  
	
  Section 13.11

  	
  Severability.

  	
  100

  
	
  Section 13.12

  	
  Counterpart Originals.

  	
  100

  
	
  Section 13.13

  	
  Table of Contents, Headings, etc.

  	
  100

  
	
  Section 13.14

  	
  Submission to Jurisdiction; Appointment of Agent.

  	
  100

  

 

iv

 

 

EXHIBITS

Exhibit A                                               FORM OF NOTE

Exhibit B                                                 FORM OF SENIOR SUBORDINATED SUBSIDIARY
GUARANTEE

Exhibit C                                                 FORM OF SENIOR GUARANTEE

 

 

v

 

INDENTURE, dated as of
July    , 2006, among NTL Cable PLC, a
public limited company organized under the laws of England and Wales (the “Issuer”), NTL Incorporated, a Delaware corporation (“Parent”), NTL: Telewest
LLC, a Delaware limited liability company (the “Company”), NTL Holdings Inc., a
Delaware corporation (“Holdings”),
NTL (UK) Group, Inc., a Delaware corporation (“UK Holdco”),
NTL Communications Limited, a limited company organized under the laws of England
and Wales, NTL Investment Holdings Limited, a limited company organized under
the laws of England and Wales (“NTLIH” or the “Senior Subordinated Subsidiary Guarantor”), The Bank of New
York, as trustee (the “Trustee”) and
paying agent (the “Paying Agent”) and The Bank of
New York (Luxembourg) S.A. as Luxembourg Paying Agent (and together with the
Paying Agent, the “Paying Agents”).

Each party agrees as
follows for the benefit of the other parties and for the equal and ratable
benefit of the Holders (as defined herein) of (a) the U.S.
dollar-denominated   % Senior Notes due
2016 (the “Dollar Notes”) and
(b) the sterling-denominated    %
Senior Notes due 2016 (the “Sterling Notes”).  The Sterling Notes and the Dollar Notes,
along with any Additional Notes (as defined herein) are referred to herein as
the “Notes.” Except as set forth
in Section 3.07 or Article 9 hereof, all series of Notes will be treated as a
single class.

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01           Definitions.

“Additional
Assets” means:

(1)                                  any Property or assets (other than
Indebtedness and Capital Stock) to be used by any Intermediate Guarantor, the
Issuer or a Restricted Subsidiary;

(2)                                  the Capital Stock of a Person that
becomes a Restricted Subsidiary as a result of the acquisition of such Capital
Stock by any Intermediate Guarantor, the Issuer or another Restricted
Subsidiary; or

(3)                                  Capital Stock constituting a minority
interest in any Person that at such time is a Restricted Subsidiary;

provided, however, that
any such Restricted Subsidiary described in clause (2) or (3) above is
primarily engaged in a Permitted Business.

“Affiliate” of any specified Person means any other Person,
directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

“Additional Notes” means additional notes (other than the
Initial Notes) of any series having identical terms and conditions to the Notes
that may be issued from time to time under this Indenture in accordance with
the terms hereof, including Sections 2.02 and 4.09 hereof.  Except as set forth in Section 3.07 or
Article 9 hereof, any Additional Notes may be treated with the Notes as a
single class and may vote on all matters with such Notes.

 

 

“Additional Subsidiary Guarantor”
means a
Restricted Subsidiary that is required to guarantee the Notes under Section
4.19 and Section 11.06 hereof.  Each such
guarantee is referred to as an “Additional Subsidiary Guarantee.”

“Agent” means any Registrar, co-registrar,
Paying Agent or additional paying agent.

 “Applicable Premium”
means, with respect to a Note at any time, the greater of (1) 1.0% of the
principal amount of such Note at such time and (2) the excess (to the extent
positive) of (A) the present value at such time of (i) the redemption price of
such Note at
                                
, 2011 (such redemption price being described in the table appearing in Section
3.07(a) of this Indenture exclusive of any accrued and unpaid interest) plus
(ii) any required interest payments due on such Note through
       , 2011 (including any accrued and
unpaid interest) computed using a discount rate equal to the Gilt Rate (in the
case of the Sterling Notes) or the Treasury Rate (in the case of the Dollar
Notes), in each case plus 50 basis points, over (B) the principal amount of
such Note.

“Applicable Procedures” means, with respect to any transfer or
exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depositary with respect thereto that apply to such transfer
or exchange.

“Asset
Disposition” means any sale, lease (other than operating leases
entered into in the ordinary course of business), transfer or other disposition
(or series of related sales, leases, transfers or dispositions), including any
disposition by means of a merger, consolidation, or similar transaction (each
referred to for the purposes of this definition as a “disposition”), of any shares
of Capital Stock of any Intermediate Guarantor other than the Company, of the
Issuer, of a Restricted Subsidiary (other than directors’ qualifying shares or
shares required by applicable law to be held by a Person other than the Issuer
or a Restricted Subsidiary) or any assets of the Company or any Restricted
Subsidiary other than:

(a)                                  a disposition to the Company, any
Intermediate Guarantor, the Issuer or an Additional Subsidiary Guarantor;

(b)                                 a disposition by the Company or a
Restricted Subsidiary to a Restricted Subsidiary;

(c)                                  for purposes of Section 4.10 only, a
disposition subject to Section 4.07 or a disposition of assets to a joint
venture as part of a transaction that is a Permitted Investment;

(d)                                 any disposition permitted under Section
5.01;

(e)                                  a sale of Temporary Cash Investments in
the ordinary course of business;

(f)                                    a disposition of inventory, consumer
equipment, communications capacity and worn out or obsolete equipment or assets
in the ordinary course of business;

(g)                                 issuance of Capital Stock by a Restricted
Subsidiary to the Company, any Intermediate Guarantor, the Issuer or another
Restricted Subsidiary;

(h)                                 any sale or other disposition of
Receivables and Related Assets to a Receivables Subsidiary pursuant to or in
connection with a Qualified Receivables Transaction;

(i)                                     any sale or disposition deemed to occur
in connection with creating or granting a Permitted Lien;

 

2

 

(j)                                     any disposition of the Capital Stock or
all or substantially all Property of any Unrestricted Subsidiary; provided,
however, that such disposition shall include the concurrent transfer of all
liabilities (contingent or otherwise) attributable to the Property being
transferred; provided further, however, that such disposition shall not, after
giving effect to any related agreements, result nor be likely to result in any
material liability, tax or other adverse consequences to any Intermediate
Guarantor, the Issuer or any Restricted Subsidiary;

(k)                                  the licensing or sublicensing of
intellectual property or other general intangibles and licenses, leases or
subleases of other Property in the ordinary course of business which do not
materially interfere with the business of the Company, the Intermediate
Guarantors, the Issuer and their Restricted Subsidiaries;

(l)                                     assets or Capital Stock acquired in an
acquisition which the Company, any Intermediate Guarantor, the Issuer or any
Restricted Subsidiary sells within 6 months of such acquisition;

(m)                               the disposition of any Interest Rate
Agreements or Currency Agreements no longer required for the purposes for which
any such agreement was originally entered into;

(n)                                 disposals of assets pursuant to
Sale/Leaseback Transactions not constituting Indebtedness where the aggregate
Fair Market Value of any assets disposed of in reliance on this paragraph (n)
does not, together with the aggregate principal amount of all outstanding
Indebtedness incurred under Section 4.09(b)(7) exceed £150 million (or its
equivalent in other currencies) in any financial year of the Company and any
disposals of assets pursuant to Sale/Leaseback Transactions constituting
Indebtedness to the extent such Indebtedness is otherwise permitted under the
Indenture;

(o)                                 disposals of non-core assets acquired in
connection with any acquisition permitted pursuant to the terms of the
Indenture;

(p)                                 any disposals constituted by licenses of
intellectual property rights;

(q)                                 any disposals in connection with a
Content Transaction;

(r)                                    (i) any disposal of assets made pursuant
to the establishment of a Permitted Joint Venture or (ii) any disposal of
assets to a Permitted Joint Venture which is otherwise permitted hereunder and
in relation to which the requirements of Section 4.10(a)(1) are satisfied;

(s)                                  foreclosure on assets;

(t)                                    surrender or waiver of contract rights or
the settlement, release or surrender of contract, tort or other claims of any
kind;

(u)                                 any disposition of assets to a Person who
is providing services related to such assets, the provision of which have been
or are to be outsourced by the Company or any Restricted Subsidiary to such
Person; provided, however, that (A) if the outsourcing relates to non core
business activities, the Company shall provide an Officer’s Certificate and (B)
if the outsourcing relates to core business activities, the Board of Directors
shall certify, in either case, that in the opinion of the Officer or the Board
of Directors, as applicable, the outsourcing transaction will be economically
beneficial to the Company and its

 

3

Restricted
Subsidiaries (considered as a whole) and that the costs of such outsourcing are
fair; provided further, however, that the Fair Market Value of the assets
disposed of, when taken together with all other dispositions made pursuant to
this clause (u), do not exceed 5% of Total Assets; or

(v)                                 a disposition of Capital Stock or assets
in a transaction or series of related transactions with an aggregate Fair
Market Value of less than £30 million.

“Attributable
Debt” in respect of a Sale/Leaseback Transaction means, as at the
time of determination, the present value (discounted at the interest rate
reasonably determined in good faith by a responsible financial or accounting
officer of the Issuer to be the interest rate implicit in such Sale/Leaseback
Transaction in accordance with GAAP) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such
Sale/Leaseback Transaction (including any period for which such lease has been
extended).

“Average Life”
means, as of the date of determination, with respect to any Indebtedness or
Preferred Stock, the quotient obtained by dividing:

(1)           the sum of the
products of the numbers of years from the date of determination to the dates of
each successive scheduled principal payment of such Indebtedness or scheduled
redemption or similar payment with respect to such Preferred Stock multiplied
by the amount of such payment by

 

(2)           the sum of all such payments.

“Bank
Indebtedness” means any and all amounts payable under or in respect
of an agreement, instrument or other document relating to a Credit Facility
(including security documents, fee letters and intercreditor agreements related
thereto), including principal, premium (if any), interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Person liable thereunder whether or not a claim
for post-filing interest is allowed in such proceedings), fees, charges, expenses,
reimbursement obligations, Guarantees and all other amounts payable thereunder
or in respect thereof, and any and all Refinancing Indebtedness Incurred in
respect of any such amount (including amounts in respect of Refinancing
Indebtedness), whether Incurred under or in respect of an agreement relating to
a Credit Facility or otherwise.  For the
purposes of this definition, “Bank Indebtedness”
shall be deemed to include the Bridge Facility, including any extended term
loans or exchange notes Incurred or issued in relation thereto.

“Bankruptcy Law” means (a) the UK Insolvency Act 1986 or
any other bankruptcy, insolvency, liquidation or similar laws of general
application and (b) the United States Bankruptcy Code of 1978 or any similar
U.S. federal or state law for the relief of debtors.

“BBC
Guarantees” means the guarantees required to be given by certain
Restricted Subsidiaries in favor of BBC Worldwide Limited pursuant to the
shareholder agreements relating to the UKTV Joint Ventures.

“Board of
Directors” means the Board of Directors of the Issuer or any
committee thereof duly authorized to act on behalf of the Board of Directors of
the Issuer or with respect to clause (2) of the definition of Change of
Control, the Board of Directors of Parent or the Company.

“Bridge Facility” means the $1,048,800,000 Bridge Facility
Agreement entered into between, among others, the Issuer as borrower, Parent as
Ultimate Parent and Holdings as guarantor, as such

 

4

 

agreement may be
amended or modified from time to time (including the replacement of the
original Bridge Facility pursuant to its terms with an additional facility
pursuant to which the extended loans will be issued).

“Business
Day” means each
day which is not a Legal Holiday.

“Business
Division Transaction” means any creation or participation in any joint venture with respect
to any assets, undertakings and/or businesses of the Company and its Restricted
Subsidiaries which comprise all or part of the Ntl:Telewest Business Division
(or its predecessor or successors), to or with any other entity or person
whether or not the Company or any of its Restricted Subsidiaries, excluding the
contribution to (but not the use by) any joint venture of the backbone assets
utilized by the Company and its Restricted Subsidiaries and excluding any
Subsidiary included in or owned by the Ntl:Telewest Business Division but not
engaged in the business of that division.

“Capital Stock” of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible
into such equity.

“Capitalized Lease Obligation” means an obligation that is
required to be classified and accounted for as a capitalized lease for
financial reporting purposes in accordance with GAAP, and the amount of
Indebtedness represented by such obligation shall be the capitalized amount of
such obligation determined in accordance with GAAP; and the Stated Maturity
thereof shall be the date of the last payment of rent or any other amount due
under such lease.

“Change
of Control” means
the occurrence of any of the following events:

                (1)           any “person” or “group” of related persons (as such terms
are used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
for purposes of this clause (1) such person or group shall be deemed to have “beneficial
ownership” of all shares that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of more than 50% of the total voting power of
the Voting Stock of Parent or the Company (for the purposes of this clause (1),
such person shall be deemed to beneficially own any Voting Stock of an entity
held by any other entity (the “parent entity”), if such other person is the
beneficial owner (as defined in this clause (1)), directly or indirectly, of
more than 50% of the voting power of the Voting Stock of such parent entity);

                (2)           during any period of two consecutive years, individuals
who at the beginning of such period constituted the Board of Directors of
Parent or the Company (together with any new directors whose election to such
Board of Directors or whose nomination for election by the shareholders of such
company was approved by a vote of a majority of the directors of such company
then still in office who were either directors at the beginning of such period
or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the Board of Directors of Parent or the
Company, then in office;

                (3)           the adoption of a plan relating to the liquidation or
dissolution of Parent, the Company or the Issuer; or

                (4)           the merger or consolidation of Parent, any other NTL
Holding Company or the Issuer with or into another Person (other than Parent,
any other NTL Holding Company or the Issuer or any other Wholly Owned
Subsidiary of Parent) or the merger of another Person (other than Parent, any 

 

5

 

other NTL Holding Company, the Issuer or any other
Wholly Owned Subsidiary of Parent) with or into Parent, any other NTL Holding
Company or the Issuer or the sale of all or substantially all the assets of
Parent, any other NTL Holding Company or the Issuer to another Person (other
than Parent, any other NTL Holding Company, the Issuer or any other Wholly
Owned Subsidiary of the Parent), and, in the case of any such merger or
consolidation, the securities of Parent, any other NTL Holding Company or the
Issuer that are outstanding immediately prior to such transaction are changed
into or exchanged for cash, securities or Property, unless pursuant to such
transaction such securities are changed into or exchanged for, in addition to
any other consideration, securities of the surviving Person or transferee that
represent immediately after such transaction, at least a majority of the
aggregate voting power of the Voting Stock of the surviving Person or
transferee.

Notwithstanding
the foregoing, a Change of Control shall not be deemed to have occurred if an
NTL Holding Company that is not then a Subsidiary of Parent becomes the
ultimate parent of the Issuer and, if such NTL Holding Company had been Parent,
no Change of Control would have otherwise occurred; provided, however, that
such NTL Holding Company guarantees the Notes on a senior basis.

“Clearstream, Luxembourg” means Clearstream Banking, S.A.

“Closing Date”
means July     , 2006.

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

“Common Depositary” means The Bank
of New York as common depositary for Euroclear and Clearstream, Luxembourg with
repect to the Sterling Global Notes, or any successor entity thereto.

“Company” has the
meaning assigned to it in the preamble to this Indenture.

“Consolidated
Interest Expense” means, for any period, the total interest expense
of the Company and its Consolidated Restricted Subsidiaries including, without
duplication:

(1)                                  interest expense attributable to Purchase
Money Indebtedness and Capitalized Lease Obligations and the interest expense
attributable to leases constituting part of a Sale/Leaseback Transaction,

 

(2)                                  amortization of debt discount and debt
issuance costs,

(3)                                  capitalized interest and interest paid in
the form of additional Indebtedness,

(4)                                  cash or non-cash interest expense,

(5)                                  commissions, discounts and other fees and
charges attributable to letters of credit and bankers’ acceptance financing,

(6)                                  interest accruing on any Indebtedness of
any other Person to the extent such Indebtedness is Guaranteed by, or secured
by a Lien on the assets of, the Issuer or any Restricted Subsidiary,

(7)                                  net costs associated with Hedging
Obligations (including amortization of fees),

 

6

 

(8)                                  dividends in respect of all Disqualified
Stock of the Issuer and all Preferred Stock of any of the Subsidiaries of the
Issuer, to the extent held by Persons other than the Issuer or a Wholly Owned
Subsidiary of the Issuer,

(9)                                  interest Incurred in connection with
Investments in discontinued operations and

(10)                            the cash contributions to any employee
share ownership plan or similar trust to the extent such contributions are used
by such plan or trust to pay interest or fees to any Person (other than the
Issuer) in connection with Indebtedness Incurred by such plan or trust.

“Consolidated
Net Income” means, for any period, the net income (loss) of the
Company and its Consolidated Subsidiaries for such period; provided, however,
that there shall not be included in such Consolidated Net Income:

(1)                                  any net income (or loss) of any Person
(other than the Company) if such Person is not a Subsidiary, or is an
Unrestricted Subsidiary, except that, subject to the limitations contained in
clause (4) below, the Company’s equity in the net income of any such Person for
such period shall be included in such Consolidated Net Income up to the
aggregate amount of cash or Temporary Cash Investments distributed by such
Person during such period to the Company or a Restricted Subsidiary as a
dividend or other similar distribution or return;

 

(2)                                  any net income (or loss) of any
Restricted Subsidiary to the extent such Restricted Subsidiary is subject to
restrictions, directly or indirectly, on the payment of dividends or the making
of distributions by such Restricted Subsidiary, directly or indirectly, to the
Issuer (other than any restriction permitted under clause (A), (C) (solely to
the extent relating to clause (A)), (H) or (J) (to the extent that assets of
the joint ventures subject to such restriction do not exceed 2.5% of Total Assets)
of Section 4.08(b)), except that, subject to the limitations contained in
clause (4) below, the Company’s equity in the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated Net Income up
to the aggregate amount of cash or Temporary Cash Investments distributed by
such Restricted Subsidiary during such period to the Company or another
Restricted Subsidiary as a dividend or other similar distribution;

(3)                                  any gain (or loss) realized upon the sale
or other disposition of any asset of the Company or its Consolidated
Subsidiaries (including pursuant to any Sale/Leaseback Transaction) and any
gain (or loss) realized upon the sale or other disposition of any Capital Stock
of any Person, in each case, that is not sold or otherwise disposed of in the
ordinary course of business;

(4)                                  any item classified as a restructuring,
extraordinary, unusual, non-recurring or other non-operating gain or loss,
including the costs of, and accounting for, financial instruments;

(5)                                  any impairment loss of the Company or its
Restricted Subsidiaries relating to goodwill or other intangible assets;

(6)                                  the cumulative effect of a change in
accounting principles;

(7)                                  all deferred financing costs written off
in connection with the early extinguishment of Indebtedness, net of taxes; and

 

7

 

(8)                                  any foreign currency transaction or
translation gains or losses, net of taxes.

Notwithstanding the
foregoing, for the purpose of Section 4.07 only, there shall be excluded from
Consolidated Net Income any repurchases, repayments, redemptions or releases of
Investments, proceeds realized on the sale or liquidation of Investments, and
dividends, repayments of loans or advances or other transfers of assets from Unrestricted
Subsidiaries to the Company or a Restricted Subsidiary to the extent such
amounts increase the amount of Restricted Payments permitted under Section 4.07
pursuant to clauses (C)(iv) of paragraph (a) thereof.

“Consolidation”
means the consolidation of the accounts of each of the Restricted Subsidiaries
with those of the Company in accordance with GAAP consistently applied;
provided, however, that “Consolidation” will not include consolidation of the
accounts of any Unrestricted Subsidiary, but the interest of the Company or any
Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an
investment. The term “Consolidated” has a correlative meaning.

“Content”
means any rights to broadcast, transmit, distribute or otherwise make available
for viewing, exhibition or reception (whether in analogue or digital format and
whether as a channel or an internet service, a teletext-type service, an
interactive service, or an enhanced television service or any part of any of
the foregoing, or on a pay-per-view basis, or near video-on-demand, or
video-on-demand basis or otherwise) any one or more of audio and/or visual
images, audio content, or interactive content (including hyperlinks,
re-purposed web-site content, database content plus associated templates,
formatting information and other data including any interactive applications or
functionality), text, data, graphics, or other content, by means of any means
of distribution, transmission or delivery system or technology (whether now known
or herein after invented).

“Content
Business” means the business of the Company and its Restricted
Subsidiaries consisting of ownership or licensing of Content.

“Content
Transaction” means any sale, transfer, demerger, contribution,
spin-off or distribution of, any creation or participation in any joint venture
and/or entering into any other transaction or taking any action with respect
to, in each case, any assets, undertakings and/or businesses of the Company and
its Restricted Subsidiaries which comprise all or part of the Content Business,
to or with any other entity or person whether or not the Company or any of its
Restricted Subsidiaries.

“Credit
Facility” means any debt facility or commercial paper facility
(including the New Credit Facility) or ancillary facility, in each case with a
lender or a syndicate of commercial bank lenders or other financial
institutions, providing for revolving credit loans, term loans, receivables
financing or letters of credit, in each case, as amended, restated, refunded,
renewed, replaced or Refinanced in whole or in part from time to time by a
lender or a syndicate of commercial bank lenders or other financial
institutions.

“Currency
Agreement” means with respect to any Person any foreign exchange
contract, currency swap agreements or other similar agreement or arrangement to
which such Person is a party or of which it is a beneficiary.

“Custodian” means

(w)                               in the case of any Global Note held
through DTC, the Trustee, as custodian for DTC with respect to such Global Note,
and

 

8

 

(x)                                   in the case of any Global Note held
through Euroclear or Clearstream, Luxembourg, the Common Depositary.

“Default”
means any event which is, or after notice or passage of time or both would be,
an Event of Default.

“Definitive Note” means a certificated Note registered in
the name of the Holder thereof and issued in accordance with Section 2.06
hereof, substantially in the form of Exhibit A hereto except that such
Note shall not bear the Global Note Legend or the “Schedule of Exchanges of
Interests in the Global Note” attached hereto.

“Depositary” means, with respect to any Global Note,
the Person specified in Section 2.03 hereof as the Depositary with respect to
such Global Note or any successor thereto appointed as Depositary hereunder and
having become such pursuant to the applicable provision of this Indenture.

“Designated
Non-Cash Consideration” means the Fair Market Value of non-cash
consideration received by any Intermediate Guarantor, the Issuer or any
Restricted Subsidiary in connection with an Asset Disposition that is so
designated pursuant to an Officer’s Certificate, setting forth the basis of
such valuation.  The aggregate Fair
Market Value of the Designated Non-Cash Consideration, taken together with the
Fair Market Value at the time of receipt of all other Designated Non-Cash
Consideration then held by any Intermediate Guarantor, the Issuer or any
Restricted Subsidiary, may not exceed the greater of (x) £100 million in the
aggregate or (y) 1.00% of Total Assets, at the time of the receipt of the
Designated Non-Cash Consideration (with the Fair Market Value being measured at
the time received and without giving effect to subsequent changes in value).

“Designated Senior Indebtedness” means any Senior Indebtedness of the
Senior Subordinated Subsidiary Guarantor (other than Bank Indebtedness) which
at the time of determination exceeds £75 million in aggregate principal amount
(or accreted value in the case of Indebtedness issued at a discount)
outstanding or available under a committed facility, which is specifically
designated in the instrument evidencing such Senior Indebtedness as “Designated
Senior Indebtedness” by such Person and as to which the Trustee has been given
written notice of such designation.

“Disqualified
Stock” means, with respect to any Person, any Capital Stock which by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable or exercisable) or upon the happening of any event:

(1)                                  matures or is mandatorily redeemable
(other than redeemable only for Capital Stock of such Person that is not itself
Disqualified Stock) pursuant to a sinking fund obligation or otherwise;

 

(2)                                  is convertible or exchangeable for
Indebtedness or Disqualified Stock (excluding Capital Stock convertible or
exchangeable solely at the option of the Company or a Restricted Subsidiary;
provided, however, that any such conversion or exchange shall be deemed an
Incurrence of Indebtedness or Disqualified Stock, as applicable); or

(3)                                  is redeemable or may become (in
accordance with its terms) upon the occurrence of certain events or otherwise
redeemable or repurchasable at the option of the holder thereof, in whole or in
part,

in the case of
each of clauses (1), (2) and (3), on or prior to 180 days following the Stated
Maturity of the Notes; provided, however, that any Capital Stock that would not
constitute Disqualified Stock but for

 

9

 

provisions thereof
giving holders thereof the right to require such Person to repurchase or redeem
such Capital Stock upon the occurrence of an “asset sale” or “change of control”
occurring prior to 180 days following the Stated Maturity of the Notes shall
not constitute Disqualified Stock if the “asset sale” or “change of control”
provisions applicable to such Capital Stock are not more favorable to the
holders of such Capital Stock than the provisions of Sections 4.10 and 4.15.

“Dollar
Global Note”
means a Global Note representing Dollar Notes.

“Dollar Notes”
means the U.S. dollar denominated     %
Senior Notes due 2016 of the Issuer.

“EBITDA”
for any period means the Consolidated Net Income for such period plus, without
duplication, the following to the extent deducted in calculating such
Consolidated Net Income of the Company and its Consolidated Restricted
Subsidiaries:

(1)                                  income tax expense;

 

(2)                                  Consolidated Interest Expense;

(3)                                  depreciation expense;

(4)                                  amortization expense (excluding
amortization expense attributable to a prepaid cash item that was paid in a
prior period);

(5)                                  all other non-cash charges (excluding any
such non-cash charge to the extent it represents an accrual of or reserve for
cash expenditures in any future period) less all non-cash items of income
(excluding any such non-cash item of income to the extent it will result in
receipt of cash payments in any future period);

(6)                                  other cash charges for professional fees
and services incurred in connection with the planning, negotiating, documenting
or other activities related to a proposed financing, acquisition or disposition
transaction involving a Permitted Business if such transaction is abandoned;

(7)                                  the amount of minority interest expense
deducted in calculating Consolidated Net Income;

(8)                                  the amount of any restructuring charge
deducted for such period in calculating Consolidated Net Income;

(9)                                  recapitalization items, net;

(10)                            share of income or loss on equity
Investments; and

(11)                            asset impairments,

in each case for
such period.

Notwithstanding the
foregoing, the provision for taxes based on the income or profits of, and the
depreciation and amortization and non-cash charges of, a Restricted Subsidiary
shall be added to Consolidated Net Income to compute EBITDA only to the extent
(and in the same proportion) that the net income of such Restricted Subsidiary
was included in calculating Consolidated Net Income and only to

 

10

 

the extent that a
corresponding amount would be permitted at the date of determination to be
dividended or distributed, directly or indirectly, to the Company by such
Restricted Subsidiary without breaching or violating a restriction, directly or
indirectly, applicable to such Restricted Subsidiary (disregarding for this
purpose any restriction permitted under clause (A), (C) (solely to the extent
relating to clause (A)) or (H) of Section 4.08(b)).

“Equity
Offering” means a public or private sale for cash of Capital Stock
that is a sale of Capital Stock of the Company or any NTL Holding Company (not
including convertible debt or other equity-linked securities or purchases of
Capital Stock of the Company or any NTL Holding Company funded by a sale of
debt, convertible debt or other equity-linked securities of the Company or any
NTL Holding Company).

“Euroclear” means Euroclear Bank S.A./N.V.

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

“Existing
Notes” means the £375 million of 9.75% Senior Notes due 2014, the
$425 million of Senior Notes due 2014 and the €225 million of Senior Notes due
2014 issued by NTL Cable plc pursuant to an indenture dated April 13, 2004; and
the “Existing Notes Issuer” means the issuer of such Notes, including any
successor issuer from time to time pursuant to the indenture governing the
Existing Notes.

“Fair Market
Value” means, with respect to any asset or Property, the price which
could be negotiated in an arm’s-length transaction between a willing seller and
a willing buyer, neither of whom is under undue pressure or compulsion to
complete the transaction.

“GAAP”
means generally accepted accounting principles in the United States of America
as in effect as of the Closing Date. All ratios and computations based on GAAP
contained in this Indenture shall be computed in conformity with GAAP as in
effect at the Closing Date.

“Gilt Rate”
means, as of any redemption date, the yield to maturity as of such redemption
date of United Kingdom government securities with a fixed maturity (as complied
by the Office for National Statistics and published in the most recent
Financial Statistics that have become publicly available at least two Business
Days in London prior to such redemption date (or, if such Financial Statistics
are no longer published, any publicly available source of similar market data))
most nearly equal to the period from such redemption date to                     , 2011; provided, however,
that if the period from such redemption date to                  , 2011 is less than one year,
the weekly average yield on actually traded United Kingdom government
securities denominated in sterling adjusted to a fixed maturity of one year
shall be used.

“Group Intercreditor Deed” means the Group Intercreditor Deed
originally entered into on March 3, 2006 and as amended from time to time,
between Deutsche Bank AG London as Facility Agent and Security Trustee, the
Original Borrowers, the Original Guarantors, the Senior Lenders, the Lessors,
the Lessees, the Hedge Counterparties, the Lessor’s Agent, the Intergroup
Debtors and the Intergroup Creditors (each as defined therein).

“Global Notes” means, individually and collectively,
each of the Dollar Global Notes and the Sterling Global Notes, substantially in
the form of Exhibit A hereto (including the Global Note Legend thereon and
the “Schedule of Exchange of Interests in the Global Note” attached thereto)
issued in accordance with Section 2.01 or 2.06 hereof.

 

11

 

“Global Note Legend” means the legend set forth in
Section 2.06(f)(1) or (2), as applicable, which is required to be placed
on all Global Notes issued under this Indenture.

“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness or other obligation of any other
Person and any obligation, direct or indirect, contingent or otherwise, of such
Person:

(1)                                  to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation of
such other Person (whether arising by virtue of partnership arrangements, or by
agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise); or

 

(2)                                  entered into for purposes of assuring in
any other manner the obligee of such Indebtedness or other obligation of the
payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part);

provided, however, that
the term “Guarantee” shall not include endorsements for collection or deposit
in the ordinary course of business or (ii) a contractual commitment by a Person
to make an Investment in another Person so long as such Investment is
reasonably expected to constitute a Permitted Investment under clause (1) or
(2) of the definition of “Permitted Investment.”  The term “Guarantee” used as a verb has a
corresponding meaning. The term “Guarantor” shall mean any Person Guaranteeing
any obligation.

“Hedging Obligations”
of any Person means the obligations of such Person pursuant to any Interest
Rate Agreement or any Currency Agreement.

“Holder”
means each Person in whose name the Notes are registered on the Registrar’s
books.

“Holdings”
has the meaning assigned to it in the preamble to this Indenture.

“Incur”
means issue, assume, Guarantee, incur or otherwise become liable for; provided,
however, that any Indebtedness or Capital Stock of a Person existing at the
time such Person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Person at the
time it becomes a Subsidiary. The term “Incurrence” when used as a noun shall
have a correlative meaning.

Solely for purposes of
determining compliance with Section 4.09, the following will not be deemed to
be the Incurrence of Indebtedness: (1) amortization of debt discount or the
accretion of principal with respect to a non-interest bearing or other discount
security; (2) the payment of regularly scheduled interest in the form of
additional Indebtedness of the same instrument or the payment of regularly
scheduled dividends on Capital Stock in the form of additional Capital Stock of
the same class and with the same terms; (3) the obligation to pay a premium in
respect of Indebtedness arising in connection with the issuance of a notice of
redemption or the making of a mandatory offer to purchase such Indebtedness;
and (4) a change in GAAP that results in an obligation of such Person that
exists at such time, and is not theretofore classified as Indebtedness,
becoming Indebtedness.

“Indebtedness”
means, with respect to any Person on any date of determination, without
duplication:

(1)                                  the principal of and premium (if any) in
respect of indebtedness of such Person for borrowed money;

 

12

 

 

(2)                                  the principal of and premium (if any) in
respect of obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments (other than loan notes or similar instruments issued
solely by way of consideration for the acquisition of assets in order to defer
capital gains or equivalent taxes where such loan notes or similar instruments
are not issued for the purpose of financing but are issued for tax purposes);

(3)                                  all obligations of such Person in respect
of letters of credit, bankers’ acceptances or other similar instruments
(including reimbursement obligations with respect thereto), other than
reimbursement obligations with respect to letters of credit securing
obligations (other than obligations described in (1), (2) and (5) hereof)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon
such drawing is reimbursed no later than the fifth Business Day following
receipt by such Person of a demand for reimbursement following payment of the
letter of credit;

(4)                                  all obligations of such Person to pay the
deferred and unpaid purchase price of Property or services (except Trade
Payables), which purchase price is due more than six months after the date of
placing such Property in service or taking delivery and title thereto or the
completion of such services and whose primary purpose is for financing;

(5)                                  all Capitalized Lease Obligations and all
Attributable Debt of such Person;

(6)                                  the amount of all obligations of such
Person with respect to the redemption, repayment or other repurchase of any
Disqualified Stock or, with respect to any Subsidiary of such Person, any Preferred
Stock (but excluding, in each case, any accrued dividends);

(7)                                  all obligations referred to in other
clauses of this definition of other Persons secured by a Lien on any asset of
such Person, whether or not such Indebtedness is assumed by such Person;
provided, however, that the amount of Indebtedness of such Person shall be the
lesser of: (A) the Fair Market Value of such asset at such date of
determination and (B) the amount of such Indebtedness of such other Persons;

(8)                                  Hedging Obligations of such Person; and

(9)                                  all obligations of the type referred to
in clauses (1) through (8) of other Persons and all dividends of other Persons
for the payment of which, in either case, such Person is responsible or liable,
directly or indirectly, as obligor, guarantor or otherwise, including by means
of any Guarantee.

The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations as described above and the maximum
liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date as determined in
accordance with GAAP. The amount of Indebtedness under Hedging Obligations of a
Person will be calculated by reference to the net liability of such Person
thereunder (as determined in accordance with GAAP as of the date of the most
recent financial statements distributed to Holders under Section 4.03).

“Indenture” means this Indenture, as amended or
supplemented from time to time.

 

13

 

“Independent
Financial Advisor” means an investment banking, financial advisory,
valuation or accounting firm of international standing or any third-party
appraiser of international standing; provided that such firm or appraiser is
not an Affiliate of the Company.

“Indirect Participant” means a Person who holds a beneficial
interest in a Global Note through a Participant.

“Initial Notes” means the £      million aggregate principal amount of
Sterling Notes and the $     million aggregate
principal amount of Dollar Notes issued under this Indenture on the date
hereof.

“Intercreditor Deed” means the Intercreditor Deed first
entered into among the Issuer, NTLIH, Credit Suisse First Boston, The Bank of
New York and the senior lenders party thereto, on the closing date of the
issuance of the Existing Notes, as the same may be amended, modified,
supplemented, extended or replaced from time to time, in each case in
accordance with the terms of the Indenture, including by the accession of the
Trustee thereto.

“Interest
Rate Agreement” means with respect to any Person any interest rate
protection agreement, interest rate future agreement, interest rate option
agreement, interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement, interest rate hedge agreement or other similar agreement
or arrangement to which such Person is party or of which it is a beneficiary.

“Intermediate Guarantors” collectively means the Company, Holdings,
UK Holdco, NTL Communications Limited and any future Subsidiary of the Company
of which the Issuer is a Subsidiary, which future Subsidiary shall be required
to Guarantee the Notes on a senior basis in accordance with Section 11.06
hereof.  The guarantee of the Notes by
each Intermediate Guarantor is referred to as an “Intermediate Guarantee.”

“Investment”
in any Person means any direct or indirect advance, loan (other than advances
to customers in the ordinary course of business that are of a type that will be
recorded as accounts receivable on the balance sheet of the lender) or other
extension of credit (including by way of Guarantee or similar arrangement) or
capital contribution to (including by means of any transfer of cash or other
Property to others or any payment for Property or services for the account or
use of others), or any purchase or acquisition of Capital Stock, Indebtedness
or other similar instruments issued by such Person, or any prepayment,
repayment, repurchase, redemption, retirement, refinancing or defeasance of
Indebtedness of such Person, together with all items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.
For purposes of Sections 4.07 and 4.17 of this Indenture:

(1)                                  “Investment” shall include the portion (proportionate
to the Company’s equity interest in such Subsidiary) of the Fair Market Value
of the net assets of any Subsidiary of the Company at the time that such
Subsidiary is designated an Unrestricted Subsidiary; provided, however, that
upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company
shall be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to:

 

(A)                              the Company’s
“Investment” in such Subsidiary at the time of such redesignation, less

(B)                                the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the Fair
Market Value of the net assets of such Subsidiary at the time of such
redesignation; and

 

14

 

(2)                                  any Property transferred to or from an
Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of
such transfer.

“Issuer” has the meaning assigned to it in the
preamble to this Indenture.

“Legal
Holiday” means a Saturday, Sunday or other day on which banking
institutions are not required by law or regulation to be open in the State of
New York or London, England.

“Leverage
Ratio” means the ratio of:

(1)                                  the outstanding Indebtedness of the
Company and its Consolidated Restricted Subsidiaries, to

 

(2)                                  the Pro Forma EBITDA.

“Lien”
means any mortgage, pledge, security interest, encumbrance, lien or charge of
any kind (including any conditional sale or other title retention agreement or
lease in the nature thereof).

“Member State”
means any country that was a member of the European Union as of the date of
this Indenture.

“Merger”
means the merger of NTL Incorporated (as it was then named) with Neptune Bridge
Borrower, LLC, a Delaware limited liability company, pursuant to the terms and
conditions of the agreement and plan of merger dated as of 2 October 2005 (as
amended and restated on 14 December 2005 and 30 January 2006), and the
subsequent reorganization, recapitalization and refinancing in connection
therewith.

“Merger Date”
means March 3, 2006.

“Moody’s” means Moody’s Investors Service, Inc. or any
successor to its rating business.

“Net
Available Cash” from an Asset Disposition means cash payments
received (including, only when and as received, any cash payments received by way
of deferred payment of principal pursuant to a note or installment receivable
or otherwise and proceeds from the sale or other disposition of any securities
received as consideration, but excluding any other consideration received in
the form of assumption by the acquiring Person of Indebtedness or other
obligations relating to the properties or assets that are the subject of such
Asset Disposition or received in any other non-cash form) therefrom, in each
case net of:

(1)                                  all legal, accounting and investment
banking fees and expenses, title and recording tax expenses, commissions and
other fees and expenses incurred, and all national, regional, state,
provincial, foreign and local taxes required to be paid as a consequence of
such Asset Disposition,

 

(2)                                  all payments made on any Indebtedness
which is secured by any assets subject to such Asset Disposition, in accordance
with the terms of any Lien upon or other security agreement of any kind with
respect to such assets, or which must by its terms, or in order to obtain a
necessary consent to such Asset Disposition, or by applicable law be repaid out
of the proceeds from such Asset Disposition,

 

15

 

(3)                                  all distributions and other payments
required to be made to minority interest holders in Subsidiaries or joint
ventures as a result of such Asset Disposition and

(4)                                  appropriate cash amounts to be provided
by the seller as a reserve, in accordance with GAAP, against any liabilities
associated with the Property or other assets disposed of in such Asset
Disposition and retained by the Company, the Issuer or any Restricted
Subsidiary after such Asset Disposition.

“Net Cash
Proceeds,” with respect to any issuance or sale of Capital Stock,
means the cash proceeds of such issuance or sale net of attorneys’ fees,
accountants’ fees, underwriters’ or placement agents’ fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

“New Credit
Facility” means the Senior Facilities Agreement between Telewest
Global, Incorporated (renamed NTL Incorporated) as Ultimate Parent and the
other parties thereto, as the same may be amended, modified, supplemented, extended
or replaced from time to time, in each case in accordance with the terms of the
Indenture.

“Non-Recourse
Debt” means Indebtedness:

(1)                                  as to which neither the Company, the
Issuer nor any other Restricted Subsidiary (a) provides any Guarantee or credit
support of any kind (including any undertaking, Guarantee, indemnity, agreement
or instrument that would constitute Indebtedness) or (b) is directly or
indirectly liable (as a guarantor or otherwise);

 

(2)                                  no default with respect to which
(including any rights that the holders thereof may have to take enforcement
action against an Unrestricted Subsidiary) would permit (upon notice, lapse of
time or both) any holder of any other Indebtedness of the Company, the Issuer
or any other Restricted Subsidiary to declare a default under such other
Indebtedness or cause the payment thereof to be accelerated or payable prior to
its stated maturity; and

(3)                                  the explicit terms of which provide there
is no recourse against any of the assets of the Company, the Issuer or any
other Restricted Subsidiary.

“Note Guarantor” means the Parent, each Intermediate
Guarantor, the Senior Subordinated Subsidiary Guarantor, and each Additional
Subsidiary Guarantor.  The guarantee of
the Notes by each Note Guarantor is referred to as a “Note Guarantee.”

“Notes”
means the Sterling Notes and the Dollar Notes, along with any Additional Notes
that may be issued pursuant to the terms of this Indenture.

“NTL Holding
Company” means any Person of which the Issuer is a Wholly Owned
Subsidiary.

“NTLIH” has the meaning assigned to it in the
preamble to this Indenture.

“Officer”
of a Person means the Chairman of the Board, the Chief Executive Officer, the
Chief Financial Officer, Deputy Chief Financial Officer, the President, any
Vice President, the Treasurer, Assistant Treasurer, the Secretary or Assistant
Secretary, or any Director.

“Officer’s
Certificate” means a certificate signed by an Officer.

 

16

 

“Opinion of
Counsel” means a written opinion from legal counsel of recognized
standing in a form reasonably satisfactory to the addressee of such opinion.
The counsel may be an employee of or counsel to the Issuer or the Trustee.

“Parent” has the meaning assigned to it in the
preamble to this Indenture.

“Parent Guarantee” means the guarantee of the Notes by the
Parent.

“Participant” means, with respect to any Depositary, a
Person who is a participant of or has an account with such Depositary (and,
with respect to DTC, shall include Euroclear and Clearstream, Luxembourg).

“Permitted
Business” means any business engaged in by the Company, the Issuer
or any other Restricted Subsidiary on the Closing Date and any Related
Business.

“Permitted
Investment” means an Investment by the Company, the Issuer or any other
Restricted Subsidiary in:

(1)                                  the Company, any Restricted Subsidiary or
a Person that will, upon the making of such Investment, become a Restricted
Subsidiary;

 

(2)                                  another Person if as a result of such
Investment such other Person is merged or consolidated with or into, or
transfers or conveys all or substantially all its assets to, the Company or any
Restricted Subsidiary;

(3)                                  cash and Temporary Cash Investments;

(4)                                  receivables owing to the Company, the
Issuer or any other Restricted Subsidiary if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary trade terms; provided, however,
that such trade terms may include such concessionary trade terms as the
Company, the Issuer or any such Restricted Subsidiary deems reasonable under
the circumstances;

(5)                                  payroll, travel and similar advances to
cover matters that are expected at the time of such advances ultimately to be
treated as expenses for accounting purposes and that are made in the ordinary course
of business;

(6)                                  loans, advances or Guarantees of loans or
advances to employees (including for relocation) made in the ordinary course of
business of the Company or such Restricted Subsidiary and not exceeding £5
million in the aggregate outstanding at any one time;

(7)                                  shares, obligations or securities
received in settlement of debts created in the ordinary course of business and
owing to the Company, the Issuer or any other Restricted Subsidiary or in
satisfaction of judgments;

(8)                                  any Person to the extent such Investment
represents the non-cash portion of the consideration received for an Asset
Disposition that was made pursuant to and in compliance with Section 4.10
hereof;

(9)                                  any Person, if such Investment is in
existence on the Closing Date and any Investment in any Person to the extent
such Investment Refinances an Investment in such Person

 

17

 

existing on the Closing
Date in an amount not exceeding the amount of the Investment being Refinanced; provided, however, that such new Investment is on terms and
conditions no less favorable to the Company, the Issuer or any other Restricted
Subsidiary than the Investment being Refinanced;

(10)                            Guarantees permitted to be Incurred by
Section 4.09 hereof;

(11)                            loans granted as a result of a subscriber
being allowed terms, in the ordinary course of trade, whereby it does not have
to pay for services provided to it for a period of time after the provision of
such services;

(12)                            the BBC Guarantees;

(13)                            lease, utility and workers’ compensation,
performance and other similar deposits made in the ordinary course of business;

(14)                            Hedging Obligations permitted under this
Indenture;

(15)                            repurchases of the Notes;

(16)                            Investments resulting from the
disposition of assets in transactions excluded from the definition of “Asset
Disposition” pursuant to the exclusions from such definition;

(17)                            any Person where such Investment was
acquired by the Company, the Issuer or any other Restricted Subsidiary (i) in
exchange for any other Investment or accounts receivable held by the Company,
the Issuer or any such Restricted Subsidiary in connection with or as a result
of a bankruptcy, workout, reorganization or recapitalization of the issuer of
such other Investment or accounts receivable or (ii) as a result of a
foreclosure by the Company, the Issuer or any such Restricted Subsidiary with
respect to any secured Investment or other transfer of title with respect to
any secured Investment in default;

(18)                            any Receivables Subsidiary organized in
connection with a Qualified Receivables Transaction that, in the good faith
determination of the Company, are necessary or advisable to effect such
Qualified Receivables Transaction; and

(19)                            any Person; provided,
however, that such Investment (having a Fair Market Value measured
on the date such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant
to this clause (19) since the Closing Date, shall not exceed at the time the
Investment is made the greater of (a) 2.0% of Total Assets or (b) £100 million;
provided, further, however, that
Investments made in any Unrestricted Subsidiary pursuant to this clause (19)
shall not increase the amount of Restricted Payments permitted to be made under
Section 4.07 upon any redesignation of any such Unrestricted Subsidiary as a
Restricted Subsidiary.

“Permitted
Joint Ventures” means one or more joint ventures formed by (i) the
contribution of all or any part of the Content Business to a joint venture
formed by the Company or any of its Restricted Subsidiaries with one or more
joint venturers; and (ii) the contribution of some or all of the assets of the
Ntl:Telewest Business Division pursuant to a Business Division Transaction to a
joint venture formed by the Company or any of its Restricted Subsidiaries with
one or more joint venturers.

“Permitted
Liens” means, with respect to any Person:

 

18

 

(1)                                  pledges or deposits by such Person under
worker’s compensation laws, unemployment insurance laws or similar legislation,
or good faith deposits in connection with bids, tenders, contracts (other than
for the payment of Indebtedness) or leases to which such Person is a party, or
deposits to secure public or statutory obligations of such Person or deposits
of cash or Temporary Cash Investments to secure surety or appeal bonds to which
such Person is a party, or deposits as security for contested taxes or customs
duties in connection with the importation of goods or for the payment of rent,
in each case Incurred in the ordinary course of business;

 

(2)                                  Liens imposed by law, such as statutory
Liens for landlords and carriers’, warehousemen’s and mechanics’ Liens, in each
case for sums not yet delinquent or being contested in good faith or other
Liens arising out of judgments or awards against such Person with respect to
which such Person shall then be proceeding with an appeal or other proceedings
for review;

(3)                                  Liens for taxes, assessments or
government charges or claims not yet due or payable or subject to penalties for
non-payment or which are being contested in good faith;

(4)                                  Liens in favor of issuers of surety
bonds, performance bonds or letters of credit, bankers’ acceptances or other obligations
of a like nature provided by the Company or a Restricted Subsidiary in the
ordinary course of business;

(5)                                  survey exceptions, encumbrances,
easements or reservations of, or rights of others for, licenses, rights-of-way,
sewers, electric lines, utility agreements, telegraph and telephone lines and
other similar purposes, or zoning or other restrictions as to the use of real
property or Liens incidental to the conduct of the business of such Person or
to the ownership of its properties which were not Incurred in connection with
Indebtedness and which do not in the aggregate materially adversely affect the
value of said properties or materially impair their use in the operation of the
business of such Person;

(6)                                  Liens securing Purchase Money Indebtedness
and Capitalized Lease Obligations Incurred to finance the construction,
purchase or lease of, or repairs, improvements or additions to, assets or
Property of such Person; provided, however, that the Lien may not extend to any
other assets or Property owned by such Person or any of its Subsidiaries at the
time the Lien is Incurred, and the original principal amount of the
Indebtedness secured by the Lien may not be Incurred more than 180 days after
the later of the acquisition, completion of construction, repair, improvement,
addition or commencement of full operation of the Property subject to the Lien;

(7)                                  Liens to secure Bank Indebtedness
Incurred pursuant to clause (1) of Section 4.09(b) (to the extent relating to
Bank Indebtedness or Permitted Public Debt) and Liens to secure Indebtedness
(including Bank Indebtedness and Permitted Public Debt but not including Public
Debt that is not Permitted Public Debt) Incurred pursuant to paragraph (a) or
clause (4) of paragraph (b) (to the extent relating to paragraph (a)) of
Section 4.09;

(8)                                  Liens existing on the Closing Date;

(9)                                  Liens on Property or shares of another
Person at the time such other Person becomes a Subsidiary of such Person;
provided, however, that such Liens are not created, Incurred or assumed in
connection with, or in contemplation of, such other Person becoming such a
Subsidiary; provided further, however, that such Liens do not extend to any
other

 

19

 

Property owned by such
Person or any of its Subsidiaries unless otherwise permitted hereunder;

(10)                            Liens on Property at the time such Person
or any of its Subsidiaries acquires the Property, including any acquisition by
means of a merger or consolidation with or into such Person or any Subsidiary
of such Person; provided, however, that such Liens are not created, Incurred or
assumed in connection with, or in contemplation of, such acquisition; provided
further, however, that the Liens do not extend to any other Property owned by
such Person or any of its Subsidiaries unless otherwise permitted hereunder;

(11)                            Liens securing Indebtedness or other
obligations of a Subsidiary of such Person owing to a Restricted Subsidiary or
the Issuer (other than Indebtedness or other obligations owing by an Additional
Subsidiary Guarantor to a Subsidiary that is not an Additional Subsidiary
Guarantor);

(12)                            Liens securing Hedging Obligations
permitted to be Incurred under the Indenture so long as such obligations relate
to Indebtedness that is, and is permitted under the Indenture to be, secured by
a Lien on the same Property securing such obligations or cash collateral or
customary Liens Incurred in connection with Hedging Obligations;

(13)                            Liens to secure any Refinancing (or
successive Refinancings) as a whole, or in part, of any Indebtedness secured by
any Lien referred to in the foregoing clauses (6), (8), (9) and (10); provided,
however, that:

(A)                                  such new
Lien shall be limited to all or part of the same Property that secured the
original Lien (plus improvements to or on such Property) and

(B)                                the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of:

(i)                                     the
outstanding principal amount or, if greater, committed amount of the
Indebtedness secured by Liens described under clause (6), (8), (9) or (10) at
the time the original Lien became a Permitted Lien under the Indenture; and

(ii)                                  an amount
necessary to pay any fees and expenses, including premiums, related to such
Refinancings;

(14)                            Liens securing the Notes, the
Intermediate Guarantees, the Additional Subsidiary Guarantees and other
obligations of the Company and any Restricted Subsidiaries under the Indenture;

(15)                            Liens of a Restricted Subsidiary that is
not an Intermediate Guarantor, the Issuer or an Additional  Subsidiary Guarantor securing Indebtedness of
a Restricted Subsidiary that is not an Intermediate Guarantor, the Issuer or an
Additional Subsidiary Guarantor;

(16)                            Liens in favor of any Intermediate
Guarantor, the Issuer or an Additional Subsidiary Guarantor;

(17)                            Liens to secure Receivables and Related
Assets as part of a Qualified Receivables Transaction;

 

20

 

(18)                            Liens arising by virtue of any statutory
or common law provisions (or by agreement to the same effect) relating to
banker’s Liens, contractual rights of set-off or similar rights and remedies as
to deposit accounts or other funds maintained with a depository or financial
institution;

(19)                            Liens arising from U.S. Uniform
Commercial Code financing statement filings (or similar filings in other
applicable jurisdictions) regarding operating leases entered into by the Person
in the ordinary course of business;

(20)                            Liens in connection with any
Sale/Leaseback Transaction permitted pursuant to Section 4.16 hereof;

(21)                            Liens Incurred as part of a transaction
described in the Steps Paper; and

(22)                            Liens Incurred in the ordinary course of
business of any Intermediate Guarantor or any Restricted Subsidiary with
respect to obligations (other than Indebtedness for borrowed money) that do not
exceed £50 million at any time outstanding.

“Permitted Public Debt” means any Secured Debt that is Public
Debt of the Issuer and its Restricted Subsidiaries, the incurrence of which
would not, on a pro forma basis, cause the ratio of (1) the outstanding
Indebtedness of the Issuer and its Consolidated Restricted Subsidiaries that is
Secured Indebtedness, to (2) the Pro Forma EBITDA, to exceed 3.75:1.0.

“Permitted
Sit-up Payments” means the payment of preference distributions in
accordance with the terms and conditions of the outstanding redeemable
preference shares of Sit-up, provided that the aggregate amount of all such
preference distributions paid in any financial year shall not exceed £1,000 and
any payment with respect to the purchase or redemption by the Company or any
Restricted Subsidiary of all or any portion of the outstanding redeemable
preference shares of Sit-up pursuant to the terms of the Sit-up Acquisition
Documents (including any such payment as may be permitted under the articles of
association of Sit-up);

“Person”
means any individual, corporation, partnership, limited liability company,
joint venture, association, joint stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
other entity.

“Preferred
Stock,” as applied to the Capital Stock of any Person, means Capital
Stock of any class or classes (however designated) that is preferred as to the
payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over shares of Capital
Stock of any other class of such Person.

“principal”
of a Note means the principal of the Note plus the premium, if any, payable on
the Note which is due or overdue or is to become due at the relevant time.

“Pro Forma
EBITDA” means, for any period, the EBITDA of the Company and its
Consolidated Restricted Subsidiaries, after giving effect to the following:

if:

(1)                                  since the beginning of such period, the Company
or any Restricted Subsidiary shall have made any Asset Disposition or an
Investment (by merger or otherwise) in any Restricted

 

21

 

Subsidiary (or any
Person that becomes a Restricted Subsidiary) or an acquisition (including the
Merger);

 

(2)                                  the transaction giving rise to the need
to calculate Pro Forma EBITDA is such an Asset Disposition, Investment or
acquisition; or

(3)                                  since the beginning of such period any
Person that subsequently became a Restricted Subsidiary or was merged with or
into the Company or any Restricted Subsidiary since the beginning of such
period shall have made such an Asset Disposition, Investment or acquisition,

EBITDA for such
period shall be calculated in good faith by a responsible financial or
accounting officer of the Company after giving pro forma effect to such Asset
Disposition, Investment or acquisition as if such Asset Disposition (and the
application of the proceeds therefrom), Investment or acquisition occurred on
the first day of such period.

“Property”
means, with respect to any Person, any interest of such Person in any kind of
property or asset, whether real, personal or mixed, or tangible or intangible,
including Capital Stock in, and other securities of, any other Person.

“Public Debt” means any Indebtedness consisting of
bonds, debentures, notes or other similar debt securities issued in (1) a
public offering registered under the Securities Act or (2) a private placement
to institutional investors that is underwritten for resale in accordance with
Rule 144A or Regulation S under the Securities Act, whether or not it includes
registration rights entitling the holders of such debt securities to
registration thereof with the SEC for public resale. The term “Public Debt,”
for the avoidance of doubt, shall not be construed to include any Indebtedness
issued to institutional investors in a direct placement of such Indebtedness
that is not underwritten by an intermediary (it being understood that, without
limiting the foregoing, a financing that is distributed to not more than ten
Persons (provided that multiple managed accounts and Affiliates of any such
Persons shall be treated as one Person for the purposes of this definition)
shall not be deemed underwritten), or any Bank Indebtedness under any Credit
Facility, Capitalized Lease Obligation or recourse transfer of any financial
asset or any other type of Indebtedness Incurred in a manner not customarily
viewed as a “securities offering.”

“Purchase
Money Indebtedness” means Indebtedness:

(1)                                  consisting of the deferred purchase price
of an asset, conditional sale obligations, obligations under any title
retention agreement and other purchase money obligations, in each case where
the maturity of such Indebtedness does not exceed the anticipated useful life
of the asset being financed, and

 

(2)                                  Incurred to finance the acquisition by
the Company or a Restricted Subsidiary of such asset, including additions and
improvements;

provided, however, that
the original principal amount of such Indebtedness is Incurred within 180 days
after the acquisition by the Company or such Restricted Subsidiary of such
asset.

“Qualified
Receivables Transaction” means any transaction or series of
transactions that may be entered into by the Company, the Issuer or any other
Restricted Subsidiary pursuant to which the Company, the Issuer or any other
Restricted Subsidiary may sell, convey or otherwise transfer to:

 

22

 

(1)                                  a Receivables Subsidiary (in the case of
a transfer by the Company, the Issuer or any other Restricted Subsidiary); and

 

(2)                                  any other Person (in the case of a
transfer by a Receivables Subsidiary),

or may grant a
security interest in, any Receivables and Related Assets.

“Receivables
and Related Assets” means accounts receivable, instruments, chattel
paper, obligations, general intangibles and other similar assets, including
interests in merchandise or goods, the sale or lease of which give rise to the
foregoing, related contractual rights, Guarantees, insurance proceeds,
collections, other related assets and assets that are customarily transferred,
or in respect of which security interests are customarily granted, in
connection with asset securitization transactions involving accounts receivable,
and proceeds of all the foregoing.

“Receivables
Fees” means distributions or payments made directly or by means of
discounts with respect to any participation interest issued or sold in
connection with, and other fees paid to a Person that is not a Restricted
Subsidiary in connection with, any Qualified Receivables Transaction.

“Receivables
Subsidiary” means a Subsidiary of the Company that engages in no
activities other than in connection with the financing of accounts receivable
and that is designated by the Board of Directors (as provided below) as a
Receivables Subsidiary and:

(1)                                  has no Indebtedness or other Obligation
(contingent or otherwise) that:

 

(A)                                  are
guaranteed by the Company, the Issuer or any Restricted Subsidiary, other than
contingent liabilities pursuant to Standard Securitization Undertakings;

(B)                                are recourse
to or obligate the Company or any Restricted Subsidiary in any way other than
pursuant to Standard Securitization Undertakings; or

(C)                                subjects any
Property or assets of the Company or any Restricted Subsidiary, directly or
indirectly, contingently or otherwise, to the satisfaction thereof, other than
pursuant to Standard Securitization Undertakings;

(2)                                  has no contract, agreement, arrangement
or undertaking (except in connection with a Qualified Receivables Transaction)
with the Company or any Restricted Subsidiary other than on terms no less
favorable to the Company or such Restricted Subsidiary than those that might be
obtained at the time from Persons that are not Affiliates of the Issuer, other
than fees payable in the ordinary course of business in connection with
servicing accounts receivables; and

(3)                                  neither the Company nor any Restricted
Subsidiary has any obligation to maintain or preserve such Receivables
Subsidiary’s financial condition or cause such Receivables Subsidiaries to
achieve certain levels of operating results.

Any such designation by
the Board of Directors shall be evidenced to the relevant Trustee by filing
with such Trustee a copy of the resolution of the Board of Directors giving
effect to such designation and an Officer’s Certificate certifying, to such
Officer’s knowledge and belief after consulting with counsel that such
designation complied with the foregoing conditions.

 

23

 

“Refinance”
means, in respect of any Indebtedness, to refinance, extend, renew, refund,
repay, prepay, redeem, defease or retire, or to issue other Indebtedness
exchange or replacement for, such Indebtedness. “Refinanced” and “Refinancing”
shall have correlative meanings.

“Refinancing
Indebtedness” means any Indebtedness that Refinances any other
Indebtedness, including any successive Refinancings, so long as:

(1)                                  such Indebtedness is in an aggregate
principal amount (or if Incurred with original issue discount, an aggregate
issue price) not in excess of the sum of:

 

(A)                                  the
aggregate principal amount (or if Incurred with original issue discount, the
aggregate accreted value) then outstanding of the Indebtedness being
Refinanced, and

(B)                                    an amount
necessary to pay any fees and expenses, including premiums and defeasance
costs, related to such Refinancing,

(2)                                  the Average Life of such Indebtedness is
equal to or greater than the Average Life of the Indebtedness being Refinanced,

(3)                                  the Stated Maturity of such Indebtedness
is no earlier than the Stated Maturity of the Indebtedness being Refinanced,
and

(4)                                  to the extent such Indebtedness directly
or indirectly Refinances Indebtedness of a Restricted Subsidiary Incurred
pursuant to clause (b)(5) of Section 4.09, such Refinancing Indebtedness is
Incurred only by such Restricted Subsidiary;

provided, however, that
Refinancing Indebtedness shall not include:

(y)           Indebtedness of a Restricted
Subsidiary that is not an Intermediate Guarantor, the Issuer or an Additional
Subsidiary Guarantor that Refinances Indebtedness of an Intermediate Guarantor,
the Issuer or an Additional Subsidiary Guarantor or

(z)            Indebtedness of the Company or a
Restricted Subsidiary that Refinances Indebtedness of an Unrestricted
Subsidiary.

“Related
Business” means any business related, ancillary or complementary to
the businesses of the Company, the Intermediate Guarantors, the Issuer and the
Restricted Subsidiaries on the Closing Date including, without limitation, all forms
of television, telephony and internet services and any services relating to
carriers, networks, broadcast or communications services, or Content.

“Representative” means the trustee, agent or
representative (if any) for an issue of Senior Indebtedness.

“Responsible Officer” means any officer within the corporate
trust and agency department of the Trustee, including any vice president,
assistant vice president, assistant treasurer, trust officer or any other
officer of the Trustee who customarily performs functions similar to those
performed by such officers, or to whom any corporate trust matter is referred
because of such individual’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

 

24

 

“Restricted
Subsidiary” means the Issuer and any Subsidiary of the Company other
than an Unrestricted Subsidiary.

“S&P”
means Standard and Poor’s Rating Service, a division of McGraw-Hill Companies,
Inc. or any successor to its rating business.

“Sale/Leaseback
Transaction” means an arrangement relating to Property now owned or
hereafter acquired by the Company or any Restricted Subsidiary whereby the
Company or any Restricted Subsidiary transfers such Property to a Person and
the Company or such Restricted Subsidiary leases it from such Person, other
than leases between the Company and any Restricted Subsidiary or between
Restricted Subsidiaries.

“SEC”
means the U.S. Securities and Exchange Commission.

“Secured
Indebtedness” means any Indebtedness of any Person secured by a
Lien.

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

“Security Trustee” means the security trustee under the
Intercreditor Deed or any successor thereto in its capacity as trustee under
the Intercreditor Deed or any Person acting in such capacity under an
additional intercreditor deed relating to the Notes.

 “Senior Default”
means an event of default in respect of Bank Indebtedness or Designated Senior
Indebtedness of the Senior Subordinated Subsidiary Guarantor other than a
Senior Payment Default.

“Senior Indebtedness” of the Issuer, an Intermediate Guarantor
or the Senior Subordinated Subsidiary Guarantor means the principal of, premium
(if any) and accrued and unpaid interest on (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization of the
Issuer or such guarantor, regardless of whether or not a claim for post-filing
interest is allowed in such proceedings), and fees and other amounts owing in
respect of, Bank Indebtedness (including Hedging Obligations relating thereto)
and all other Indebtedness of the Issuer or such guarantor, as applicable,
whether outstanding on the Closing Date or thereafter Incurred, unless in the
instrument creating or evidencing the same or pursuant to which the same is
outstanding it is provided that such obligations are (a) subordinated in right
of payment to the Notes, in the case of Indebtedness of the Issuer, (b) are subordinated
in right of payment to an Intermediate Guarantor’s Note Guarantee, in the case
of Indebtedness of an Intermediate Guarantor, or (c) are subordinated in right
of payment to, or rank equally with, the Senior Subordinated Subsidiary
Guarantee, in the case of Indebtedness of NTLIH; provided, however, that Senior
Indebtedness of the Issuer, an Intermediate Guarantor or a Subsidiary Guarantor
shall not include:

                (1)           any
obligation of the Issuer, an Intermediate Guarantor or a Subsidiary Guarantor
to the Company or any Restricted Subsidiary;

                (2)           any
liability for national, regional, state, local or other taxes owed or owing by
the Issuer or a guarantor, as applicable, other than as required by law;

                (3)           any
accounts payable or other liability to trade creditors arising in the ordinary
course of business (including Guarantees thereof or instruments evidencing such
liabilities);

 

25

 

                (4)           any
Indebtedness or obligation of the Issuer or such guarantor (and any accrued and
unpaid interest in respect thereof) that by its terms is subordinate or junior
in any respect to any other Indebtedness or obligation of the Issuer or such
guarantor, as applicable, including any Subordinated Obligations of the Issuer
or such guarantor, as applicable;

                (5)           any
obligations with respect to any Capital Stock; or

                (6)           any
Indebtedness Incurred in violation of this Indenture.

“Senior Payment Default” means a failure to make a payment when
due in respect of Bank Indebtedness or Designated Senior Indebtedness of the
Senior Subordinated Subsidiary Guarantor.

“Senior Subordinated Indebtedness” of the Senior Subordinated Subsidiary
Guarantor means any Indebtedness of the Senior Subordinated Subsidiary
Guarantor that specifically provides that such Indebtedness is to rank equally
with the Senior Subordinated Subsidiary Guarantee of the Senior Subordinated
Subsidiary Guarantor in right of payment and is not subordinated by its terms
in right of payment to any Indebtedness or other obligation of the Senior
Subordinated Subsidiary Guarantor which is not Senior Indebtedness.

“Senior Subordinated Subsidiary
Guarantor” has
the meaning assigned to it in the preamble to this Indenture.  The guarantee of the Notes by the Senior
Subordinated Subsidiary Guarantor is referred to as the “Senior Subordinated
Subsidiary Guarantee.”  The Senior
Subordinated Subsidiary Guarantee is subject to the provisions of the
Intercreditor Deed.

“Significant
Subsidiary” means any Restricted Subsidiary that would be a “Significant
Subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X
promulgated by the SEC.

“Sit-up”
means sit-up Limited, a company incorporated under the laws of England and
Wales with registered number 3877786 and having its registered office at
179-181 The Vale, Acton, London W3 7RW.

“Sit-up
Acquisition Documents” means each of:

(a)                                  the share purchase deed between
Screenshop and Alpine Situp LLC for the sale of 1,991,841 preference shares and
565,919 warrants to subscribe for ordinary shares in the capital of Sit-up,
dated 23 March 2005;

(b)                                 the offer document dated on or about 10
May 2005 which describes the terms and conditions of the recommended offer made
by Screenshop to purchase the issued and to be issued shares of Sit-up;

(c)                                  the share purchase agreement between
Screenshop, John Egan, Ashley Faull and Christopher Manson dated on or around
10 May 2005;

(d)                                 the subscription agreement between the
Sit-up, Screenshop, Flextech Broadband Limited, John Egan, Ashley Faull and
Christopher Manson entered into on or about 10 May 2005; and

(e)                                  any other document related to the above
designated as an “Sit-up Acquisition Document” in writing to the Trustee by the
Company.

 

26

 

“Standard
Securitization Undertakings” means representations, warranties,
covenants and indemnities entered into by the Company, the Issuer or any other
Restricted Subsidiary that are customary in an accounts receivable transaction.

“Stated
Maturity” means, with respect to any security, the date specified in
such security as the fixed date on which the final payment of principal of such
security is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such
security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has
occurred).

“Steps Paper”
means the summary included in the prospectus of the paper entitled “Proposed
Flip Structure” as agreed between NTL and the Bookrunners under the New Credit
Facility as of the date thereof, setting out the restructuring steps affecting
the Telewest group and NTL group occurring prior to, on and following the
Merger Date.

“Sterling
Equivalent” means with respect to any monetary amount in a currency
other than pounds sterling, at any time of determination thereof, the amount of
pounds sterling obtained by converting such foreign currency involved in such
computation into pounds sterling at the average of the spot rates for the
purchase and sale of pounds sterling with the applicable foreign currency as
quoted on or recorded in any recognized source of foreign exchange rates within
two Business Days prior to such determination. Whenever it is necessary to
determine whether the Issuer has complied with any covenant in this Indenture
or whether a Default has occurred and an amount is expressed in a currency
other than pounds sterling, such amount shall be treated as the Sterling Equivalent
determined as of the date such amount is initially determined in such currency.

“Sterling
Global Note”
means a Global Note representing Sterling Notes.

“Sterling
Notes” means the Sterling denominated     %
Senior Notes due 2016 of the Issuer.

“Subordinated
Obligation” means any Indebtedness of the Issuer or a Note Guarantor
(whether outstanding on the Closing Date or thereafter Incurred) that is
subordinate or junior in right of payment to the Notes (in the case of the
Issuer) or the Note Guarantee (in the case of a Note Guarantor) pursuant to a
written agreement.

“Subsidiary”
of any Person means any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by:

(1)                                  such Person,

 

(2)                                  such Person and one or more Subsidiaries
of such Person or

(3)                                  one or more Subsidiaries of such Person.

“Subsidiary
Guarantee” means each Guarantee of the obligations with respect to
the Notes issued by a Subsidiary of the Issuer pursuant to the terms of this Indenture.

“Subsidiary
Guarantor” means the Senior Subordinated Subsidiary Guarantor and
any Person that has issued an Additional Subsidiary Guarantee.

 

27

 

“Tax Sharing Agreement” means the tax cooperation agreement
entered into with effect as of the 3rd day of March, 2006, by and between (i)
Parent and (ii) NTLIH and Telewest Communications Networks Limited.

“Temporary
Cash Investments” means any of the following:

(1)                                  any investment in direct obligations of any
country that is a Member State or the United States of America or any agency
thereof or obligations Guaranteed by any country that is a Member State or the
United States of America or any agency thereof, and whose long-term debt is
rated “A” (or such similar equivalent rating) or higher by at least one
nationally recognized statistical rating organization (as defined in Rule 436
of the Securities Act);

 

(2)                                  investments in checking accounts, time
deposit accounts, certificates of deposit, bankers’ acceptances and money
market deposits maturing within one year of the date of acquisition thereof
issued by a bank or trust company that is organized under the laws of the
United States of America, any state thereof or any foreign country recognized
by the United States of America having capital, surplus and undivided profits
aggregating in excess of £250 million (or the foreign currency equivalent
thereof) and whose long-term debt is rated “A” (or such similar equivalent
rating) or higher by at least one nationally recognized statistical rating
organization (as defined in Rule 436 of the Securities Act);

(3)                                  repurchase obligations with a term of not
more than 60 days for underlying securities of the types described in clause
(1) above entered into with a bank meeting the qualifications described in
clause (2) above;

(4)                                  investments in commercial paper, maturing
not more than 180 days after the date of acquisition, issued by a corporation
(other than an Affiliate of the Issuer) organized and in existence under the laws
of the United States of America or any foreign country recognized by the United
States with a rating at the time as of which any investment therein is made of “P-1”
(or higher) according to Moody’s Investors Service, Inc. or “A-1” (or higher)
according to Standard and Poor’s Ratings Service, a division of The McGraw-Hill
Companies, Inc. (“S&P”); and

(5)                                  investments in securities with maturities
of one year or less from the date of acquisition issued or fully guaranteed by
any country that is a Member State, any state, commonwealth or territory of the
United States of America, or by any political subdivision or taxing authority
thereof, and rated at least “A” by S&P or “A” by Moody’s Investors Service,
Inc.

“TIA” means the U.S. Trust Indenture Act of
1939 (15 U.S.C. §§ 77aaa-77bbbb), as in effect on the date on which this
Indenture is qualified under the TIA.

“Total Assets”
means, as of any date of determination, the fixed assets and current assets
shown on the most recent Consolidated balance sheet of the Company as certified
in an Officer’s Certificate delivered to the Trustee.

“Trade
Payables” means, with respect to any Person, any accounts payable or
any indebtedness or monetary obligation to trade creditors created, assumed or
Guaranteed by such Person arising in the ordinary course of business in
connection with the acquisition of goods or services.

 

28

 

“Tranche C Loan” means a loan included in Tranche C of
the New Credit Facility.

“Treasury
Rate” means the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519)
which has become publicly available at least two Business Days (but not more
than five Business Days) prior to the redemption date (or, if such Statistical
Release is not so published or available, any publicly available source of
similar market data selected by the Company in good faith)) most nearly equal
to the period from the redemption date to               , 2011; provided, however, that
if the period from the redemption date to               , 2011 is not equal to the constant
maturity of a United States Treasury security for which a weekly average yield
is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average
yields of United States Treasury securities for which such yields are given,
except that if the period from the redemption date to              , 2011 is less than one year, the
weekly average yield on actually traded United States Treasury securities
adjusted to a constant maturity of one year shall be used.

“Trustee”
means the party named as such in this Indenture until a successor replaces it
and, thereafter, means the successor.

“Trust
Indenture Act” means the U.S. Trust Indenture Act of 1939, as
amended.

“Trust
Officer” means any officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.

“UK
Government Obligations” means sovereign obligations of the UK that
are payable in pounds sterling for the timely payment of which its full faith
and credit is pledged, in each case which are not callable or redeemable at the
issuer’s option.

“UKTV Joint
Ventures” means any joint venture arrangement relating to the
Content Business in existence on the Closing Date or formed thereafter by the
Company or any of its Restricted Subsidiaries with BBC Commercial Holdings
Limited or any of its affiliates.

“Unrestricted
Subsidiary” means:

(1)                                  any Subsidiary of the Company that at the
time of determination shall be designated an Unrestricted Subsidiary by the
Board of Directors in accordance with Section 4.17; and

 

(2)                                  any Subsidiary of an Unrestricted
Subsidiary.

“U.S.
Government Obligations” means securities that are (a) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depositary receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such U.S.
Government Obligations or a specific payment of principal of or interest on any
such U.S. Government Obligations held by such custodian for the account of the
holder of such depositary receipt; provided, however, that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depositary receipt from any amount received by
the custodian in respect of the U.S. Government Obligations or the specific
payment of principal of or interest on the U.S. Government Obligations
evidenced by such depositary receipt.

 

29

 

“Voting Stock”
of a Person means all classes of Capital Stock or other interests (including
partnership interests) of such Person then outstanding and normally entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof.

“Wholly Owned
Subsidiary” means (1) in respect of any Person, a Person, all of the
Capital Stock of which (other than directors’ qualifying shares or an
immaterial amount of shares required to be owned by other Persons pursuant to
applicable law or to ensure limited liability) is owned by that Person directly
or (2) indirectly by a Person that satisfies the requirements of clause (1).

 

Section 1.02           Other Definitions.

	
  Term

  	
   

  	
  Defined in

  Section

  	
   

  
	
  “Additional Amounts”

  	
   

  	
  2.13

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Allocable Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds Offer”

  	
   

  	
  4.10

  	
   

  
	
  “Guaranteed Obligations”

  	
   

  	
  11.01

  	
   

  
	
  “Initial Lien”

  	
   

  	
  4.12

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Relevant Taxing Jurisdiction”

  	
   

  	
  2.13

  	
   

  
	
  “Repurchase Offer”

  	
   

  	
  4.15

  	
   

  
	
  “Restricted Payment”

  	
   

  	
  4.07

  	
   

  
	
  “Successor Company”

  	
   

  	
  5.01

  	
   

  
	
  “Successor Guarantor”

  	
   

  	
  5.01

  	
   

  
	
  “Tax Redemption Date”

  	
   

  	
  3.10

  	
   

  
	
  “Taxes”

  	
   

  	
  2.13

  	
   

  

 

Section 1.03           Incorporation by Reference of Trust Indenture
Act.

Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in
and made a part of this Indenture.

The following TIA
terms used in this Indenture have the following meanings:

“Commission” means the SEC;

“indenture securities” means the Notes;

“indenture security Holder” means a Holder;

 

30

 

“indenture to be qualified” means this Indenture;

“indenture trustee” or “institutional trustee”
means the Trustee; and

“obligor” on the Notes means the Issuer and any
successor obligor upon the Notes.

All other terms used in
this Indenture that are defined by the TIA, defined by TIA reference to another
statute or defined by SEC rule under the TIA have the meanings so assigned to
them.

Section 1.04           Rules of Construction.

Unless the context
otherwise requires:

(a)                                  a term has the meaning assigned to it;

(b)                                 an accounting term not otherwise defined
has the meaning assigned to it in accordance with GAAP;

(c)                                  “or” is not exclusive;

(d)                                 “including” means including without
limitation;

(e)                                  words in the singular include the plural,
and in the plural include the singular;

(f)                                    “will” shall be interpreted to express a
command;

(g)                                 references to sections of or rules under
the Securities Act will be deemed to include substitute, replacement of
successor sections or rules adopted by the SEC from time to time; and

(h)                                 references to any person “acting
reasonably” and correlative expressions shall be construed to mean “acting
reasonably in the interests of the Holders and having regard to the duties of
the Trustee to the Holders.”

ARTICLE 2

THE NOTES

Section 2.01           Form and Dating.

(a)           General.  The Notes shall be issued in series of senior
unsecured notes consisting of sterling-denominated      % Senior Notes due 2016 and U.S. dollar-denominated    % Senior Notes due 2016.  Each series of Notes and the Trustee’s
certificate of authentication will be substantially in the form of
Exhibit A hereto.  The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage.  Each Note will be dated the date
of its authentication.  The Notes shall
be in minimum denominations of £50,000 and integral multiples of £1,000 in
excess thereof, or $100,000 and integral multiples of $1,000 in excess thereof.

The terms and provisions
contained in the Notes will constitute, and are hereby expressly made, a part
of this Indenture and the Issuer and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.  However, to the extent
any provision of any Note conflicts with the express provisions of this
Indenture, the provisions of this Indenture shall govern and be controlling.

 

31

 

(b)           Global Notes.  Notes issued in global form will be
substantially in the form of Exhibit A attached hereto (including the
Global Note Legend thereon and the “Schedule of Exchanges of Interests in the
Global Note” attached thereto).  Notes
issued in definitive form will be substantially in the form of Exhibit A
attached hereto (but without the Global Note Legend thereon and without the “Schedule
of Exchanges of Interests in the Global Note” attached thereto).  Each Global Note will represent outstanding
Notes of each such series as will be specified therein and each shall provide
that it represents the aggregate principal amount of outstanding Notes from
time to time endorsed thereon and that the aggregate principal amount of
outstanding Notes represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby will be made by the Trustee or the
Custodian therefor, at the direction of the Trustee, in accordance with
Section 2.06 hereof.

(c)           Euroclear and Clearstream,
Luxembourg Procedures Applicable.  The
provisions of the “Operating Procedures of the Euroclear System” and “Terms and
Conditions Governing Use of Euroclear” and the “General Terms and Conditions of
Clearstream Banking” and “Customer Handbook” of Clearstream, Luxembourg will be
applicable to transfers of beneficial interests in the Global Notes that are
held by Participants through Euroclear or Clearstream, Luxembourg.

Section 2.02           Execution and Authentication.

An Officer must sign the
Notes for the Issuer by manual or facsimile signature.

If the Officer whose
signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

A Note will not be valid
until authenticated by the manual or facsimile signature of the Trustee.  The signature will be conclusive evidence
that the Note has been authenticated under this Indenture.

On the Closing Date, the
Trustee shall, upon receipt of a written order of the Issuer signed by an
Officer (an “Authentication Order”),
authenticate the Initial Notes for original issue up to (i) £     million in aggregate principal amount of
     % Senior Notes due 2016 and (ii)
$        million in aggregate principal
amount of       % Senior Notes due 2016, as the
case may be, and, upon delivery of any Authentication Order at any time and
from time to time thereafter, the Trustee shall authenticate Additional Notes
for original issue, or Definitive Notes issued pursuant to Section 2.06 hereof,
in an aggregate principal amount specified in such Authentication Order.

The Trustee may appoint
an authenticating agent acceptable to the Issuer to authenticate Notes.  Any such appointment shall be evidenced by an
instrument signed by a Responsible Officer, a copy of which shall be furnished
to the Issuer.  Unless limited by the
terms of such appointment, an authenticating agent may authenticate Notes whenever
the Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the
same rights as an Agent to deal with Holders or an Affiliate of the Issuer.

Section 2.03           Registrar and Paying Agent.

The Issuer will maintain
offices or agencies where Notes may be presented for registration of transfer
or for exchange (each, a “Registrar”) and
offices or agencies where Notes may be presented for payment (each, a “Paying Agent”). 
Offices or agencies of the Registrar and Paying Agent (a) for the Dollar
Notes, will be maintained in the Borough of Manhattan, the City of New York,
and, for so long as the Dollar Notes are listed on the Luxembourg Stock
Exchange, in Luxembourg, and (b) for the Sterling

 

32

 

Notes, will be
maintained in the Borough of Manhattan, the City of New York, in London,
England and, for so long as the Sterling Notes are listed on the Luxembourg
Stock Exchange, in Luxembourg.  The
Registrar, acting as agent of the Issuer solely for this purpose, will keep a
register of the Notes and of their transfer and exchange.  The Issuer may appoint one or more
co-registrars and one or more additional paying agents.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Issuer may change any Paying
Agent or Registrar without notice to any Holder.  The Issuer will notify the Trustee in writing
of the name and address of any Paying Agent not a party to this Indenture.  If the Issuer fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee, acting as agent of
the Issuer solely for this purpose, shall act as such.  The Issuer or any of its Subsidiaries, acting
as agent of the Issuer solely for this purpose, may act as Registrar.

The Issuer initially
appoints The Depository Trust Company (“DTC”) to act
as Depositary with respect to the Dollar Global Notes and Euroclear and
Clearstream, Luxembourg to each act as a Depositary with respect to the
Sterling Global Notes.  A nominee of The
Bank of New York will act as Common Depositary for the Sterling Global Notes on
behalf of Euroclear and Clearstream, Luxembourg and as DTC Custodian with
respect to the Dollar Global Notes.

The Issuer initially
appoints the Trustee to act as the Registrar and Paying Agent in New York and
London, and initially appoints The Bank of New York (Luxembourg) S.A. to act as
the Registrar and Paying Agent in Luxembourg.

Section 2.04           Paying Agent to Hold Money in Trust.

The Issuer will require
each Paying Agent other than the Trustee to agree in writing that the Paying
Agent will hold in trust for the benefit of Holders or the Trustee all money
held by the Paying Agent for the payment of principal, premium, if any, or
interest on the Notes, and will notify the Trustee of any default by the Issuer
in making any such payment.  Money held
in trust by a Paying Agent need not be segregated, except as required by law,
and in no event shall any Paying Agent be liable for interest on any money
received by it hereunder.  While any such
default continues, the Trustee may require a Paying Agent to pay all money held
by it to the Trustee.  The Issuer at any
time may require a Paying Agent to pay all money held by it to the Trustee and
to account for any funds disbursed by the Paying Agent.  Upon payment over to the Trustee, the Paying
Agent will have no further liability for the money.  Upon any bankruptcy or reorganization
proceedings relating to the Issuer, the Trustee and The Bank of New York
(Luxembourg) S.A. will serve as Paying Agents for the Notes.

Section 2.05           Holder Lists.

The Trustee will preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of all Holders and shall otherwise
comply with TIA § 312(a).  If the
Trustee is not the Registrar, the Issuer will furnish to the Trustee at least
five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of the Holders
and the Issuer shall otherwise comply with TIA § 312(a).

Section 2.06           Transfer and Exchange.

(a)           Transfer and Exchange of
Global Notes.  A Global Note
may not be transferred as a whole except by the applicable Depositary to a
nominee of the applicable Depositary, by a nominee of the applicable Depositary
to the applicable Depositary or to another nominee of the applicable
Depositary, or by the applicable Depositary or any such nominee to a successor Depositary
or a nominee of such

 

33

 

successor
Depositary.  All Global Notes of a series
will be exchanged by the Issuer for Definitive Notes if:

(1)           in the
case of a Dollar Global Note, the Issuer delivers to the Trustee notice from
the applicable Depositary (i) that such Depositary is unwilling or unable to
continue to act as Depositary and a successor Depositary is not appointed by
the Issuer within 120 days after the date of such notice from the
Depositary or (ii) that such Depositary is no longer a clearing agency
registered under the Exchange Act;

(2)           in the
case of a Sterling Global Note, the Issuer delivers to the Trustee notice (i)
from Euroclear and Clearstream, Luxembourg that they are unwilling or unable to
continue to act as clearing agencies or (ii) from the Common Depositary that
the Common Depositary is unwilling or unable to continue to act as Common
Depositary and a successor Common Depositary is not appointed by the Issuer
within 120 days after the date of such notice from the Common Depositary; or

(3)           in the
case of any Global Note, there has occurred and is continuing an Event of
Default with respect to such Global Note.

Upon the occurrence of
any of the events listed in the preceding clauses (1) to (3) of this Section
2.06(a), or if the Issuer, in its sole discretion, notifies the Trustee in
writing that it elects to cause the issuance of Definitive Notes under this
Indenture, the Issuer shall execute, and the Trustee shall, upon receipt of an
Authentication Order, authenticate and deliver Definitive Notes of the series
and in an aggregate principal amount equal to the principal amount of the applicable
Global Note tendered in exchange therefor. 
The Issuer will, at the cost of the Issuer (but against such indemnity
as the Registrar or any relevant Agent may require in respect of any tax or
other duty of whatever nature which may be levied or imposed in connection with
such exchange), cause sufficient Definitive Notes to be executed and delivered
to the Trustee for authentication and the Registrar for registration of the
exchange and dispatch to the relevant Holders within 30 days of the relevant event.  The Trustee or the Registrar shall, at the
cost of the Issuer, deliver such Definitive Notes to the Persons in whose names
such Notes are so registered.  Definitive
Notes issued in exchange for beneficial interests in Global Notes pursuant to
this Section 2.06(a) shall be registered in such names and in such authorized
denominations as the applicable Depositary, pursuant to instructions from its
Participants or Indirect Participants or otherwise, shall instruct the Trustee.
A Global Note may not be exchanged for another Note other than as provided in
this Section 2.06(a); however, beneficial interests in a Global Note may
be transferred and exchanged as provided in Section 2.06(b), (c), (d) or
(e) hereof.

(b)           Transfer and Exchange of
Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes will be effected through the applicable
Depositary, in accordance with the provisions of this Indenture and the
Applicable Procedures.

(c)           Transfer or Exchange of Beneficial Interests for Definitive Notes.  If any one of the events listed in
clauses (1) to (3) of Section 2.06(a) has occurred or the Issuer has elected
pursuant to Section 2.06(a) to cause the issuance of Definitive Notes,
transfers or exchanges of beneficial interests in a Global Note for a
Definitive Note shall be effected.

If
any Holder of a beneficial interest in a Global Note proposes to exchange such
beneficial interest for a Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Definitive
Note, then the Trustee will, upon instruction, cause the aggregate principal
amount of the applicable Global Note to be reduced accordingly pursuant to
Section 2.06(g) hereof, and the Issuer will execute and, upon receipt of
an Authentication Order, the Trustee will authenticate and

 

34

 

deliver
to the Person designated in the instruction to the Trustee a Definitive Note in
the appropriate principal amount.  Any
Definitive Notes issued in exchange for a beneficial interest pursuant to this
Section 2.06(c) will be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest requests through instructions to the Registrar from or through the
applicable Depositary and the Participant or Indirect Participant.  The Trustee will deliver such Definitive
Notes to the Persons in whose names such Notes are so registered.

(d)           Transfer and Exchange
of Definitive Notes for Beneficial Interests.

A
Holder of a Definitive Note may exchange such Definitive Note for a beneficial
interest in a Global Note or transfer such Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in a Global Note at
any time.  Upon receipt of a request for
such an exchange or transfer, the Trustee will cancel the applicable Definitive
Note and increase or cause to be increased the aggregate principal amount of
the relevant Global Note.

(e)           Transfer and Exchange of
Definitive Notes for Definitive Notes.

Upon
request by a Holder of Definitive Notes, the Registrar will register the
transfer or exchange of Definitive Notes. 
Prior to such registration of transfer or exchange, the requesting
Holder must present or surrender to the Registrar the Definitive Notes duly
endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar and duly executed by such Holder or by its
attorney, duly authorized in writing.

(f)            Legends.  The following legends will appear on the face
of all Global Notes issued under this Indenture unless specifically stated
otherwise in the applicable provisions of this Indenture.

(1)           Dollar Global Note Legend. 
Each Dollar Global Note will bear a legend in substantially the
following form:

“THIS GLOBAL NOTE
IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR
ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS
NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE
TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION
2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT
IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE ISSUER OR ITS

 

35

 

AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

(2)           Sterling Global Note Legend.  Each Sterling Global Note will bear a legend
in substantially the following form:

“THIS GLOBAL NOTE
IS HELD BY THE COMMON DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE COMMON DEPOSITARY TO A NOMINEE OF
THE COMMON DEPOSITARY OR BY A NOMINEE OF THE COMMON DEPOSITARY TO THE COMMON
DEPOSITARY OR ANOTHER NOMINEE OF THE COMMON DEPOSITARY OR BY THE COMMON
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR COMMON DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR COMMON DEPOSITARY.  UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON
DEPOSITARY (WHICH SHALL INITIALLY BE [NOMINEE TO BE ADDED]) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE COMMON DEPOSITARY OR SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON
DEPOSITARY (AND ANY PAYMENT IS MADE TO THE COMMON DEPOSITARY OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON
DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE
COMMON DEPOSITARY, HAS AN INTEREST HEREIN.”

(g)           Cancellation and/or
Adjustment of Global Notes. 
At such time as all beneficial interests in a particular Global Note
have been exchanged for Definitive Notes or a particular Global Note has been
redeemed, repurchased or canceled in whole and not in part, each such Global
Note will be returned to or retained and cancelled by the Trustee in accordance
with Section 2.11 hereof.  At any
time prior to

 

36

 

such
cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note will be reduced
accordingly and an endorsement will be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note, such other Global Note will be increased accordingly and
an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

(h)           General Provisions Relating to Transfers and Exchanges.

(1)           To permit
registrations of transfers and exchanges, the Issuer will execute and the
Trustee will authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order or at the Registrar’s request.

(2)           No service
charge will be made to a Holder of a Global Note or to a Holder of a Definitive
Note for any registration of transfer or exchange, but the Issuer may require
payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to
Sections 2.09, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

(3)           The
Registrar will not be required to register the transfer of or exchange any Note
selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part.

(4)           All Global
Notes and Definitive Notes issued upon any registration of transfer or exchange
of Global Notes or Definitive Notes will be the valid obligations of the
Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Global Notes or Definitive Notes surrendered upon such
registration of transfer or exchange.

(5)           The
Issuer will not be required:

(A)          to issue,
to register the transfer of or to exchange any Notes during a period beginning
at the opening of business 15 days before the day of any selection of
Notes for redemption under Section 3.02 hereof and ending at the close of
business on the day of selection;

(B)           to
register the transfer of or to exchange any Note selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

(C)           to
register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

(6)           Prior to
due presentment for the registration of a transfer of any Note, the Trustee,
any Agent and the Issuer may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Issuer shall be affected by notice to
the contrary.

 

37

 

(7)           The
Trustee will authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

(8)           All
certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.06 to effect a registration of
transfer or exchange may be submitted by facsimile.

Section 2.07           Replacement Notes.

If any mutilated Note is
surrendered to the Trustee or the Issuer or the Trustee receives evidence to
its satisfaction of the destruction, loss or theft of any Note, the Issuer will
issue and the Trustee, upon receipt of an Authentication Order, will
authenticate a replacement Note if the Trustee’s requirements are met.  If required by the Trustee or the Issuer, an
indemnity bond must be supplied by the Holder that is sufficient in the
judgment of the Trustee and the Issuer to protect the Issuer, the Trustee, any
Agent and any authenticating agent from any loss that any of them may suffer if
a Note is replaced.  The Issuer may
charge for its expenses in replacing a Note.

If, after the delivery of
such replacement Note, a bona fide purchaser of the original Note in lieu of
which such replacement Note was issued presents for payment or registration
such original Note, the Trustee shall be entitled to recover such replacement
Note from the Person to whom it was delivered or any Person taking therefrom,
except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer, the Trustee, any Agent and any
authenticating agent in connection therewith.

Subject to the provisions
of the final sentence of the preceding paragraph of this Section 2.07, every
replacement Note is an obligation of the Issuer and shall be entitled to all of
the benefits of this Indenture equally and proportionately with all other Notes
duly issued hereunder.

Section 2.08           Outstanding Notes.

The Notes outstanding at
any time are all the Notes authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation, those reductions in the
interest in a Global Note effected by the Trustee in accordance with the
provisions hereof, and those described in this Section as not
outstanding.  Except as set forth in
Section 2.09 hereof, a Note does not cease to be outstanding because the
Issuer or an Affiliate of the Issuer holds the Note; however, Notes held by the Issuer or a Subsidiary of the
Issuer shall not be deemed to be outstanding for purposes of Section 3.07(c)
hereof.

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a
bona fide purchaser in whose hands such Note is a legal, valid and binding
obligation of the Issuer.

If the entire principal
amount and premium, if any, of any Note is considered paid under
Section 4.01 hereof, it ceases to be outstanding and interest on it ceases
to accrue.

If the Paying Agent
holds, on a redemption date or maturity date, money sufficient to pay Notes
payable on that date, and is not prohibited from paying such money to the
Holders pursuant to the terms of this Indenture, then on and after that date
such Notes will be deemed to be no longer outstanding and will cease to accrue
interest.

For purposes of
determining whether the Holders of the requisite principal amount of Notes have
taken any action as herein described, the principal amount of Dollar Notes shall
be deemed to be the

 

38

 

Sterling
Equivalent of such principal amount of Dollar Notes as of (i) if a record date
has been set with respect to the taking of such action, such date or (ii) if no
such record date has been set, the date the taking of such action by the
Holders of such requisite principal amount is certified to the Trustee by the
Issuer.

Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by an Agent duly appointed in writing or may be embodied
in or evidenced by an electronic transmission which identifies the documents
containing the proposal on which such consent is requested and certifies such
Holders’ consent thereto and agreement to be bound thereby; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee, and where it is
hereby expressly required, to the Issuer.

Section 2.09           Treasury Notes.

In determining whether
the Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Issuer, or by any Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer, will be considered as though not outstanding to
the extent required in order to qualify this Indenture under the TIA, except
that for the purposes of determining whether the Trustee will be protected in
relying on any such direction, waiver or consent, only Notes that a Responsible
Officer of the Trustee actually knows are so owned will be so disregarded.

Section 2.10           Temporary Notes.

Until certificates
representing Notes are ready for delivery, the Issuer may prepare and the
Trustee, upon receipt of an Authentication Order, will authenticate, temporary
Notes.  Temporary Notes will be
substantially in the form of certificated Notes but may have variations that
the Issuer considers appropriate for temporary Notes and as may be reasonably
acceptable to the Trustee.  Without
unreasonable delay, the Issuer will prepare and the Trustee will authenticate
Definitive Notes in exchange for temporary Notes.

Holders of temporary
Notes will be entitled to all of the benefits of this Indenture.

Section 2.11           Cancellation.

The Issuer at any time
may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent will forward
to the Trustee any Notes surrendered to them for registration of transfer,
exchange or payment.  The Trustee and no
one else will cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and will dispose of such
canceled Notes (subject to the record retention requirements of the Exchange
Act) in its customary manner unless the Issuer directs the Trustee to deliver
canceled Notes to the Issuer.  The Issuer
may not issue new Notes to replace Notes that it has redeemed or paid or that
have been delivered to the Trustee for cancellation.

Section 2.12           Defaulted Interest.

If the Issuer defaults in
a payment of interest on the Notes, it will pay the defaulted interest in any
lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, in accordance with the terms hereof, to the Persons who are Holders
on a subsequent special record date, in each case at the rate provided in the
Notes and in Section 4.01 hereof. 
The Issuer will notify the Trustee in writing of the

 

39

 

amount of
defaulted interest proposed to be paid on each Note and the date of the
proposed payment.  The Issuer will fix or
cause to be fixed each such special record date and payment date in a manner
reasonably satisfactory to the Trustee, provided that
no such special record date may be less than 10 days prior to the related
payment date for such defaulted interest. 
At least 10 days before the special record date, the Issuer will
mail or cause to be mailed to Holders a notice that states the special record
date, the related payment date and the amount of such interest to be paid.

Section 2.13           Additional Amounts.

(a)           All payments made under or with
respect to the Notes or the Note Guarantees shall be made free and clear of,
and without withholding or deduction for or on account of, any present or
future tax, duty, levy, impost, assessment or other governmental charge
(including related penalties, interest and other liabilities) (hereinafter, “Taxes”)
imposed or levied by or on behalf of (1) the government of the United Kingdom,
(2) the United States, (3) any other jurisdiction in which the Issuer or any
Note Guarantor is organized or is otherwise resident for tax purposes, (4) any
jurisdiction from or through which payment is made and (5) any political
subdivision or governmental authority or agency of or in any of the foregoing
having the power to tax (each, a “Relevant Taxing Jurisdiction”), unless the
Issuer or any Note Guarantor is required to withhold or deduct Taxes by law or
by the interpretation or administration thereof.

(b)           If the Issuer or a Note Guarantor is
so required to withhold or deduct any amount for or on account of Taxes imposed
by a Relevant Taxing Jurisdiction from any payment made under or with respect
to the Notes or the Note Guarantees, the Issuer or the applicable Note
Guarantor shall pay such additional amounts (“Additional
Amounts”) as may be necessary so that the net amount received by the
Holders and beneficial owners (including Additional Amounts) after such
withholding or deduction will not be less than the amount the Holders and
beneficial owners would have received if such Taxes had not been withheld or
deducted; provided, however, that the foregoing
obligation to pay Additional Amounts does not apply to:

(1)           any Taxes
that would not have been so imposed but for the existence of any present or
former connection between the relevant Holder or beneficial owner (or between a
fiduciary, settlor, beneficiary, member or shareholder of, or possessor of
power over, the relevant Holder or beneficial owner, if the relevant Holder or
beneficial owner is an estate, nominee, trust, partnership or corporation) and the
Relevant Taxing Jurisdiction (other than the mere receipt of such payment or
the ownership or holding of such Note);

(2)           any
estate, inheritance, gift, sales, excise, transfer, personal property Tax or
similar Tax;

(3)           any Taxes
which are payable otherwise than by withholding from payments of (or in respect
of) principal of, or any premium or interest on, the Notes;

(4)           any Taxes
that are imposed or withheld by reason of the failure to comply by the Holder
or the beneficial owner of a Note with a request by the Issuer addressed to the
Holder or such beneficial owner (A) to provide information concerning the
nationality, residence, identity or present or former connection with a
Relevant Taxing Jurisdiction of the Holder or such beneficial owner or (B) to
make any declaration or other similar claim or satisfy any certification,
information or reporting requirement, which, in the case of (A) or (B), is
required or imposed by a statute, treaty, regulation or administrative practice
of the Relevant Taxing Jurisdiction as a precondition to exemption from all or
part of such Tax;

 

40

 

(5)           any
withholding or deduction imposed on a payment to an individual required to be
made pursuant to European Council Directive 2003/48/EC or any other Directive
implementing the conclusions of the ECOFIN Council meeting of November 26-27,
2000 on the taxation of savings income or any law implementing or introduced in
order to conform to, such Directive;

(6)           any
combination of items (1), (2), (3), (4) and (5) above;

(7)           any Taxes
that would not have been so imposed, withheld or deducted if the beneficiary of
the payment had presented the Note for payment within 30 days after the date on
which such payment or such Note became due and payable or the date on which
payment thereof is duly provided for, whichever is later (except to the extent
that such beneficiary would have been entitled to Additional Amounts had the
Note been presented on the last day of the 30-day period);

(8)           any payment
under or with respect to a Note to any Holder who is a fiduciary or partnership
or any Person other than the sole beneficial owner of such payment, to the
extent that a beneficiary or settlor with respect to such fiduciary, a member
of such a partnership or the beneficial owner of such payment would not have
been entitled to the Additional Amounts had such beneficiary, settlor, member
or beneficial owner been the actual Holder of such Note; or

(9)           any
withholding or deduction that is imposed on a Note presented for payments by or
on behalf of a Holder or beneficial owner who would be able to avoid a
withholding or deduction by presenting the relevant Note to another Paying
Agent in a Member State.

(c)           If the Issuer or any Note Guarantor
will be obligated to pay Additional Amounts with respect to any payment under
or with respect to the Notes or the relevant Note Guarantee, as applicable, the
Issuer or such Note Guarantor, as applicable, will deliver to the Trustee at
least 30 days prior to the date of that payment (unless the obligation to pay
Additional Amounts arises after the 30th day prior to that payment date, in
which case the Issuer or the Note Guarantor, as applicable, shall notify the
Trustee promptly thereafter but in no event later than two Business Days prior
to the date of payment) notice of payment in the form of an Officer’s
Certificate. In either circumstance, the Officer’s Certificate must state that
Additional Amounts will be payable and the amount so payable. The Officer’s
Certificate must also set forth any other information necessary to enable the
Paying Agent to pay Additional Amounts to Holders and beneficial owners on the
relevant payment date.

(d)           The Issuer will (i) make such
withholding or deduction and (ii) remit the full amount deducted or withheld to
the Relevant Taxing Jurisdiction in accordance with applicable law.  The Issuer will provide the Trustee with
official receipts or other documentation satisfactory to the Trustee evidencing
the payment of the Taxes with respect to which Additional Amounts are
paid.  Certificated copies of such
receipts and such other documentation shall be made available to Holders upon
request and will be made available at the offices of the Paying Agent if the Notes
are then listed on the Luxembourg Stock Exchange.  The Issuer will attach to such copies an
Officer’s Certificate stating (x) that the amount of withholding Taxes
evidenced by such copies was paid in connection with any payment made under or
with respect to the Notes or any Note Guarantee and (y) the amount of such
withholding Taxes paid per £1,000 or $1,000 of Notes, as applicable.

(e)           Whenever in this Indenture there is
mentioned, in any context, the payment of principal, purchase prices in
connection with a purchase of Notes, interest, or any other amount payable on
or with respect to any of the Notes or any Note Guarantee, that reference shall
be deemed to include payment of

 

41

 

Additional
Amounts provided for in this section to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof.

(f)            The Issuer or a Note Guarantor will
pay any present or future stamp, court or documentary taxes or any other excise
or property taxes, charges or similar levies that arise in any jurisdiction
from the execution, delivery, enforcement or registration of the Notes, the
Note Guarantees, this Indenture or any other related document or instrument, or
the receipt of any payments with respect to the Notes or the Note Guarantees,
excluding taxes, charges or similar levies imposed by any jurisdiction that is
not a Relevant Taxing Jurisdiction, and the Issuer will agree to indemnify the
Holders or the Trustee for any such taxes paid by the Holders or the Trustee.

(g)           The preceding provisions of this
Section 2.13 will survive any termination, defeasance or discharge of this
Indenture and shall apply mutatis mutandis
to any jurisdiction in which any successor Person to the Issuer or any Note
Guarantor is organized or any political subdivision or taxing authority or
agency thereof or therein.

Section 2.14           Currency Indemnity

(a)           The currency of account and payment
for all sums, including damages, payable by the Issuer or any Note Guarantor
under or in connection with the Sterling Notes or the Dollar Notes, as the case
may be, is pounds sterling or the U.S. dollar, respectively. Any amount
received or recovered in a currency other than pounds sterling (in the case of
the Sterling Notes) or U.S. dollars (in the case the Dollar Notes), whether as
a result of, or the enforcement of, a judgment or order of a court of any
jurisdiction, in the winding-up or dissolution of the Issuer or any Note
Guarantor or otherwise by any Holder of a Sterling Note or a Dollar Note, as
the case may be, or by the Trustee, in respect of any sum expressed to be due
to it from the Issuer or any Note Guarantor will only constitute a discharge to
the Issuer or any Note Guarantor to the extent of the pounds sterling amount or
the U.S. dollar amount, as the case may be, which the recipient is able to
purchase with the amount so received or recovered in that other currency on the
date of that receipt or recovery (or, if it is not practicable to make that
purchase on that date, on the first date on which it is practicable to do so).

(b)           If that pounds sterling amount is
less than the sterling amount expressed to be due to the recipient or the
Trustee under any Sterling Note, or if that U.S. dollar amount is less than the
U.S. dollar amount expressed to be due to the recipient or the Trustee under
any Dollar Note, the Issuer and any Note Guarantor will indemnify them against
any loss sustained by such recipient as a result. In any event, the Issuer and
any Note Guarantor will indemnify the recipient against the cost of making any
such purchase. For the purposes of this currency indemnity provision, it will
be prima facie evidence of the matter
stated therein for the Holder or the Trustee to certify in a manner
satisfactory to the Issuer (indicating the sources of information used) the
loss it incurred in making any such purchase. These indemnities constitute a
separate and independent obligation from the Issuer and any Note Guarantor’s
other obligations, will give rise to a separate and independent cause of
action, will apply irrespective of any waiver granted by any Holder or the
Trustee (other than a waiver of the indemnities set out herein) and will
continue in full force and effect despite any other judgment, order, claim or
proof for a liquidated amount in respect of any sum due under any Note or to
the Trustee.

 

42

 

ARTICLE 3

REDEMPTION AND PREPAYMENT

Section 3.01           Notices to Trustee.

If the Issuer
elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it must furnish to the Trustee, at least 30 days but
not more than 60 days before a redemption date, an Officer’s Certificate
setting forth:

(a)           the clause of this Indenture pursuant
to which the redemption shall occur;

(b)           the record date for the redemption
and the redemption date;

(c)           the principal amount of each series
of Notes to be redeemed; and

(d)           the redemption price.

Section 3.02           Selection of Notes to Be Redeemed or Purchased.

If less than all
of the Notes are to be redeemed or purchased in an offer to purchase at any
time, the Trustee will select Notes for redemption or purchase as follows:

(a)           if the applicable Notes are listed on
any national securities exchange (including the Luxembourg Stock Exchange), in
compliance with the requirements of the principal national securities exchange
on which they are listed; or

(b)           if the applicable Notes are not
listed on any national securities exchange or the relevant national securities
exchange does not have any applicable requirements, on a pro rata
basis, by lot or by such method as the Trustee shall deem fair and appropriate,

provided
that no Notes of $100,000 or £50,000 in aggregate principal amount, as the case
may be, or less shall be redeemed in part.

In the event of partial
redemption or purchase by lot, the particular Notes to be redeemed or purchased
will be selected, unless otherwise provided herein, not less than 30 nor more
than 60 days prior to the redemption or purchase date by the Trustee from
the outstanding Notes not previously called for redemption or purchase.

The Trustee will promptly
notify the Issuer and the Registrar (if not the Issuer) in writing of the Notes
selected for redemption or purchase and, in the case of any Notes selected for
partial redemption or purchase, the principal amount thereof to be redeemed or
purchased.  Notes and portions of Notes
selected will be in minimum amounts of $100,000 and integral multiples of
$1,000 in excess thereof, or of £50,000 and whole multiples of £1,000 in excess
thereof, as the case may be; except that if all of the Notes of a Holder are to
be redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000 (in excess of $100,000) or £1,000 (in
excess of £50,000), as the case may be, shall be redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or purchase.

 

43

 

Section 3.03           Notice of Redemption.

At least 30 days but
not more than 60 days before a redemption date, the Issuer will mail or
cause to be mailed, by first class mail, a notice of redemption to each Holder
whose Notes are to be redeemed at its registered address, except that
redemption notices may be mailed more than 60 days prior to a redemption
date if the notice is issued in connection with a defeasance of the Notes
pursuant to Article 8 hereof or a satisfaction and discharge of this Indenture
pursuant to Article 10 hereof.  So long
as any series of the Notes is listed on the Luxembourg Stock Exchange and if
required by the rules of the Luxembourg Stock Exchange, notice will be published
in Luxembourg in a daily leading newspaper with general circulation in
Luxembourg (which is expected to be the d’Wort) or on
the website of the Luxembourg Stock Exchange (www.bourse.lu).

The notice will
identify the Notes to be redeemed and will state:

(a)           the record date for the redemption
and the redemption date;

(b)           the redemption price;

(c)           if any Note is being redeemed in
part, the portion of the principal amount of such Note to be redeemed and that,
after the redemption date upon surrender of such Note, a new Note or Notes in
principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

(d)           the name and address of the Paying
Agent;

(e)           that Notes called for redemption must
be surrendered to the Paying Agent to collect the redemption price;

(f)            that, unless the Issuer defaults in
making such redemption payment or the relevant Paying Agent is prohibited from
making such payment pursuant to the terms of this Indenture, interest on Notes
called for redemption ceases to accrue on and after the redemption date;

(g)           the paragraph of the Notes and/or
Section of this Indenture pursuant to which the Notes called for
redemption are being redeemed; and

(h)           that no representation is made as to
the correctness or accuracy of the CUSIP, ISIN or Common Code number, if any,
listed in such notice or printed on the Notes.

At the Issuer’s request,
the Trustee will give the notice of redemption in the Issuer’s name and at its
expense; provided, however, that the Issuer has
delivered to the Trustee, at least 45 days prior to the redemption date
(unless a shorter period shall be acceptable to the Trustee in its sole
discretion), an Officer’s Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph.

Section 3.04           Effect of Notice of Redemption.

Once notice of redemption
is mailed in accordance with Section 3.03 hereof, Notes called for
redemption become irrevocably due and payable on the redemption date at the
redemption price.  Failure to give notice
or any defect in the notice to any Holder shall not affect the validity of the
notice to any other Holder.

 

44

 

Section 3.05           Deposit of Redemption or Purchase Price.

No later than one
Business Day prior to the redemption or purchase price date, the Issuer will
deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued and unpaid interest, if any, and
Additional Amounts, if any, on all Notes to be redeemed or purchased on that
date other than Notes or portions of Notes called for redemption that have been
delivered by the Issuer to the Trustee for cancellation.  The Trustee or the Paying Agent will promptly
return to the Issuer any money deposited with the Trustee or the Paying Agent
by the Issuer in excess of the amounts necessary to pay the redemption or
purchase price of, and accrued and unpaid interest, if any, and Additional
Amounts, if any, on, all Notes to be redeemed or purchased.

Neither the Trustee nor
any Agent shall be required to pay out any money without first having been
placed in funds.

If the Issuer complies
with the provisions of the preceding paragraph, on and after the redemption or
purchase date, interest will cease to accrue on the Notes or the portions of
Notes called for redemption or purchase unless the relevant Paying Agent is
prohibited from making such redemption payment pursuant to the terms of this
Indenture.  If a Note is redeemed or
purchased on or after an interest record date but on or prior to the related
interest payment date, then any accrued and unpaid interest shall be paid to
the Person in whose name such Note was registered at the close of business on
such record date.  If any Note called for
redemption or purchase is not so paid upon surrender for redemption or purchase
because of the failure of the Issuer to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption or purchase
date until such principal is paid, and to the extent lawful on any interest not
paid on such unpaid principal, in each case at the rate provided in the Notes
and in Section 4.01 hereof.

Section 3.06           Notes Redeemed or Purchased in Part.

Upon surrender of a Note
that is redeemed or purchased in part, the Issuer will issue and, upon receipt
of an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Issuer a new Note equal in principal amount to the unredeemed or
unpurchased portion of the Note surrendered.

Section 3.07           Optional Redemption.

(a)           Except as set forth in paragraphs (b)
and (c) below or in Section 3.10 hereof, the Issuer may not redeem the Notes
prior to     , 2011. 
On or after this date, the Issuer may redeem the Notes, in whole or in
part, on not less than 30 nor more than 60 days’ prior notice, at the following
redemption prices (expressed as percentages of principal amount), plus accrued
and unpaid interest thereon, if any, to the redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date), if redeemed during the 12-month period
commencing on       of the years set forth below:

	
  Redemption Year

  	
   

  	
  Sterling Notes

  Redemption

  Price

  	
   

  	
  Dollar Notes

  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
   

  	
  %

  	
   

  	
  % 

  
	
  2012

  	
   

  	
   

  	
  %

  	
   

  	
  %

  
	
  2013

  	
   

  	
   

  	
  %

  	
   

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  

 

 

45

 

(b)           At any time prior to      ,
2011, the Issuer may at its option redeem the Notes in whole or in part, on not
less than 30 nor more than 60 days’ prior notice, by paying a redemption price
equal to the sum of

(1)           100% of
the principal amount of the Notes to be redeemed, plus

(2)           the
Applicable Premium,

plus accrued and unpaid
interest thereon, if any, to the redemption date (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

(c)           At any time prior to
    , 2009, the Issuer may, on one or more occasions,
redeem up to a maximum of 40% of the original aggregate principal amount of
each series of Notes (calculated after giving effect to any issuance of
Additional Notes) with the Net Cash Proceeds of one or more Equity Offerings.
The redemption price of the Sterling Notes is equal to
    % of the principal amount thereof, and the redemption
price of the Dollar Notes is equal to      % of the
principal amount thereof, each plus accrued and unpaid interest thereon, if
any, to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however, that:

(1)           after
giving effect to any such redemption at least 60% of the original aggregate
principal amount of such series of the Notes (calculated after giving effect to
any issuance of Additional Notes) remains outstanding; and

(2)           any such
redemption by the Issuer must be made within 120 days of such Equity Offering.

(d)           Any redemption pursuant to this
Section 3.07 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

Section 3.08           Mandatory Redemption.

The Issuer is not
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

Section 3.09           Offer to Purchase by Application of Excess Proceeds.

In the event that,
pursuant to Section 4.10 hereof, the Issuer is required to commence an
offer to all Holders to purchase Notes (as defined in Section 4.10(b), an “Excess Proceeds Offer”), it shall follow the procedures
specified below.

The Excess Proceeds Offer
shall be made to all Holders at a purchase price equal to 100% of the principal
amount thereof, plus accrued and unpaid interest thereon, if any, to the
purchase date (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date as set forth
below).  As promptly as practicable
following termination of the offer period (the “Purchase
Date”), the Issuer shall apply all Allocable Excess Proceeds (the “Offer Amount”) to the purchase of Notes or, if less than the
Offer Amount has been tendered, all Notes tendered in response to the Excess
Proceeds Offer.  Payment for any Notes so
purchased will be made in the same manner as interest payments are made.

 

46

 

If the Purchase Date is
on or after an interest record date and on or before the related interest
payment date, any accrued and unpaid interest, will be paid to the Person in
whose name a Note is registered at the close of business on such record date,
and no additional interest will be payable to Holders who tender Notes pursuant
to the Excess Proceeds Offer.

Upon the commencement of
an Excess Proceeds Offer, the Issuer will send or cause to be sent, by first
class mail, to the Trustee and each of the Holders at the address appearing in
the security register, a notice stating:

(a)           that the Excess Proceeds Offer is
being made pursuant to this Section 3.09 and Section 4.10 hereof and
the length of time the Excess Proceeds Offer will remain open;

(b)           the Offer Amount, the purchase price
and the Purchase Date;

(c)           that any Note not tendered or
accepted for payment will continue to accrue interest;

(d)           that, unless the Issuer defaults in
making such payment, any Note accepted for payment pursuant to the Excess
Proceeds Offer will cease to accrue interest after the Purchase Date;

(e)           that Holders electing to have a Note
purchased pursuant to an Excess Proceeds Offer may elect to have Notes
purchased only in minimum denominations of $100,000 or £50,000, as the case may
be, and in integral multiples of $1,000 or £1,000, respectively, in excess
thereof, except that a Holder may elect to have all of the Notes held by such
Holder purchased even if not an integral multiple of $1,000 (in excess of
$100,000) or £1,000 (in excess of £50,000);

(f)            that Holders electing to have a Note
purchased pursuant to any Excess Proceeds Offer will be required to surrender
the Note, with the form entitled “Option of Holder to Elect Purchase” attached
to the Note completed, or transfer by book-entry transfer, to the Issuer, a
Depositary, if appointed by the Issuer, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

(g)           the procedure for withdrawing an
election to tender;

(h)           that, if the aggregate principal
amount of Notes surrendered by Holders exceeds the Offer Amount, the Issuer
will select the Notes to be purchased on a pro rata basis based
on the principal amount of Notes surrendered (with such adjustments as may be
deemed appropriate by the Issuer so that only Notes in minimum denominations of
$100,000 or integral multiples of $1,000 in excess thereof or of £50,000 or
integral multiples of £1,000 in excess thereof, as the case may be, will be
purchased); and

(i)            that Holders whose Notes were
purchased only in part will be issued new Notes equal in principal amount to
the unpurchased portion of the Notes surrendered (or transferred by book-entry
transfer).

On or before the Purchase
Date, the Issuer shall, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of
Notes or portions thereof tendered pursuant to the Excess Proceeds Offer, or if
less than the Offer Amount has been tendered, all Notes tendered, and shall
deliver to the Trustee an Officer’s Certificate stating that such Notes or
portions thereof were accepted for payment by the Issuer in accordance with the
terms of this Section 3.09.  The
Issuer, the Depositary or the Paying Agent, as the case may be, shall promptly
(but in any case not later than five Business Days after the Purchase
Date) mail or deliver to each tendering Holder an amount equal to the purchase
price of the Notes tendered by such Holder and accepted by the Issuer for
purchase, and the

 

47

 

Issuer shall
promptly issue a new Note, and the Trustee, upon written request from the
Issuer will authenticate and mail or deliver such new Note to such Holder, in a
principal amount equal to any unpurchased portion of the Note surrendered.  Any Note not so accepted shall be promptly
mailed or delivered by the Issuer to the Holder thereof.  The Issuer will publicly announce the results
of the Excess Proceeds Offer on the Purchase Date.

Other than as
specifically provided in this Section 3.09, any purchase pursuant to this
Section 3.09 shall be made pursuant to the provisions of Sections 3.01
through 3.06 hereof.

Section 3.10           Redemption of Notes for Changes in Withholding Taxes.

The Issuer may, at its
option, redeem all, but not less than all, of the then-outstanding Notes at any
time upon giving not less than 30 nor more than 60 days’ notice to the Holders
(which notice shall be irrevocable), at a redemption price equal to 100% of the
principal amount thereof, plus accrued and unpaid interest thereon, if any, to
the redemption date (a “Tax Redemption Date”)
and all Additional Amounts, if any, that will become due on the Tax Redemption
Date as a result of such redemption or otherwise (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date), if the Issuer determines in good faith that
(a) it, or any Note Guarantor with respect to a Note Guarantee, as the case may
be, has become obligated or, on the occasion of the next payment due in respect
of the Notes, would be obligated to pay Additional Amounts with respect to any
payment under or with respect to the Notes or the relevant Note Guarantee, as
applicable, and (b) the payment obligation cannot be avoided by the Issuer
taking reasonable measures available to it (including making payment through a
Paying Agent located in another jurisdiction), as a result of:

(1)           any change
in, or amendment to, the laws or treaties (or any regulations, protocols or
rulings promulgated thereunder) of the United Kingdom, the United States or any
other Relevant Taxing Jurisdiction affecting taxation, which change or
amendment becomes effective on or after the Closing Date, or

(2)           any change
in position regarding the application, administration or interpretation of such
laws, treaties, regulations, protocols or rulings (including a holding,
judgment or order by a court of competent jurisdiction), which change in
position becomes effective on or after the Closing Date.

The notice of redemption
may not be given earlier than 90 days prior to the earliest date on which the
Issuer would be obligated to make a payment or withholding if a payment in
respect of the Notes were then due and unless, at the time such notice is
given, such obligation to pay such Additional Amounts remains in effect. Prior
to the publication or, where relevant, mailing of any notice of redemption of
the Notes pursuant to the foregoing, the Issuer will deliver to the Trustee an
Officer’s Certificate and Opinion of Counsel to the effect that the
circumstances referred to above exist and the Issuer cannot avoid the
obligation by taking reasonable measures available to it. The Trustee shall
accept the Officer’s Certificate and Opinion of Counsel as sufficient evidence
of the satisfaction of the conditions precedent described above.

ARTICLE 4

COVENANTS

Section 4.01           Payment of Notes.

The Issuer shall pay or
cause to be paid the principal of, premium, if any, and interest and Additional
Amounts, if any, on the Notes on the dates and in the manner provided in the
Notes.  Principal,

 

48

 

premium, if any,
and interest and Additional Amounts, if any, will be considered paid on the
date due if the Paying Agent holds as of the due date money deposited by the
Issuer in immediately available funds and designated for and sufficient to pay
all principal, premium and Additional Amounts, if any, and interest then due
and is not prohibited from paying such money to the Holders on that date
pursuant to the terms of this Indenture or the Intercreditor Deed.

The Issuer shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue principal at the rate equal to the then applicable interest
rate on the Notes.  The Issuer will pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace periods) at the same rate.

If a Paying Agent pays
out funds on or after the due date therefor, or pays out funds (although it is
not obligated) on the assumption that the corresponding payment by the Issuer
has been or will be made and such payment has in fact not been so made by the
Issuer, then the Issuer shall on demand reimburse the Paying Agent for the
relevant amount, and pay interest to the Paying Agent on such amount from the
date on which it is paid out to the date of reimbursement at a rate per annum
equal to the cost to the Paying Agent of funding the amount paid out, as
certified by the Paying Agent and expressed as a rate per annum.

Section 4.02           Maintenance of Office or Agency.

The Issuer shall maintain
an office or agency (which may be an office of the Trustee or an Affiliate of
the Trustee, Registrar or co-registrar) (a) for the Dollar Notes, in the
Borough of Manhattan, the City of New York, and, for so long as the Dollar
Notes are listed on the Luxembourg Stock Exchange, in Luxembourg and (b) for
the Sterling Notes, in the Borough of Manhattan, the City of New York, in
London, England, and for so long as the Sterling Notes are listed on the
Luxembourg Stock Exchange, in Luxembourg, where (1) Notes may be surrendered
for registration of transfer or for exchange and (2) notices and demands to or
upon the Issuer in respect of the Notes and this Indenture may be served.  The Issuer will give prompt written notice to
the Trustee of the location, and any change in the location, of such office or
agency.

The Issuer may also from
time to time designate one or more other offices or agencies where the Notes
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however,
that no such designation or rescission will in any manner relieve the Issuer of
its obligation to maintain an office or agency in the Borough of Manhattan, the
City of New York and London, England, and for so long as any Notes are listed
on the Luxembourg Stock Exchange, in Luxembourg, for such purposes.  The Issuer will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

Section 4.03           Ongoing Reporting.

(a)           So long as the Notes are outstanding,
the Company will furnish to the Trustee, within the time periods specified in
the SEC’s rules and regulations, without cost to the Trustee (who, at the
Issuer’s expense, will furnish by mail to the Holders); provided,
however, that to the extent any reports are filed on the SEC’s
website, such reports shall be deemed to be furnished to the Trustee and the
Holders:

(1)           whether or
not required by SEC rules and regulations, quarterly and annual reports of the Parent,
containing substantially the same information required to be contained in a
Quarterly Report on Form 10-Q or an Annual Report on Form 10-K, as applicable,
under the Exchange Act, including financial statements prepared in accordance
with GAAP and a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations”

 

49

 

(except
with respect to guarantor financial statements, but including condensed
information complying with Rule 3-10(d) of Regulation S-X of the SEC);
provided, however, that only to the extent reasonably available, at any time
that any of Parent’s Subsidiaries is an Unrestricted Subsidiary that is a
Significant Subsidiary or would in combination with other Unrestricted
Subsidiaries be a Significant Subsidiary, the quarterly and annual financial
information required by this paragraph will include a presentation, either on
the face of the financial statements, in the footnotes thereto, or in
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations” or other comparable section, of the financial condition and results
of operations of Parent and the Restricted Subsidiaries separate from the
financial condition and results of operations of the Unrestricted Subsidiaries
of Parent; and

(2)           such other
reports containing substantially the same information required to be contained
in a Current Report on Form 8-K under the Exchange Act, as in effect on the
Closing Date.

Parent will also make
available copies of all reports required by clauses (1) and (2) above on its
website.

(b)           The Issuer will at all times comply
with TIA §314(a).

Section 4.04           Compliance Certificates.

The
Issuer shall deliver to the Trustee, within 120 days after the end of each
fiscal year, an Officer’s Certificate stating that in the course of the
performance by the signer thereof of his or her duties as an Officer of the
Issuer he or she would normally have knowledge of any Default and whether or
not the signer knows of any Default that occurred during such period (and, if a
Default or Event of Default has occurred, describing all such Defaults or
Events of Default of which he or she may have knowledge and what action the
Issuer is taking or proposes to take with respect thereto).  The Issuer shall otherwise comply with
Section 314(a)(4) of the TIA.

Section 4.05           Taxes.

The Company and the
Issuer shall pay, and the Company and the Parent shall cause each Restricted
Subsidiary to pay, prior to delinquency, all Taxes except such as are contested
in good faith and by appropriate proceedings or where the failure to effect
such payment is not adverse in any material respect to the Holders.

Section 4.06           [Intentionally Omitted]

Section 4.07           Restricted Payments.

(a)           The Company will not, and will not
permit any Restricted Subsidiary, directly or indirectly, to:

(1)           declare or
pay any dividend, make any distribution on or in respect of its Capital Stock
or make any similar payment to the direct or indirect holders of its Capital
Stock, except (A) pro rata dividends or distributions payable solely in its
Capital Stock (other than Disqualified Stock) and (B) dividends, distributions
or any similar payment payable to the Company or any other Restricted
Subsidiary (and, if the Company or such Restricted Subsidiary has shareholders
other than the Company, the Issuer or other Restricted Subsidiaries, to its
other shareholders on a basis that is no more favorable to such other
shareholders than a pro rata basis);

 

50

 

(2)           purchase,
repurchase, redeem, retire or otherwise acquire for value any Capital Stock of
the Company;

(3)           purchase,
repurchase, redeem, retire, defease or otherwise acquire for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment any
Subordinated Obligations (other than (a) Subordinated Obligations owed to the
Issuer or any Intermediate Guarantor and (b) the purchase, repurchase,
redemption, retirement, defeasance or other acquisition for value of Subordinated
Obligations of the Company or any Restricted Subsidiary acquired in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case, due within one year of the date of acquisition);
or

(4)           make any
Investment (other than a Permitted Investment) in any Person

(any such
dividend, distribution, payment, purchase, redemption, repurchase, defeasance,
retirement, or other acquisition or Investment being herein referred to as a “Restricted Payment”), if at the time the Company or such
Restricted Subsidiary makes such Restricted Payment:

(A)          a Default
will have occurred and be continuing (or would result therefrom);

(B)           the
Company could not Incur at least £1.00 of additional Indebtedness under
paragraph (a) of Section 4.09; or

(C)           the
aggregate amount of such Restricted Payment and all other Restricted Payments
(the amount so expended, if other than in cash, to be determined in good faith
by the Board of Directors) declared or made subsequent to the Closing Date
would exceed the sum of:

(i)            an amount
equal to 100% of EBITDA since the Merger Date to the end of the most recent
fiscal quarter, taken as a single accounting period, less the product of 1.4
times the Consolidated Interest Expense since the Merger Date to the end of the
most recent fiscal quarter, taken as a single accounting period;

(ii)           the
proceeds received by the Company from the issue or sale of its Capital Stock
(other than Disqualified Stock) subsequent to the Closing Date (other than an
issuance or sale to (x) the Company or a Subsidiary of the Company or (y) an
employee share ownership plan or other trust to the extent funded or required
to be funded by the Company or any of its Subsidiaries);

(iii)          the
amount by which Indebtedness of the Company or its Restricted Subsidiaries is
reduced on the Company’s Consolidated balance sheet upon the conversion or
exchange of any Indebtedness of any Intermediate Guarantor or the Issuer issued
after the Closing Date which is convertible or exchangeable for Capital Stock
(other than Disqualified Stock) of the Company issued to Persons not including
the Company or any Restricted Subsidiary (less the amount of any cash or the
Fair Market Value of other Property distributed by the Company or any
Restricted Subsidiary upon such conversion or exchange);

(iv)          without
duplication, the sum of

 

51

 

(x)                                   the aggregate amount returned to the
Company, the Issuer or any other Restricted Subsidiary in cash on or with
respect to Investments (other than Permitted Investments) made subsequent to
the Closing Date whether through interest payments, principal payments,
dividends or other distributions;

(y)                                 the net proceeds received and retained by
the Company or any Restricted Subsidiary from the disposition, retirement or
redemption of all or any portion of such Investments (other than Permitted
Investments and other than to the Company or any Restricted Subsidiary); and

(z)                                   upon redesignation of an Unrestricted
Subsidiary as a Restricted Subsidiary subsequent to the Closing Date, in
accordance with Section 4.17, the Fair Market Value (valued as provided in the
definition of “Investment”) of the net assets of such Subsidiary;

provided, however, that the amount under this clause (iv) shall not exceed
the aggregate amount of all such Investments (other than Permitted Investments)
made subsequent to the Closing Date (and treated as a Restricted Payment) by
the Company or any Restricted Subsidiary in such Person, which amount was
included in the calculation of the amount of Restricted Payments.

(b)           The provisions of the foregoing
paragraph (a) will not prohibit:

(1)           any
purchase, repurchase, redemption, retirement or other acquisition for value of
Capital Stock or Disqualified Stock of the Company or any Restricted Subsidiary
made by exchange for, or out of the proceeds of the sale within 90 days of,
Capital Stock or Disqualified Stock of, the Company (other than Capital Stock
issued or sold to a Subsidiary of the Company or any of its Subsidiaries or an
employee share ownership plan or other trust to the extent funded by the
Company or any of its Subsidiaries) or through a substantially concurrent
contribution to the equity of the Company; provided, however, that:

(A)          such
purchase, repurchase, redemption, retirement or other acquisition for value
will be excluded in the calculation of the amount of Restricted Payments, and

(B)           the Net
Cash Proceeds from such sale applied in the manner set forth in this clause (1)
will be excluded from the calculation of amounts under clause (C)(ii) of
paragraph (a) above;

(2)           any
prepayment, repayment, purchase, repurchase, redemption, retirement, defeasance
or other acquisition for value of Subordinated Obligations of the Company or
any Restricted Subsidiary made by exchange for, or out of the proceeds of the
sale within 90 days of, Indebtedness of the Company or such Restricted
Subsidiary that is permitted to be Incurred pursuant to Section 4.09 and that
is subordinated to the Notes to at least the same extent as such Subordinated
Obligations; provided, however,
that such prepayment, repayment, purchase, repurchase, redemption, retirement,
defeasance or other acquisition for value will be excluded from the calculation
of the amount of Restricted Payments;

 

52

 

(3)           any
prepayment, repayment, purchase, repurchase, redemption, retirement, defeasance
or other acquisition for value of Subordinated Obligations of the Company or
any Restricted Subsidiary from Net Available Cash to the extent permitted by
Section 4.10; provided, however,
that such prepayment, repayment, purchase, repurchase, redemption, retirement,
defeasance or other acquisition for value will be excluded from the calculation
of the amount of Restricted Payments;

(4)           any
prepayment, repayment, purchase, repurchase, redemption, retirement, defeasance
or other acquisition for value of Subordinated Obligations of the Company or
any Restricted Subsidiary made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Subordinated Obligations of the Company or
any Restricted Subsidiary that qualifies as Refinancing Indebtedness; provided, however, that
such prepayment, repayment, purchase, repurchase, redemption, retirement,
defeasance or other acquisition for value will be excluded from the calculation
of the amount of Restricted Payments;

(5)           dividends
paid within 60 days after the date of declaration thereof if at such date of
declaration such dividends would have complied with this Section 4.07; provided, however, that
such dividends will be included (without duplication) in the calculation of the
amount of Restricted Payments;

(6)           any
purchase, repurchase, redemption, retirement or other acquisition for value of
Capital Stock, or options to purchase Capital Stock, of the Company or any of
its Subsidiaries from employees, former employees, directors or former
directors or consultants of the Company or any of its Subsidiaries (or
permitted transferees of such employees, former employees, directors or former
directors or consultants), pursuant to the terms of agreements (including
employment agreements) or plans (or amendments thereto) under which such
individuals purchase or sell or are granted the option to purchase or sell,
shares of such Capital Stock; provided, however, that the aggregate amount of such purchases,
repurchases, redemptions, retirements and other acquisitions for value will not
exceed £20 million in any calendar year; provided further,
that such purchases, repurchases, redemptions, retirements and other
acquisitions for value will be included in the calculation of the amount of
Restricted Payments;

(7)           any
payment of dividends, other distributions or other amounts by the Company for
the purposes set forth in clauses (A) and (B) below; provided,
however, that such dividends,
distributions or other payments will be excluded from the calculation of the
amount of Restricted Payments:

(A)          to an NTL
Holding Company in amounts required for such NTL Holding Company to pay taxes
and other fees or amounts required to maintain its corporate existence and
provide for other expenses in an aggregate amount of up to £50 million per
year; and

(B)           amounts
payable for any income or corporate taxes or pursuant to the Tax Sharing
Agreement;

(8)           any purchase,
repurchase, redemption, retirement or other acquisition for value of Capital
Stock deemed to occur upon exercise of options, warrants or other securities,
if such Capital Stock represents a portion of the exercise price of such
options, warrants or other securities; provided, however,
that such purchase, repurchase, redemption, retirement or other acquisition for
value will be excluded from the calculation of the amount of Restricted
Payments;

 

53

 

(9)           after the
designation of any Restricted Subsidiary as an Unrestricted Subsidiary,
distributions (including by way of dividend) consisting of cash, Capital Stock
or Property of such Unrestricted Subsidiary that in each case is held by the
Company or any Restricted Subsidiary; provided, however, that (x) such distribution or disposition shall
include the concurrent transfer of all liabilities (contingent or otherwise)
attributable to the Property being transferred; (y) any Property received from
any Unrestricted Subsidiary (other than Capital Stock issued by any
Unrestricted Subsidiary) may be transferred by way of distribution or
disposition pursuant to this clause (9) only if such Property, together with
all related liabilities, is so transferred in a transaction that is
substantially concurrent with the receipt of the proceeds of such distribution
or disposition by the Company or such other Restricted Subsidiary; and (z) such
distribution or disposition shall not, after giving effect to any related
agreements, result nor be likely to result in any material liability, tax or
other adverse consequences to the Company and its Restricted Subsidiaries on a
consolidated basis; provided  further, however, that
such distributions will be excluded from the calculation of the amount of
Restricted Payments, it being understood that proceeds from the disposition of
any cash, Capital Stock or Property of an Unrestricted Subsidiary that are so
distributed will not increase the amount of Restricted Payments permitted under
clause (a)(4)(C)(iv) above;

(10)         dividends
on common stock of the Company up to £10 million in the year following the
Closing Date, up to £35 million in the second year following the Closing Date
and up to £60 million per year thereafter; provided, in
each case, that such Restricted Payments will be included in the calculation of
the amount of Restricted Payments;

(11)         payments of
any Receivables Fees; provided, however, that such Restricted Payments will be excluded from
the calculation of the amount of Restricted Payments;

(12)         the
transactions described in the Steps Paper;

(13)         the
Permitted Sit-up Payments;

(14)         any Content
Transaction, provided that, after giving pro forma effect thereto, the Company
could Incur at least £1.00 of additional Indebtedness under paragraph (a) of
Section 4.09; provided, further, however, that such Restricted Payments will be
excluded from the calculation of the amount of Restricted Payments;

(15)         any
Business Division Transaction, provided, however, that after giving pro forma
effect thereto, the Company could Incur at least £1.00 of additional
Indebtedness under paragraph (a) of Section 4.09; and

(16)         any other
Restricted Payments in an aggregate amount, when taken together with all other
Restricted Payments made pursuant to this clause (16), not to exceed £75
million; provided, however, that (A) such Restricted Payments will be included
in the calculation of the amount of Restricted Payments and (B) at the time of
any Restricted Payment referred to in this clause (16), no Default or Event of
Default has occurred and is continuing (or would result from such Restricted
Payment).

Section 4.08           Restrictions on Distributions from Restricted
Subsidiaries.

(a)           The Company will not permit any
Restricted Subsidiary (other than the Issuer or any Intermediate Guarantor) to
create or otherwise cause or permit to exist or become effective any

 

54

 

consensual
encumbrance or restriction on the ability of any Restricted Subsidiary (other
than the Issuer or any Intermediate Guarantor) to:

(1)           pay
dividends or make any other distributions on its Capital Stock or pay any
Indebtedness or other obligations owed to the Company or any Restricted
Subsidiary of which it is a Subsidiary;

(2)           make any
loans or advances to the Company or any Restricted Subsidiary of which it is a
Subsidiary; or

(3)           transfer
any of its Property or assets to the Company or any Restricted Subsidiary of
which it is a Subsidiary.

(b)           The provisions of
Section 4.08(a) will not prohibit:

(A)          any
encumbrance or restriction pursuant to (i) applicable law, rule, regulation,
order or governmental license, permit or concession or (ii) an agreement in
effect on the Closing Date (including this Indenture, the New Credit Facility,
the indenture governing the Existing Notes, the Bridge Facility or any exchange
notes issued in relation thereto, the Intercreditor Deed and the Group
Intercreditor Deed);

(B)           in respect
of a Restricted Subsidiary acquired by the Company, the Issuer or any
Restricted Subsidiary after the Closing Date, any encumbrance or restriction
with respect to such Restricted Subsidiary arising prior to the date on which
such Restricted Subsidiary was acquired by the Company or any Restricted
Subsidiary (other than an encumbrance relating to Indebtedness Incurred as
consideration for, in contemplation of, or to provide all or any portion of the
funds or credit support utilized to, consummate the transaction or series of
related transactions pursuant to which such Restricted Subsidiary became a
Restricted Subsidiary or was otherwise acquired by the Company or any
Restricted Subsidiary) and outstanding on such date;

(C)           any
encumbrance or restriction pursuant to an agreement effecting a Refinancing of
Indebtedness Incurred pursuant to an agreement referred to in clause (A) or (B)
of this Section 4.08(b) or this clause (C) or contained in any amendment or
modification to an agreement referred to in clause (A) or (B) of this Section
4.08(b) or this clause (C); provided, however, that the encumbrances and restrictions, taken as a
whole, contained in any such Refinancing agreement or amendment or modification
are no less favorable in any material respect to the Holders than the
encumbrances and restrictions contained in such predecessor agreements;

(D)          in the case
of Section 4.08(a)(3), any encumbrance or restriction

(i)
that restricts in a customary manner the subletting, assignment or transfer of
any Property or asset that is subject to a lease, license or similar contract,

(ii)
encumbering Property at the time such Property was acquired by the Company or
any Restricted Subsidiary so long as such restriction relates solely to the
Property so acquired (other than any encumbrance or restriction created as
consideration for, in contemplation of, in connection with or pursuant to the
provision of, all or any portion of the funds or credit support utilized to
consummate the transaction or series of related transactions

 

55

 

pursuant
to which such Property was otherwise acquired by the Company or any Restricted
Subsidiary),

(iii)
under agreements relating to Purchase Money Indebtedness or Capitalized Lease
Obligations Incurred that impose customary restrictions on the Property subject
to such Purchase Money Indebtedness or Capitalized Lease Obligations,

(iv)
relating to Indebtedness that is permitted to be Incurred and secured without
also securing the Notes or the applicable Note Guarantee pursuant to Section
4.09 and Section 4.12 that limit the right of the debtor to dispose of the
Property securing such Indebtedness, or

(v)
customarily imposed on the transfer of copyrighted or patented materials or
other intellectual property and customer provisions in agreements that restrict
the assignment of such agreements or any rights thereunder;

(E)           any
encumbrance created in connection with a Qualified Receivables Transaction
permitted under Section 4.09;

(F)           any
customary encumbrance or restriction imposed with respect to a Restricted
Subsidiary pursuant to an agreement entered into for the sale or disposition of
all or substantially all the Capital Stock or assets of such Restricted
Subsidiary pending the closing of such sale or disposition;

(G)           any
customary encumbrance or restriction on cash or other deposits or net worth
imposed on customers under contracts entered into in the ordinary course of
business;

(H)          any
encumbrance or restriction pursuant to an agreement governing (i) any Bank
Indebtedness of the Company or a Restricted Subsidiary permitted to be Incurred
subsequent to the Closing Date pursuant to clause (b)(1) or (b)(16) of Section
4.09, or (ii) any Indebtedness permitted to be Incurred pursuant to clause (a)
of Section 4.09 if the encumbrances and restrictions contained in any such
agreement, taken as a whole, do not materially prejudice the ability of the
Issuer to make payments on the Notes;

(I)            encumbrances
or restrictions existing under or by reason of provisions in asset sale
agreements entered into in the ordinary course of business; and

(J)            encumbrances
or restrictions existing under or by reason of provisions in joint venture
arrangements and other similar arrangements or arrangements with minority
interests in any Restricted Subsidiary.

Section 4.09           Incurrence of Indebtedness.

(a)           The Company will not, and will not
cause or permit any Restricted Subsidiary to, Incur, directly or indirectly,
any Indebtedness; provided, however,
that the Company and any Restricted Subsidiary may Incur Indebtedness if on the
date of such Incurrence and after giving effect thereto the Leverage Ratio
would not exceed 5.5:1.0.

 

56

 

(b)           Notwithstanding the foregoing
paragraph (a), the Company and any Restricted Subsidiary may Incur the
following Indebtedness:

(1)           Bank Indebtedness
(including without limitation any Bank Indebtedness Incurred under the Bridge
Facility and any Tranche C Loan) in an aggregate principal amount at any one
time outstanding not exceeding £5,300,000,000;

(2)           Indebtedness
of the Company owed to and held by any Restricted Subsidiary or Indebtedness of
a Restricted Subsidiary owed to and held by the Company or any Restricted
Subsidiary; provided, however,
that (A) any subsequent issuance or transfer of any Capital Stock or any
subsequent transfer of such Indebtedness or any other event that results in any
such Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary shall be deemed to constitute the Incurrence of such Indebtedness by
the obligor thereon, (B) if an Intermediate Guarantor is the obligor on such
Indebtedness, such Indebtedness is expressly subordinated for the benefit of
the Holders to the prior payment in full in cash of all obligations with
respect to the relevant Intermediate Guarantee and (C) if the Issuer is the
obligor on such Indebtedness, such Indebtedness is expressly subordinated for
the benefit of the Holders to the prior payment in full in cash of all
obligations with respect to the Notes;

(3)           Indebtedness
(A) represented by the Notes (not including any Additional Notes), (B)
represented by the Intermediate Guarantees and the Senior Subordinated
Subsidiary Guarantee, and (C) outstanding on the Closing Date (other than the
Indebtedness described in clause (2) of this paragraph (b));

(4)           Indebtedness
consisting of Refinancing Indebtedness Incurred in respect of any Indebtedness
described in clauses (3) or (4) of this paragraph (b) or under paragraph (a);

(5)           Indebtedness
of a Restricted Subsidiary acquired by the Company, the Issuer or any other
Restricted Subsidiary after the Closing Date Incurred and outstanding on or
prior to the date on which such Restricted Subsidiary was acquired by the
Company, the Issuer or any other Restricted Subsidiary (other than Indebtedness
Incurred in contemplation of, in connection with, as consideration in, or to
provide all or any portion of the funds or credit support utilized to
consummate, the transaction or series of related transactions pursuant to which
such Restricted Subsidiary became a Subsidiary of or was otherwise acquired by
the Company, the Issuer or any other Restricted Subsidiary) or any Refinancing
Indebtedness in respect thereof, not exceeding £75 million in the aggregate at
any one time outstanding;

(6)           Indebtedness
(A) in respect of performance, bid, completion, surety or appeal bonds provided
by the Company, the Issuer and any other Restricted Subsidiary in the ordinary
course of their business and (B) under Interest Rate Agreements and Currency
Agreements entered into for bona fide hedging purposes of the Company, the
Issuer and any other Restricted Subsidiary in the ordinary course of business;

(7)           Purchase
Money Indebtedness and Capitalized Lease Obligations Incurred after the Closing
Date for the purpose of financing all or any part of the purchase price or cost
of construction or improvement (including the cost of design, development,
construction, acquisition, transportation, installation, improvement and
migration) of assets; provided, however, that the aggregate principal amount of Indebtedness
Incurred pursuant to this clause (7), together with all other outstanding
Indebtedness Incurred after the Closing Date pursuant to this clause (7), shall
not exceed as of the date of Incurrence the greater of (A) 2.75% of Total
Assets and (B) £150 million;

 

57

 

(8)           (i)
Guarantees of the Notes, (ii) Guarantees by a Restricted Subsidiary in favor of
the UK Inland Revenue in connection with the UK tax liability of the Company or
any Restricted Subsidiary, (iii) Guarantees of other Indebtedness not otherwise
prohibited by this Section 4.09 and (iv) Guarantees of Indebtedness which by
its terms must be Guaranteed if the Notes are Guaranteed;

(9)           Indebtedness
of the Company, the Issuer or any other Restricted Subsidiary arising from the
honoring by a bank or other financial institution of a check, draft or similar
instrument drawn against insufficient funds in the ordinary course of business;
provided, however,
that such Indebtedness is extinguished within five Business Days of its
Incurrence;

(10)         Indebtedness
constituting reimbursement obligations with respect to letters of credit,
bankers’ acceptances or other similar instruments or obligations issued in the
ordinary course of business, including letters of credit in respect of workers’
compensation claims or other Indebtedness Incurred with respect to
reimbursement-type obligations regarding workers’ compensation claims and under
other similar legislation; provided, however, that upon the drawing or other funding of such
letters of credit or other instruments or obligations, such drawings or
fundings are reimbursed within 30 days;

(11)         Indebtedness
arising from agreements of the Company, the Issuer or any other Restricted
Subsidiary providing for indemnification, adjustment of purchase price or
similar obligations, in each case, Incurred in connection with the disposition
of any business, assets or Capital Stock of a Subsidiary, other than Guarantees
or other credit support of Indebtedness or other obligations of any Person
(other than the Company or any Restricted Subsidiary) acquiring all or any
portion of such business, assets or Capital Stock or any Affiliate of such
Person; provided that such Indebtedness is not reflected on the balance sheet
of the Company or any other Restricted Subsidiary (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected
on the balance sheet will be deemed not to be reflected on such balance sheet
for purposes of this clause (11));

(12)         the
Incurrence of Indebtedness consisting of guarantees of loans or other
extensions of credit made to or on behalf of officers, directors, employees or
consultants of the Company, the Issuer or any other Restricted Subsidiary for
the purpose of permitting such persons to purchase Capital Stock of the
Company, the Issuer or any other Restricted Subsidiary, in an amount not to
exceed £10 million at any one time outstanding;

(13)         the
Incurrence of Indebtedness by a Receivables Subsidiary in a Qualified
Receivables Transaction that is not recourse to the Company, the Issuer or any
of their Subsidiaries (except for Standard Securitization Undertakings) in an
amount not to exceed £300 million at any one time outstanding;

(14)         the accrual
of interest, the accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional indebtedness
with the same terms, and the payment of dividends on Disqualified Stock in the
form of additional shares of the same class of Disqualified Stock (where the
payment of such dividends is not part of a financing transaction);

(15)         Indebtedness
of the Company, the Issuer or any other Restricted Subsidiary relating to
deferral of PAYE taxes with the agreement of the UK Inland Revenue; and

 

58

 

(16)         Indebtedness
(other than Indebtedness permitted to be Incurred pursuant to the foregoing
paragraph (a) or any other clause of this paragraph (b)) in an aggregate
principal amount on the date of Incurrence that, when added to all other
Indebtedness Incurred pursuant to this clause (16) and then outstanding, will
not exceed the greater of (A) 3.0% of Total Assets and (B) £300 million.

(c)           For purposes of determining the
outstanding principal amount of any particular Indebtedness Incurred pursuant
to this Section 4.09:

(1)           Bank
Indebtedness Incurred on the Closing Date shall be treated as Incurred pursuant
to clause (1) of paragraph (b) above

(2)           Indebtedness
permitted by this Section 4.09 need not be permitted solely by reference to one
provision permitting such Indebtedness but may be permitted in part by one such
provision and in part by one or more other provisions of this Section 4.09
permitting such Indebtedness;

(3)           in the
event that Indebtedness meets the criteria of more than one of the types of
Indebtedness described in this Section 4.09, the Company, in its sole
discretion (except as specified in this paragraph (c)), shall classify or
reclassify from time to time such Indebtedness and only be required to include
the amount of such Indebtedness in one of such clauses; and

(4)           the
outstanding principal amount of any particular Indebtedness shall be counted
only once and any obligations arising under any Guarantee, Lien, letter of
credit or similar instrument supporting such Indebtedness permitted to be
Incurred under this Section 4.09 shall not be double counted.

(d)           For the purposes of determining
compliance with any sterling-denominated restriction on the Incurrence of
Indebtedness denominated in a currency other than pounds sterling, the
sterling-equivalent principal amount of such Indebtedness Incurred pursuant
thereto shall be calculated based on the relevant currency exchange rate in
effect on the date that such Indebtedness was Incurred, in the case of term
Indebtedness, or first committed, in the case of revolving credit Indebtedness,
provided that (x) the
sterling-equivalent principal amount of any such Indebtedness outstanding on
the Closing Date shall be calculated based on the relevant currency exchange
rate in effect on the Closing Date, (y) if such Indebtedness is Incurred to
Refinance other Indebtedness denominated in a currency other than pounds
sterling, and such refinancing would cause the applicable sterling-denominated
restriction to be exceeded if calculated at the relevant currency exchange rate
in effect on the date of such Refinancing, such sterling-denominated
restriction shall be deemed not to have been exceeded so long as the principal
amount of such refinancing Indebtedness does not exceed the principal amount of
such Indebtedness being refinanced based on the exchange rate between the
currency of the Indebtedness being Refinanced and the currency of the
refinancing Indebtedness and (z) the sterling-equivalent principal amount of Indebtedness
denominated in a currency other than pounds sterling and Incurred pursuant to
any Credit Facility shall be calculated based on the relevant currency exchange
rate in effect on, at the Company’s option, (i) the Closing Date, (ii) any date
on which any of the respective commitments under the Credit Facility shall be
reallocated between or among facilities or subfacilities thereunder, or (iii)
the date of such Incurrence. The principal amount of any Indebtedness Incurred
to Refinance other Indebtedness, if Incurred in a different currency from the
Indebtedness being Refinanced, shall be calculated based on the currency
exchange rate applicable to the currencies in which such respective
Indebtedness is denominated that is in effect on the date of such Refinancing.

 

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Section 4.10           Sales of Assets and Subsidiary Stock.

(a)           The Company will not, and will not
permit any Restricted Subsidiary to, make any Asset Disposition unless:

(1)           the
Company or such Restricted Subsidiary receives consideration at the time of
such Asset Disposition at least equal to the Fair Market Value of the shares
and assets subject to such Asset Disposition;

(2)           at least
75% of the consideration thereof received by the Company or such Restricted
Subsidiary is in the form of cash, Temporary Cash Investments or Additional
Assets; and

(3)           an amount
equal to 100% of the Net Available Cash from such Asset Disposition is applied
by the Company or such Restricted Subsidiary, as the case may be,

(A)          first, to the extent the Company or any Restricted
Subsidiary elects (or is required by the terms of any Indebtedness), to prepay
or repay, purchase, repurchase, redeem, retire, defease or otherwise acquire
for value Indebtedness of the Company or any Restricted Subsidiary or
Indebtedness of a Subsidiary of the Issuer, other than Indebtedness that is
either unsecured and pari passu in right of payment to the Notes and the Note
Guarantees or Indebtedness that is subordinate or junior in right of payment to
the Notes and the Note Guarantees;

(B)           second, to the extent of the balance of Net Available Cash
after application in accordance with clause (A), to the extent the Company or
such Restricted Subsidiary elects, to invest in Additional Assets or any capitalized
expense related thereto (including by means of an Investment in Additional
Assets or any capitalized expense related thereto by a Restricted Subsidiary
with Net Available Cash received by the Company or a Restricted Subsidiary);

(C)           third, to the extent of the balance of such Net Available
Cash not applied in accordance with clauses (A) and (B) within 366 days from
the later of such Asset Disposition or the receipt of such Net Available Cash (provided, however, that
such 366-day period shall be extended by up to 180 days to the extent a binding
contractual commitment to reinvest in or purchase Additional Assets or any
capitalized expense related thereto shall have been entered into by such 366th
day to the extent such commitment remains in effect and the planned
reinvestment or purchase has not been abandoned or cancelled), to make an
Excess Proceeds Offer (as defined in paragraph (b) of this Section 4.10) to
purchase Notes pursuant to and subject to the conditions set forth in paragraph
(b) below, subject to proration as described in paragraph (b) of this Section
4.10; and

(D)          fourth, to the extent of the balance of such Net Available
Cash after application in accordance with clauses (A), (B) and (C) (including
any amounts for Notes not tendered in any Excess Proceeds Offer), for any
general corporate purpose permitted by the terms of this Indenture;

provided, however, that in connection with any prepayment or repayment,
purchase, repurchase, redemption, retirement, defeasance or other acquisition
for value of Indebtedness pursuant to clause (A), (C) or (D) above, other than
in connection with Bank Indebtedness Incurred under any

 

60

 

revolving facility the Company or such Restricted Subsidiary will retire
such Indebtedness and will cause the related loan commitment (if any) to be
permanently reduced in an amount equal to the principal amount so permanently
prepaid or repaid, purchased, repurchased, redeemed, retired, defeased or
otherwise acquired for value unless the Company or such Restricted Subsidiary
can incur such Indebtedness on such date under this Indenture.

(b)           For the purposes of clause (2) of
paragraph (a) of this Section 4.10, the following are deemed to be cash:

(1)           Indebtedness
and other liabilities shown on the most recent consolidated balance sheet of
the Company prior to the date of such Asset Disposition (other than
Subordinated Obligations) (i) that are assumed by the transferee of any such
assets and (ii) for which the Company and its Restricted Subsidiaries are
released from all liability at the time of such Asset Disposition;

(2)           any
securities, notes or other obligations received by any such Intermediate
Guarantor, the Issuer or any such Restricted Subsidiary from such transferee
that are converted, sold or exchanged by the Company or such Restricted
Subsidiary into cash or Temporary Cash Investments within 90 days, to the
extent of the cash or Temporary Cash Investments received in that conversion,
sale or exchange; and

(3)           any Designated
Non-Cash Consideration.

(c)           In the event of an Asset Disposition
that requires the purchase of Notes pursuant to clause (a)(3)(C) of this
Section 4.10, the Issuer will be required to purchase Notes tendered pursuant
to an offer by the Issuer for the Notes (an “Excess
Proceeds Offer”), which Excess Proceeds Offer shall be in the amount
of the Allocable Excess Proceeds, on a pro rata basis according to principal
amount, at a purchase price equal to 100% of the principal amount thereof, plus
accrued and unpaid interest thereon, if any, to the purchase date (subject to
the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date), in accordance with the procedures
(including prorating in the event of over-subscription and calculation of the
principal amount of Notes denominated in different currencies) set forth in the
Indenture. To the extent that any portion of the amount of Net Available Cash
remains after compliance with the preceding sentence and Section 3.09, the
Issuer may apply the remaining Net Available Cash in accordance with clause
(a)(3)(D) of this Section 4.10. The Issuer will not be required to make an
Excess Proceeds Offer for Notes (and other Senior Indebtedness of the Issuer or
any Intermediate Guarantor) pursuant to this Section 4.10 if the Net Available
Cash available therefor (after application of the proceeds as provided in
clauses (a)(3)(A) and (a)(3)(B)) is less than £40 million for any particular
Asset Disposition (which lesser amount will be carried forward for purposes of
determining whether an Excess Proceeds Offer is required with respect to the
Net Available Cash from any subsequent Asset Disposition). Upon completion of
each Excess Proceeds Offer, the amount of Allocable Excess Proceeds will be
reset at zero.

The term “Allocable Excess Proceeds”
means the product of:

(y)           the
amount of Net Available Cash remaining after application in accordance with
clauses (a)(3)(A) and (a)(3)(B) above, and

(z)            a
fraction,

 

61

 

(1)           the
numerator of which is the aggregate principal amount of the Notes outstanding
on the date of an Excess Proceeds Offer, plus accrued and unpaid interest
thereon, if any, to such date, and

(2)           the
denominator of which is the sum of the aggregate principal amount of the Notes
outstanding on the date of such Excess Proceeds Offer, plus accrued and unpaid
interest thereon, if any, to such date, and the aggregate principal amount (or
accreted value in the case of Indebtedness with original issue discount) of
other Senior Indebtedness of the Company, the Issuer and any Intermediate
Guarantor outstanding on the date of such Excess Proceeds Offer, plus accrued
and unpaid interest thereon, if any, to such date, that is pari passu
in right of payment with the Notes or any Guarantee from the Company or an
Intermediate Guarantor and subject to terms and conditions in respect of Asset
Dispositions similar in all material respects to this Section 4.10 and
requiring the Issuer to make an offer to purchase such Senior Indebtedness at
substantially the same time as such Excess Proceeds Offer.

(d)           The Issuer will comply with the
requirements of Section 14(e) of the Exchange Act and any applicable securities
laws or regulations in connection with the repurchase of Notes pursuant to this
Section 4.10. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 4.10, the Issuer will
comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under this Section 4.10 by virtue
thereof.

Section 4.11           Transactions with Affiliates.

(a)           The Company will not, and will not
permit any Restricted Subsidiary to, directly or indirectly, enter into any
transaction or series of related transactions (including the purchase, sale,
lease or exchange of any Property or the rendering of any service) with any
Affiliate of the Company (an “Affiliate Transaction”)
unless such transaction is on terms:

(1)           that are
not materially less favorable to the Company or such Restricted Subsidiary, as
the case may be, than those that could be obtained at the time of such
transaction in arm’s-length dealings with a Person who is not such an
Affiliate;

(2)           that, in
the event such Affiliate Transaction involves an aggregate amount in excess of
£25 million:

(A)          are set
forth in writing; and

(B)           have been
approved by a majority of the members of the Board of Directors having no
personal stake in such Affiliate Transaction; and

(3)           that, in
the event such Affiliate Transaction involves an aggregate amount in excess of
£100 million, have been determined by an Independent Financial Advisor to be
fair, from a financial standpoint, to the Company and its Restricted
Subsidiaries.

(b)           The provisions of the foregoing
paragraph (a) will not apply to:

(1)           any
Restricted Payment permitted to be paid pursuant to Section 4.07 and any
transaction described in the Steps Paper;

 

62

 

(2)           transactions
between the Company and any Restricted Subsidiary (other than a Receivables
Subsidiary) or between Restricted Subsidiaries (other than a Receivables
Subsidiary);

(3)           sales of
accounts receivable or any participations therein to a Receivables Subsidiary
in connection with any Qualified Receivables Transaction;

(4)           in respect
of clauses (2) and (3) of paragraph (a) above, only, any issuance of
securities, or other payments, awards or grants in cash, securities (including
stock options and similar rights) or similar transfers to employees, directors
and consultants of the Parent, the Company, or any Restricted Subsidiary and
any of their Subsidiaries pursuant to, or for the purpose of funding,
employment arrangements, stock options and share ownership plans;

(5)           in respect
of clauses (2) and (3) of paragraph (a) above, only, any loans or advances, or
Guarantees of third-party loans, to directors, officers, employees and
consultants in the ordinary course of business in accordance with past
practices of the Parent, the Company or any Restricted Subsidiary, as
applicable;

(6)           the
payment of reasonable fees and indemnities (including under customary
insurance) to directors, officers and consultants of the Parent, the Company,
any Restricted Subsidiary and any of their Subsidiaries;

(7)           any tax
sharing agreement or arrangement and payments pursuant thereto between or among
the Parent, the Company, any NTL Holding Company, the Issuer and any other
Restricted Subsidiaries not otherwise prohibited by this Indenture;

(8)           commercial
transactions on arm’s-length terms entered into in the ordinary course of
business of which the disinterested directors of the Company have been
notified, or if there are no disinterested directors, the directors;

(9)           transactions
with Affiliates solely in their capacity as holders of Indebtedness or Capital
Stock of the Issuer, any NTL Holding Company or any of its Subsidiaries, so
long as such Affiliates are treated no more favorably than holders of such
Indebtedness or Capital Stock generally;

(10)         any
agreement in effect on the Closing Date or any amendment or other modification
thereto (so long as such amendment or other modification is not disadvantageous
to the Holders in any material respect) or any transactions pursuant thereto;

(11)         the
issuance and sale of Capital Stock of the Company to (A) any officer, director
or consultant of the Company, any Restricted Subsidiary or any other NTL
Holding Company pursuant to agreements outstanding on the Closing Date, or (B)
any NTL Holding Company or any Restricted Subsidiary;

(12)         the
entering into, maintaining or performing of any employee contract, collective
bargaining agreement, benefit plan, program or arrangement, related trust
agreement or any other similar arrangement for or with any employee, officer,
director or consultant heretofore or hereafter entered into in the ordinary
course of business, including vacation, health, insurance, deferred
compensation, severance, retirement, savings or other similar plans, programs
or arrangements;

 

63

 

(13)         any
insurance arrangements entered into in the ordinary course of business with a
captive insurance company; or

(14)         any
transaction in the ordinary course of business between or among the Issuer or
any Restricted Subsidiary and any Affiliate of the Company that is an
Unrestricted Subsidiary or a joint venture or similar entity (including a
Permitted Joint Venture) that would constitute an Affiliate Transaction solely
because the Issuer or a Restricted Subsidiary owns an equity interest in or
otherwise controls such Unrestricted Subsidiary, joint venture or similar
entity.

Section 4.12           Liens.

The Company will not, and
will not permit any Restricted Subsidiary to, directly or indirectly, Incur or
permit to exist any consensual Lien of any nature whatsoever (any such Lien, an
“Initial Lien”) on any of its Property
or assets (including Capital Stock of a Restricted Subsidiary), whether owned
at the Closing Date or thereafter acquired, securing any Indebtedness, other
than Permitted Liens, without effectively providing that the Notes shall be
secured equally and ratably with (or prior to) the obligations so secured for
so long as such obligations are so secured.

Any Lien created for the
benefit of the Holders pursuant to the immediately preceding paragraph may
provide by its terms that such Lien will be automatically and unconditionally
released and discharged (1) upon the full and unconditional release and
discharge of the Initial Lien (other than as 
a result of satisfaction of the debt secured through enforcement of such
Lien), (2) with respect to any Additional Subsidiary Guarantor the assets or
the Capital Stock of which are encumbered by such Lien, upon the release of the
Additional Subsidiary Guarantee of such Additional Subsidiary Guarantor in
accordance with Section 11.02 or (3) upon any defeasance or satisfaction
and discharge of the Notes as provided under Article 8 and Article 10 of this
Indenture.

Section 4.13           Business Activities.

The Company will not, and
will not permit any Restricted Subsidiary to, engage in any business, other
than a Permitted Business, except for any businesses that are immaterial to the
business as a whole.

Section 4.14           Corporate Existence.

Subject to
Article 5 hereof, the Issuer and each Note Guarantor shall do or cause to
be done all things necessary to preserve and keep in full force and effect:

(1)           its
corporate existence, and the corporate, partnership or other existence of each
of its Restricted Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Issuer or any such Restricted Subsidiary; and

(2)           the rights
(charter and statutory), licenses and franchises of the Issuer, each Note
Guarantor and their Restricted Subsidiaries;

 

64

 

provided, however, that the Issuer and each Note Guarantor shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of their Restricted Subsidiaries, if the
Board of Directors or an Officer of the Issuer shall determine that the
preservation thereof is no longer necessary or desirable in the conduct of the
business of the Issuer, each Note Guarantor and their Restricted Subsidiaries,
taken as a whole.

The foregoing
shall not prohibit a sale, transfer or conveyance of a Restricted Subsidiary
(other than the Issuer) or any of its assets in compliance with the terms of
this Indenture.

Section 4.15           Offer to Repurchase Upon Change of Control.

(a)           Upon the occurrence of a Change of
Control, each Holder will have the right to require the Issuer to purchase all
or any part of such Holder’s Notes at a purchase price in cash equal to 101% of
the principal amount thereof, plus accrued and unpaid interest thereon, if any,
to the date of purchase (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however,
that notwithstanding the occurrence of a Change of Control, the Issuer shall
not be obligated to purchase the Notes pursuant to this section in the event
that it has exercised its right to redeem all of the Notes pursuant to Section
3.07 hereof.

(b)           Within 30 days following any Change
of Control giving rise to obligations under this Section 4.15 or, at the
Issuer’s option, at any time prior to a Change of Control but following the
public announcement thereof, the Issuer shall mail a notice to each Holder with
a copy to the Trustee (the “Repurchase Offer”)
stating:

(1)           that a
Change of Control has occurred (or will occur) and that such Holder has the
right to require the Issuer to repurchase all or a portion of such Holder’s
Notes at a purchase price in cash equal to 101% of the principal amount
thereof, plus accrued and unpaid interest thereon, if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record
date to receive interest on the relevant interest payment date);

(2)           the
circumstances and relevant facts regarding such Change of Control;

(3)           if a
Change of Control has been publicly announced but has not occurred at the time
such notice is mailed, that the Repurchase Offer is conditioned on the
consummation of such Change of Control occurring prior to or concurrent with
the repurchase;

(4)           the
repurchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed);

(5)           that any
Note not tendered will continue to accrue interest;

(6)           that,
unless the Issuer defaults in the payment of the purchase price, all Notes
accepted for payment pursuant to the Repurchase Offer will cease to accrue
interest after the repurchase date;

(7)           that
Holders electing to have any Notes purchased pursuant to a Repurchase Offer
will be required to surrender the Notes, with the form entitled “Option of
Holder to Elect Purchase” attached to the Notes completed, to the Paying Agent
at the address specified in the notice prior to the close of business on the
third Business Day preceding the repurchase date;

 

65

 

(8)           that
Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day
preceding the repurchase date, a telegram, telex, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of Notes
delivered for purchase, and a statement that such Holder is withdrawing his
election to have the Notes purchased; and

(9)           that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an
integral multiple thereof, or to £1,000 in principal amount or an integral
multiple thereof, as the case may be.

The Issuer will comply
with the requirements of Section 14(e) of the Exchange Act and any applicable
securities laws or regulations in connection with the repurchase of Notes
pursuant to this Section 4.15. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 4.15,
the Issuer will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Section 4.15 by
virtue thereof.

(c)           On the
repurchase date, the Issuer will, to the extent lawful:

(1)           accept for
payment all Notes or portions thereof properly tendered pursuant to the
Repurchase Offer;

(2)           deposit
with the relevant Paying Agent an amount equal to the purchase price in respect
of all Notes or portions of Notes properly tendered; and

(3)           deliver or
cause to be delivered to the Trustee the Notes properly accepted together with
an Officer’s Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Issuer.

The relevant Paying Agent
will promptly mail to each Holder of Notes properly tendered the purchase price
for such Notes, and the Trustee will promptly authenticate and mail (or cause
to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each new Note will be in a minimum principal
amount of $100,000 or an integral multiple of $1,000 in excess thereof, or of
£50,000 in minimum principal amount or an integral multiple of £1,000 in excess
thereof, as the case may be.

If, at the time of the
Change of Control, any series of the Notes is listed on the Luxembourg Stock
Exchange and if required by the rules of the Luxembourg Stock Exchange, notice
will be published in Luxembourg as set forth in Section 3.03 hereof.

The Issuer will publicly
announce the results of the Repurchase Offer on or as soon as practicable after
the repurchase date.  If any series of
the Notes is listed on the Luxembourg Stock Exchange and if required by the
rules of the Luxembourg Stock Exchange notice will be published in Luxembourg
as set forth in Section 3.03 hereof.

(d)           The Issuer will not be required to
make a Repurchase Offer upon a Change of Control if a third party makes the
Repurchase Offer in the manner, at the times and otherwise in compliance with
the requirements set forth in this Indenture applicable to a Repurchase Offer made
by the Issuer and purchases all Notes validly tendered and not withdrawn under
such Repurchase Offer. The Issuer shall not be required to effect more than one
Repurchase Offer, including repurchasing all Notes validly tendered and not
withdrawn under such Repurchase Offer, for each Change of Control.

 

66

 

Section 4.16           Sale/Leaseback Transactions.

The Company will not, and
will not permit any Restricted Subsidiary to, enter into any Sale/Leaseback
Transaction with respect to any Property unless:

(a)           such Intermediate Guarantor or such
Restricted Subsidiary would be entitled to:

(1)           Incur
Indebtedness in an amount equal to the Attributable Debt with respect to such
Sale/Leaseback Transaction pursuant to Section 4.09; and

(2)           create a
Lien on such Property securing such Attributable Debt without equally and
ratably securing the Notes pursuant to Section 4.12;

(b)           the net proceeds received by the
Company or such Restricted Subsidiary in connection with such Sale/Leaseback
Transaction represent the Fair Market Value of such Property; and

(c)           the transfer of such Property is
permitted by, and the Company or such Restricted Subsidiary applies the
proceeds of such transaction in compliance with Section 4.10.

Section 4.17           Designation of Restricted and Unrestricted Subsidiaries.

(a)           The Board of Directors may designate
any Subsidiary of the Company (including any newly acquired or newly formed
Subsidiary of the Company) other than the Issuer to be an Unrestricted Subsidiary
if:

(1)           no Default
or Event of Default shall have occurred and be continuing at the time of or
after giving effect to such designation;

(2)           such
Subsidiary and any of its Subsidiaries do not own any Capital Stock or
Indebtedness of, or own or hold any Lien on any Property of, the Company or any
Restricted Subsidiary other than a Subsidiary of the Subsidiary to be
designated an Unrestricted Subsidiary;

(3)           either:

(A)          the
Subsidiary to be so designated has total Consolidated assets of £1,000 or less;
or

(B)           if such
Subsidiary has Consolidated assets greater than £1,000, then the Issuer would
be permitted to make an Investment under Section 4.07 after giving effect to
such designation in the amount specified in the definition of “Investment”;

(4)           all of the
Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of
designation, and will at all times thereafter, consist of Non-Recourse Debt
unless the Guarantee or other credit support related to any such Indebtedness
could be Incurred by the Company or the relevant Restricted Subsidiary under
this Indenture;

(5)           such
Subsidiary is a Person with respect to which neither the Company nor any
Restricted Subsidiary has any direct or indirect obligation:

(A)          to
subscribe for additional Capital Stock of such Person; or

 

67

 

(B)           to
maintain or preserve such Person’s financial condition or to cause such Person
to achieve any specified levels of operating results; and

(6)           on the
date such Subsidiary is designated an Unrestricted Subsidiary, such Subsidiary
is not a party to any agreement, contract, arrangement or understanding with
the Company, the Issuer or any other Restricted Subsidiary with terms
substantially less favorable to the Company, the Issuer or any Restricted
Subsidiary than those that might have been obtained from Persons who are not
Affiliates of the Company other than transactions that comply with Section
4.11.

In the
event of any such designation, the Company shall be deemed to have made an
Investment constituting a Restricted Payment pursuant to Section 4.07.

(b)           The Board of Directors may designate
any Unrestricted Subsidiary to be a Restricted Subsidiary if immediately after
giving effect to such designation:

(1)           no Default
or Event of Default shall have occurred and be continuing at the time of and
after giving effect to such designation,

(2)           the
Company could Incur £1.00 of additional Indebtedness under paragraph (a) of
Section 4.09, and

(3)           all Liens
and Indebtedness of such Unrestricted Subsidiary outstanding immediately
following such designation would, if incurred at that time, have been permitted
to be Incurred for all purposes of this Indenture.

(c)           Any such designation of a Subsidiary
as a Restricted Subsidiary or Unrestricted Subsidiary by the Board of Directors
shall be evidenced to the Trustee by promptly filing with the Trustee a copy of
the resolution of the Board of Directors giving effect to such designation and
an Officer’s Certificate certifying that such designation complied with the
foregoing provisions.

Section 4.18           [Intentionally omitted]

Section 4.19           Guarantees of Indebtedness by Restricted Subsidiaries.

(a)           The Company will not permit any
Restricted Subsidiary (other than the Issuer and the Intermediate Guarantors or
any other Note Guarantor) to provide a Guarantee after the Closing Date of any
Indebtedness of the Company, the Issuer or any Intermediate Guarantor unless:

(1)           such
Restricted Subsidiary simultaneously (or prior thereto) executes and delivers a
supplemental indenture to this Indenture providing for a Guarantee by it of
payments of the Notes on an equal and ratable basis with such Guarantee, provided, however, that
any Guarantee by such Restricted Subsidiary of a Subordinated Obligation shall
be subordinated and junior in right of payment to the contemporaneous Guarantee
of the Notes by such Restricted Subsidiary;

(2)           such
Restricted Subsidiary waives and will not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee; and

 

68

 

(3)           such
Restricted Subsidiary shall deliver to the Trustee an Opinion of Counsel to the
effect that:

(A)          such
Guarantee has been duly executed and authorized; and

(B)           such
Guarantee constitutes a valid, binding and enforceable obligation of such
Restricted Subsidiary, except insofar as enforcement thereof may be limited by
insolvency, bankruptcy, liquidation, reorganization, administration,
moratorium, receivership or similar laws (including all laws relating to
fraudulent transfers) and except insofar as enforcement thereof is subject to
general principles of equity;

(b)           The provisions of Section 4.19(a)
shall not apply to:

(1)           Guarantees
by a Restricted Subsidiary of any Indebtedness (other than Public Debt issued
by the Issuer or any Intermediate Guarantor) permitted to be Incurred pursuant
to paragraph (a) of Section 4.09;

(2)           Guarantees
by a Restricted Subsidiary pursuant to an agreement governing any Bank
Indebtedness permitted to be Incurred pursuant to clause (b)(1) of Section
4.09;

(3)           Guarantees
by a Restricted Subsidiary under any Refinancing Indebtedness described in
clause (4) of paragraph (b) of Section 4.09, to the extent such Restricted
Subsidiary provided a Guarantee in respect of the Indebtedness being
Refinanced; provided that the Guarantee is not
senior in right of payment to the Guarantee in respect of the Indebtedness
being replaced;

(4)           Guarantees
by a Restricted Subsidiary of any Indebtedness described in clause (5) of
paragraph (b) of Section 4.09, to the extent existing under, or required under
the terms of, such Indebtedness; provided that
the Guarantee or any requirement to provide such Guarantee was in existence
prior to the contemplation of the merger, consolidation or acquisition that
resulted in the Incurrence of such Indebtedness (except as provided in clause
(b)(1) of this Section 4.19);

(5)           any
Guarantee or undertaking by any Restricted Subsidiary in favor of the UK Inland
Revenue in connection with the UK tax liability of the Company or any
Restricted Subsidiary; and

(6)           Guarantees
by a Restricted Subsidiary permitted under clause (11) of paragraph (b) of
Section 4.09.

Section 4.20           Anti-Layering

The Senior Subordinated
Subsidiary Guarantor may not Incur any Indebtedness if such Indebtedness is by
its terms expressly subordinate or junior in ranking in any respect to any
Senior Indebtedness of the Senior Subordinated Subsidiary Guarantor (other than
Bank Indebtedness Incurred pursuant to clause (1) of paragraph (b) of Section
4.09) unless such Indebtedness is Senior Subordinated Indebtedness of the Senior
Subordinated Subsidiary Guarantor or is expressly subordinated in right of
payment to Senior Subordinated Indebtedness of the Senior Subordinated
Subsidiary Guarantor. In addition, the Senior Subordinated Subsidiary Guarantor
may not Incur any Secured Indebtedness that is not Senior Indebtedness of the
Senior Subordinated Subsidiary Guarantor (except to the extent such
Indebtedness is secured only by a Lien arising solely by operation of
applicable law) unless

 

 

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contemporaneously
therewith effective provision is made to secure the Senior Subordinated
Subsidiary Guarantee of the Senior Subordinated Subsidiary Guarantor equally
and ratably with (or on a senior basis to, in the case of Indebtedness subordinated
in right of payment to the Senior Subordinated Subsidiary Guarantee) such
Secured Indebtedness for as long as such Secured Indebtedness is secured by a
Lien.

Section 4.21           Further Instruments and Acts

Upon the request of the
Trustee, the Issuer and each Note Guarantor will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture and the
Intercreditor Deed.

Section 4.22           Listing

The Issuer will use its
commercially reasonable efforts to list and maintain the listing of the Notes
on the Luxembourg Stock Exchange or another comparable exchange.

ARTICLE 5

SUCCESSORS

Section 5.01           Merger, Consolidation, or Sale of Assets.

(a)           The Issuer will not consolidate with
or merge with or into, or convey, transfer or lease all or substantially all
its assets to, any Person, unless:

(1)           the Issuer
is the surviving corporation or the resulting, surviving or transferee Person
other than the Issuer (the “Successor Company”)
will be a corporation organized and existing under the laws of any country that
is a Member State, Bermuda, the United States of America, any State thereof or
the District of Columbia and the Successor Company will expressly assume, by a
supplemental indenture, executed and delivered to the Trustee, in form and
substance reasonably satisfactory to the Trustee, all the obligations of the
Issuer under the Notes and this Indenture;

(2)           immediately
after giving effect to such transaction (and treating any Indebtedness not
previously an obligation of the Issuer which becomes an obligation of the
Successor Company or any Restricted Subsidiary as a result of such transaction
as having been Incurred by the Successor Company or such Restricted Subsidiary
at the time of such transaction), no Default or Event of Default shall have
occurred and be continuing;

(3)           immediately
after giving effect to such transaction, the Issuer, if it is the surviving
corporation, or the Successor Company, would be able to Incur an additional
£1.00 of Indebtedness under paragraph (a) of Section 4.09;

(4)           each Note
Guarantor (unless it is the other party to the transaction above, in which case
clause (1) shall apply) shall have by supplemental indenture confirmed that its
Note Guarantee shall apply to such Person’s obligations in respect of this
Indenture and the Notes; and

(5)           the Issuer
shall have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) comply with the provisions described in this
paragraph; provided, that in giving such opinion,
such counsel may rely on an Officer’s Certificate as to compliance with clauses
(2) and (3) above and as to any matters of fact.

 

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The
Successor Company will succeed to, and be substituted for, and may exercise
every right and power of, the Issuer under this Indenture, but the predecessor
Issuer in the case of a conveyance, transfer or lease of all or substantially
all its assets will not be released from the obligation to pay the principal of
and interest on the Notes.

Clauses
(2) and (3) of this section 5.01(a) will not apply to any transaction in which
(A) any Restricted Subsidiary consolidates with, merges into or transfers all
or part of its properties and assets to the Issuer or (B) the Issuer
consolidates or merges with or into or transfers all or substantially all of
its assets to (i) an Affiliate incorporated or organized for the purpose of
changing the legal domicile of the Issuer, reincorporating the Issuer in
another jurisdiction or changing its legal structure to a corporation or other
entity or (ii) a Restricted Subsidiary so long as all assets of the Restricted
Subsidiaries immediately prior to such transaction (other than Capital Stock of
such Restricted Subsidiary) are owned by such Restricted Subsidiary and its
Restricted Subsidiaries immediately after the consummation thereof.

(b)           The Company and each Note Guarantor
will not, and each Note Guarantor and the Issuer will not permit any Subsidiary
Guarantor to, consolidate with or merge with or into, or convey, transfer or
lease all or substantially all of its assets to any Person unless:

(1)           the
resulting, surviving or transferee Person if other than a Note Guarantor  (the “Successor Guarantor”)
will be a corporation organized and existing under the laws of a country that
is a Member State, Bermuda, the United States of America, any State thereof or
the District of Columbia, and such Person (if not such Note Guarantor) will
expressly assume, by a supplemental indenture, executed and delivered to the
Trustee, in form and substance satisfactory to the Trustee, all the obligations
of such Note Guarantor under its Note Guarantee;

(2)           immediately
after giving effect to such transaction (and treating any Indebtedness not
previously an obligation of such Note Guarantor which becomes an obligation of
the Successor Guarantor or any Restricted Subsidiary as a result of such
transaction as having been Incurred by the Successor Guarantor or such
Restricted Subsidiary at the time of such transaction), no Default or Event of
Default shall have occurred and be continuing; and

(3)           the Issuer
will have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) comply with this Indenture; provided that in giving such opinion, such counsel may rely
on an Officer’s Certificate as to compliance with clause (2) above and as to
any matters of fact.

Notwithstanding the
foregoing, the Company or any Restricted Subsidiary may consolidate with, merge
into or transfer all or part of its properties and assets to, any Intermediate
Guarantor, the Issuer or any Subsidiary Guarantor; provided,
however, that neither the Company nor
any Restricted Subsidiary shall be permitted to consolidate with, merge into or
transfer all or part of its properties and assets to any Intermediate Guarantor
or any Subsidiary Guarantor if following such consolidation, merger or transfer
such Intermediate Guarantor or such Subsidiary Guarantor would be prohibited by
applicable law from continuing to provide a Note Guarantee or the amount of
such Note Guarantee would be required to be limited to a greater extent than
immediately prior to such consolidation, merger or transfer.

 

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ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.01           Events of Default.

(a)           Each of the following is an Event of
Default:

(1)           a default
in any payment of interest on, or Additional Amounts with respect to, any Note
when due and payable continued for 30 days;

(2)           a default
in the payment of principal of or premium, if any, on any Note when due and
payable at its Stated Maturity, upon required redemption, upon required
repurchase, upon declaration or otherwise;

(3)           the
failure to comply with obligations under Article 5;

(4)           the
failure to comply for 30 days after notice with any obligations under Section
3.09 or Section 4.10 (in each case, other than a failure to purchase Notes,
which will constitute a default under paragraph 6.01(a)(2));

(5)           the
failure to comply for 60 days after notice with any other agreement contained
in the Notes or this Indenture;

(6)           the
failure by the Company, the Issuer or any other Restricted Subsidiary or any
other NTL Holding Company to pay any Indebtedness within any applicable grace
period after final maturity or the acceleration of any such Indebtedness by the
holders thereof because of a default, if, in each case, the total amount of
such Indebtedness unpaid or accelerated exceeds £50 million or its equivalent
in another currency;

(7)           (A) a
proceeding is commenced seeking a decree or order for (i) relief in respect of
the Issuer, any Note Guarantor or a Significant Subsidiary in an involuntary
case under any applicable Bankruptcy Law, (ii) appointment of a receiver,
liquidator, assignee, custodian, trustee, examiner, administrator,
sequestration or similar official of the Issuer, any Note Guarantor or a
Significant Subsidiary or for all or substantially all of the property and
assets of the Issuer, any Note Guarantor or a Significant Subsidiary or (iii)
the winding up or liquidation of the affairs of the Issuer, any Note Guarantor
or a Significant Subsidiary (other than, except in the case of the Issuer, a
solvent winding up or liquidation in connection with a transfer of assets among
Holdings and its Restricted Subsidiaries) and, in each case, such proceeding
shall remain unstayed and in effect for a period of 30 consecutive days; or (B)
the Issuer, any Note Guarantor or a Significant Subsidiary (i) commences a
voluntary case (including taking any action for the purpose of winding up)
under any applicable Bankruptcy Law, or consents to the entry of an order for
relief in an involuntary case under any such law, (ii) consents to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, examiner, administrator, sequestration or similar official
of the Issuer, any Note Guarantor or a Significant Subsidiary or for all or
substantially all of the property and assets of the Issuer, any Note Guarantor
or a Significant Subsidiary or (iii) effects any general assignment for the
benefit of creditors;

(8)           the
rendering of any judgment or decree for the payment of money in excess of £50
million or its equivalent in another currency against the Company or any
Restricted Subsidiary if such judgment or decree remains outstanding for a
period of 60 days following such judgment or decree and is not discharged,
waived or stayed before the end of such period; or

 

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(9)           any Note
Guarantee ceases to be in full force and effect (except as contemplated by the
terms thereof) or any Note Guarantor or Person acting by or on behalf of such
Note Guarantor denies or disaffirms in writing such Note Guarantor’s
obligations under this Indenture or any Note Guarantee (other than by reason of
the termination of this Indenture or such Note Guarantee or the release of such
Note Guarantee in accordance with such Note Guarantee or this Indenture).

The foregoing will
constitute Events of Default whatever the reason for any such Event of Default
and whether it is voluntary or involuntary or is effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body.

(b)           A default under clause (4) or (5) of
Section 6.01(a) will not constitute an Event of Default until the Trustee
notifies the Issuer or the Holders of at least 25% in aggregate principal
amount of the outstanding Notes notify the Issuer and the Trustee of the
default and the Company, the Issuer, the relevant NTL Holding Company or the
relevant Restricted Subsidiary, as applicable, does not cure such default
within the time specified in clause (4) or (5) of Section 6.01(a) after receipt
of such notice. Such notice must specify the Default, demand that it be
remedied and state that such notice is a notice of Default. When a Default or
an Event of Default is cured within the time specified, it ceases. In the event of a declaration of acceleration of the Notes
because an Event of Default described in clause (a)(5) of this Section 6.01 has
occurred and is continuing, the declaration of acceleration of the Notes shall
be automatically annulled if the event of default or payment default triggering
such Event of Default pursuant to clause (a)(5) of this Section 6.01 shall be
remedied or cured, or waived by the holders of the Indebtedness, or the
Indebtedness that gave rise to such Event of Default shall have been discharged
in full, within 30 days after the declaration of acceleration with respect
thereto and if (A) the annulment of the acceleration of the Notes would not
conflict with any judgment or decree of a court of competent jurisdiction and
(B) all existing Events of Default, except nonpayment of principal, premium or
interest on the Notes that became due solely because of the acceleration of the
Notes, have been cured or waived.

(c)           The Issuer will deliver to the
Trustee, within 30 days after the occurrence thereof, written notice in
the form of an Officer’s Certificate of any event which is, or with the giving
of notice or lapse of time or both would become, an Event of Default, its
status and what action the Issuer is taking or proposes to take in respect
thereof.

Section 6.02           Acceleration.

Subject to the terms of
the Intercreditor Deed and the provisions of Section 6.01(b), if an Event of
Default (other than an Event of Default under the bankruptcy provisions
described in clause (7) of Section 6.01(a) with respect to the Issuer, any Note
Guarantor or any Significant Subsidiary) occurs and is continuing, the Trustee
or the Holders of at least 25% in aggregate principal amount of the outstanding
Notes by notice to the Issuer may declare the principal of and accrued but
unpaid interest on all the Notes to be due and payable. Upon such a
declaration, such principal and interest will be due and payable immediately.
If an Event of Default under the bankruptcy provisions described in clause (7)
of Section 6.01(a) with respect to the Issuer, any Note Guarantor or any
Significant Subsidiary occurs, the unpaid principal of and interest on all the
Notes will become immediately due and payable without any declaration or other
act on the part of the Trustee or any Holders. 
Notwithstanding the above, if the Issuer exercises its covenant
defeasance option under Article 8 hereof, payment of the Notes may not be
accelerated pursuant to this Section 6.02 because of the occurrence of an Event
of Default specified in clauses (4), (6), (7) or (8) of Section 6.01 or
non-compliance with clause (a)(3) of Section 5.01.

 

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The Holders of a majority
in aggregate principal amount of the then outstanding Notes by written notice
to the Trustee may on behalf of all of the Holders rescind an acceleration and
its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default (except nonpayment of principal,
interest, Special Interest or premium that has become due solely because of the
acceleration) have been cured or waived.

Section 6.03           Other Remedies.

If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy by
proceeding at law or in equity to collect the payment of principal, premium, if
any, and interest on the Notes or to enforce the performance of any provision
of the Notes or this Indenture.

The Trustee may maintain
a proceeding even if it does not possess any of the Notes or does not produce
any of them in the proceeding.  A delay
or omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other remedy.
All remedies are cumulative to the extent permitted by law.

Section 6.04           Waiver of Past Defaults.

Subject to Section 6.07
and Section 9.02 hereof, the Trustee, upon receipt of written notice from the
Holders of not less than a majority in aggregate principal amount of the Notes
then outstanding, may on behalf of the Holders of all of the Notes rescind an
acceleration or waive any existing Default or Event of Default and its
consequences hereunder except a continuing Default or Event of Default in the
payment of interest or the premium on, or the principal of the Notes (including
in connection with an offer to purchase). 
Upon any such waiver, such Default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.

Section 6.05           Control by Majority.

Holders of a majority in
aggregate principal amount of the outstanding Notes may direct the time, method
and place of conducting any proceeding for exercising any remedy available to
the Trustee, or of exercising any trust or power conferred on it, in respect of
the Notes.  However, the Trustee may
refuse to follow any direction that the Trustee determines (after consultation
with counsel) conflicts with law, this Indenture or the Intercreditor Deed or
that the Trustee determines is unduly prejudicial to the rights of any other
Holder or that may involve the Trustee in personal liability or expense; provided that the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with any
such direction.  Prior to taking any
action under this Indenture, the Trustee will be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses
caused by taking or not taking such action.

Section 6.06           Limitation on Suits.

(a)           Except to enforce the right to
receive payment of principal, premium (if any) or interest when due, no Holder
may pursue a remedy with respect to this Indenture or the Notes unless:

(1)           such Holder
has previously given the Trustee notice that an Event of Default is continuing;

(2)           Holders of
at least 25% in aggregate principal amount of the outstanding Notes have
requested the Trustee in writing to pursue the remedy;

 

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(3)           such
Holders have provided the Trustee security or indemnity satisfactory to the
Trustee against any loss, liability or expense;

(4)           the
Trustee has not complied with such request within 60 days after the
receipt of the request and the security or indemnity reasonably satisfactory to
the Trustee; and

(5)           the
Holders of a majority in aggregate principal amount of the outstanding Notes
have not given the Trustee a direction inconsistent with such request within
such 60-day period.

(b)           A Holder may not use this Indenture
to prejudice the rights of another Holder of a Note or to obtain a preference
or priority over another Holder.

Section 6.07           Rights of Holders to Receive Payment.

Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of
principal, premium, if any, and interest on the Note held by such Holder, on or
after the respective due dates expressed in the Note (including in connection
with an offer to purchase), or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.

Section 6.08           Collection Suit by Trustee.

If an Event of Default
specified in Section 6.01(a)(1) or (2) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Issuer or any other obligor on the Notes for the
whole amount then due and owing (together with interest on any unpaid interest
to the extent lawful) and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

Section 6.09           Trustee May File Proofs of Claim.

The Trustee is authorized
to file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the properly incurred compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Issuer, any other obligor upon the Notes, their
creditors or their property and shall be entitled and empowered to collect,
receive and distribute any money or other property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07
hereof.  To the extent that the payment
of any such compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether
in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

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Section 6.10           Priorities.

If the Trustee
collects any money pursuant to this Article 6, it shall pay out the money,
subject to the terms of the Intercreditor Deed, in the following order:

First:          to
the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expense and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses of
collection;

Second:     to Holders for amounts due and unpaid on the Notes for
principal, premium, if any, and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for
principal, premium, if any and interest, respectively; and

Third:         to
the Issuer or to such party as a court of competent jurisdiction shall direct.

The Trustee may fix a
record date and payment date for any payment to Holders pursuant to this
Section 6.10.

Section 6.11           Undertaking for Costs.

In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 hereof,
or a suit by Holders of more than 10% in principal amount of the then
outstanding Notes, or to any suit initiated by any Holder for the enforcement
of the payment of any principal of or interest on any Note, on or after its
maturity date.

Section 6.12           Stay, Extension and Usury Laws.

The Issuer shall not at
any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law has
been enacted.

ARTICLE 7

TRUSTEE

Section 7.01           Duties of Trustee.

(a)           If an Event of Default has occurred
and is continuing, the Trustee will exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
its exercise, as a prudent person would exercise or use under the circumstances
in the conduct of such person’s own affairs.

 

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(b)           Except
during the continuance of an Event of Default:

(1)           the duties
of the Trustee will be determined solely by the express provisions of this
Indenture and the Trustee need perform only those duties that are specifically
set forth in this Indenture and no others, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

(2)           in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However,
with respect to certificates or opinions specifically required to be furnished
to it hereunder, the Trustee will examine the certificates and opinions to
determine whether or not they conform to the requirements of this Indenture.

(c)           The
Trustee may not be relieved from liabilities for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except that:

(1)           this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

(2)           the
Trustee will not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts;

(3)           the
Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to
Section 6.02, 6.04 or 6.05 hereof; and

(4)           no
provision of this Indenture will require the Trustee to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall
have reasonable grounds to believe that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

(d)           Whether or not therein expressly so
provided, every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01.

(e)           The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture or the
Intercreditor Deed at the request of any Holders, unless such Holders have
provided to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense.

(f)            The Trustee will not be liable for
interest on any money received by it except as the Trustee may agree in writing
with the Issuer.  Money held in trust by
the Trustee need not be segregated from other funds except to the extent
required by law.

Section 7.02           Rights of Trustee.

(a)           The Trustee may conclusively rely
upon any document (whether in original or facsimile form) believed by it to be
genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

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(b)           Before the Trustee acts or refrains
from acting, it may require an Officer’s Certificate or an Opinion of Counsel
or both.  The Trustee will not be liable
for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or Opinion of Counsel. 
The Trustee may consult with counsel and the advice of such counsel or
any Opinion of Counsel will be full and complete authorization and protection
from liability in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon.

(c)           The Trustee may act through its
attorneys and agents and will not be responsible for the misconduct or
negligence of any attorney or agent appointed with due care.

(d)           The Trustee will not be liable for
any action it takes or omits to take in good faith that it believes to be
authorized or within the rights or powers conferred upon it by this Indenture.

(e)           Unless otherwise specifically
provided in this Indenture, any demand, request, direction or notice from the
Issuer will be sufficient if signed by an Officer of the Issuer.

(f)            The Trustee will be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture or the Intercreditor Deed at the request or direction of any of the
Holders unless such Holders have offered to the Trustee reasonable security or
indemnity satisfactory to it against the costs, expenses and liabilities that
might be incurred by it in compliance with such request or direction.

(g)           The Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
direction, order, approval, bond, debenture, note, other evidence of
indebtedness or other paper or document but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Issuer, personally or by agent or attorney at the sole expense of the
Issuer and shall incur no liability of any kind by reason of such inquiry or
investigation.

(h)           The Trustee will have no duty to
inquire as to the Issuer’s performance of the covenants in Article 4
hereof.  In addition, the Trustee will
not be deemed to have knowledge of any Default or Event of Default except any
Default or Event of Default of which a Responsible Officer of the Trustee has
received written notification identifying the Notes or Indenture or obtained
actual knowledge.

(i)            Neither the Trustee nor any clearing
system through which the Notes are traded shall have any obligation or duty to
monitor, determine or inquire as to compliance, and shall not be responsible or
liable for compliance, with restrictions on transfer, exchange, redemption,
purchase or repurchase, as applicable, of minimum denominations imposed under
this indenture or under applicable law or regulation with respect of any
transfer, exchange, redemption, purchase or repurchase, as applicable, of
interest in any Note.

(j)            The Trustee is not required to give
any bond or surety with respect to the performance of its duties or the
exercise of its powers under this Indenture.

(k)           In the event the Trustee receives
inconsistent or conflicting requests and indemnity from two or more groups of
Holders, each representing less than a majority in aggregate principal amount
of the Notes then outstanding, pursuant to the provisions of this Indenture,
the Trustee, in its sole discretion, may determine what action, if any, will be
taken.

 

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(l)            The permissive right of the Trustee
to take the actions permitted by this Indenture or the Intercreditor Deed will
not be construed as an obligation or duty to do so.

(m)          Delivery of reports, information and
documents to the Trustee under Section 4.03 is for informational purposes only
and the Trustee’s receipt of the foregoing will not constitute constructive
notice of any information contained therein or determinable from information
contained therein, including the Issuer’s compliance with any of their
covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officer’s Certificates or Opinions of Counsel, as applicable).

(n)           The rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and will be enforceable by, the
Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

(o)           The Trustee may request that the
Issuer deliver an Officer’s Certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officer’s Certificate may be signed by any
person authorized to sign an Officer’s Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded.

(p)           Under no circumstances will the
Trustee be liable to the Company for any consequential loss (being loss of
business, goodwill, opportunities or profit) even if advised of the possibility
of such loss or damage.

Section 7.03           Individual Rights of Trustee.

The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Issuer or any Affiliate of the Issuer with the same
rights it would have if it were not Trustee. 
However, in the event that the Trustee acquires any conflicting interest
it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. 
Any Paying Agent or Registrar may do the same with like rights and
duties.  The Trustee is also subject to
Sections 7.10 and 7.11 hereof.

Section 7.04           Trustee’s Disclaimer.

The Trustee will not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture, the Notes or any Note Guarantee and it shall not be accountable
for the Issuer’s use of the proceeds from the Notes or any money paid to the
Issuer or upon the Issuer’s direction under any provision of this Indenture, it
will not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it will not be responsible for any
statement or recital herein or any statement in the Notes or any other document
in connection with the sale of the Notes or pursuant to this Indenture other
than its certificate of authentication.

Section 7.05           Notice of Defaults.

If a Default or Event of
Default occurs and is continuing and if it is known to the Trustee, the Trustee
will mail to each Holder a notice of the Default or Event of Default within the
earlier of 90 days after it occurs or 30 days after it is known to a Trust
Officer or written notice of it is received by the Trustee.  Except in the case of a Default or Event of
Default in payment of principal of, premium, if any, or interest on any Note,
the Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of the Holders.

 

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Section 7.06           Reports by Trustee to Holders.

(a)           Within 60 days after each
     beginning with the     following the
Closing Date, and for so long as Notes remain outstanding, the Trustee will
mail to the Holders a brief report dated as of such reporting date that complies
with TIA § 313(a) (but if no event described in TIA § 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted).  The Trustee also will
comply with TIA § 313(b)(2).  The
Trustee will also transmit by mail all reports as required by TIA
§ 313(c).

(b)           A copy of each report at the time of
its mailing to the Holders will be mailed by the Trustee to the Issuer and
filed by the Trustee with the SEC and each stock exchange on which the Notes
are listed in accordance with TIA § 313(d).  The Issuer will promptly notify the Trustee
when the Notes are listed on any stock exchange or delisted therefrom.

Section 7.07           Compensation and Indemnity.

(a)           The Issuer and each Note Guarantor,
jointly and severally, will pay to the Trustee from time to time such
compensation for its acceptance of this Indenture and services hereunder and
thereunder as the Issuer and the Trustee shall from time to time agree in
writing.  The Trustee’s compensation will
not be limited by any law on compensation of a trustee of an express
trust.  The Issuer and each Note
Guarantor, jointly and severally, will reimburse the Trustee promptly upon
request for all reasonable disbursements, advances and expenses incurred or
made by it, including costs of collection, in addition to the compensation for
its services.  Such expenses will include
the reasonable compensation, disbursements, expenses and advances of the
Trustee’s agents, counsel, accountants and experts.

(b)           The Issuer and each Note Guarantor,
jointly and severally, will indemnify the Trustee, and hold it harmless,
against any and all losses, claims, damages, liabilities or expenses (including
properly incurred attorney’s fees) incurred by it arising out of or in
connection with the acceptance or administration of this trust and its duties
under this Indenture or under the Intercreditor Deed, including the costs and
expenses of enforcing this Indenture against the Issuer (including this
Section 7.07) and defending itself against any claim (whether asserted by
the Issuer, or any Holder or any other Person) or liability in connection with
the exercise or performance of any of its powers or duties hereunder.  The Trustee will notify the Issuer promptly
of any claim for which it may seek indemnity. 
Failure by the Trustee to so notify the Issuer will not relieve the
Issuer of its obligations hereunder.  At
the Trustee’s sole discretion, the Issuer will defend the claim and the Trustee
will provide reasonable cooperation and may participate at the Issuer’s expense
in the defense.  Alternatively, the
Trustee may at its option have separate counsel of its own choosing and the
Issuer will pay the properly incurred fees and expenses of such counsel; provided that the Issuer will not be required to pay such
fees and expenses if it assumes the Trustee’s defense, there is, in the opinion
of the Trustee, no conflict of interest between the Issuer and the Trustee in
connection with such defense and no Default or Event of Default has occurred
and is continuing.  The Issuer need not
pay for any settlement made without its written consent, which consent shall
not be unreasonably withheld.  The Issuer
need not reimburse any expense or indemnify against any loss or liability to
the extent incurred by the Trustee through its negligence, bad faith or willful
misconduct.

(c)           The obligations of the Issuer under
this Section 7.07 and any Lien arising hereunder will survive the
resignation or removal of the Trustee, the discharge of the Issuer’s
obligations pursuant to Article 10 or the termination of this Indenture.

(d)           To secure the Issuer’s payment
obligations in this Section 7.07, the Trustee will have a Lien prior to
the Notes on all money or property held or collected by the Trustee, except
that held in trust

 

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to pay
principal and interest on particular Notes. 
Such Lien will survive the satisfaction and discharge of this Indenture.

(e)           When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.01(a)(7)
hereof occurs, the expenses and the compensation for the services (including
the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Law.

(f)            The Trustee will comply with the
provisions of TIA § 313(b)(2) to the extent applicable.

Section 7.08                                Replacement
of Trustee.

(a)           A resignation or removal of the
Trustee and appointment of a successor Trustee will become effective only upon
the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

(b)           The Trustee may resign in writing at
any time and be discharged from the trust hereby created by so notifying the
Issuer.  The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Issuer in writing.  The Issuer may remove the Trustee if:

(1)           the
Trustee fails to comply with Section 7.10 hereof;

(2)           the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

(3)           a
custodian or public officer takes charge of the Trustee or its property; or

(4)           the
Trustee becomes incapable of acting.

(c)           If the Trustee resigns or is removed
or if a vacancy exists in the office of Trustee for any reason, the Issuer will
promptly appoint a successor Trustee. 
Within one year after the successor Trustee takes office, the Holders of
a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuer.

(d)           If a successor Trustee does not take
office within 60 days after the retiring Trustee resigns or is removed,
the retiring Trustee, the Issuer, or the Holders of at least 10% in principal
amount of the then outstanding Notes may petition at the expense of the Issuer
any court of competent jurisdiction for the appointment of a successor Trustee.

(e)           If the Trustee, after written request
by any Holder who has been a Holder for at least six months, fails to comply
with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

(f)            A successor Trustee will deliver a
written acceptance of its appointment to the retiring Trustee and to the
Issuer.  Thereupon, the resignation or
removal of the retiring Trustee will become effective, and the successor
Trustee will have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee will
mail a notice of its succession to Holders. 
The retiring Trustee will promptly transfer all property held by it as
Trustee to the successor Trustee, provided all
sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof. 

 

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Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Issuer’s
obligations under Section 7.07 hereof will continue for the benefit of the
retiring Trustee.

Section 7.09           Successor Trustee by Merger, etc.

If the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act will be the successor Trustee.

Section 7.10           Eligibility; Disqualification.

There will at all times
be a Trustee hereunder that is a corporation organized and doing business under
the laws of the United States or of any state thereof that is authorized under
such laws to exercise corporate trustee power, that is subject to supervision
or examination by U.S. federal or state authorities and that has a combined
capital and surplus of at least $100 million as set forth in its most
recent published annual report of condition.

This Indenture will
always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5).  The Trustee shall comply
with TIA § 310(b); provided, however,
that there shall be excluded from the operation of TIA § 310(b)(1) any
indenture or indentures under which other securities or certificates of
interest or participation in other securities of the Issuer are outstanding if
the requirements for such exclusion set forth in TIA § 310(b)(1) are met.

Section 7.11           Preferential Collection of Claims Against Issuer.

The Trustee shall comply
with TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated therein.

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01           Option to Effect Legal Defeasance or Covenant Defeasance.

The Issuer may, at the
option of its Board of Directors evidenced by a resolution set forth in an
Officer’s Certificate, at any time, elect to have either Section 8.02 or
8.03 hereof be applied to all outstanding Notes upon compliance with the
conditions set forth below in this Article 8.

Section 8.02           Legal Defeasance and Discharge.

Upon the Issuer’s
exercise under Section 8.01 hereof of the option applicable to this
Section 8.02, the Issuer will, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). 
For this purpose, Legal Defeasance means that the Issuer will be deemed
to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which will thereafter be deemed to be “outstanding” only for
the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in clauses (a) and (b) below, and to have satisfied all
its other obligations under such Notes, and this Indenture (and the Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging the same), except for the following provisions which will survive
until otherwise terminated or discharged hereunder:

 

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(a)           the rights of Holders of outstanding
Notes to receive payments in respect of the principal of, or interest or
premium, if any, on such Notes when such payments are due from the trust
referred to in Section 8.04 hereof;

(b)           the Issuer’s obligations with respect
to the Notes concerning issuing temporary Notes, registration of Notes,
mutilated, destroyed, lost or stolen Notes and the maintenance of an office or
agency for payment and money for security payments held in trust set forth in
Article 2 hereof;

(c)           the rights, powers, trusts, duties
and immunities of the Trustee hereunder and the Issuer’s obligations in
connection therewith; and

(d)           this Article 8.

Subject to compliance
with this Article 8, the Issuer may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

Section 8.03           Covenant Defeasance.

Upon the Issuer’s
exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Issuer will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be released from each of its obligations
under the covenants contained in Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09,
4.10 (including Section 3.09), 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.19,
4.20, 4.21, 4.22 and Section 5.01(a)(3) hereof with respect to the
outstanding Notes on and after the date the conditions set forth in
Section 8.04 hereof are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes will thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but will continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes will not be deemed outstanding
for accounting purposes).  For this
purpose, Covenant Defeasance means that, with respect to the outstanding Notes,
the Issuer may omit to comply with and will have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply will not constitute
a Default or an Event of Default under Section 6.01 hereof, but, except as
specified above, the remainder of this Indenture and such Notes will be
unaffected thereby.  In addition, upon
the Issuer’s exercise under Section 8.01 hereof of the option applicable
to this Section 8.03 hereof, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, Sections 6.01(a) (4), (6), (7) (as it
relates to Significant Subsidiaries and Note Guarantors) and (8) hereof will
not constitute Events of Default.

Section 8.04           Conditions to Legal Defeasance or Covenant Defeasance.

In order to
exercise either Legal Defeasance or Covenant Defeasance under either
Section 8.02 or 8.03 hereof:

(a)           The Issuer must irrevocably deposit
in trust (subject to Section 8.05 hereof) with the Trustee cash in pounds
sterling or UK Government Obligations or a combination thereof (in the case of
the Sterling Notes) or cash in U.S. dollars or U.S. Government Obligations or a
combination thereof (in the case of the Dollar Notes), the principal of and
interest on which will be sufficient, or a combination thereof sufficient, in
the opinion of an Independent Financial Advisor, to pay the principal of,
premium, if any, and interest on the outstanding Notes on the stated date for
payment thereof or on the applicable redemption date, as the case may be, as
specified in an Officer’s Certificate, and the Issuer must specify whether the
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(b)           in the case of an election under
Sections 8.01 and 8.02 hereof, the Issuer has delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that:

(1)           the Issuer
has received from, or there has been published by, the Internal Revenue Service
a ruling; or

(2)           since the
date of this Indenture, there has been a change in the applicable U.S. federal
income tax law,

in either case to
the effect that, and based thereon such Opinion of Counsel shall confirm that,
the Holders of the outstanding Notes will not recognize income, gain or loss
for U.S. federal or UK income tax purposes as a result of such deposit and
Legal Defeasance and will be subject to U.S. federal and UK income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such deposit and Legal Defeasance had not occurred;

(c)           in the case of an election under
Sections 8.01 and 8.03 hereof, the Issuer must deliver to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that the
Holders of the outstanding Notes will not recognize income, gain or loss for
U.S. federal or UK income tax purposes as a result of such deposit and Covenant
Defeasance and will be subject to U.S. federal and UK income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such deposit and Covenant Defeasance had not occurred;

(d)           no Default or Event of Default shall
have occurred and be continuing on the date of such deposit (other than a
Default or Event of Default resulting from the borrowing of funds to be applied
to such deposit);

(e)           such Legal Defeasance or Covenant
Defeasance will not result in a breach or violation of, or constitute a default
under, any material agreement or instrument (other than this Indenture) to
which the Issuer or any of its Restricted Subsidiaries is a party or by which
the Issuer or any of its Restricted Subsidiaries is bound and is not prohibited
by Article 12 hereof or the Intercreditor Deed;

(f)            the Issuer must deliver to the
Trustee an Officer’s Certificate stating that the deposit was not made by the
Issuer with the intent of preferring the Holders of Notes being defeased over
the other creditors of the Issuer with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Issuer or others;

(g)           the Issuer must deliver to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for or relating to the Legal Defeasance or
the Covenant Defeasance have been complied with; and

(h)           the Issuer provides the Trustee all
other documents or other information that the Trustee may reasonably require in
connection with the defeasance.

Section 8.05           Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions.

Subject to
Section 8.06 hereof, all money and UK Government Obligations or U.S.
Government Obligations (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee, collectively for purposes of this
Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in
respect of the outstanding Notes will be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent as the

 

84

 

Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by
law.  Money and securities so held in
trust are not subject to Article 12 hereof or the Intercreditor Deed and the
Trustee is not prohibited from paying such funds to Holders by the terms of
this Indenture or the Intercreditor Deed.

The Issuer will pay and
indemnify the Trustee against any Taxes imposed or levied on or assessed
against the cash or UK Government Obligations or U.S. Government Obligations
deposited pursuant to Section 8.04 hereof or the principal and interest
received in respect thereof other than any such Taxes which by law is for the
account of the Holders of the outstanding Notes.

The obligations of the
Issuer under this Section 8.05 shall survive the resignation or renewal of
the Trustee and/or satisfaction and discharge of this Indenture.

Notwithstanding anything
in this Article 8 to the contrary, the Trustee will deliver or pay to the
Issuer from time to time upon the request of the Issuer any money, UK
Government Obligations or U.S. Government Obligations held by it as provided in
Section 8.04 hereof which, in the opinion of an Independent Financial
Advisor, expressed in a written certification thereof delivered to the Trustee
(which may be the opinion delivered under Section 8.04(a) hereof), are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06           Repayment to Issuer.

Any money deposited with
the Trustee or any Paying Agent, or then held by the Issuer, in trust for the
payment of the principal of, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid to the Issuer on its request
or (if then held by the Issuer) will be discharged from such trust; and the
Holder of such Note will thereafter be permitted to look only to the Issuer for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Issuer as trustee
thereof, will thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Issuer cause to be published once, in the New York Times and the Financial Times, notice that such money
remains unclaimed and that, after a date specified therein, which will not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Issuer.

Section 8.07           Reinstatement.

If the Trustee or Paying
Agent is unable to apply any pounds sterling, U.S. dollars, UK Government
Obligations or U.S. Government Obligations in accordance with Section 8.02
or 8.03 hereof, as the case may be, by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuer’s obligations under this Indenture and the
Notes will be revived and reinstated as though no deposit had occurred pursuant
to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying
Agent is permitted to apply all such money in accordance with Section 8.02
or 8.03 hereof, as the case may be; provided, however,
that, if the Issuer makes any payment of principal of, premium, if any, or
interest on any Note following the reinstatement of its obligations, the Issuer
will be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent.

 

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ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01           Without Consent of Holders.

(a)           Notwithstanding Section 9.02 of
this Indenture, but subject to the terms of the Intercreditor Deed, the Parent,
the Intermediate Guarantors, the Issuer, the Subsidiary Guarantors and the
Trustee may amend or supplement this Indenture, the Notes and the Note
Guarantees without the consent of any Holder to:

(1)           cure any
ambiguity, omission, defect or inconsistency; provided
that such amendment does not, in the opinion of the Trustee, adversely affect
the rights of any Holder in any material respect;

(2)           provide
for the assumption by a successor corporation in accordance with this Indenture
of the obligations of the Issuer under this Indenture;

(3)           provide
for uncertificated Notes in addition to or in place of certificated Notes (provided, however, that
the uncertificated Notes are issued in registered form for purposes of Section
163(f) of the Code, or in a manner such that the uncertificated Notes are
described in Section 163(f)(2)(B) of the Code);

(4)           add
additional Guarantees with respect to the Notes or release Subsidiary
Guarantors from Subsidiary Guarantees as provided by the terms of this
Indenture;

(5)           add to the
covenants of the Issuer for the benefit of the Holders or to surrender any
right or power conferred upon the Company, any Restricted Subsidiary or any of
their Subsidiaries;

(6)           make any
change that does not materially adversely affect the rights of any Holder in
any respect, subject to the provisions of this Indenture;

(7)           provide
for the issuance of Additional Notes;

(8)           mortgage,
pledge, hypothecate or grant a security interest in any Property for the
benefit of any Person; provided, however, that the granting of such security interest is not
prohibited by this Indenture and Section 4.12 is complied with;

(9)           comply
with any requirement of the SEC in connection with the qualification of this
Indenture under the TIA; and

(10)         provide for
a reduction in the minimum denominations of the Notes.

(b)           An amendment under this Section 9.01
may not make any change to the subordination provisions of this Indenture that
materially and adversely affects the rights under Article 12 hereof or under
the Intercreditor Deed of any holder of Senior Indebtedness of the Senior
Subordinated Subsidiary Guarantor then outstanding unless the holders of such
Senior Indebtedness (or any group or Representative thereof authorized to give
a consent) consent to such change.

(c)           After an amendment becomes effective,
the Issuer is required to mail to Holders a notice briefly describing such
amendment. However, the failure to give such notice to all Holders, or any
defect

 

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therein,
will not impair or affect the validity of the amendment. In addition, for so
long as the Notes are listed on the Luxembourg Stock Exchange and the rules of
such exchange so require, the Issuer will inform such exchange of any
amendment, supplement or waiver and will publish notice of such amendment,
supplement or waiver in Luxembourg in a daily newspaper with general
circulation in Luxembourg (which is expected to be the d’Wort)
or on the website of the Luxembourg Stock Exchange (www.bourse.lu).

(d)           Upon the request of the Issuer, and
upon receipt by the Trustee of the documents described in Section 7.02
hereof, the Trustee will join with the Issuer in the execution of any amended
or supplemental indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee will not be obligated to enter into
such amended or supplemental indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

Section 9.02           With Consent of Holders.

Except as provided below
in this Section 9.02, the Parent, the Intermediate Guarantors, the Issuer,
the Senior Subordinated Subsidiary Guarantor and the Trustee may amend or
supplement this Indenture, the Notes and the Note Guarantees with the consent
of the Holders of at least a majority in principal amount of the Notes then
outstanding (including, without limitation, consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes) and,
subject to this Indenture and the Notes, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the
principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture or the Notes may be waived with the
consent of the Holders of a majority in principal amount of the Notes then
outstanding (including, without limitation, consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes); provided, however, that if any amendment, waiver or other
modification would only affect the Sterling Notes or the Dollar Notes, only the
consent of the Holders of at least a majority in principal amount of the
then-outstanding Notes of the affected series (and not the consent of the
Holders of any other series of Notes) shall be required.  Section 2.08 hereof shall determine
which Notes are considered to be “outstanding” for purposes of this
Section 9.02.

An amendment under
Section 9.02 may not make any change that adversely affects the rights under
Article 12 hereof or under the Intercreditor Deed of any holder of Senior
Indebtedness of the Senior Subordinated Subsidiary Guarantor then outstanding
unless the holders of such Senior Indebtedness (or any group or Representative
thereof authorized to give a consent) consent to such change under the terms of
that Senior Indebtedness.

Upon the request of the
Issuer, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders as aforesaid, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee
will join with the Issuer in the execution of such amended or supplemental
indenture unless such amended or supplemental indenture directly affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but will not be obligated to,
enter into such amended or supplemental indenture.

It is not necessary for
the consent of the Holders under this Section 9.02 to approve the
particular form of any proposed amendment or waiver, but it is sufficient if
such consent approves the substance thereof.

After an amendment,
supplement or waiver under this Section 9.02 becomes effective, the Issuer
will mail to the Holders affected thereby a notice briefly describing the
amendment, supplement or

 

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waiver.  Any failure of the Issuer to mail such
notice, or any defect therein, will not, however, in any way impair or affect
the validity of any such amended or supplemental indenture or waiver.  Subject to Section 6.07 hereof, the Holders
of a majority in aggregate principal amount of the Notes then outstanding may
waive compliance in a particular instance by the Issuer with any provision of
this Indenture or the Notes.  However,
without the consent of each Holder affected, an amendment or waiver under this
Section 9.02 may not (with respect to any Notes held by a non-consenting
Holder):

(a)           reduce the principal amount of Notes
whose Holders must consent to an amendment or waiver;

(b)           reduce the rate of or extend the time
for payment of interest on any Note;

(c)           reduce the principal of or extend the
Stated Maturity of any Note;

(d)           reduce the premium payable upon the
redemption of any Note or change the time at which any Note may be redeemed
pursuant to Section 3.07 hereof;

(e)           make any Note payable in money other
than that stated in the Note;

(f)            impair the right of any Holder to
receive payment of principal of, and interest on, such Holder’s Notes on or
after the due dates therefor or to institute suit for the enforcement of any
payment on or with respect to such Holder’s Notes;

(g)           make any change in the amendment
provisions which require each Holder’s consent or in the waiver provisions
described in this sentence; or

(h)           modify the Note Guarantees in any
manner materially adverse to the Holders.

Section 9.03           Compliance with Trust Indenture Act.

Every amendment or
supplement to this Indenture or the Notes will be set forth in an amended or
supplemental indenture that complies with the TIA as then in effect.

Section 9.04           Revocation and Effect of Consents.

Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder that evidences the
same debt as the consenting Holder’s Note, even if notation of the consent is
not made on any Note.  However, any such
Holder or subsequent Holder may revoke the consent as to its Note if the
Trustee receives written notice of revocation before the date the waiver,
supplement or amendment becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

Section 9.05           Notation on or Exchange of Notes.

The Trustee may place an
appropriate notation about an amendment, supplement or waiver on any Note
thereafter authenticated.  The Issuer in
exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication
Order, authenticate new Notes that reflect the amendment, supplement or waiver.

Failure to make the
appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

 

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Section 9.06           Trustee to Sign Amendments, etc.

The Trustee will sign any
amended or supplemental indenture authorized pursuant to this Article 9 if
the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
In executing any amended or supplemental indenture, the Trustee will be
provided with and (subject to Section 7.01 hereof) will be fully protected
in relying upon, in addition to the documents required by Section 13.04
hereof, an Officer’s Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture.

ARTICLE 10

SATISFACTION AND DISCHARGE

Section 10.01         Satisfaction and Discharge.

This Indenture
will be discharged and will cease to be of further effect as to all Notes and
Note Guarantees issued hereunder, when:

(a)           either:

(1)           all the
Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and applicable Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Issuer in
accordance with this Indenture, have been delivered to the Trustee for
cancellation; or

(2)           all the
Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise
or will become due and payable within one year and the Issuer has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely
for the benefit of the Holders, cash in pounds sterling or UK Government
Obligations in the case of the Sterling Notes, or cash in U.S. dollars or U.S.
Government Obligations in the case of the Dollar Notes, in amounts as will be
sufficient without consideration of any reinvestment of interest, to pay and
discharge the entire Indebtedness on the applicable Notes not delivered to the
Trustee for cancellation for principal, premium and Additional Amounts, if any,
and accrued interest to the date of maturity or redemption;

(b)           no Default or Event of Default has
occurred and is continuing on the date of such deposit or will occur as a
result of such deposit and such deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Issuer is a party or by which the Issuer is bound;

(c)           the Issuer has paid or caused to be
paid all sums payable by it under this Indenture; and

(d)           the Issuer has delivered irrevocable
instructions to the Trustee under this Indenture to apply the deposited money
toward the payment of the applicable Notes at maturity or the redemption date,
as the case may be.

In addition, the
Issuer must deliver an Officer’s Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.

 

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Notwithstanding the
satisfaction and discharge of this Indenture, if money has been deposited with
the Trustee pursuant to subclause (2) of clause (a) of this Section,
the provisions of Section 10.02 and Section 8.06 will survive.  In addition, nothing in this
Section 10.01 will be deemed to discharge those provisions of Section 7.07
hereof, that, by their terms, survive the satisfaction and discharge of this
Indenture.

Section 10.02         Application of Trust Money.

Subject to the provisions
of Section 8.06, all money deposited with the Trustee pursuant to
Section 10.01 shall be held in trust and applied by it, in accordance with
the provisions of the Notes and this Indenture, to the payment, either directly
or through any Paying Agent as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest for whose
payment such money has been deposited with the Trustee; but such money need not
be segregated from other funds except to the extent required by law.

If the Trustee or Paying
Agent is unable to apply any money or securities in accordance with
Section 10.01 by reason of any legal proceeding or by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Issuer’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 10.01; provided that
if the Issuer has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the
Issuer shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or Government Securities held by the
Trustee or Paying Agent.

ARTICLE 11

GUARANTEES

Section 11.01         Guarantees.

(a)           Each Note Guarantor hereby jointly
and severally irrevocably and unconditionally guarantees to each Holder and to
the Trustee and its successors and assigns (1) the full and punctual
payment when due, whether at Stated Maturity, by acceleration, by redemption or
otherwise, of all obligations of the Issuer under this Indenture (including
obligations to the Trustee) and the Notes, whether for payment of principal of,
or interest, premium, if any, on, the Notes and all other monetary obligations
of the Issuer under this Indenture and the Notes and (2) the full and
punctual performance within applicable grace periods of all other obligations
of the Issuer whether for fees, expenses, indemnification or otherwise under
this Indenture and the Notes (all the foregoing being hereinafter collectively
called the “Guaranteed Obligations”).  Each Note Guarantor further agrees that the
Guaranteed Obligations may be extended or renewed, in whole or in part, without
notice or further assent from each such Note Guarantor, and that each such Note
Guarantor shall remain bound under this Article 11 notwithstanding any
extension or renewal of any Guaranteed Obligation.  The Senior Subordinated Subsidiary Guarantee
will be substantially in the form of Exhibit B hereto.  The other Note Guarantees will be
substantially in the form of Exhibit C hereto.

(b)           Each Note Guarantor waives
presentation to, demand of payment from and protest to the Issuer of any of the
Guaranteed Obligations and also waives notice of protest for nonpayment.  Each Note Guarantor waives notice of any
default under the Notes or the Guaranteed Obligations.  The obligations of each Note Guarantor
hereunder shall not be affected by (1) the failure of any Holder or the
Trustee to assert any claim or demand or to enforce any right or remedy against
the Issuer or any other Person under this Indenture, the Notes or any other
agreement or otherwise; (2) any extension or renewal of any thereof;
(3) any rescission, waiver, amendment or modification of any of the terms
or provisions of this

 

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Indenture,
the Notes or any other agreement; (4) the release of any security held by
any Holder or the Trustee for the Guaranteed Obligations or any of them;
(5) the failure of any Holder or Trustee to exercise any right or remedy
against any other guarantor of the Guaranteed Obligations; or (vi) any
change in the ownership of such Note Guarantor, except as provided in
Sections 11.02(b) and (c).

(c)           Each Note Guarantor hereby waives any
right to which it may be entitled to have its obligations hereunder divided
among the Note Guarantors, such that such Note Guarantor’s obligations would be
less than the full amount claimed.  Each
Note Guarantor hereby waives any right to which it may be entitled to have the
assets of the Issuer first be used and depleted as payment of the Issuer’s or
such Note Guarantor’s obligations hereunder prior to any amounts being claimed
from or paid by such Note Guarantor hereunder. 
Each Note Guarantor hereby waives any right to which it may be entitled
to require that the Issuer be sued prior to an action being initiated against
such Note Guarantor.

(d)           Each Note Guarantor further agrees
that its Guarantee herein constitutes a guarantee of payment, performance and
compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security
held for payment of the Guaranteed Obligations.

(e)           The Senior Subordinated Subsidiary
Guarantee of the Senior Subordinated Subsidiary Guarantor is, to the extent and
in the manner set forth in Article 12 and the Intercreditor Deed,
subordinated and subject in right of payment to the prior payment in full of
the principal of and premium, if any, and interest on all Senior Indebtedness
of the Senior Subordinated Subsidiary Guarantor and is made subject to such
provisions of this Indenture.

(f)            Except as expressly set forth in
Sections 8.02, 11.02 and 11.06, Article 12 and the Intercreditor Deed, the
obligations of each Note Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of
the Guaranteed Obligations or otherwise. 
Without limiting the generality of the foregoing, the obligations of
each Note Guarantor herein shall not be discharged or impaired or otherwise
affected by the failure of any Holder or the Trustee to assert any claim or
demand or to enforce any remedy under this Indenture, the Notes or any other
agreement, by any waiver or modification of any thereof, by any default,
failure or delay, wilful or otherwise, in the performance of the obligations,
or by any other act or thing or omission or delay to do any other act or thing
which may or might in any manner or to any extent vary the risk of any Note
Guarantor or would otherwise operate as a discharge of any Note Guarantor as a
matter of law or equity.

(g)           Except as expressly set forth in
Sections 8.02, 11.02 and 11.06, Article 12 and the Intercreditor Deed,
each Note Guarantor agrees that its Guarantee shall remain in full force and
effect until payment in full of all the Guaranteed Obligations.  Each Note Guarantor further agrees that its
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of or
interest on any Guaranteed Obligation is rescinded or must otherwise be
restored by any Holder or the Trustee upon the bankruptcy or reorganization of
the Issuer or otherwise.

(h)           In furtherance of the foregoing and
not in limitation of any other right which any Holder or the Trustee has at law
or in equity against any Note Guarantor by virtue hereof, upon the failure of
the Issuer to pay the principal of or interest on any Guaranteed Obligation
when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Guaranteed
Obligation, each Note Guarantor, subject in the case of the Senior Subordinated

 

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Subsidiary
Guarantor to the terms of Article 12 and the Intercreditor Deed, hereby promises
to and shall, upon receipt of written demand by the Trustee, forthwith pay, or
cause to be paid, in cash, to the Holders or the Trustee an amount equal to the
sum of (1) the unpaid principal amount of such Guaranteed Obligations,
(2) accrued and unpaid interest on such Guaranteed Obligations (but only
to the extent not prohibited by law) and (3) all other monetary
obligations of the Issuer to the Holders and the Trustee.

(i)            Each Note Guarantor agrees that it
shall not be entitled to any right of subrogation in relation to the Holders in
respect of any Guaranteed Obligations guaranteed hereby until payment in full
of all Guaranteed Obligations and all obligations to which the Guaranteed
Obligations are subordinated as provided in Article 12 and the Intercreditor
Deed.  Each Note Guarantor further agrees
that, as between it, on the one hand, and the Holders and the Trustee, on the
other hand, (1) the maturity of the Guaranteed Obligations guaranteed
hereby may be accelerated as provided in Article 6 for the purposes of any
Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guaranteed Obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration
of such Guaranteed Obligations as provided in Article 6, such Guaranteed
Obligations (whether or not due and payable) shall forthwith become due and
payable by such Guarantor for the purposes of Section 11.01.

(j)            Each Note Guarantor also agrees to
pay any and all costs and expenses (including reasonable attorneys’ fees and
expenses) incurred by the Trustee or any Holder in enforcing any rights under
Section 11.01.

(k)           Upon request of the Trustee, each
Note Guarantor shall execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

Section 11.02         Limitation on Liability.

(a)           Any term or provision of this
Indenture to the contrary notwithstanding, the maximum aggregate amount of the
Guaranteed Obligations guaranteed hereunder by any Note Guarantor shall not
exceed the maximum amount that can be hereby guaranteed by the applicable Note
Guarantor without rendering the Guarantee, as it relates to such Note Guarantor,
voidable under applicable law relating to ultra vires, fraudulent conveyance,
fraudulent transfer, corporate benefit or similar laws affecting the rights of
creditors generally.

(b)           The Senior Subordinated Subsidiary
Guarantee of the Senior Subordinated Subsidiary Guarantor shall terminate and
be of no further force or effect and such Subsidiary Guarantor shall be deemed
to be released from all obligations under Article 11,

(1)           concurrently
with any sale by way of enforcement by the relevant Security Trustee (as
defined in the Intercreditor Deed) of a security interest therein of (x) all of
the Capital Stock of the Senior Subordinated Subsidiary Guarantor or any parent
company of the Senior Subordinated Subsidiary Guarantor or (y) all or
substantially all of the assets of the Senior Subordinated Subsidiary
Guarantor, in each case so long as:

(A)          the
proceeds of such sale are in cash (or substantially in all cash) and are
applied in accordance with the Intercreditor Deed;

(B)           the Senior
Subordinated Subsidiary Guarantor is released from its obligations in respect
of any other Indebtedness of Holdings, the Issuer and any other Restricted
Subsidiary; provided, however, that nothing in the
Intercreditor Deed shall

 

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require
the release by the Senior Subordinated Subsidiary Guarantor or any of its
Subsidiaries of any of their obligations in respect of the New Credit Facility;
and

(C)           the sale
is made pursuant to either a public auction or a competitive bid process to
obtain the best price reasonably obtainable given the then-current condition
(financial or otherwise), earnings, business, assets and prospects of the
Senior Subordinated Subsidiary Guarantor and its Subsidiaries, the Security
Trustee having consulted with an internationally recognized investment bank
(including without limitation and to the extent appropriate a lender under the
New Credit Facility or a relationship bank of the Issuer or its Subsidiaries)
or an internationally recognized accounting firm regarding the appropriate
procedures for obtaining the best price for the shares or assets, considered
the recommendations of that investment bank or accounting firm and used its
reasonable efforts to cause the procedures recommended by that investment bank
or accounting firm to be implemented in all material respects in relation to
the sale and to permit Holders to participate in the sale process as bidders; provided, however, that the Security Trustee shall not be
under any further obligation to cause such recommendations to be implemented to
the extent not implemented in connection with such sale by the relevant court,
authority or other third party required to act in connection with such sale; provided, further, that such reasonable efforts will, to the
extent permitted by applicable law, include attempting to conduct such sale
process other than through a court or legal proceeding.

(2)           concurrently
with any sale by an administrator under the UK Insolvency Act 1986 of (x) all
of the Capital Stock of the Senior Subordinated Subsidiary Guarantor or any
parent company of the Senior Subordinated Subsidiary Guarantor or (y) all or
substantially all of the assets of the Senior Subordinated Subsidiary
Guarantor, in each case so long as:

(A)          the
administrator is an insolvency practitioner whose appointment the Trustee has
not objected to (acting reasonably) under the provisions of the UK Insolvency
Act 1986 relating to the selection of a person or persons to be an/the
administrator;

(B)           the
proceeds of such sale are in cash (or substantially in all cash) and are
applied in accordance with the Intercreditor Deed;

(C)           the Senior
Subordinated Subsidiary Guarantor is released from its obligations in respect
of any other Indebtedness of Holdings, the Issuer or any other Restricted
Subsidiary; provided, however, that nothing in the
Intercreditor Deed shall require the release by the Senior Subordinated
Subsidiary Guarantor or any of its Subsidiaries of any of their obligations in
respect of the New Credit Facility; and

(D)          the sale is
made pursuant to a public auction or a competitive bid process to obtain the
best price reasonably obtainable given the then-current condition (financial or
otherwise), earnings, business, assets and prospects of the Senior Subordinated
Subsidiary Guarantor and its Subsidiaries, the administrator having consulted
with an internationally recognized investment bank (including without
limitation and to the extent appropriate a lender under the New Credit Facility
or a relationship bank of the Issuer or its Subsidiaries) or an internationally
recognized accounting firm regarding the appropriate procedures for obtaining
the best price for the shares or assets, considered the recommendations of that
investment bank or accounting firm and used its reasonable efforts to cause the
procedures recommended by that investment bank or accounting firm

 

93

 

to
be implemented in all material respects in relation to the sale and to permit
Holders to participate in the sale process as bidders.

(3)           upon Legal
Defeasance or Covenant Defeasance of the Issuer’s obligations or satisfaction
and discharge of this Indenture as provided in Article 8 and Article 10; or

(4)           upon
designation of the Senior Subordinated Subsidiary Guarantor as an Unrestricted
Subsidiary in accordance with the terms of this Indenture, including Section
4.17.

Upon the presentation of
an Officer’s Certificate with respect to the occurrence of an event specified
in the preceding paragraph, the Trustee will execute any documents reasonably
required in order to evidence such release, discharge and termination in
respect of the Senior Subordinated Subsidiary Guarantee.

(c)           Any Additional Subsidiary Guarantor
will automatically and unconditionally be released from all obligations under
its Additional Subsidiary Guarantee, and such Additional Subsidiary Guarantee
shall thereupon terminate and be discharged and be of no further force or
effect, upon the occurrence of any of the events described in clauses (1) through
(4) of paragraph (b), substituting such Additional Subsidiary Guarantor for the
Senior Subordinated Subsidiary Guarantor where applicable. In addition, any
Additional Subsidiary Guarantee shall thereupon terminate and be discharged and
be of no further force or effect at any time the relevant Additional Subsidiary
Guarantor is fully and unconditionally released (other than as a result of
payment thereof) from all the obligations that resulted in such Additional
Subsidiary Guarantor being required to provide an Additional Subsidiary
Guarantee under Section 4.19.  Any
release pursuant to this Section 11.02 shall be made only if the guarantee by
NTLIH in favor of the Existing Notes has been released concurrently with or
prior to the release of the Senior Subordinated Subsidiary Guarantee.

Section 11.03         Successors and Assigns.

This Article 11
shall be binding upon each Note Guarantor and its successors and assigns and
shall inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Notes shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions of this
Indenture.

Section 11.04         No Waiver.

Neither a failure nor a
delay on the part of either the Trustee or the Holders in exercising any right,
power or privilege under this Article 11 shall operate as a waiver
thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege.  The rights, remedies and benefits of the
Trustee and the Holders herein expressly specified are cumulative and not
exclusive of any other rights, remedies or benefits which either may have under
this Article 11 at law, in equity, by statute or otherwise.

Section 11.05         Modification.

No modification,
amendment or waiver of any provision of this Article 11, nor the consent
to any departure by any Note Guarantor therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Trustee, and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given.  No
notice to or demand on any Note Guarantor in any case

 

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shall entitle such
Note Guarantor to any other or further notice or demand in the same, similar or
other circumstances.

Section 11.06         Execution of Supplemental Indenture for Future Guarantors.

(a)           Each Subsidiary which is required to
become a Subsidiary Guarantor pursuant to Section 4.19,

(b)           each future Subsidiary of the Company
of which the Issuer is a Subsidiary that becomes an Intermediate Guarantor as
contemplated in the definition thereof, and

(c)           each NTL Holding Company that is not
a Subsidiary of Parent that guarantees the Notes on a senior basis as
contemplated in the last paragraph of the definition of “Change of Control,”

shall promptly
execute and deliver to the Trustee a supplemental indenture pursuant to which
such Subsidiary or NTL Holding Company shall become a Note Guarantor under this
Article 11 and shall guarantee the Guaranteed Obligations.  Concurrently with the execution and delivery
of such supplemental indenture, the Issuer shall deliver to the Trustee an
Opinion of Counsel and an Officer’s Certificate to the effect that such
supplemental indenture has been duly authorized, executed and delivered by such
Subsidiary or NTL Holding Company and that, subject to the application of
bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other
similar laws relating to creditors’ rights generally and to the principles of
equity, whether considered in a proceeding at law or in equity, the Guarantee
of such Note Guarantor is a legal, valid and binding obligation of such Note
Guarantor, enforceable against such Note Guarantor in accordance with its terms
and or to such other matters as the Trustee may reasonably request.

Section 11.07         Non-Impairment

The failure to endorse a
Note Guarantee on any Note shall not affect or impair the validity thereof.

ARTICLE 12

SUBORDINATION OF THE SENIOR SUBORDINATED SUBSIDIARY GUARANTEE

Section 12.01         Agreement To Subordinate.

The Senior Subordinated
Subsidiary Guarantor agrees, and each Holder by accepting a Note agrees, that
the obligations of the Senior Subordinated Subsidiary Guarantor hereunder are
subordinated in right of payment, to the extent and in the manner provided in
the Intercreditor Deed and to the prior payment in full of all Senior
Indebtedness of the Senior Subordinated Subsidiary Guarantor and that the
subordination is for the benefit of and enforceable by the holders of such
Senior Indebtedness of the Senior Subordinated Subsidiary Guarantor.  Each Holder, by accepting a Note, shall be
deemed to have agreed to and accepted the terms and conditions of the
Intercreditor Deed.  A copy of such
Intercreditor Deed shall be available on any Business Day upon prior written
request at the offices of the Trustee and, for so long as any Notes are listed
on the Luxembourg Stock Exchange, at the offices of the Paying Agent in
Luxembourg.  The obligations hereunder
with respect to the Senior Subordinated Subsidiary Guarantor shall in all
respects rank pari passu with all other Senior
Subordinated Indebtedness of the Senior Subordinated Subsidiary Guarantor and
shall rank senior to all existing and future Subordinated Obligations of the
Senior Subordinated Subsidiary Guarantor; and only Indebtedness of the Senior
Subordinated Subsidiary Guarantor that is Senior Indebtedness of the Senior
Subordinated Subsidiary

 

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Guarantor shall
rank senior to the obligations of the Senior Subordinated Subsidiary Guarantor
in accordance with the provisions set forth herein.

Section 12.02         Rights of Trustee and Paying Agent.

Subject to the terms of
the Intercreditor Deed, the Trustee or any Paying Agent may continue to make
payments on the Notes and shall not be charged with knowledge of the existence
of facts that would prohibit the making of any such payments unless, not less
than two Business Days prior to the date of such payment, a Responsible Officer
of the Trustee receives notice in writing reasonably satisfactory to it that
payments may not be made under this Article 12 or the Intercreditor Deed.

The Trustee in its
individual or any other capacity may hold Senior Indebtedness of the Senior
Subordinated Subsidiary Guarantor with the same rights it would have if it were
not Trustee.  The Registrar and co-registrar
and any Paying Agent may do the same with like rights.  The Trustee shall be entitled to all the
rights set forth in this Article 12 and the Intercreditor Deed with
respect to any Senior Indebtedness of the Senior Subordinated Subsidiary
Guarantor which may at any time be held by it, to the same extent as any other
holder of Senior Indebtedness of the Senior Subordinated Subsidiary Guarantor;
and nothing in Article 7 shall deprive the Trustee of any of its rights as
such holder.  Nothing in this
Article 12 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.07 or any other Section of this Indenture.

Section 12.03         Trustee Entitled To Rely.

Upon any payment or
distribution pursuant to this Article 12 or the Intercreditor Deed, the
Trustee and the Holders shall be entitled to rely (a) upon any order or
decree of a court of competent jurisdiction in which any bankruptcy,
reorganization, insolvency, receivership or similar proceedings relating to the
Senior Subordinated Subsidiary Guarantor and its properties is pending,
(b) upon a certificate of the liquidating trustee or agent or other Person
making such payment or distribution to the Trustee or to the Holders or
(c) upon the Representatives for the holders of Senior Indebtedness of the
Senior Subordinated Subsidiary Guarantor for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of
the Senior Indebtedness of the Senior Subordinated Subsidiary Guarantor and
other Indebtedness of the Senior Subordinated Subsidiary Guarantor, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article 12 or the
Intercreditor Deed.  In the event that
the Trustee determines, in good faith, that evidence is required with respect
to the right of any Person as a holder of Senior Indebtedness of the Senior
Subordinated Subsidiary Guarantor to participate in any payment or distribution
pursuant to this Article 12 or the Intercreditor Deed, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness of the Senior Subordinated
Subsidiary Guarantor held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and other facts
pertinent to the rights of such Person under this Article 12 or the
Intercreditor Deed, and, if such evidence is not furnished, the Trustee may
defer any payment to such Person pending judicial determination as to the right
of such Person to receive such payment. 
The provisions of Sections 7.01 and 7.02 shall be applicable to all actions
or omissions of actions by the Trustee pursuant to this Article 12 or the
Intercreditor Deed.

Section 12.04         Trustee To Effectuate Subordination.

Each Holder by accepting
a Note authorizes and directs the Trustee on his or her behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holders and the holders of Senior Indebtedness of the
Senior Subordinated Subsidiary Guarantor,

 

96

 

including by
entering into, and as provided for in, the Intercreditor Deed and appoints the
Trustee as attorney-in-fact for any and all such purposes.

Section 12.05         Reliance by Holders of Senior Indebtedness of the Senior Subordinated
Subsidiary Guarantor on Subordination Provisions.

Each Holder by accepting
a Note acknowledges and agrees that the foregoing provisions and the provisions
of the Intercreditor Deed are, and are intended to be, an inducement and a
consideration to each holder of any Senior Indebtedness of the Senior
Subordinated Subsidiary Guarantor, whether such Senior Indebtedness was created
or acquired before or after the issuance of the Notes, to acquire and continue
to hold, or to continue to hold, such Senior Indebtedness and such holder of
Senior Indebtedness shall be deemed conclusively to have relied on such
subordination provisions in acquiring and continuing to hold, or in continuing
to hold, such Senior Indebtedness.

ARTICLE 13

MISCELLANEOUS

Section 13.01         Trust Indenture Act Controls.

If any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by TIA
§ 318(c), the duties imposed by the TIA will control.

Section 13.02         Notices.

Any notice or
communication by the Issuer or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telex, telecopier or overnight air
courier guaranteeing next day delivery, to the others’ address:

If to the Issuer
or any Note Guarantor:

NTL Corporate Finance

909 Third Avenue

Suite 2863

New York, NY 10022

Telecopier: +1 212 752
1157

Attention: General
Counsel

 

with a copy to:

NTL House

Bartley Wood Business Park

Bartley Way

Hook

Hampshire RG27 9UP

Telecopier: +44 1256 752 170

Attention: General Counsel

with a copy to:

 

 

97

 

Fried, Frank, Harris,
Shriver & Jacobson (London) LLP

99 City Road

EC1Y 1AX

Telecopier: +44 207 972
9602

Attention: Timothy E. Peterson

 

If to the Trustee:

The Bank of New York

One Canada Square

London E14 5AL

United Kingdom

Telecopier No. +44 207 964 6399

Attention: Corporate Trust Administration

The Issuer, any Note
Guarantor or the Trustee, by notice to the others may designate additional or
different addresses for subsequent notices or communications.

In addition, notices to
the Holders of the applicable series of Sterling Notes or Dollar Notes shall be
given by publishing such notices, as long as such series of Sterling Notes or
Dollar Notes are listed on the Luxembourg Stock Exchange and the rules of such
Exchange so require, in a leading daily newspaper of general circulation in
Luxembourg (which is expected to be the d’Wort) or on
the website of the Luxembourg Stock Exchange (www.bourse.lu).

All notices and
communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

Any notice or
communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
will also be so mailed to any Person described in TIA § 313(c), to the extent
required by the TIA.  Failure to mail a
notice or communication to a Holder or any defect in it will not affect its
sufficiency with respect to other Holders.

If a notice or
communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

If the Issuer mails a
notice or communication to Holders, it will mail a copy to the Trustee and each
Agent at the same time.

Section 13.03         Communication by Holders with Other Holders.

Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights
under this Indenture or the Notes.  The
Issuer, the Note Guarantors, the Trustee, the Registrar and anyone else shall
have the protection of TIA § 312(c).

 

98

 

Section 13.04         Certificate and Opinion as to Conditions Precedent.

Upon any request
or application by the Issuer to the Trustee to take any action under this
Indenture, the Issuer shall furnish to the Trustee:

(1)           an
Officer’s Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 13.05
hereof) stating that, in the opinion of the signer, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

(2)           an Opinion
of Counsel in form and substance reasonably satisfactory to the Trustee (which
must include the statements set forth in Section 13.05 hereof) stating
that, in the opinion of such counsel, all such conditions precedent and
covenants have been complied with.

Section 13.05         Statements Required in Certificate or Opinion.

Each certificate
or opinion with respect to compliance with a condition or covenant provided for
in this Indenture (other than a certificate provided pursuant to TIA
§ 314(a)(4)) must comply with the provisions of TIA § 314(e) and must
include:

(1)           a
statement that the Person making such certificate or opinion has read such
covenant or condition;

(2)           a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;

(3)           a
statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

(4)           a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been complied with.

Section 13.06         Rules by Trustee and Agents.

The Trustee may make
reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make
reasonable rules and set reasonable requirements for its functions.

Section 13.07         No Personal Liability of Directors, Officers, Employees and
Stockholders.

No
past, present or future director, officer, employee, incorporator or
shareholder of Parent, the Company, any Intermediate Guarantor, the Issuer or
any Subsidiary Guarantor, as such, will have any liability for any obligations
of Parent, any Intermediate Guarantor, the Issuer or any Subsidiary Guarantor
under the Parent Guarantee, the Intermediate Guarantees, the Notes, the
Subsidiary Guarantees or this Indenture, or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases such liability.  The waiver and release are part of the
consideration for issuance of the Notes. 
The waiver may not be effective to waive liabilities under U.S. Federal
securities laws.

 

99

 

Section 13.08         Governing Law.

THIS INDENTURE AND THE
NOTES WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

Section 13.09         No Adverse Interpretation of Other Agreements.

This Indenture may not be
used to interpret any other indenture, loan or debt agreement of the Issuer or
its Subsidiaries or of any other Person. 
Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

Section 13.10         Successors.

All agreements of the
Issuer in this Indenture and the Notes will bind its successors.  All agreements of the Trustee in this
Indenture will bind its successors.

Section 13.11         Severability.

In case any provision in
this Indenture or in the Notes is invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

Section 13.12         Counterpart Originals.

The parties may sign any
number of copies of this Indenture.  Each
signed copy will be an original, but all of them together represent the same
agreement.

Section 13.13         Table of Contents, Headings, etc.

The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Indenture and will in no way modify or restrict any
of the terms or provisions hereof.

Section 13.14         Submission to Jurisdiction; Appointment of Agent.

The Issuer and each Note
Guarantor irrevocably submit to the non-exclusive jurisdiction of any New York
state or U.S. federal court located in the Borough of Manhattan in the City and
State of New York over any suit, action or proceeding arising out of or
relating to this Indenture.  The Issuer
and each Note Guarantor irrevocably waive, to the fullest extent permitted by
law, any objection which they may have, pursuant to New York law or otherwise,
to the laying of the venue of any such suit, action or proceeding brought in
such a court and any claim that any such suit, action or proceeding brought in
such a court has been brought in any inconvenient forum.  In furtherance of the foregoing, the Issuer
and each Note Guarantor hereby irrevocably designates and appoints Parent (at
its office at 909 Third Avenue, Suite 2863, New York, New York 10022) as its
agent to receive service of all process brought against them with respect to
any such suit, action or proceeding in any such court in the City and State of
New York, such service being hereby acknowledged by it to be effective and binding
service in every respect.  Copies of any
such process so served shall also be given to the Issuer in accordance with
Section 3.01

 

100

 

hereof, but the
failure of the Issuer to receive such copies shall not affect in any way the
service of such process as aforesaid.

Nothing in this Section
shall limit the right of the Trustee or any Holder to bring proceedings against
the Issuer in the courts of any other jurisdiction or to serve process in any
other manner permitted by law.

[Signatures on following pages]

 

101

 

SIGNATURES

Dated as of July
     , 2006

                                                                                                          NTL
CABLE PLC

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
INCORPORATED

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL:
TELEWEST LLC

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
HOLDINGS INC.

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
(UK) GROUP, INC.

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
COMMUNICATIONS LIMITED

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
INVESTMENT HOLDINGS LIMITED

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          THE
BANK OF NEW YORK

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

 

                                                                                                          THE
BANK OF NEW YORK (LUXEMBOURG) 
                                                                                                          S.A.

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

 

Exhibit A

 

[Form of
Face of Note]

 

[Insert
the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

[

[CUSIP:
____________]

ISIN:
____________

Common Code: ____________

       %
Senior Note due 2016

 

No. ___                                                                                                                                                             [£______/$______]

NTL CABLE PLC

NTL Cable PLC (the
“Issuer”) promises to pay to [CEDE & CO.]/[NOMINEE OF COMMON DEPOSITARY]
or its registered assigns, the principal sum of                                                                                                         [Pounds Sterling/U.S. Dollars] on     , 2016.

Interest Payment
Dates:                           and

Record Dates:                                             and

Dated:

 

 

IN WITNESS WHEREOF, the
Company has caused this Note to be signed by its duly authorized director,
officer or other authorized signatory.

NTL CABLE PLC

 

By:                                                                                                          
          Name:  
          Title:

 

 

Certificate of Authentication

This is one of the       % Senior Notes due 2016 referred to in
the within-mentioned Indenture.

Dated:              
,

THE BANK OF NEW YORK,

as Trustee

 

By:                                                                                                          
          Authorized Signatory

 

 

[Form of  Reverse of
Note]

    % Senior Note due 2016

(1)   INTEREST.  NTL Cable PLC, a public limited company
organized under the laws of England and Wales (the “Issuer”), promises to pay
interest on the principal amount of this Note at     % per
annum from      until maturity.  The Issuer will pay interest semi-annually in
arrears on     and     of each year, or if any
such day is not a Business Day, on the next succeeding Business Day (each, an
“Interest Payment Date”).  Interest on
the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of issuance; provided that the first Interest Payment Date shall be
      . 
The Issuer will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
and on overdue installments of interest, if any (without regard to any
applicable grace periods), from time to time on demand at the same rate to the
extent lawful.  Interest will be computed
on the basis of a 360-day year of twelve 30-day months.

(2)   METHOD
OF PAYMENT.  The Issuer will
pay interest on the Notes to the Persons who are registered Holders at the
close of business on the     or     immediately
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest.  The Notes will be payable as to principal,
premium, if any, and interest at the office or agency of the Issuer maintained
for such purpose as provided in the Indenture or, at the option of the Issuer,
payment of interest may be made by check mailed to the Holders at their
addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest and premium, if any, on all Global
Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Issuer or the Paying Agent. 
Such payment will be in such coin or currency of the [United Kingdom/the
United States] as at the time of payment is legal tender for payment of public
and private debts.

(3)   PAYING
AGENT AND REGISTRAR. 
Initially, the Trustee will act as Paying Agent and Registrar and The
Bank of New York (Luxembourg) S.A. will act as Paying Agent in Luxembourg.  The Issuer may change any Paying Agent or
Registrar without notice to any Holder. 
The Issuer or any of its Subsidiaries may act as Registrar.

(4)   INDENTURE.  The Issuer issued the Notes under an
Indenture, dated as of July    , 2006 (the “Indenture”), among
the Issuer, Parent, the Intermediate Guarantors, the Senior Subordinated
Subsidiary Guarantor, the Trustee and The Bank of New York (Luxembourg)
S.A.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939, as amended (15 U.S. Code
§§ 77aaa-77bbbb) (the “TIA”).  The
Notes are subject to all such terms, and Holders are referred to the Indenture
and the TIA for a statement of such terms. 
To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and
be controlling.  The Notes are senior
unsecured obligations of the Issuer. 
Unless otherwise defined herein, capitalized terms used herein have the
meanings assigned to them in the Indenture.

(5)   OPTIONAL
REDEMPTION.

(a)   Except as set forth in paragraphs (b) and (c)
below or in Section 3.10 of the Indenture, the Issuer may not redeem the Notes
prior to       , 2011. At any time on or
after        , 2011, the Issuer may
redeem the Notes, in whole or in part, on not less than 30 nor more than 60
days’ prior notice, at the following redemption prices (expressed as
percentages of principal amount), plus accrued and

 

 

A-1

 

unpaid interest
thereon, if any, to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
Interest Payment Date), if redeemed during the 12-month period commencing on
     of the years set forth below:

	
  Redemption Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
   

  	
  %

  
	
  2012

  	
   

  	
   

  	
  %

  
	
  2013

  	
   

  	
   

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100

  	
  %

  

 

(b)   At any time prior to    ,
2011, the Issuer may at its option redeem the Notes in whole or in part, on not
less than 30 nor more than 60 days’ prior notice, by paying a redemption price
equal to the sum of 100% of the principal amount of the Notes to be redeemed,
plus the Applicable Premium, plus accrued and unpaid interest thereon, if any,
to the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant Interest Payment Date).

(c)   At any time prior to    ,
2009, the Issuer may, on one or more occasions, redeem up to a maximum of 40%
of the original aggregate principal amount of each series of Notes (calculated
after giving effect to any issuance of Additional Notes) with the Net Cash
Proceeds of one or more Equity Offerings, at a redemption price equal to
    % of the principal amount thereof, plus accrued and
unpaid interest thereon, if any, to the redemption date (subject to the right
of Holders of record on the relevant record date to receive interest due on the
relevant Interest Payment Date); provided,  however, that after giving effect to any such redemption at
least 60% of the original aggregate principal amount of such series of the
Notes (calculated after giving effect to any issuance of Additional Notes)
remains outstanding; and any such redemption by the Issuer must be made within
120 days of such Equity Offering.

(6)   MANDATORY
REDEMPTION.  The Issuer is not
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

(7)   REPURCHASE AT OPTION OF HOLDER.

(a)   Upon the occurrence of a Change of Control,
unless the Issuer has exercised its right to redeem the Notes as described in
Section 3.07 of the Indenture, each Holder will have the right to require the
Issuer to purchase all or any part of such Holder’s Notes at a purchase price
in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest thereon, if any, to the date of purchase (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant Interest Payment Date).  Within
30 days following any Change of Control, the Issuer will mail a notice to
each Holder setting forth the procedures governing the Repurchase Offer as set
forth in the Indenture.

(b)   In the event of an Asset Disposition that
requires the purchase of Notes pursuant to clause (a)(3)(C) of Section 4.10 of
the Indenture, the Issuer will be required to commence an Excess Proceeds Offer
pursuant to Sections 3.09 and 4.10(c) of the Indenture to purchase the
maximum principal amount of Notes that may be purchased out of the Allocable
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date fixed for the closing of such offer (subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant
Interest Payment Date) in accordance with the procedures set forth in the
Indenture.

 

A-2

 

(8)   NOTICE
OF REDEMPTION.  Notice of
redemption shall be given in accordance with Section 3.03 of the Indenture and the
effect of notice of redemption is set forth in Section 3.04 of the Indenture.

(9)   DENOMINATIONS,
TRANSFER, EXCHANGE.  The Notes
are in registered form without coupons in minimum denominations of
[£50,000/$100,000] and integral multiples of [£1,000/$1,000] in excess
thereof.  The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents.  The Registrar may not require
a Holder to pay any taxes and fees, except as otherwise set forth in the
Indenture.  The Registrar need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part.  Also, the Registrar need not
exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a
record date and the corresponding Interest Payment Date.

(10) PERSONS
DEEMED OWNERS.  The registered
Holder of a Note may be treated as its owner for all purposes, except as
otherwise ordered by a court of competent jurisdiction.

(11) AMENDMENT,
SUPPLEMENT AND WAIVER.  The
provisions of the Indenture governing amendment, supplement and waiver are set
forth in Article 9 of the Indenture.

(12) DEFAULTS
AND REMEDIES.  Events of
Default and Remedies are set forth in Article 6 of the Indenture.

(13) TRUSTEE
DEALINGS WITH ISSUER.  The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from and perform services for the Issuer or its Affiliates, and may
otherwise deal with the Issuer or its Affiliates, as if it were not the
Trustee.

(14) NO
RECOURSE AGAINST OTHERS.  No past,
present or future director, officer, employee, incorporator or shareholder of
Parent, the Company, any Intermediate Guarantor, the Issuer or any Subsidiary
Guarantor, as such, will have any liability for any obligations of Parent, any
Intermediate Guarantor, the Issuer or any Subsidiary Guarantor under the Parent
Guarantee, the Intermediate Guarantees, the Notes, the Subsidiary Guarantees or
the Indenture, or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases such liability.  The waiver and
release are part of the consideration for issuance of the Notes.  The waiver may not be effective to waive
liabilities under U.S. Federal securities laws.

(15) AUTHENTICATION.  This Note will not be valid until
authenticated by the manual or facsimile signature of the Trustee or an
authenticating agent.

(16) ABBREVIATIONS.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

(17) [CUSIP,]
ISIN NUMBERS AND COMMON CODES. 
The Issuer has caused [CUSIP and] ISIN numbers and Common Codes to be
printed on the Notes and the Trustee may use [CUSIP,] and ISIN numbers and
Common Codes in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

A-3

 

(18) GOVERNING
LAW.  THIS NOTE WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
(WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY).

The Issuer will
furnish to any Holder upon written request and without charge a copy of the
Indenture.  Requests may be made to:

NTL Cable PLC

ntl House

Bartley Wood Business Park

Hook

Hampshire, RG27 9UP

United Kingdom

Attention:  Corporate Secretary

 

A-4

 

ASSIGNMENT
FORM

To assign this Note, fill
in the form below:

(I) or (we) assign and
transfer this Note to:                                                                                                                                     

                                                                                                                          (Insert
assignee’s legal name)

                                                                                                                                                                                                                

(Insert
assignee’s soc. sec. or tax I.D. no.)

                                                                                                                                                                                                                

                                                                                                                                                                                                                

                                                                                                                                                                                                                

                                                                                                                                                                                                                

(Print
or type assignee’s name, address and zip code)

and irrevocably appoint ___________________________________________________________
to transfer this Note on the books of the Issuer. The agent may substitute
another to act for him.

 

Date:  _______________

Your Signature: 
                                                                                  

(Sign exactly as your name appears on the face of this
Note)

 

[Signature
Guarantee*:  _________________________

 

*              Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).]

 

 

A-5

 

OPTION
OF HOLDER TO ELECT PURCHASE

If you want to elect to
have this Note purchased by the Issuer pursuant to Section 4.10 or 4.15 of
the Indenture, check the appropriate box below:

o Section 4.10                                    o Section 4.15

If you want to elect to
have only part of the Note purchased by the Issuer pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you
elect to have purchased:

[£/$]_______________

 

Date:  _______________

Your Signature: 
                                                                                  

(Sign exactly as
your name appears on the face of this Note)

Tax Identification No.:                                                                         

 

[Signature
Guarantee*:  _________________________

 

*              Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).]

 

 

A-6

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

The following exchanges
of a part of this Global Note for an interest in another Global Note or for a
Definitive Note, or exchanges of a part of another Global Note or Definitive
Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in Principal Amount 

  of 

  this Global Note

  	
   

  	
  Amount of increase in Principal Amount 

  of 

  this Global Note

  	
   

  	
  Principal Amount 

  of this Global Note following such decrease 

  (or increase)

  	
   

  	
  Signature of authorized officer of Trustee or [Custodian][Common
  Depositary]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

A-7

 

Exhibit B

[FORM OF SENIOR SUBORDINATED SUBSIDIARY GUARANTEE]

For
value received, the Senior Subordinated Subsidiary Guarantor, to the extent set
forth in and subject to the terms of the Indenture, dated as of July     , 2006 (the “Indenture”),
among NTL Cable PLC,
a public limited company organized under the laws of England and Wales (the “Issuer”), NTL Incorporated, a Delaware corporation (“Parent”), NTL: Telewest
LLC, a Delaware limited liability company, NTL Holdings Inc., a Delaware
corporation, NTL (UK) Group, Inc., a Delaware corporation, NTL Communications
Limited, a limited company organized under the laws of England and Wales, NTL
Investment Holdings Limited, a limited company organized under the laws of
England and Wales (“NTLIH” or the “Senior Subordinated Subsidiary Guarantor”), The Bank of New
York, as trustee (the “Trustee”) and
The Bank of New York (Luxembourg) S.A., hereby jointly and severally with each
other Note Guarantor irrevocably and unconditionally guarantees to each Holder
and to the Trustee and its successors and assigns (1) the full and
punctual payment when due, whether at Stated Maturity, by acceleration, by
redemption or otherwise, of all obligations of the Issuer under the Indenture
(including obligations to the Trustee) and the Notes, whether for payment of
principal of or interest on or premium, if any, on the Notes and all other
monetary obligations of the Issuer under the Indenture and the Notes and
(2) the full and punctual performance within applicable grace periods of
all other obligations of the Issuer whether for fees, expenses, indemnification
or otherwise under the Indenture and the Notes (all the foregoing being
hereinafter collectively called the “Guaranteed Obligations”).  The Senior Subordinated Subsidiary Guarantor
further agrees that the Guaranteed Obligations may be extended or renewed, in
whole or in part, without notice or further assent from the Senior Subordinated
Subsidiary Guarantor, and that the Senior Subordinated Subsidiary Guarantor
shall remain bound under this Guarantee notwithstanding any extension or
renewal of any Guaranteed Obligation.

The obligations of the
Senior Subordinated Subsidiary Guarantor to the Holders and to the Trustee
pursuant to this Guarantee and the Indenture are expressly set forth in Article
11 of the Indenture.  This Guarantee is
subordinated to other Indebtedness as set forth in Article 12 of the Indenture
and pursuant to the Intercreditor Deed. 
Reference is hereby made to the Indenture for the precise terms and
limitations of this Guarantee.  Each
Holder of the Note to which this Guarantee is endorsed, by accepting such Note,
agrees to and shall be bound by such provisions.

The Senior Subordinated
Subsidiary Guarantee will be limited to an amount not to exceed the maximum
amount that can be guaranteed by the Senior Subordinated Subsidiary Guarantor
without rendering such Senior Subordinated Subsidiary Guarantee voidable under
applicable law relating to ultra vires, fraudulent conveyance, fraudulent
transfer, corporate benefit or similar laws affecting the rights of creditors generally.

[Signature on following page]

 

 

B-1

 

IN WITNESS WHEREOF, the
Senior Subordinated Subsidiary Guarantor has caused this Guarantee to be signed
by a duly authorized officer.

                                                                                                          NTL
INVESTMENT HOLDINGS LIMITED

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

 

B-2

Exhibit C

[FORM OF SENIOR GUARANTEE]

For
value received, each of the undersigned (the “Senior
Guarantors”), to the extent set forth in and subject to the terms of
the Indenture, dated as of July     ,
2006 (the “Indenture”), among NTL Cable PLC, a public limited company
organized under the laws of England and Wales (the “Issuer”),
NTL Incorporated, a Delaware corporation (“Parent”), NTL: Telewest LLC, a Delaware limited liability company,
NTL Holdings Inc., a Delaware corporation, NTL (UK) Group, Inc., a Delaware
corporation, NTL Communications Limited, a limited company organized under the
laws of England and Wales, NTL Investment Holdings Limited, a limited company organized
under the laws of England and Wales (“NTLIH” or the “Senior Subordinated Subsidiary Guarantor”), The Bank of New
York, as trustee (the “Trustee”) and
The Bank of New York (Luxembourg) S.A., hereby jointly and severally with one
another and with the Senior Subordinated Subsidiary Guarantor irrevocably and
unconditionally guarantees to each Holder and to the Trustee and its successors
and assigns (1) the full and punctual payment when due, whether at Stated
Maturity, by acceleration, by redemption or otherwise, of all obligations of
the Issuer under the Indenture (including obligations to the Trustee) and the
Notes, whether for payment of principal of or interest on or premium, if any,
on the Notes and all other monetary obligations of the Issuer under the
Indenture and the Notes and (2) the full and punctual performance within
applicable grace periods of all other obligations of the Issuer whether for
fees, expenses, indemnification or otherwise under the Indenture and the Notes
(all the foregoing being hereinafter collectively called the “Guaranteed Obligations”). 
Each Senior Guarantor further agrees that the Guaranteed Obligations may
be extended or renewed, in whole or in part, without notice or further assent
from such Note Guarantor, and that such Note Guarantor shall remain bound under
this Guarantee notwithstanding any extension or renewal of any Guaranteed
Obligation.

The obligations of each
Senior Guarantor to the Holders and to the Trustee pursuant to this Guarantee
and the Indenture are expressly set forth in Article 11 of the Indenture, and
reference is hereby made to the Indenture for the precise terms and limitations
of this Guarantee.  Each Holder of the
Note to which this Guarantee is endorsed, by accepting such Note, agrees to and
shall be bound by such provisions.

Each Senior Guarantee
will be limited to an amount not to exceed the maximum amount that can be
guaranteed by such Senior Guarantor without rendering such Senior Guarantee
voidable under applicable law relating to ultra vires, fraudulent conveyance,
fraudulent transfer, corporate benefit or similar laws affecting the rights of
creditors generally.

[Signatures on following page]

 

C-1

IN WITNESS WHEREOF, the
each Senior Guarantor has caused this Guarantee to be signed by a duly
authorized officer.

                                                                                                          NTL
INCORPORATED

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL:
TELEWEST LLC

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
HOLDINGS INC.

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
(UK) GROUP, INC.

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

                                                                                                          NTL
COMMUNICATIONS LIMITED

 

                                                                                                          By:                                                                                        
                                                                                                          Name:
                                                                                                          Title:

 

 

 

C-2

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